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Company Formation in Bahrain

Welcome to Entrepreneur.bh, your gateway to seamless company formation in Bahrain. With our expert assistance, turning your business vision into reality is now hassle-free.

Are you eager to launch your entrepreneurial journey in Bahrain? The entrepreneur Bahrain is here to guide you through every step of the company formation process, ensuring a smooth and successful start to your business.

Process of Company Formation in Bahrain

The company formation process in Bahrain involves multiple steps that can be categorized into pre-registration, registration, and post-registration, and every company must fulfill the requirements for successful formation

  1. Pre-registration
    • Select the business type and activities.
    • Decide on the share capital and services to outsource.
    • Obtain an electronic key (e-key) or Power of Attorney.
    • Reserve the company name.
    • Determine the shareholding pattern and assign designations.
  2. Registration

    • Submit application to MOICT with company details.
    • Obtain Commercial Registration (CR) and business licenses.
    • Register the company’s head office.
    • Prepare the memorandum and Articles of Association.
    • Open a company bank account.
    • Submit bank certificate and notarized documents for approval.
  3. Post-registration

    • Hold shareholders’ meetings based on company type.
    • Conduct board meetings as required.
    • Fulfill tax obligations, including VAT.
    • Periodic review of the MOICT-issued Commercial Registration.

We are here to help you to make this more Ease by following these simplify Steps to company formation in Bahrain

Essential Steps of Company Formation in Bahrain

7 Steps to Company formation in Bahrain

By following these 7 steps of company formation in Bahrain, you can navigate the process smoothly and efficiently. Let our experienced team handle the intricacies and ensure compliance with the authorities in Bahrain. With our expertise and support, you can register your company hassle-free and embark on your business journey in Bahrain’s thriving market. Contact us today to get started on your path to success.

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Types of Company Formation in Bahrain:

The types of legal structures available for company registration in Bahrain are

  1. Limited Liability Companies (LLCs): Limited liability companies is also know W.L.L Companies in Bahrain offer shareholders limited liability, protecting their personal assets from the company’s debts and liabilities. This structure is suitable for small to medium-sized businesses. A Bahraini LLC or WLL can have up to 50 shareholders, and foreigner with 100% ownership is permitted, making it an attractive option for international investors seeking to establish a presence in Bahrain.

  2. Foreign Company Branches: Foreign company branches are extensions of their parent companies located outside Bahrain. The liability for the branch’s activities lies with the foreign parent company, not the branch itself. A branch office typically has a local manager responsible for overseeing its operations. This structure allows foreign companies to establish a presence in Bahrain without creating a separate legal entity.
  3. Joint-Stock Companies: Bahraini joint-stock companies have the flexibility to offer shares to the public, making them ideal for large-scale businesses with significant capital requirements. There are two types of joint-stock companies: closed joint-stock companies, where shares are not offered to the public, and public joint-stock companies, which can offer shares to the public. Like limited liability companies, members in joint-stock companies also have limited liability, and foreigners can hold shares in these entities. This structure is particularly common in industries like insurance, finance, and public procurement.

  4. Companies Limited by Shares: Companies limited by shares consist of two categories of partners: joint partners and silent partners. A minimum of four founders is required to establish this type of business entity. The joint partners actively participate in the company’s management and decision-making, while the silent partners contribute financially but do not involve themselves in day-to-day operations. This structure provides a balanced approach for businesses that seek both active and passive involvement of partners.

  5. Partnership Companies: Partnership companies are formed through an agreement between two or more individuals who share the company’s profits and losses. This structure is based on mutual trust and cooperation between partners. It is worth noting that partners in this type of business have unlimited liability, meaning their personal assets are at risk in case of any business-related liabilities. Due to this risk, it’s essential for partners to have a strong understanding and trust in each other.

  6. Single-Person Companies: A single-person company, as the name suggests, is owned and operated by a single individual. This structure is suitable for entrepreneurs who prefer to run their businesses independently. While there is no minimum capital requirement to establish a single-person company, external audits are mandatory. Foreigners are permitted to operate a single-person company, making it an attractive option for international entrepreneurs.

  7. Holding Companies: Holding companies are typically created as separate entities to manage the assets and investments of a Bahraini public limited company or a foreign joint-stock company. The primary purpose of a holding company is to provide assurance to third parties and to separate the ownership and control of different entities within a corporate group.

By providing more detail and clarity on each business structure, potential entrepreneurs and investors can better understand the options available for company registration in Bahrain.

