HASSLE FREE
Company Formation
IN BAHRAIN
-2025
Bahrain is becoming a top choice for entrepreneurs and investors. They want to start businesses in the Gulf region.
People recognize Bahrain for its friendly business environment and 0% corporate tax. Its strategic location provides many opportunities for companies of all sizes. Starting a small business or growing a substantial one in Bahrain can be extremely advantageous. It gives you access to a strong economy, GCC markets, and helpful regulations.
Establishing your business in Bahrain is a streamlined process with the right guidance. Bahrain offers 100% foreign ownership, low bureaucracy, and strong infrastructure. This mix of tradition and modernity makes it a great place for ambitious businesses. This guide will walk you through the key steps and insights needed to successfully navigate company formation in Bahrain.
Key Information
Ownership | 100% Foreign Ownership Allowed |
Tax | 0% Corporate Tax, 0% Income Tax |
Available Business Structures | – With Limited Liability (WLL) |
– Branch of a Foreign Company | |
– Joint-Stock Company | |
– Partnership Company | |
Minimum Capital Required | No minimum capital requirement specified. |
Registration Timeframe | Approximately 11–20 Business Days Platinum Package |
Required Documents | – Clear copies of passports |
– Duly signed KYC forms | |
– Duly signed Engagement letter | |
– Authorization letter |
7 Simple Steps of Company Formation in Bahrain
Company formation in Bahrain also called company registration in Bahrain is a multi-step process and involves the approval of various ministries. Each ministry has its requirements, and a company has to meet those requirements for successful business registration.
Following is the new procedure for company formation/registration in Bahrain in 2025:
- Step #1: Security Clearance
- Step #2: Reserve Commercial Name
- Step #3: Register the Headoffice of the Company
- Step #4: Prepare Memorandum of the Company
- Step #5: Notarize the Memorandum
- Step #6: Open Company Bank Account
- Step #7: Get Final Approval from MOIC
Last Updated: 27-01-2025
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Step#1: Security Clearance
The first step to company registration in Bahrain is Security Clearance. The PI Startup Advisory team will draft the initial KYC documents for the client to sign. After getting the signed documents, the PI Startup Advisory team will send the client’s IDs to Nationality Passport and Residency Affairs Bahrain for approval.
The following are the required documents at this step:
- Clear copies of passports
- Duly signed KYC forms
- Duly signed Engagement letter
- Authorization letter
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Step #2: Reserve Commercial Name
The second step of the company formation in Bahrain is to reserve the commercial name of the company. You can provide us three proposed commercial names according to your preference. Following are the rules and regulations for choosing the commercial name of the company:
✓ The business name in Bahrain can be a person’s name.
✓ The business name can be a part of a person’s name.
✓ The business name can be an innovative name.
✓ The business name can be a combination of above mentioned.
✓ The business name may include a description of the business activity.
✓ The name must be unique and must not have been registered already. It must not be similar to an existing business.
✖ The name should not consist of a common word Only. Such as Mechanical Workshop, Hospital, School, etc.
✖ It must not contradict the undertaken business activities.
✖ It must not contradict local laws & values.
✖ It should not be the same as an internationally known company.
✖ It should not reflect any religious, political, or military affiliations.
✖ It should not be similar to any honorary name, emblem, or social organization.
✖ It should not be a translation or imitation of reputable marks, brands, or third parties.
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Office space in Bahrain suitable for company headquarters"
Step #3: Register Head office of The Company
Company registration in Bahrain requires a physical office address that aligns with your business activity. You have two options to fulfill this requirement:
1. Office Solution Provided by PI Startup Advisory: Our team will offer a tailored office solution that perfectly matches your business needs, ensuring a seamless registration process.
2. Self-Selected Office: If you prefer to select your own office space, we will handle the registration process for you. In this case, you will need to provide the following documents for approval:
- Office Photos (Pre-Approval)
- Lease Agreement (After approval)
- Electricity Bill (After approval)
Rest assured, the PI Startup Advisory team is here to support you in finding the most suitable office solution for your business.
