• EBC Tower, Diplomatic Area, Manama, Kingdom of Bahrain.
Facebook Twitter Youtube Instagram
WhatsApp Us

Company Formation in Bahrain

A Comprehensive Guide to Establishing Your Business

Why Choose Bahrain for Company Formation?

Welcome to our comprehensive guide on company formation in Bahrain. If you’re considering starting a business in this thriving Middle Eastern nation, you’ve come to the right place. Bahrain’s strategic location, business-friendly environment, and robust infrastructure make it an ideal choice for entrepreneurs and investors alike. In this article, we will explore the various aspects of company formation in Bahrain, including the legal requirements, types of business entities, key benefits, and the step-by-step process to establish your company. Whether you’re a local entrepreneur or an international investor looking to tap into the lucrative Gulf market, our guide will provide you with valuable insights to navigate the company formation landscape in Bahrain seamlessly.

Bahrain's Growing Economy and Business Opportunities

Bahrain's Robust Infrastructure and Economic Stability
Tax Advantages and Incentives for Businesses in Bahrain

Legal Requirements for Company Formation in Bahrain:

  • Types of Business Entities in Bahrain 

  • Share Capital and Ownership Requirements

  • Obtaining Necessary Licenses and Permits

The Process of Company Formation in Bahrain

  •  Step 1: Choosing a Business Name and Legal Structure

  • Step 2: Registering the Company with the Ministry of Industry, Commerce, and Tourism

  • Step 3: Opening a Corporate Bank Account 

  • Step 4: Acquiring the Necessary Visas and Work Permits

  • Step 5: Registering for Taxes and Social Security Contributions

Support and Resources for Company Formation in Bahrain

  • We are Your business Guide and Partner

  • Networking Opportunities and Business Support Organizations

Unlock Your Business Potential in Bahrain and Start Your Journey Towards Success in the Kingdom of Bahrain

Contact us for More Info
female pointing to company formation in Bahrain

If you’re interested in setting up a business in Bahrain, Setup Bahrain Business Consultants is here to help. With years of experience and a team of highly skilled professionals, we are committed to providing exceptional services that cater to the unique needs of each client. Our range of services covers all aspects of company formation, and we provide expert advice on local laws and regulations, ensuring that our clients are fully compliant with Bahraini law.

company formation in Bh

For Company Formation in Bahrain

What will you Receive

A Company in Bahrain with 100% ownership

Commercial Registration CR for Company Formation in Bahrain

Residences for You, Your Wife (s) and Children (Below 24 Years)

CPR or resident Card of Bahrain for Company Formation in Bahrain

Two Work Permits for Your Employees from Inside/outside Bahrain

Visa or work permit for Company Formation in Bahrain

Corporate Bank Account with Online Banking & Sole Authorization

bank for Company Formation in Bahrain

Get In touch

For company formation in Bahrain

+973 3366 4381

Address :

EBC Tower, Diplomatic Area, Manama, Kingdom of Bahrain.

Email [email protected]

Steps to a company formation in Bahrain

#
Steps
Requirements
Approving Authority

1

Security Clearance

Passport copies of all Partners

Immigration (NPRA)

2

Business Name Registration

3 Proposed Names

MOICT

3

Company Office

Virtual / Work desk / Special Cabin /Physical

Municipality

4

Signing the Memorandum of
Association (Notary)

Presence of all Partners / Power of Attorney

Ministry of Justice

5

 Opening of Bank Account

Presence with Original Passports, IDS &
6 months’ Personal bank statements from any
country & Company Bank Statement ( if
available)

The Bank

For Urgent inquiry and want more information for company formation in Bahrain let our Experts make a call you!

If you want to get Your 100% Own Business in Bahrain ! let us provide you more information !

