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Hiring Foreign Employees after Company Formation in Bahrain
This guide covers the complete process of hiring foreign employees after company formation, what employers need to do, why each step is required, and how to avoid delays during recruitment.
In This Guide
What Should an Employer Know Before Hiring in Bahrain?
In general, companies looking to recruit employees must know the following aspects of the hiring process in Bahrain:
Work permits
A work permit is an official document issued by the Bahrain government to foreign nationals, granting them the legal right to work for a specific company in Bahrain. Employers in Bahrain must sponsor foreign nationals before they can legally work in Bahrain. The number of work permits issued by a Bahraini company can be determined by the size of the business and by completing the Bahrainization requirements. Furthermore, the company must give valid reasons for hiring expats, such as proof of work contracts and proof that the required position demands foreign expertise.
Employment contracts
A written employment contract protects both the employer and employee by clearly defining the terms of employment. Although Bahrain does not require a government-approved contract template, employers must prepare a contract that complies with Bahrain’s Labour Law and reflects the conditions registered with LMRA.
An employment contract must include:
- Job title
- Working hours
- Annual leave
- Contract duration
- Benefits
- Compensation (in Bahraini dinars)
- Dismissal requirements
Employers are required to make two copies, one for the employee and one for themselves to keep the record.
Register Employees with the Relevant Authorities
After hiring staff in Bahrain, an employer must:
- Register employees with the Labour Market Regulatory Authority LMRA to ensure compliance with Bahrain’s labour regulations, as employment administration for expatriates is largely managed by LMRA.
- Register eligible employees with the General Organization for Social Insurance (GOSI). GOSI administers Bahrain’s social insurance system, which provides coverage for work-related injuries, occupational diseases, disability, and other statutory benefits.
- Make periodic contributions for disability, old age pension, and insurance for work-related injuries or death.
Most companies in Bahrain hire a local legal firm or representative agency to manage ongoing compliance with the relevant authority.
Procedure of Hiring Foreign Employees in Bahrain
Company formation is only the first step toward operating a business in Bahrain. When the company has been incorporated and commercial registration (CR) has been issued, employers can begin the process of recruiting employees.
Foreign investors wishing to hire expatriate staff must comply with Bahrain’s labour law, immigration rules, and Bahrainization regulations before employees can legally begin work.
The hiring process generally involves the following steps:
Step 1: Register the Company with LMRA
LMRA is responsible for regulating Bahrain's private labour market and issues all foreign work permits. Without LMRA registration, a company cannot employ expatriate workers. During registration, LMRA verifies the company's Commercial Registration (CR), licensed business activities, registered address, and other supporting information before activating the employer account. After approval, LMRA opens an employer account through which work permit applications can be submitted electronically.
Read our complete Guide: LMRA Registration in Bahrain 2026
Step 2: Meet Bahrainization Requirements
Bahrainization is a national policy introduced in 1980 that aims to increase the employment of Bahraini nationals in public and private sectors. The policy sets minimum hiring quotas for Bahraini citizens in different industries and directs companies to hire local talent and workforce.
The required quota depends on the company’s licensed activity, industry sector, and size of workforce.
LMRA may delay issuing work permits if Bahrainization requirements are not fulfilled.
Step 3: Recruit Foreign Employees and Collect Required Documents
Required Documentation:
- Valid passport with a minimum of 6 months’ validity
- Educational and professional certificates
- Recent passport-sized photographs
- Employment contracts signed by both parties
- Medical fitness certificates (sector-specific requirements)
Certain professions such as engineering, healthcare, and education may require additional approvals from relevant authorities.
Step 4: Apply for the Employee’s Work Permit
When a suitable candidate is selected, an employer initiates the application process via the Expat Management System on the LMRA online portal.
The application process includes:
- Employee details
- Uploading documents such as the expatriate employee’s passport, where applicable, medical examination reports completed before travel, and an approval letter from relevant authorities for certain specialized documentation.