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Step #4: Drafting Deed of Association
The most important part of the company formation process in Bahrain is preparing the Deed of Association. The PI Startup Advisory team drafts suitable clauses to meet the specific business structure requirements. Once the draft is completed, the documents are submitted to the Ministry of Industry, Commerce, and Tourism (MOIC) for approval and further processing. This step is crucial for the successful company registration in Bahrain.
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Step #5: Notarize the Deed of Association
The next step in the company formation process in Bahrain is notarizing the Deed of Association from a public or private notary. The PI Startup Advisory team manages the entire notary attestation process for their clients, ensuring a smooth company registration in Bahrain.
For the notarization of the company’s Memorandum (Deed of Association), the following requirements must be met:
- The physical presence of the shareholders is mandatory for company formation in Bahrain.
- If an attorney is signing the documents, the original Power of Attorney is required.
- All shareholders must present their original passport to the notary for the company’s registration.
- All shareholders are required to sign the Memorandum using their Passport Signature, a crucial step in setting up a company in Bahrain.
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Step #6: Open Company Bank Account
For company formation in Bahrain, opening a bank account in the company’s name is mandatory. The company’s bank account is opened in a chosen Bahraini bank, and the capital amount is deposited. Above is a sample of a capital deposit certificate.
Requirements for opening a company bank account in Bahrain:
To open a company bank account in Bahrain, you need to provide the following documents and meet the conditions:
- A bank statement in English language covering the last six months of your business activity, with a bank seal on each page to verify its authenticity.
- The physical presence of all shareholders of your company at the bank branch where you intend to open the account.
- Supporting documents that demonstrate the source of income for your company, such as business bank statements or salary slips from your employees.
- A business summary outlining the nature and scope of your business, along with a financial plan projecting your expected revenue and expenses.
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Step #7: Finalizing Company Registration in Bahrain with MOIC Approval
In the final step of company registration in Bahrain, the notarized memorandum and bank certificate are submitted to the Ministry of Industry, Commerce, and Tourism (MOIC) for final approval. Once the MOIC grants approval, your company formation in Bahrain is officially recognized. Above is an example of an active Commercial Registration:
Company Formation Cost in Bahrain
Starting a business in Bahrain offers immense opportunities, but understanding the associated costs is crucial for a smooth setup. Here’s a breakdown of our company formation packages tailored to meet your needs:
Services | Platinum (BHD 2151 incl. VAT) | Gold (BHD 1612 incl. VAT) | Silver (BHD 1326 incl. VAT) |
---|---|---|---|
Consultation in choosing the right company structure | ✓ | ✓ | ✓ |
Security clearance from Nationality, Passport & Residency Affairs | ✓ | ✓ | ✓ |
MOICT Approval | ✓ | ✓ | ✓ |
Articles/Deed of Association Draft Submission | ✓ | ✓ | ✓ |
Corporate Bank Account Assistance | ✓ | ✓ | ✓ |
Commercial Activity License (1 Year) | ✓ | ✓ | ✓ |
Chamber of Commerce Membership (1 Year) | ✓ | ✓ | ✓ |
Business Center Address (1 Month) | ✓ | ✓ | ✓ |
Tax & LMRA Compliance Guidance | ✓ | ✓ | ✓ |
Additional Services (e.g., Electronic Key Registration, Personal Multi-Currency Bank Accounts) | ✓ | X | X |
Time Frame | 11- 20 days | 25 – 30 days | 35-40 days |
Note: the timeline is mentioned in business days.
Key Features of Company Bank Account in Bahrain
Online Banking Facility
Manage your business finances from anywhere, at any time, with secure and easy-to-use online banking platforms.
Multiple Authorized Signatories
Enable single or joint signatories to operate the account, ensuring smooth operations and increased security for your transactions.
International Wire Transfer Facility
Easily send and receive payments across borders, supporting your global business operations.
