Company Incorporation in Bahrain - An Overview

Bahrain is located in the Gulf. It is made up of several man-built and naturally occurring islands. Manama, Bahrain's capital and modern business hub, welcomes global investors with open arms. The Bahraini government has currently loosened limitations on foreign investment in the nation. The extraction and export of crude oil to foreign countries is the government's primary funding source. Natural oil sales and exports account for almost 60% of the government's revenue. The Ministry of Industry, Commerce, and Tourism (MOICT) is Bahrain's primary regulatory body for company formation. The "SIJILAT portal" must be used by the applicant to register the entity in Bahrain.

Enterslice Company Registration Services Will Make Your Business

CFO Services

Flexible

We provide customised packages that can be adjusted to match your unique requirements and corporate objectives for forming a company in Bahrain.

CFO Services

Strategised

We will give you future insights into your plan and strategies for your business development by enabling our professional expertise in your business formation.

CFO Services

Compliant

We remove all your confusion and register your business by complying with the legal procedures with the help of our international legal consultants.

Embrace Your Corporate Journey With Enterslice Assistance by Getting

Financial modeling Services

Business Set-Up

Our professionals will help you choose the best business model for your needs while considering the nation's legal business structures. As quickly as possible, our team will finish all the necessary steps to assist you in launching your business.

Financial modeling Services

Secure Operation

The incorporation process is simple to implement and doesn’t need much research, and Enterslice, as the front-runner, takes all the responsibility for the incorporation. We complete the process safely, and your presence is not necessary. Everything will be safe with us.

Financial modeling Services

First-class Support

Our attentive support team has years of experience forming businesses and is available to assist you at every stage of the procedure. We will designate a qualified account manager to facilitate the efficient communication that your company has selected.

Financial modeling Services

Compliance Assurance

Our company formation in Bahrain services emphasised compliance, lowering the possibility of future legal problems. We'll help you navigate the complex phase of licences, permissions, and paperwork needed for seamless business registration.

Eligible Business Structures for Company Registration in Bahrain

1.Bahrani Joint Stock Companies

This type of organisation can sell shares to the general public. Open and closed joint stock companies are the two categories of enterprises that fall under Bahraini joint stock companies. Members' liability is restricted. These businesses are permitted to work on financial, insurance, and public procurement-related projects. A minimum of 250,000 BD is needed to form this kind of company. 50% of the share capital, or the capital mentioned above, needs to be deposited. This kind of business requires a minimum of two founders. The board of directors must have three members in addition to this. With this type of company, shares are permissible to foreigners.

2. Limited Liability Companies

This kind of organisation restricts a certain amount of shareholder responsibility. This type of corporation allows a maximum of 50 members to hold shares. In this type of entity, ownership by foreigners is permitted.

3. Partnership Companies

A partnership is an arrangement whereby two or more people split the company's profits. Generally, the partners' liability is unrestricted. It takes a minimum of two partners to form this kind of company

4. Company Limited by Shares

This kind of entity has two kinds of partners: the silent partner and the joint partner. This type of entity needs a minimum capital of 20,000 BD. Four members must be present for this kind of entity to be formed.

5. Single-Person Company

An organisation with a single owner is known as a single-person corporation. The number of shares is the limit on the single-person company's liability. This kind of entity can be formed with no minimum capital requirements. For this type of company, the audit compliance would need to be completed by an outside auditor. Generally, foreign ownership is permitted in this kind of business.

6. Foreign Company Branches

An overseas branch office extends the leading business. The overseas parent firm would be liable for the branch office's debts. A manager must complete all tasks in the branch office.

7.Holding Companies

This type of business is typically established as an independent unit for Bahraini public limited businesses or foreign joint stock firms. They would reassure outside parties of the company's commitments. A holding corporation may employ any structure.

Perks of Registering a Company in Bahrain

Economic Free Trade Agreement and Advanced Financial Sector

Bahrain and the USA have participated in a free trade agreement since 2006. Bahrain will significantly benefit from this international investment. Bahrain has seen an increase in global investment ever since this deal. Bahrain is one of the hubs for fast corporate finance development. The Bahrain Central Bank has taken the initiative to offer several training programmes in the fields above. In Bahrain, Islamic finance is expanding quickly and boosts the national economy.

Cash flow
Cash flow

Member of Different Treaties

Bahrain is a party to several international treaties and agreements. Bahrain has cooperative ties with other nations and is a trade member of the World Trade Organisation (WTO) and a member of the United Nations Convention. It is a part of the International Monetary Fund (IMF) and the Gulf Cooperation Council (GCC). This would offer various advantages to a candidate who wants to register a company in Bahrain.

Exempt from Tax and Double Taxation Agreements

A firm incorporated in Bahrain is not subject to corporate tax, withholding tax, or dividend tax, among other types of taxes. Businesses registered in the Bahrain Free Zone are eligible for reduced customs duties. Bahrain has created numerous agreements with other nations to prevent double taxation. The USA and the UK would also fall under this. Investors would gain from this since they wouldn't pay taxes twice.

Cash flow

Accounting and Tax obligations in Bahrain

Bahrain businesses are exempt from all taxes, except those in the mining, oil, gas, oil exploration, and refining businesses, which are subject to a 46% tax. Value-added tax, or VAT, is levied at a consistent rate of 5% on goods and services. Real estate companies, insurance companies, and financial services are exempt from VAT. There is no VAT on food or education. VAT is not applied to oil and gas exploration. 10% municipal tax is applied on foreign commercial and residential properties, and 2% stamp duty is charged on real estate sales and registrations. Imported items are subject to a 5% import charge. To demonstrate the authorised share capital and any changes to the firm, all corporations must file quarterly tax returns and present audited financial accounts within six months of the financial year's end. Bahrain encourages international business owners to establish companies in Bahrain through its Double Taxation Avoidance Agreement (DTAA) with more than 40 nations.

risk

Steps to register a company in Bahrain

To understand the procedures involved in incorporating a business and opening a bank account in Bahrain, follow this guide.

Step 1 Selecting an appropriate business entity for Bahraini company registration

Following a thorough analysis of your objectives and operations, our team of committed consultants will recommend the best corporate entity to handle your business operations. You will receive advice on the ideal paid-up share capital, corporate structure, laws, and whether you need to apply for any licences to operate your business before creating a Bahraini company.

Step 2 Holding onto the business name

Enterslice will reserve your selected company name with the Bahrain Commercial Registry using the Bahrain Ministry of Industry, Commerce, and Tourism's (MoICT) rules and conduct the initial name search availability. Owners and investors may suggest up to three names for the company; names that don't follow the rules will be turned down.

Step 3 Applying for and submitting a commercial registration application

To achieve commercial registration without a business licence, the third stage in the registration process is to submit registration necessary papers to the Ministry of Industry, Commerce and Tourism (MOICT). Individual investors and companies go through separate processes. Companies and organisations use the "SIJILAT portal" to submit commercial registration necessary papers to the Ministry of Industry, Commerce, and Tourism (MOICT).

Step 4 Obtaining additional authorisations and licences

Even though MOICT allows commercial business registration holders to begin operating immediately upon receiving their commercial registration, some specifically listed firms must first get permissions and approvals from several governmental and regulatory bodies. Enterslice will help, based on your business activity, obtain a legal business licence and permit when needed.

Step 5 Gather the supporting Paper works for Bahraini

Company registration approval; ultimately, our staff will help with local office address rentals. All corporate records and official papers shall be kept at the registered office. Usually, essential KYC necessary papers are requested from the directors and owners. The names of the directors, certified true passport copies, proof of address, bank reference letter, and resume for our internal due diligence checks are a few of these necessary papers. Enterslice will also draft the business plan, articles of association, and other incorporation necessary papers by the business activity and corporate structure.