- Details of employment contract; Job title, salary information.
- Company information and supporting documentation required by LMRA
After submission, LMRA reviews the employer’s compliance status, verifies supporting documents, and may request additional information if required.
Practical Tip: To avoid unnecessary delays in the process, ensure spelling and dates mentioned in documents and the application form are correct while submitting to the LMRA portal.
Step 5: LMRA Work Permit Approval and Entry Visa
After approval, the system generates an electronic entry permit that serves as the worker’s legal authorization to work in Bahrain. This approval allows the employee to work for the sponsoring employer under the approved occupation.
If the employee resides outside Bahrain
The approved work permit serves as the basis for getting the necessary employment entry visa. After that, an employee may then travel to Bahrain using the approved work authorization.
If the employee is already in Bahrain on a visit visa
An employment entry visa is not required. Instead, the employer must apply for a new LMRA work permit while the individual remains in Bahrain. After the work permit is approved, the employee must complete the required residence permit and CPR formalities before legally commencing employment. A person holding only a visit visa is not permitted to work until these procedures have been completed.
Step 6: Employee Arrival in Bahrain and Medical Examination
After receiving the required entry authorization, the employee may enter Bahrain.
Upon the employee’s arrival, the employer should complete onboarding formalities and begin the residence permit process.
Moreover, foreign employees are required to undergo a medical examination upon arrival in Bahrain. Medical examinations are conducted in approved health centers after arrival in Bahrain. This examination confirms that the employee satisfies Bahrain’s health requirements before the residence permit is issued. The LMRA process automatically generates the medical appointment when the permit is issued.
Step 7: Obtain Residence Permit and CPR
After successful completion of the medical clearance, the employee goes through the residence permit process. It authorizes the employee to legally reside in Bahrain for the entire employment period.
The employee will become eligible to obtain CPR (Central Population Register) after obtaining the residence permit. CPR serves as an identity card that is required in Bahrain for everyday life, including:
- Opening a Bank Account
- Obtaining a driving license
- Signing of contracts and agreements
- Property registration
- Rental agreements
- Accessing government services
- Mobile SIM registration
Want to learn more about CPR? Read our CPR issuance Guide
Common Reasons for Work Permit Rejection
The following are some of the most common reasons why work permit applications are rejected:
- If Bahrainization quota is not met
- Incorrect or incomplete documentation
- Invalid or expired passport
- Incorrect occupation or job title
- Missing regulatory approvals
Tips to avoid work permit rejection:
Employers should ensure Bahrainization requirements have been met, all employee documents are correct and complete, the employee’s passport has at least 6 months of validity, obtain regulatory approvals in advance, and carefully review the application before submitting through the LMRA portal.
Employee transfer from another employer
If an employer wants to hire a foreign employee who is already working for another company in Bahrain, the employee must complete the work permit transfer process via the LMRA portal.
The process requires the following steps:
- The employee must resign officially from the current company and serve the applicable notice period in accordance with the employment contract.
- The new employer submits the work permit transfer application via LMRA’s EMS.
- The LMRA reviews the application and documents. If approved, the work permit will be transferred to the new employer, allowing the employee to work in a new company in Bahrain.
Required documents
The following are the documents required for transfer of work permits:
- Passport copy
- Resignation letter
- New signed employment contract
- Intention to transfer form signed
Ongoing Employer Obligations for Hiring Foreign Employees in Bahrain
An employer or a company must comply with Bahrain’s Labour Law, LMRA regulations, and immigration requirements throughout the employment relationship.
The LMRA has documented the following “Employer Contractual Obligations” for employers towards expatriate employees:
Comply with the employment contract
An employer must provide an employee with a legally compliant employment contract that includes a job description, compensation, working hours, leave, and other benefits.
An employer should ensure
- The employee is working on a job specified in the work permit.
- The employee works at the location specified in the work permit.