Trade Finance
Access financial tools to manage import and export activities, ensuring seamless international trade.
Corporate Debit Card
Some banks offer corporate debit cards to single member WLL companies for easy payments and expense management, giving you flexibility in daily transactions.
Multiple Currency Accounts
Hold accounts in multiple currencies to avoid exchange rate fluctuations and simplify international dealings.
Checkbook Availability
Issue checks to vendors, suppliers, or employees for enhanced payment flexibility.
USD and Euro Accounts
Open accounts in widely used currencies like USD and Euro to support your global business activities.
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Types of Business Entities in Bahrain
1. Limited Liability Company (WLL) - Recommended
Following are the features of a WLL Company in Bahrain
- Structure: A private company where there is restriction of number of shareholders , each shareholder is liable only to the extent of their share in the capital.
- Capital Requirements: No minimum capital requirement specified; however, the capital should be sufficient to achieve the company’s objectives.
- Foreign Ownership: Permits up to 100% foreign ownership in most sectors.
2. Single Person Company (SPC)
- Structure: Owned by a single individual, who can be a natural person or a corporate entity.
- Liability: The owner’s liability is limited to the company’s capital.
- Capital Requirements: No specific minimum capital; it should align with the company’s activities
Note: SPC’s have been merged with WLL. Now you can setup a WLL without restriction over number of shareholders
3. Branch of a Foreign Company
- Allows foreign companies to establish a branch in Bahrain without creating a new legal entity.
- The parent company is fully liable for the branch’s obligations.
- Must be registered with the Ministry of Industry, Commerce, and Tourism (MOICT).
- Cannot engage in activities beyond what is permitted by Bahraini law.
4. Joint-Stock Company (Public Shareholding Company)
- Structure: Capital is divided into freely transferable shares, and shareholders’ liability is limited to their shareholding.
- Capital Requirements: Minimum capital of BHD 1 million.
- Shareholders: Requires at least two shareholders; shares can be offered to the public.
5. Bahrain Shareholding Company (Closed) – BSC(C)
- closed joint-stock company where shares cannot be offered to the public.
- Shareholders’ liability is limited to their contributions.
- Minimum Capital: BHD 250,000.
- Ideal for businesses with a limited number of shareholders.
- Management is overseen by a board of directors, elected by the shareholders.
6. Bahrain Shareholding Company (Public) – BSC(P)
- A public joint-stock company where shares are offered to the public and traded on the stock exchange.
- Shareholders’ liability is limited to their share value.
- Minimum Capital: BHD 1,000,000.
- Requires at least two shareholders and a board of directors.
- Suitable for large-scale businesses requiring public investment.
7. Partnership Company
- A general partnership where two or more partners jointly manage the business.
- Partners share profits and are jointly and severally liable for the company’s obligations.
- Management: Managed directly by the partners.
- Suitable for small businesses and professional firms.
8. Simple Commandite Company
- A limited partnership comprising:
- General Partners: Fully liable and responsible for management.
- Limited Partners: Liability restricted to their contributions.
- Does not involve shares and is simpler than a “Commandite by Shares” company.
- Suitable for partnerships seeking clear distinctions between management and investment.
Source: Commercial Companies Law Bahrain
Business for Foreigners in Bahrain
Foreigners can own businesses in Bahrain 100%! Foreigners can avail following benefits by owning a business in Bahrain:
Investor Resident Permit
Family Resident Permits
Govt Support for 1st 2 years
No Corporate Tax
Multi Currency Bank Accounts
100% Ownership
No Income Tax
No Audit for 1st year
Employee Resident Permits
Easy closing within 2 years.
Business Visa in Bahrain
During the company registration process, PI Startup Advisory provides sponsored business visas to its clients.
The requirements are as follows:
- Copy of passport
- Copy of resident ID
- Copy of previous visit visa (If any)
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Why choose PI Startup Advisory for Company formation?
