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 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.

The Ministry of Industry and Commerce in Bahrain launched a new version of its Sijilat 3.0, in August 2023. The new system has made the company formation process faster, easier, and more user-friendly. PI Startup Advisory, a leading professional body in Bahrain, has updated its company formation guide in March 2023 to reflect the latest changes and requirements. One of the main changes is that now, we do not require Power of Attorney for company formation in Bahrain.

company formation in 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 Income Tax

Easy closing within 2 years.

100% Ownership

Employee Resident Permits

No Audit for 1st year

No Corporate Tax

Contact Form

Nature of proposed business

Office Requirements

Business Visa in Bahrain

During the company registration process, PI Startup Advisory provides sponsored business visas to its clients.

The requirements are as follows:

  1. Copy of passport
  2. Copy of resident ID
  3. Copy of previous visit visa (If any)

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.

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

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.

  • Personal presence of all shareholders
  • Last 6 months bank statements of all shareholders
  • Copy of commercial registration (CR)
  • Original identification documents
  • Account opening letter by company
  • Capital amount in cash

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

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.

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.

Tax Structure

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

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

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

Public Disclosure of Annual Reports

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


  •  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

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 Development Programs

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

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:

  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.