Contact Us

The process time for setting up a company is:

25 to 45 BUSINESS DAYS

Taxes

There is No Income Tax & No Corporate Tax

VAT in Bahrain -->

VAT is 10%

VAT IS 0% on Export of Services

If Sales are / Expected to be BHD 37500 + then Registration is Mandatory

If Sales are / Expected to be BHD 18500 + then Registration is Voluntary

Submission of Vat Returns Can be Quarterly / Annually

Renewal of Company – Smart Package

The License will be valid for one year and the renewal cost will be BHD 100/Month that includes

1. CR Renewal Fee BHD 50
2. CR Activity Renewal Fee 100
3. Chamber Renewal Fee BHD 16
4. Virtual Office BHD 500
5. Security Deposit in the Municipality BHD 100
6. Annual Audit Fee BHD 250
7. VAT Registration and Submission Yearly Charges BHD 240
8. Company Maintenance and Reporting for Ministries

If you want to start a Company Formation in Bahrain

let us make a Call you back

Contact Us

Residencies / Iqamas

You will get:

Investor Residency for All Partners
2 Work Permits
Company Formation in Bahrain by Setup in Bahrain

Work Permits can be increased if company got good workload

The cost of investor and work visa will be ->

BHD 172 for One Year
BHD 344 for Two Years
BHD 90 for Dependent

BHD 60 will be the immigration fee for transferring from visit visa
to work/investor/dependent residency.
If the employee is outside Bahrain, then BHD 30 for advertisement
will be added to each employee residency cost.

Get in Touch

For More Information please contact us

Follow Us
Facebook Instagram Youtube

The process time for residency is:

• 10-15 Days for investors
• 10-15 Days for Workers inside Bahrain
• 30-35 Days for Workers outside Bahrain*
• 05-10 Days for Dependents

*(21 days advertisement in the newspaper is required for workers outside Bahrain)

Renewal of Residencies

Visa Renewal cost will be same as previous:
•BHD 172 for one year
•BHD 344 for two Years
•BHD 90 for each dependent

There is no minimum stay time required in Bahrain to renew the Residencies, but the person should be inside Bahrain at the time of Renewal. It will take only few minutes to renew the residency. • There is no any entry exit requirements as well, you can travel anytime after obtaining/renewing the residency.

Hidden Costs

  • BHD 05 / Month is LMRA Fee
  • Insurance will be 4% of Basic Salary
  • BHD 05 will be the one-time admin fee to apply each residency
  • BHD 05 will be the one-time admin fee to apply each Dependent residency.
  • CPR (Central Population Record) , its an ID card in Bahrain that will be free of cost for Investors and Workers but BHD 20 each dependent with the requirement of Residential Electricity bill.
  • Vat Registration will cost BHD 50

Our Packages For Company Formation in Bahrain

Choose the Your Packages According to Your Business Need

Our Standard Package

AddressVirtual Address
Wi-Fi
No
Telephone
Yes
Secretary
No
Kitchen
No
Mail Routing
Yes
Security
No
Cleaning
No
Company formation
Yes
Processing Time (Days)
25- 30Days
Presence
Physical Presence Required
Cost
BHD 1390

Our Gold Package

AddressAn address with A Table and Chair
Wi-Fi
Yes
Telephone
Yes
Secretary
No
Kitchen
Yes
Mail Routing
No
Security
Yes
Cleaning
Yes
Company formation
Yes
Processing Time (Days)
10-15 Days
Presence
Physical Presence Required
Cost
BHD 1750

Our Premium Package

AddressAn address with a Cabin, an Officer Table and Chair, 2 Guest Chairs
Wi-Fi
Yes
Telephone
Yes
Secretary
Yes
Kitchen
Yes
Mail Routing
Yes
Security
Yes
Cleaning
Yes
Company formation
Yes
Processing Time (Days)
25-30 Days
Presence
Power of Attorney is Required
Cost
BHD 2200
Two columns
Vertical
Horizontal
Cost Calculator for Company Formation
Total Summary
Name Total
"{{getWooProductName}}" has been added to your cart
Have a promocode?
Promocode Hide Show

For Urgent inquiry and want more information let our Experts make a call you!

If you want to get Your 100% Own Business in Bahrain ! let us provide you more information !