PI Startup Advisory is an Authorized Service provider regulated by the Ministry of Industry and Commerce Bahrain. Working with us ensures you that your company is being incorporated by a legitimate, competent, and trustworthy service provider.
Though SIJILAT provides a streamlined application processing and approval system for prospective investors. However, it is no surprise that people who are just starting their business might find it overwhelming to go through the entire process of company formation.
This is why the PI Startup Advisory team is here to help. With our services, you can easily set up your business in the Kingdom of Bahrain without any inconvenience. With our dedicated team of company formation and commercial business registration professionals, you will be able to focus on other business tasks and save a lot of time and hassle.
All you have to do is to get in touch with us. Our consultants will discuss all the details and advise you on the best organizational structure that suits your business goals.
PI Startup Advisory team has helped numerous local-funded, as well as foreign-funded businesses in lawfully registering their businesses in Bahrain. It’s your turn now! Contact us with confidence and get your business set up in the hub of the middle east.
Why Register a Company in Bahrain?
Company formation in Bahrain is the first step to set up your dream business in Bahrain. You can practice commercial activities in the Kingdom of Bahrain only by registering in the commercial registers.
Since Bahrain has 0% Corporate & Income Tax, setting up an offshore company in Bahrain is very practical.
The commercial register is established to facilitate local and foreign investors and entrepreneurs and choose an appropriate form of business. You can choose sole proprietorship, partnership, or a company as your business organization. However, a With limited liability company (WLL) is a preferred business structure.
The Kingdom of Bahrain is known for its investment-friendly business and corporate environment in the middle east. As one of the leading countries in GCC, Bahrain has great potential for investment and innovative business ventures. The new commercial registers system (SIJILAT) provides a kind of one-window application process through the online submission and approval system. The Kingdom provides an attractive business environment for local and foreign investors, including startups.
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Why Bahrain
Following are the advantages of company registration in Bahrain
✓ 100 percent foreign ownership
✓ No corporate tax
✓ No Income tax
✓ No third-party involvement
✓ Access from the heart of the Gulf to several developed and emerging markets
✓ Businessman Visa
✓ Work-Permits (Employee Visas)
✓ Exceptional Lifestyle
✓ Free Zone Everywhere
✓ Strong Currency
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COVID-19 and Business Registration in Bahrain
COVID 19 brought the world to a halt. For Bahrain a critical regional hub the outlook was uncertain. The supply chain destructed risking profits, jobs, and livelihoods, threatening the companies calling the Kingdome “Home”. But time like this can bring the best in us. Standing apart yet together as one supporting those who place their trust in us. After a great struggle of Government and with the cooperation of big supply chain firms and IT giants, Bahrain is Open for Business!
Bahrain Free Trade Agreements (FTA)
The Kingdom of Bahrain has signed 5 free trade agreements with 22 countries, promoting business opportunities and reducing trade barriers. By signing these FTAs Bahrain has seen a remarkable increase of 32.60% in imports. Following is the list of Bahrain’s FTAs.
- Greater Arab Free Trade (GAFTA)
- GCC Free Trade Agreement
- GCC-Singapore FTA (GSFTA)
- GCC-EFTA Agreement
- US-Bahrain FTA
Company Formation types in Bahrain
The legal system in the Kingdom of Bahrain provides a variety of business structures. If you have chosen Bahrain for your business, you have a choice to form.
- Individual Establishment (Sole Proprietorship)
- Single Person Company (SPC / Single Member Company)
- Bahraini Partnership Company (BPC / Partnership Company)
- With Limited Liability Company (WLL / Private Limited Company)
- Limited Partnership
- Bahraini Shareholding Company ( BSC / Joint Stock Company)
- Branch of a Foreign Company
Govt. entities involved in Company formation in Bahrain
- Nationality Passport & Residency Affairs
- Ministry of Industry Commerce & Tourism
- Ministry of Works, Municipalities Affairs & Urban Planning
- Labor Market Regulatory Authority
- Other licensing authorities according to the type of business.