Types of Company Formation in Bahrain

Advantages of Bahrain Company Formation:

Advantages

  • Relaxed Formation Requirements: Reduced paid-up share capital requirement, making it easier to form companies.
  • Foreign Ownership: Allows 100% foreign ownership, giving international entrepreneurs full control over their formed ventures with Investor Visa in Bahrain
  • Free Trade Agreement with the US: Provides US entrepreneurs with the same business rights as Bahrainis, granting 100% access to all industries and activities.
  • Openness to Israeli Entrepreneurs: Welcomes Israeli entrepreneurs, allowing visas and business establishment for Israeli passport holders.
  • Religious Freedom: Guarantees religious freedom, fostering diversity and inclusivity for formed companies.
  • Membership in GCC and GAFTA: Benefits from free trade agreements with multiple countries, facilitating international trade.
  • Tax Advantages: Exemption from corporate income tax and withholding tax for formed companies.
  • Zero Customs Duties in Free Zones: Exemption from customs duties for companies operating in free zones.
  • Easy Access to Corporate Finance and Banking: Well-developed financial sector for securing corporate finance and opening bank accounts.
  • Diverse Economy with Incentives for Growth: Incentives and growth opportunities in industrial, logistics, and financial services sectors.
  • Strategic Location: Ideal location to access the growing Gulf nations market.
  • Extensive Trade Agreements: Membership in the GCC common market and bilateral trade agreements with over 60 nations.
  • Tax Exemptions for Industrial Companies: Tax exemptions on capital and raw materials for companies in industrial areas.
  • Excellent Logistics Connectivity: Well-developed road, air, and sea connectivity to major Gulf business centers.
  • Leadership in Islamic Finance: Largest concentration of Islamic Financial Institutions in the Middle East.

Bahrain offers a favorable business environment for entrepreneurs and companies looking to establish their presence in the Middle East and tap into the Gulf region’s opportunities.

Benefits of Company Formation in Bahrain
Business for Foreigners in Bahrain

Foreigners have the opportunity to 100% own businesses in Bahrain, with numerous benefits and incentives:

Bahrain’s business-friendly policies and incentives make it an attractive destination for foreign entrepreneurs looking to establish and grow their ventures in the region.

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Requirements for Company Bank Account:

Company incorporation necessitates opening a corporate bank account and depositing the authorized capital.

Our specialized company formation team can assist in opening a company bank account within 1-3 business days.

For under formation companies in Bahrain, the following requirements are needed 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 the company
  • Capital amount in cash
Timeline for Company Formation in Bahrain:
  • The standard time for company formation is usually 25-45 working days due to multiple steps and approvals involved.
  • However, a fast-track process is available, which reduces the time to 15-25 working days.

The Entrepreneur.bh’ team works efficiently to complete the process in the minimum possible time to facilitate starting the business as soon as possible.

Cost of Company Formation in Bahrain:
  • The cost of company formation in Bahrain varies based on different factors.
  • A typical With Limited Liability (WLL) company, meeting the minimum capital requirement, costs BHD 1390,around $2600.
  • The cost may vary for specialized commercial registrations.
  • To calculate the exact business license cost, additional information is needed.
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FAQs

Yes, 100% Ownership for foreigners is the key benefit of choosing Bahrain for Business.

It takes 20-45 Business Days for company formation in Bahrain.

Steps include selecting a business structure, reserving a trade name, preparing legal documents, depositing the required share capital, obtaining approvals, and completing registration with the Ministry of Industry, Commerce, and Tourism.

To start a business in Bahrain as an expat, select a business structure, reserve a trade name, prepare legal documents, deposit the required share capital, obtain necessary approvals, complete registration with the Ministry of Industry, Commerce, and Tourism, and apply for relevant licenses, with specific details subject to change and requiring consultation with local authorities or a business consultant for the latest information.

Benefits of company formation in Bahrain include access to a growing and diversified economy, strategic geographic location, a business-friendly environment, a well-developed regulatory framework, tax advantages, and the availability of skilled labor, providing opportunities for business growth and expansion in the region.

The ease of scaling a business in Bahrain depends on various factors, but sectors such as technology, consulting, e-commerce, and service-based industries often offer scalability due to relatively lower entry barriers and adaptability to market demands. Identifying niche opportunities and staying abreast of evolving consumer needs can contribute to successful business scaling in Bahrain.

To form a company in Qatar, select a business structure, reserve a unique trade name, draft and notarize the Articles of Association, deposit the required share capital, obtain necessary approvals from relevant authorities, and complete commercial registration with the Ministry of Commerce and Industry, with specific details subject to change and requiring consultation with local authorities or a business consultant for the latest information.

Common types of company formation in Qatar include Limited Liability Company (LLC), Joint Venture, Branch of a Foreign Company, and Representative Office, each with its own regulatory requirements and business implications.

Yes, the diplomatic and economic relations between the UAE and Qatar had been restored, allowing businesses from the UAE to engage in trade and commerce with Qatar.

The people of Qatar and Saudi Arabia differ in cultural practices, traditions, and historical backgrounds, with distinctions in dialects, cuisine, and social norms, reflecting unique identities within the broader Arab and Gulf region.

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