Registering a company
in Bahrain:

Special Features
Company registration requirements
List of documents

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Bahrain is popular for doing business due to its well-developed infrastructure and favorable business environment. Low taxes along with the rapidly growing economy of the state attract investors from all over the world. In the West Asian region, the country is recognized as one of the most business-friendly jurisdictions. Bahrain is ranked 43rd in the Doing Business world ranking for the ease of doing business. This position is a high indicator for a Middle Eastern state and highlights the prospect of the kingdom in terms of international investment. How to open a company in Bahrain in 2024 and what is necessary for this, please see below.

The pros of registering a business
in Bahrain

Tax Exemptions

Similar to the United Arab Emirates, Bahrain has no taxes on income, personal income and capital gains. This means that businessmen who have received the status of tax resident are exempt from all types of deductions. The analog of VAT, VAT, is 10% in 2024. The rate may not be paid by exporters of services and goods.

No Ownership Restrictions

Bahraini legislation does not limit the opportunities of foreign companies. Despite the fact that in most Middle Eastern countries it is necessary to specify a citizen as a director/shareholder of the company, there are no such conditions in the territory of the kingdom. The founder of the company can be any foreigner. The right to purchase real estate of all types is also not restricted.

Entrepreneurial Freedom

The state of the Middle East is one of the most focused on innovative startups. Favorable conditions have been created to attract foreign capital. The Index of Economic Freedom Foundation noted Bahrain as the state with the freest economy among all Middle Eastern countries. There are many directions for investment: the kingdom encourages foreign investment, tolerance to entrepreneurs, regardless of nationality and gender. Bahrain also shows interest in foreign innovations.

Online Company Formation

All stages of starting a business in Bahrain can be done remotely, from registering a company to opening a corporate bank account. The time of passing the procedures remotely or during a visit is approximately the same as in the UAE. Investors are attracted by the fact that there is no need to be present in person, as well as the simplified requirements for the contribution of authorized capital, which have been in force since 2020.

Simplified Visa and Residency Permit Process

Bahrain offers a much simpler process for granting entry and residency permits compared to the United Arab Emirates. The absence of strict requirements for obtaining the right to live and move freely in the country allows foreign investors to secure residency or work permit without unnecessary financial and time losses.

Comfortable Business Environment

Since 2018, major projects and centers for the development of investment activity have been launched in Bahrain. Personal data of entrepreneurs are protected at the legislative level. Additionally, legal documents on bankruptcy, competition, health insurance have been developed, which has contributed to improving the investment climate in Bahrain and creating a comfortable environment for businessmen.

Simplified Documentation

In Bahrain, the document processing procedure, including those needed for residency status or other procedures, is streamlined. Foreigners can apostille documents without the need for further certification. This simplified legalization process accelerates interactions with governmental bodies, banks, and other countries, making it faster and less costly.

Comfortable Living Conditions

The kingdom has a well-developed infrastructure of business, finance and entertainment. Adaptation in Bahrain is easy, representatives of various nationalities live here. Migrants emphasize the presence of a large number of entertainment, medical and educational institutions. Also, foreigners note that residential and commercial premises are spacious, modern and stylish. There is minimal cost of electricity and high quality of food in the state. Bahrain is comfortable both for recreation, life and business activities.

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Legal aspects of starting a business in Bahrain

Legal aspects of doing business that should be considered before registering a company in Bahrain:

Resident status allows you to go through the procedures much faster, illegalized foreigners need to additionally obtain a special permit.
A license and commercial registration of the company should be issued, considering the type of activity.
At least 51% of the company’s staff must be local residents.
There are no requirements for authorized capital of the firm in Bahrain.
To conduct business should open a physical office, virtual in the registration of the enterprise is not suitable.

The list of requirements and documents depends on the organizational-legal form of the company – to consider all aspects, it is worth using a lawyer.

Tax liabilities
and salary requirements
in Bahrain

Employees are exempt from income tax.
There is no minimum wage requirement.
Typically, corporate income is not subject to taxation.
Value Added Tax (VAT) on domestic sales is set at 5%.
Citizens are subject to a 12% social security tax rate, while foreigners pay 3%.

All of the above confirms the loyalty of the state to businessmen. The popularity of the region among foreign entrepreneurs is due, among other things, to the opportunity to optimize the expenses and gain profit in no time.

The forms of doing business
in Bahrain are as follows:

Limited Liability Company is the most popular form of doing business, which provides for limited liability for both members and directors of the company.

Shareholding Company is a joint stock company. A legal type of business activity that allows an enterprise to attract outside capital investment through the issuance and sale of shares.

Single Person Company is an individual enterprise. A structural form of a company owned and managed by a single person. In this case, the businessman is personally liable for debts and other obligations of the company.

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Guide to starting a business in Bahrain

Shareholder Verification

Shareholder verification is mandatory for all foreign entrepreneurs. It takes place at the initial stage of company registration and takes a few days. The verification is carried out by the Ministry of Interior of Bahrain and in most cases is a formality. At this stage, the entrepreneur should provide copies of the passports of the shareholders to our specialists.

Name and Business Analysis

Next, the company's lawyers check the availability of the chosen business name, determine the type and type of activity. Based on the data provided and in accordance with the current legal requirements, a package of documents is formed.

Passports Preparation

At the next stage, copies of passports of shareholders and information about the place of residence are required from the entrepreneur.

Legal Address and Dossier

Specialists provide the legal address and prepare the dossier for account opening. If necessary, documents for visa and residency in Bahrain are prepared.

Registration and Licensing

Lawyers carry out registration of the company with entry in the register of entrepreneurs and subsequent obtaining of a license.

Terms of Registration: standard and expedited

The procedure takes about 30 days. At your request, accelerated company registration is possible for an additional fee.

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What is included in the price:

Obtaining a notary power of attorney for an authorized representative.
Due Diligence (procedure of identification of the ultimate beneficiary).
Support and unlimited consultations on company registration in Bahrain.
Preparation of documents.
Consultation of lawyers specializing in tax and international law on the choice of the type of company’s activity and on the peculiarities of doing business in Bahrain.
Payment of state duties and administrative fees.
Completion of dossiers, translation of documents into Arabic with notarization.

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Registering a company in Bahrain:

The pros of registering a business in Bahrain

Legal aspects of starting a business in Bahrain

Tax liabilities and salary requirements in Bahrain

The forms of doing business in Bahrain are as follows:

Guide to starting a business in Bahrain

What is included in the price:

Other Services

Registering a company
in Bahrain:

The pros of registering a business
in Bahrain

Tax liabilities
and salary requirements
in Bahrain

The forms of doing business
in Bahrain are as follows: