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Kingdom of Bahrain

Company Formation in Bahrain
Easy and Fast Processing

7 Simple Steps of Company Formation in Bahrain

Company formation also called company registration 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 are the 7 steps involved in company formation in Bahrain:

Step #1: Make Power of Attorney

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. Please read more about power of attorney in the following article:

Power of Attorney For Company Registration in Bahrain | PI Startup Advisory

Step #2: Reserve Commercial Name

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. You will be required to submit us 3 proposed commercial names as following:

Step #3: Register Headoffice of The Company

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. To register the headoffice we require Shop Photos (Pre-Approval, Lease Agreement (After approval) and, EWA (After approval). Samples are as below:

Step #4: Prepare Memorandum of Company

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.

Step #5: Notarize the Memorandum

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.

Step #6: Open Company Bank Account

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. Here is a sample of capital deposit certificate:

Step #7: Get Final Approval from MOIC

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. Following is a sample of active Commercial Registration:

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
  • 100% Ownership
  • Family Resident Permits
  • Employee Resident Permits
  • Govt Support for 1st 2 years. 
  • No Audit for 1st year. 
  • No Income Tax
  • No Corporate Tax
  • Easy closing within 2 years. 

With Limited Liability Company (WLL)

For foreign investors, WLL Company formation in Bahrain is the best approach to enter the GCC Market. It is similar to LLC in other countries. This structure limits the risk with the limited liability of the shareholders. It is governed by the Commercial Companies Law of Bahrain which meets International standards. WLL company formation is welcomed by the Bahraini government and the investors are awarded investor resident permits. 

Why choose PI Startup Advisory for Company formation?

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.

Following are the advantages of company registration in Bahrain

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.

    1. Greater Arab Free Trade (GAFTA)
    2. GCC Free Trade Agreement
    3. GCC-Singapore FTA (GSFTA)
    4. GCC-EFTA Agreement
    5. 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.

    1. Individual Establishment (Sole Proprietorship)
    2. Single Person Company (SPC / Single Member Company) 
    3. Bahraini Partnership Company (BPC / Partnership Company)
    4. With Limited Liability Company (WLL / Private Limited Company)
    5. Limited Partnership
    6. Bahraini Shareholding Company ( BSC / Joint Stock Company)
    7. Branch of a Foreign Company

Govt. entities involved in Company formation in Bahrain

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

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.

Cost of Company Registration in Bahrain

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

Business Environment of Bahrain for Foreign Investors

Business in Bahrain – 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. 

Business in Bahrain – Tax Structure

    • Corporate Tax in Bahrain: 0%
    • VAT in Bahrain: 10%
    • Income Tax in Bahrain: 0%

Companies in Bahrain – 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

Companies in Bahrain – 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

Companies in Bahrain – Public Disclosure of Annual Reports

      • WLL Companies: No
      • Single Person Companies: No
      • Bahraini Shareholding Company: Yes
      • Foreign Branch: No
      • Partnership Company: No

Companies in Bahrain – 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

Business in Bahrain – 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%.

Business in Bahrain – Business Development Programs

      • Incubation Centers: Available
      • Business Development Loans: Available
      • Govt Support Programs: Available
      • Business Centers: Available

Business in Bahrain – 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


Company formation in Bahrain - Frequently Asked Questions(FAQ)

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. Howerver,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:
  1. Passport Copy.
  2. NOC (For employees in Bahrain only).
  3. Power of Attorney or E-key.
  4. Office Address (Electricity Account).
  5. Memorandum of Association.
  6. 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.

Contact us for your business setup in Bahrain