Kingdom of Bahrain
Interest in Bahrain is skyrocketing. Setting up a company in Bahrain has many advantages, including a competitive tax regime, strategic location and a business-friendly environment, making it an ideal hub for businesses looking to expand in the Middle East and beyond.
The process of setting up a company in the Kingdom of Bahrain can vary depending on different factors, such as type of shareholders and business activities. However, here are some general steps that are typically involved in setting up a company in Bahrain:
1
KYC
To ensure compliance with relevant regulations, kindly furnish us with a copy of your passport / ID. Alternatively, if you intend to establish a subsidiary of an existing company, please provide copies of the corporate documents of the parent company. The clearance of documents may take up to two (2) business days.
2
Choose a business activity and trade name
Choose the business activity that you want to engage in and select a unique trade name for your company. The company name will be approved by the Ministry of Industry, Commerce and Tourism (MOICT).
3
Sign tenancy agreement
We offer office spaces that meet the requirements of obtaining approval from the Municipality.
4
Sign the Memorandum
The Memorandum shall be signed in front of a notary, but there is no need for your physical presence. You can authorize our representative to sign on your behalf through a Power of Attorney, and the entire process can be completed remotely.
5
Apply for a bank account
Apply for a corporate bank account with a local bank, such as Ahli United Bank, Bank of Bahrain and Kuwait, BNP Paribas and Bahrain Development Bank.
6
Plan your visit to Bahrain
We will complete all procedures such as bank account authorisation, medical checks and obtaining a Bahraini identity card.
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Why do business in Bahrain?
Bahrain is a small but dynamic country in the Middle East that offers many advantages for businesses looking to expand in the region. It is strategically located between the major markets of the GCC, offering easy access to Saudi Arabia and other countries in the region. Bahrain also has a well-developed infrastructure, including modern airports, seaports, and road networks, which facilitate transportation and logistics.
Bahrain also has a competitive and low-cost tax regime that makes it an attractive destination for foreign investment. The country offers a range of tax incentives and exemptions, such as no corporate or personal income taxes and no withholding taxes. Moreover, Bahrain’s regulatory framework is transparent and efficient, providing a conducive environment for businesses to operate with ease.
Finally, Bahrain is a cosmopolitan and multicultural country that offers a high quality of life for expatriates and their families.
Bahrain also has a competitive and low-cost tax regime that makes it an attractive destination for foreign investment. The country offers a range of tax incentives and exemptions, such as no corporate or personal income taxes and no withholding taxes. Moreover, Bahrain’s regulatory framework is transparent and efficient, providing a conducive environment for businesses to operate with ease.
Finally, Bahrain is a cosmopolitan and multicultural country that offers a high quality of life for expatriates and their families.
Documents required to establish a company in Bahrain
The documents required to form a company in Bahrain may vary depending on the founder and planned business activities. Nevertheless, we have prepared a list of common documents required to set up a company in the Kingdom of Bahrain.
Required Documents for Individual shareholder:
- Passport / ID copies of all shareholders and directors are required for registration.
- Power of attorney (POA): A power of attorney is required if the business owner is not present in Bahrain for company setup.
- Bank reference letter: A bank reference letter is required to confirm the financial standing of the business owner and shareholders.
- Bank statement for the past 6 months: required for all shareholders.
Required Documents for Corporate shareholder:
- Certificate of incorporation: A certificate of incorporation is required from the parent company.
- Extract from the register of companies
- Articles of association of the parent company
- List of shareholders of the parent company
- Board resolution: A board resolution from the parent company authorizing the establishment of a subsidiary in the UAE is required. We will provide the draft.
- Passport / ID copies: Passport copies of all shareholders and directors.
- Bank reference letter: A bank reference letter is required to confirm the financial standing of the parent company and shareholders.
- Bank statement for the past 6 months of the parent company;
- Audited financial report for the past financial year;
- Power of attorney (POA): A power of attorney is required if the business owner is not present in the UAE and needs to appoint a representative to act on their behalf.
Ready to take the first step towards your company in Bahrain? Just fill out the application form
How companies are taxed in Bahrain?
The current corporate tax rate in Bahrain is 0%. However, companies in certain sectors (such as financial services and oil and gas) may be subject to a corporate tax on their profits.
- 0%Corporate tax rate in Bahrain
- 0%Withholding tax on dividends, interest and royalties
- 10%VAT on sales within the territory of Bahrain
What we do
We assist in the formation of companies in Bahrain, including advising on the legal structure, drafting and reviewing legal documents and registering the company with the relevant authorities.
We offer comprehensive support for opening a bank account in Bahrain, which includes assisting with the completion of all necessary forms, filing an application and introducing clients to a bank officer for a seamless account opening process.
We provide expert guidance to businesses to ensure compliance with all relevant tax and regulatory requirements in Bahrain, helping them to align their operations with local laws and regulations to avoid any potential legal issues.
We provide assistance in drafting, reviewing, and negotiating a wide range of commercial contracts, ensuring that our clients' interests are protected and all contractual obligations are clearly defined and agreed upon.
We assist companies in protecting their intellectual property rights, including registering trademarks, copyrights, and patents in Bahrain.
We provide expert guidance to expats and investors who own property in Bahrain on the legal procedures involved in transferring the property as an inheritance, ensuring a seamless and hassle-free process for our clients.
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