Step 6 Opening a corporate bank account

Enterslice can assist with paperwork consolidation and corporate account setup with a reputed Bahraini bank of your choice to transfer capital money needed before the incorporation procedure

Step - 7 Getting approval to register the business with the Bahrain

Ministry of Industry, Commerce, and Tourism (MOICT) completes the Bahraini company establishment process. We will now deliver all necessary paperwork to the Bahrain Ministry of Industry, Commerce, and Tourism (MoICT) to receive the required final approval. Once everything is approved, your business is registered. The Certificate of Incorporation, Memorandum and Articles of Association, and other corporate necessary papers will be sent by courier from Enterslice to the address of your choice.

SIJILAT Commercial Registers System in Bahrain

In an attempt to develop a particularly effective computerised system for company registration in Bahrain that is integrated with the licencing system, the Commercial Registers System, or SIJILAT, was introduced. The entire procedure of registering a company and obtaining a licence is simplified by connecting the electronic systems utilised by all official agencies that grant particular licences and permits. A single, unified platform known as the Commercial Registers Systems provides all the services business owners require to establish a new company or update information about an existing one, as well as by anyone wishing to do an extensive business search.

risk
risk

necessary papers required for Company Registration in Bahrain

Some of the necessary papers required for company registration in Bahrain are:

  • Name of the company
  • Memorandum and Articles of Association
  • Minimum of two shareholders
  • Minimum of two directors
  • Shareholders’ agreement
  • Notarized copies of the passports of the directors
  • Registered Address of the Business
  • Shareholders and Directors’ register.

Eligibility criteria for Bahrain company registration

financial_report_sec

Minimum Shareholders and Directors

To be registered in Bahrain, a company must have at least two shareholders. The minimum number of directors for joint stock companies in Bahrain should be three. A limited liability company, however, needs a minimum of one director. In the case of a single-person firm, that person would be the lone director. At least one director must be appointed for a foreign branch office. The appointment of the director is the parent company's responsibility.

financial_report_sec

Minimum Capital Requirement

The applicant must meet the minimum capital requirements to register a corporation in Bahrain. The minimum capital needed for a limited liability business is BD 20,000, and for a joint stock company, it is 2,50,000 BD.

financial_report_sec

Registered business address

The corporation must have a registered business address to register a company in Bahrain. The corporation mail and all official correspondence will be sent to the official company address.

Do you wish to learn more about our services?

Our dedicated team is available all the time to assist you. Please get in touch with us if you need help with the British Virgin Island Company Registration. Let us help you achieve your goals.

lets_connect

Our Three Easy Stages of Company Registration in Bahrain

Get Enterslice Assistance

To register as a company in Bahrain, first contact Enterslice. Our team of professionals will provide appropriate assistance throughout the registration procedure. Our team of experts will give you a flawless experience through the Bahrain company registration procedure.

necessary paperation and Processing

Our group guarantees simple Paper works. We gather the required necessary papers and distribute the relevant drafts to ensure timely filing and delivery. We expeditiously prepare and file your application as soon as we obtain the required paperwork and data. You are notified of developments regarding your application.

Successful Registration

We fulfil what we commit. After the matter is resolved, we give you access to all pertinent digital and physical papers and promise to reimburse you if something goes wrong. On successful registration, you can start the business in Bahrain as soon as possible and plan for your future with Enterslice. We provide services for future development with prior planning and execution.

Compliances for Company Registration in Bahrain

Shareholders Meeting

A shareholders' meeting shall be called by limited liability companies six months after the conclusion of the fiscal year. Joint stock firms must call A shareholders' meeting three months after the fiscal year ends.

Board Meeting

A board meeting is required for joint stock companies once a quarter. As a result, four board meetings must be held during a fiscal year. If the articles of organisation mandate board meetings, limited liability firms are obliged to convene.

Annual Tax

The National Taxation Authority (NTA) must receive the Annual Tax VAT submission.

Business Registration

All companies must register with the Bahraini Central Bank and the Ministry of Information and Communications Technology. They are required to review the MOICT-issued Commercial Registration (CR) every year following successful incorporation.

Request a Call

Ready to take the next step? Book a 1:1 call with us to discuss your financial goals and how our CFO services can help you achieve them.

Can a foreigner start a business in Bahrain?

Yes, Bahrain allows foreign corporations to be owned entirely by foreign entities. It enables foreign companies to have branches or representative offices there without the assistance of local partners or sponsors from Bahrain. The Bahrain government increased the list of industries where foreigners can hold a 100 per cent stake in businesses. These industries now include real estate, mining and quarrying, tourism services, water distribution, water transport operations, and crop cultivation and propagation. The Bahrain government relaxed limitations on foreign ownership in the oil and gas industry in May 2019, permitting, under certain circumstances, 100% foreign ownership in projects involving oil and gas extraction.

Company formation

The first step in creating a legal entity is establishing a business. It entails establishing ownership, providing liability protection, and establishing a clear corporate structure. This procedure may change depending on the industry, jurisdiction, and type of business. A successful company creation that complies with legal laws and your business goals requires careful consideration of legal, tax, and operational factors.

success_story_img

Our Commitment to Excellence

Commitment

Reliable Professionals

From opening bank accounts to incorporating businesses in Bahrain, our seasoned specialists produce outstanding outcomes supported by their vast experience and professionalism.

Commitment

Excellent Service

At Enterslice, we're dedicated to giving our customers exceptional service and ensuring that their financial demands are satisfied precisely and accurately. Our group of committed experts goes above and beyond to produce outstanding outcomes.

Commitment

Client-Centric Approach

To guarantee that you are always completely informed about the status of your application, our proactive team of specialists prioritises continuous and transparent communication.

Timeline for Company Registration and Opening Bank Account

In ten weeks, Enterslice will finish registering your Bahraini corporation. We will check to see if your selected company name is available and produce the necessary incorporation necessary papers once we have received the directors' and shareholders' necessary papers. We will provide non-travel options designed to be practical during the Bahraini company registration procedure. Once the setup is finished, we will courier the new company's Paper works to your specified address. Enterslice will arrange a bank account for your business following the conclusion of your company's Bahraini registration. It will take about four weeks to finish this. After our 14-week engagement, you may anticipate having your business completely operational.

financial

Frequently Ask Questions

In ten weeks, Enterslice will register your Bahrain company.

Yes, the public can access a company's shareholder and director details.

The two most popular forms of registered corporations in Bahrain are limited liability companies and free zone companies.

Bahrain permits 100% foreign ownership when setting up a business. Restrictions based on industry and firm type may be applicable.

The process of registering a company name starts with the filing of the required paperwork. Enterslice assists with preparing and compiling the required paperwork, ensuring it satisfies the standards established by the Bahrain Commercial Registry for company name approval.

The minimum capital needed for a limited liability business is BD 20,000, and for a joint stock company, it is 2,50,000 BD.

The company's needs would determine the minimal number of stockholders. In Bahrain, businesses typically need to have a minimum of two shareholders.

No, Bahrain does not have any nationality restrictions for businesses.

No, Bahrain does not impose any restrictions on international investment. Nonetheless, careful consideration and research are necessary before investing in a particular industry.

In Bahrain, having a physical office is necessary.
Digital Transform

Design Your Business Future with Enterslice by Incorporating a Company in Bahrain

Our staff at Enterslice can provide helpful assistance and strategic direction at every step of your company's development, from assessing the scope of work to obtaining Bahraini company formation, registration, and post-setting support services. Our experts offer top-notch management consulting services to public, commercial, non-public, and academic businesses, accumulating extensive skills in several functional and speciality areas over the years. We have been the go-to partner for several ground-breaking and creative projects that global businesspeople have been working on. Please contact us if you need help incorporating your business in Bahrain.

Our Success Story

We have more than ten years of experience with licencing, business planning, and other legal compliances in addition to domestic and international business registration. Our journey is filled with success stories we have accomplished over the years by making the right decisions for new or established businesses. Our first-rate assistance will guarantee a smooth and timely incorporation and help you to realise your vision of the company in Bahrain.

We partner with more than 100+ companies

-- Testimonials

Don't take our word for it

In the news

×

Get Expert Guidance

Get Started Live Chat