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.
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.
Types of companies 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:
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 of Bahrain provides an attractive business environment for local and foreign investors, including startups. By setting up a company in Bahrain, you can avail many of the advantages, including:
Work-Permits (Employee Visas)
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:
The formation of a company in Bahrain is a multistep process and involves the approval of various ministries. Each ministry has its own requirements, and a company has to meet those requirements for successful business registration. Here is how to register a company in Bahrain:
The first step in the formation of a company is to execute a power of attorney in favor of our representative. We will apply on your behalf and complete all the procedures. PI Startup Advisory team provides full support to its clients from this step until final approval for the formation of the company.
The next step for company formation is the reservation of the name of the company. PI Startup Advisory team helps its clients choose the appropriate name and applies for its reservation on behalf of the clients.
After the name reservation, the PI Startup Advisory team will apply for the company’s head office approval. It includes approval of office/shop/workshop Incubator commercial address. PI Startup Advisory team helps its clients find the most suitable business place keeping in view the requirements of the business.
The most important part of the company formation process is preparing the memorandum of association and Articles of Association. First, the PI Startup Advisory team drafts suitable clauses to meet the specific business structure. Then, the draft memorandum is shared with the clients. Upon their confirmation, the documents are submitted to MOIC for approval and further processing.
The next step in the company formation process is the attestation of legal documents from a public or private notary. PI Startup Advisory team manages the whole process of notary attestation for their clients.
For company formation in Bahrain, it is mandatory to open a bank account in the company’s name. Then, the company’s bank account is opened in the desired Bahraini bank, and the amount of capital is deposited.
As the last step, the notarized memorandum and Bank certificate, are submitted to MOIC for final approval. Upon approval of MOIC, your company formation is declared officially.
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:
Since company formation involves multiples steps and approvals, the normal time period spans from 30-45 working days. However, in the fast-track process, the time period is reduced and may take 18-25 working days. Therefore, the PI Startup Advisory team works systematically to complete the whole process within the minimum possible time to start your business at the earliest.
The cost of company formation in Bahrain varies based on different factors. A typical With Limited Liability (WLL) company, with the minimum capital requirement, costs around $2260. However, if you are interested in a specialized commercial registration, the cost may vary. Calculate Business License Cost
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.
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 5%.