- The employee is not assigned to substantially different work unless required by necessity and emergency.
Compliance with Wage Protection System
An employer must comply with the latest LMRA Wage Protection System (WPS) requirement, including
- Payment of wages in accordance with Bahrain’s Wage Protection System (Decision No. 68 of 2019).
- Follow wage-protection procedures.
- Ensure regular wage payment through approved methods such as signed receipt, payroll record, or bank transfer.
Respect Employee’s Rights
- Respect the worker’s dignity and humanity.
- Pay end-of-service benefits/gratuity in accordance with Decision No. 109 of 2023 concerning the End-of-Service Gratuity System for Non-Bahraini Workers in the Private Sector.
Provide basic necessities to workers
It is the duty of an employer to provide necessities to an employee such as;
- Provide medical care if an employee gets ill
- Provide agreed employment benefits as stated in the employment contract, including accommodation or transportation where applicable.
- Provide occupational safety and health measures to protect workers from workplace hazards.
Employer Obligations to Notify the LMRA and Regulatory Authorities
An employer in Bahrain must notify the LMRA and regulatory authorities if:
- The worker abandons or leaves work and violates permit conditions.
- The worker no longer satisfies any condition required for the permit
- The worker is diagnosed with a contagious disease and requires deportation as required under applicable public health and immigration regulations.
- Any changes or updates to establishment information, employer details, or registered expatriate workforce data.
Benefits of Hiring Foreign Employees in Bahrain
Bahrain warmly welcomes foreign employees because their presence enhances Bahrain’s reputation as a global hub of Islamic finance and attracts foreign investments. The following are the benefits Bahrain gains from hiring foreign employees:
- Hiring foreign employees supports business growth, encourages innovation, and contributes to the overall development of Bahrain’s economy.
- Foreign employees bring valuable skills, fresh ideas, and international experience that helps strengthen Bahrain’s workforce.
- Professional foreign employees share their knowledge with local workers by conducting workshops and training programs, helping them develop new skills.
- Many expatriates specialize in technology, healthcare, engineering, and finance, helping address skill shortages in the country.
Why Skilled Foreign Employees Choose Bahrain
Several factors contribute to the rise in Bahrain expats, such as:
- Bahrain’s growing financial services, logistics, manufacturing, healthcare, and technology sectors create employment opportunities for skilled professionals.
- One of the main reasons to work in Bahrain is that the country offers competitive salaries along with other benefits to foreign employees.
- One of the main benefits of working in Bahrain is that there is no personal tax, which means an employee sends home whatever he earns.
- Many foreigners consider Bahrain for job purposes due to the country’s exceptional health care services and stable lifestyle.
Frequently Asked Questions
Can a foreign investor hire employees immediately after company formation?
A foreign investor must register with the Labour Market Regulatory Authority before initiating the recruitment process for foreign as well as domestic employees.
Is CPR mandatory for foreign employees?
Yes, the CPR card is mandatory for foreign employees in Bahrain. It is an official residence permit and primary identification document for foreign nationals. Without CPR, foreign workers cannot legally live, work, or access government as well as private services in Bahrain.
What happens if Bahrainization requirements are not met?
Employers that fail to meet Bahrainization quotas may have work permit applications delayed or rejected.
What must an employment contract include?
An employment contract must include job title, working hours, annual leave, contract duration, benefits, compensation in Bahraini dinars, and dismissal requirements
How long does a Bahrain work permit take?
For employees already in Bahrain, a new work permit application is generally processed within 3 working days after all required documents are submitted and the employer meets LMRA requirements. For employees applying from outside Bahrain, the process can take up to 21 working days, depending on the verification of documents and approvals from the relevant authorities.
Can a company hire unlimited foreign employees?
No. A company cannot hire an unlimited number of foreign employees. Before issuing work permits, the Labour Market Regulatory Authority (LMRA) assesses whether the employer complies with Bahrainization requirements.