Contact Us

Company Registration in Bahrain- An Overview

Bahrain forms a part of the gulf. It comprises of variety of islands which are natural made and artificial made. Manama is the current business hub in Bahrain which offers benefits for foreign investors. Currently the Bahraini government has eased restrictions related to foreign investment in the country. Hence different investors can get benefits related to incentives from the government. Company registration in Bahrain is quite straightforward. However it is important to comply with the requirements of Sharia law and the rules under the respective authority.

The major source of government revenue comes from crude oil production and export to other countries. Crude oil was found in the early 1930’s. About 60% of the government income is through the sale and export of crude oil. Bahrain is a member of the United Nations Convention, a trade member of the World Trade Organisation (WTO) and has co-operative relationships with other countries. It is a member of the GCC (Gulf Cooperation Council) and the International Monetary Fund (IMF).

Bahrain is the first country in Middle East to adopt technology in terms of computing and telecommunications. They have also developed different forms of governance strategies for handling compliance.

Bahrain has an active free trade agreement with the USA. This free trade agreement was signed between Bahrain and USA in 2006. Having access to the free trade agreement allows investors to conduct business in the country. All the above reasons make it beneficial for an investor to go for company registration in Bahrain.

The main regulatory authority for company formation in Bahrain is the Ministry of Industry, Commerce and Tourism (MOICT). An applicant has to utilise the ‘SIJILAT portal’ when registering the entity in Bahrain. Apart from this, it is important that the applicant carries out due diligence and research before incorporating a company in Bahrain.

Benefits of Company Registration in Bahrain

The following are the benefits of company registration in Bahrain:

  • Free Trade Agreement

    Since 2006, Bahrain has signed a free trade agreement with the USA. This is highly beneficial for foreign investment in Bahrain. Ever since this agreement, more amount of foreign investment has come to Bahrain.

  • Member of Different Treaties

    Bahrain is a member of different forms of treaties and agreements across the world. Bahrain is a member of the United Nations Convention, a trade member of the World Trade Organisation (WTO) and has co-operative relationships with other countries. It is a member of the GCC (Gulf Cooperation Council) and the International Monetary Fund (IMF). This would provide different forms of incentives for an applicant planning to go for company registration in Bahrain.

  • Exempt from Tax

    When a company is incorporated in Bahrain it is exempted from different forms of tax which include corporate tax, withholding tax and tax on dividends. Companies which are incorporated in Bahrain Free Zone would get benefits related to custom duties.

  • Highly Developed Financial Sector

    In terms of corporate finance, Bahrain is the one of the fast developing hub. The Central Bank of Bahrain has made an initiative to provide different forms of trainings in the above areas. Islamic finance is fast growing in Bahrain and contributes to the economy.

  • Double Taxation Agreements

    Bahrain has developed many double taxation agreements with other countries. This would also include the UK and the USA. This would benefit investors as they would not be taxed twice.

Eligible Business Structures for Company Registration in Bahrain

The following are the eligible business structures for company registration in Bahrain:

  • The Government of Bahrain has recently approved a new law that permits foreigners to have 100 percent ownership in business sectors. This move has attracted investors from all over the world, resulting in an enhanced business infrastructure in various sectors such as real estate, health and social work, administrative services, arts, entertainment, mining, and investments. This, in turn, offers a promising environment for your business to grow and flourish.

    Moreover, Bahrain offers an ideal economic development environment with a stable government and commendable policies that permit businesses to operate with ease. Commercial registration in Bahrain is a crucial part of company formation in Bahrain, which can provide several benefits, such as:

    • Easy access to the GCC region and beyond with modern infrastructure, including a world-class airport and seaport.
    • Business-friendly environment with a well-established legal system and regulatory framework that provides a transparent and predictable business environment.
    • Government initiatives that encourage entrepreneurship and innovation, including the establishment of startup incubators and accelerators.
    • Relatively low costs of company formation compared to other countries in the region, with a minimum capital requirement of only BHD 1,000 (approximately USD 2,650).
    • Extensive tax treaty network that allows for tax-efficient structuring of operations in the region.
    • Free trade agreement with the United States, providing businesses with access to the largest economy in the world.
    • Multicultural and tolerant society that welcomes people from all over the world.
    • High standard of living and quality of life for foreign entrepreneurs and their families.

