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.
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.
The first step is to get the security clearance approval. 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:
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:
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. Here is a sample of capital deposit certificate:
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:
Foreigners can own businesses in Bahrain 100%! Foreigners can avail following benefits by owning a business in Bahrain:
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.
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.
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.
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.
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!
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 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.
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.
Yes. Kingdom of Bahrain allows foreign ownership of Companies.
A typical company can be formed in 18-25 working days.
Around 90% of the company formation procedure can be done virtually. However, Personal presence is required to open company bank account.
Following are the requirements for company formation 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.