AT ONE GLANCE
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.
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.
Step #1: Security Clearance
The following are the required documents at this step:
- Clear copies of passports
- Duly signed KYC forms
- Duly signed Engagement letter
- Authorization letter
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
Step #4: Prepare Memorandum of Company
Step #5: Notarize the Memorandum
Step #6: Open Company Bank Account
Step #7: Get Final Approval from MOIC
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.
AT ONE GLANCE
7 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.
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.
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Why choose PI Startup Advisory for 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.
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Why Register a Company in Bahrain?
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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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.
- 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
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
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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
Companies in Bahrain – Capital Requirements
Companies in Bahrain – Public Disclosure of Annual Reports
Companies in Bahrain – Banking
Business in Bahrain – Regulatory Bodies
Business in Bahrain – Business Development Programs
Business in Bahrain – Foreign Ownership
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.