    In conclusion, with the new law allowing 100 percent ownership to foreigners, Bahrain has become an even more attractive destination for investors and entrepreneurs looking to establish their businesses in the region. At Setup  Bahrain, we provide reliable and transparent services to help you establish and grow your business in Bahrain. Contact us today to learn more about how we can assist you with the establishment of your business in Bahrain.

What are steps for a WLL Company Formation In Bahrain

  • CHOOSE A BUSINESS NAME FOR WLL COMPANY FORMATION IN BAHRAIN

    This is also a very important step for WLL company formation in Bahrain. In our opinion, the name should be such which can be easily remembered by everyone and suggest what your business is all about. If you are going to start a consultancy it should not sound like a garage or shop etc.

    1.  Application – An application with the above data will be provided to the Ministry of Industry. In the application, all the details like capital, passport copies (if expats), shareholding pattern, type of company etc are chosen.
    2.  CR without a license – If the application is approved then the Commercial Registration (the “CR”) without the license is issued. If the application is not approved due to guarantee reasons then the application will be rejected. When the application is accepted then a payment is given to acquire the CR without a license.
    3. Get License – Once the above stage is satisfied then the final stage is to get the license as per the demands of the activity. They will time to time ask you to correct the mistakes if any and ask you to provide them with the documents also if required.
    4. Memorandum – The Memorandum of a WLL company formation in Bahrain is the crucial document and controls all the terms and conditions of the partnership. It is the constitution of the company so in our opinion, we would never suggest anyone trusts a novice or inexperienced person with such an important document.

Cost of setting up a company in Bahrain

When it comes to company formation in Bahrain, the cost of setting up a business is a key consideration for entrepreneurs and investors. The good news is that the cost of setting up a company in Bahrain is relatively low compared to other countries in the region. In Bahrain, there are different packages available for company formation, each with its own cost and features.

The Standard Package for company formation in Bahrain includes a virtual address and costs BHD 1300. This package is suitable for those who do not require a physical office space for their business operations. The virtual address allows businesses to establish a legal presence in Bahrain without the need for a physical office. The package includes all necessary documentation and services required for company formation, such as obtaining an e-key, drafting the memorandum of association, and registration with the Ministry of Industry, Commerce, and Tourism.

 For those who require a physical office space, there are two options available. The Gold Package includes a work desk and costs BHD 1700, while the Premium Package includes a cabin of 6 sqm and costs BHD 2100. These packages are suitable for businesses that require a physical office space for their operations. The packages include all the necessary documentation and services required for company formation, such as obtaining an e-key, drafting the memorandum of association, and registration with the Ministry of Industry, Commerce, and Tourism. Additionally, the packages include the cost of a physical office space for a certain period, which eliminates the need for businesses to pay extra for office rental.

It’s important to note that all costs associated with company formation in Bahrain are included in these packages. This means that clients do not need to pay anything extra for the services provided by the company formation service provider. The packages include all necessary documentation and services required for company formation, such as obtaining an e-key, drafting the memorandum of association, and registration with the Ministry of Industry, Commerce, and Tourism.

In conclusion, Bahrain offers a cost-effective and efficient process for company formation, with different packages available to suit the needs of different businesses. Whether you require a virtual address or a physical office space, there is a package that can accommodate your needs. By choosing a package that suits your business needs, you can save time, effort, and money in the process of setting up your company in Bahrain.

WHAT IS THE ACTUAL COST OF SETTING UP A COMPANY IN BAHRAIN

The Bahrain not only give great assistance for startups in the shape of pro-entrepreneur policies, state-of-the-art infrastructure and a prosperous ecosystem, but also a cost of doing business that is 30% lower than any other countries. Rental rates for commercial property are significantly more inexpensive than other nearby countries, while ICT and utility gives good value to businessmen. Moreover, Bahrain provides 100% foreign ownership in most industries, with no limitations on repatriation of capital, profits and dividend income. Furthermore, different licenses and agreements are essential for cost of setting up a company in Bahrain, but the process is easy and simple with minimum costs, normally less than USD$500 (BHD190 eliminating initial capital requirements and physical office address costs).