Requirements for Company Bank Account
Company incorporation requires opening a corporate bank account and deposit the authorized capital. With the help of our specialized company formation team, you will be able to open a company bank account in 1-3 business days. For under formation companies in Bahrain following are requirements to open a Bank Account.
Timeline for Company Formation in Bahrain
Cost of Company Registration in Bahrain
PROFESSIONAL COMPANY FORMATION AGENTS IN BAHRAIN
Business Environment of Bahrain
for Foreign Investors
At PI Startup Advisory, we help our customers stream through the corporate world in Bahrain with startup advisory and specialized company formation services. In doing so, we sit down with our customers, note their wants, and customize our services accordingly.
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Free Zone
Unlike other gulf countries, the Kingdom of Bahrain has no geographical restrictions. The whole country is a free zone area. Therefore, you can set up a company in any city in Bahrain. However, there are certain restrictions related to business activities.
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Tax Structure
- Corporate Tax in Bahrain: 0%
- VAT in Bahrain: 10
- Income Tax in Bahrain: 0%
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Organizational Structure
- Minimum Shareholders: 1
- Maximum Shareholders: Unlimited
- The requirement of local Directors: No
- Residency of Directors: Not Required
- Residency of Shareholders: Required by banks
- Residency of Authorized Signatories: Not Required
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Capital Requirements
- Minimum Capital: No restriction by law.
- Public disclosure of Share Capital: Yes.
- Capital in cash: Allowed.
- Capital in kind: Allowed.
- Debentures: Allowed for Bahraini Shareholding Companies Only
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Public Disclosure of Annual Reports
- WLL Companies: No
- Single Person Companies: No
- Bahraini Shareholding Company: Yes
- Foreign Branch: No
- Partnership Company: No
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Banking
- Requirement for the personal presence of Shareholders to open company account: Yes
- Online Banking: Available
- Corporate Debit Card: Available for single-member companies
- Current Account: Available
- Saving Account: Available
- International Funds Transfer: Available
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Regulatory Bodies
- Commercial Register: The Ministry of Industry, Commerce & Tourism (MOIC) is responsible for commercial registration in Bahrain.
- Commercial Law: All commercial companies in Bahrain are regulated by The Commercial Companies Law Bahrain DECREE LAW NO. (21) OF 2001.
- Employment Regulation: Labour Market Regulatory Authority Bahrain (LMRA) is responsible for implementing the Labour Law in Bahrain.
- Tax Regulation: National Bureau for Revenue (NBR) is implementing tax regulations in the Kingdom. Currently the only tax in Bahrain is VAT which is 10%.
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Business Development Programs
- Incubation Centers: Available
- Business Development Loans: Available
- Govt Support Programs: Available
- Business Centers: Available
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Foreign Ownership
- Individual Establishment: Allowed for Americans and GCC national foreign investors.
- Single Person Company: Allowed
- Partnership Company: Allowed
- With Limited Liability Company: Allowed
- Limited Partnership: Allowed
- Bahraini Shareholding Company (Joint Stock Company): Allowed
FAQ’ s
Can a foreigner open company in Bahrain?
Yes. Kingdom of Bahrain allows foreign ownership of Companies.
How long does it take for company formation in Bahrain?
A typical company can be formed in 18-25 working days.
Can company formation be done online in Bahrain?
Around 90% of the company formation procedure can be done virtually. However, Personal presence is required to open company bank account.
What are the requirements for company formation in Bahrain?
Following are the requirements for company formation in Bahrain:
- Passport Copy.
- NOC (For employees in Bahrain only).
- Power of Attorney or E-key.
- Office Address (Electricity Account).
- Memorandum of Association.
- Capital Deposit Certificate.
How many Resident Permits (Visas) I will get by setting up a company in Bahrain??
By setting up a company in Bahrain each shareholders will get a “Businessman/Investor” resident permit and resident permits for their dependents (Spouse and Children). Initially you can avail 2 work-permits for your employees. Later you can increase the work-permits by providing the workload document to LMRA.