In conclusion, setting up a company in Bahrain is a straightforward process, with many benefits for foreign investors and entrepreneurs. At Setup  Bahrain, we are committed to providing transparent and reliable services to help you establish and grow your business in Bahrain. We offer a range of packages to suit your specific needs and budget, with all costs included so there are no hidden fees or surprises. Whether you are looking to establish a WLL company or another type of business entity, we can assist you with every step of the process.

To learn more about our services and how we can assist you with the establishment of your business in Bahrain, please don’t hesitate to contact us. You can easily reach us through the WhatsApp button on our website or send an email to [email protected]. Our team of experts is always ready to answer any questions you may have and guide you through the process of setting up your business in Bahrain. Don’t let this opportunity pass you by – contact us today and let us help you make your business dreams a reality in Bahrain!

FAQs

Yes, that’s the beauty of doing business in Bahrain. Foreign nationals can own a business in Bahrain by 100% ownership.

Common business structures in Bahrain include Limited Liability Company (W.L.L.), Joint Stock Company (B.S.C.), and branch offices of foreign companies.

Company Formation in Bahrain takes 25-45 Business Days.

Steps include selecting a business structure, reserving a trade name, preparing legal documents, depositing the required share capital, obtaining approvals, and completing registration with the Ministry of Industry, Commerce, and Tourism.

There is no hard rule for Capital amount but more the capital, more the easier process. We recommend minimum 1000 BHD.

Yes, it is possible to hire foreign employees, but it involves obtaining work permits and ensuring compliance with labor regulations.

Bahrain offers enticing advantages for company formation, featuring a tax-friendly environment with no corporate income tax and streamlined residency procedures, making it an attractive hub for businesses seeking favorable fiscal conditions and easy establishment. Additionally, its strategic location, business-friendly policies, and modern infrastructure further contribute to Bahrain’s appeal for foreign investors.

To form a company in Qatar, select a business structure, reserve a unique trade name, draft and notarize the Articles of Association, deposit the required share capital, obtain necessary approvals from relevant authorities, and complete commercial registration with the Ministry of Commerce and Industry. Specific details may vary, requiring consultation with local authorities or a business consultant for the latest information.

Common types of company formation in Qatar include Limited Liability Company (LLC), Joint Venture, Branch of a Foreign Company, and Representative Office, each with its own regulatory requirements and business implications. It is advisable to consult with local authorities or a business consultant for specific details based on the latest regulations.

There are no official plans or discussions for Qatar and Bahrain to merge into one country. The sovereignty and political decisions of each nation are independent, and any potential merger would involve complex political, diplomatic, and legal considerations.

Doing business in Qatar and the UAE differs in terms of local regulations, business culture, and market dynamics. Qatar tends to have a more centralized business environment with a focus on government-led initiatives, while the UAE, particularly Dubai and Abu Dhabi, has a diverse and cosmopolitan business landscape with a strong emphasis on international trade and investment. Companies should consider the specific nuances of each market, including legal requirements and cultural norms, when entering these distinct business environments.

If Qatar and Bahrain had joined the UAE in 1971, it would have significantly altered the geopolitical landscape of the Gulf region. The combined entity would likely have seen increased economic integration, shared governance structures, and a unified foreign policy. However, the actual dynamics and outcomes of such a hypothetical scenario are complex and speculative, considering the unique historical, cultural, and political contexts of each nation.

Do you want to

Start your 100 % Own Business in Bahrain?

Let us help you for company formation in Bahrain with each step you need

Start Now your 100% Own Business in Bahrain

Our Location

setup in Bahrain logo
MANAMA, KINGDOM OF BAHRAIN.

[email protected]
EBC Tower, Diplomatic Area, Manama, Kingdom of Bahrain.

Quick Links

Copyright 2024© Setup Bahrain | Powered by SIB

Verified by MonsterInsights