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Company Formation Services in Bahrain

Go through the most effective ways to start a business in Bahrain, a variety of legal structures for the companies and the requirements for Bahrain company formation.

  • We assist you with registering your company in Bahrain
  • Our team of professionals would search for the right partner for your company in Bahrain
  • We will help you to meet the requirements to form your company in Bahrain
  • We deploy our team of expert PROs to register your company for taxes and get the necessary licenses and approvals for you

Learn the procedures to register your company in Bahrain and the important company formation services we offer.

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Being located on the south-western coast of the Persian Gulf, Bahrain shares its borders with Saudi Arabia and Qatar. The country has remained an important source of oil for many decades and provides great opportunities for the companies that have plans to take on the activities of oil exploration, extraction and exports.

In the recent years, the other sectors such as refining of aluminium and shipbuilding have seen a tremendous growth. So, the government has drawn the policies to encourage investors in various sectors for overall economic growth. His Highness King Hamad bin Isa Al Khalifa leads the Unitary Parliament Constitutional System in the country and the government is keen on attracting investors.

Bahrain has several benefits compared to the other countries in the Gulf Region, as far as investments in a variety of businesses are concerned. We would assist you to acquire licenses, certificates, affiliations and approvals at various levels from the concerned authorities and set-up your business in Bahrain.

Company Formation Steps in Bahrain:

Finding a Local Partner:

For various forms of companies in Bahrain, acquiring support from a local Bahraini sponsor or partner would be essential with the specified share in the ownership of the business. We would search for the suitable partner for your business through the extensive contacts in the business community in the country.

Business Set-up:

Eventually, our Company formation services include the paperwork for acquiring the licenses and approvals through the authorities at the local and regional levels, filling up the application forms, follow-up with the government officials, according to the rules and regulations, with the utmost honesty regarding the local laws and the expected schedule as per the clients’ requirements.

License Registration:

We offer the complete range of company registration services for the corporate clients for acquiring additional licenses, registration for taxes, memberships and affiliations with various government and semi-government authorities.

We serve the hundreds of aspiring entrepreneurs to set-up their companies in Bahrain and various other countries in the Middle East Region and various other parts of the world as well.

Legal Structure of the Company in Bahrain:

The Company Law and the subsequent regulations to operate a business as a legal entity would differ from nation to nation. The aspiring business houses interested to invest in Bahrain can seek expert advice from us to determine the appropriate legal structure of their proposed company in Bahrain based on the local regulations and their own business objectives. Here are the legal structures in which the foreign citizens can form their company in Bahrain:

  • Limited Liability Company Formation
  • Branch Offices
  • Commercial Agencies
  • Representative Trade Offices
  • General Partnership Company
  • Limited Share Partnership Company
  • Holding Company
  • Joint Venture
Limited Liability Company Formation in Bahrain

There are three different types of LLCs that the foreign citizens can form in Bahrain:

  • Single Person Company:

According to the Commercial Company Law of 2001, a foreign citizen can form an SPC with 100% ownership, possessing a unique name ending with “SPC”; and enjoy sole control over the business activities and this form is not just a sole partnership, but considered as a full-fledged company as per the regulations.

  • With Limited Liability Company:

Two shareholders, two directors along with a local partner can form a WLL, registering it with the Registrar for legal recognition. The name of the company should conclude with “WLL”; and the companies are recommended to keep three optional names of their businesses while registering.

  • Bahrain Shareholding Company:

This can be the ideal form of company for the larger projects requiring large investments through multiple entrepreneurs with expertise in various areas. The company requires a minimum share capital and can be divided into equal shares for public subscription. The shares of these companies need to be registered at BHB i.e. Security Exchange Agency – Bahrain Bourse; and the national stock exchange.When the public subscription has opted for, there need to be at least three directors on the board of the company.

Branch Offices in Bahrain

Setting up branch offices can be appropriate for the corporate dealing with the engineering or financial sector. The foreign companies can set-up their branches in Bahrain with full ownership being a non-resident. The companies can avail full shareholding if their business activities are allowed for the LLCs.

It is mandatory for the foreign investors to issue a bank guarantee worth $133,000 to the Ministry of Finance & National Economy. The branches are allowed to earn income through the customers giving them the invoices and protect their premises. The regional operations and sponsorship of visa needs to be carried out through an appointed local resident.

Commercial Agencies in Bahrain

The Agency Law of 1992 in Bahrain regulates the commercial agencies that can be formed appointing a local agent (company of individual from Bahrain) to represent the foreign principal. The agencies can offer services and distribute the products through the foreign company. The agreements related to such company need to be registered with the Commercial Register.

Representative Trade Offices in Bahrain

A local citizen can be appointed to represent the foreign company. However, these companies cannot engage in any profit-making activities. Market Research in the territory and promotion of the business of the parent foreign company can be conducted through this form of company.

General Partnership Company in Bahrain

Minimum of two board directors and promoters with complete liability to the extent of their personal wealth can form this type of company. All the partners are supposed to share the same responsibility and full liability towards the business. The titles of at least one partner need to be included in the name of the company. These companies would not be allowed to engage in financial services, banking and insurance. The foreign investors can get full ownership of a general partnership company without a local sponsor, agent or partner. This is best suited legal structure to start a small business in Bahrain.

Limited Share Partnership Company in Bahrain

Through a contract, two or more partners can form a limited share partnership mentioning the extent of their liabilities. The general partners would have the rights and role in management decisions and routine activities and liable to the extent of their personal assets and the limited partners would be investing in these ventures while their liability is to the extent of their share. Though there is no any minimum limit for the share capital to form this type of company, these companies are not allowed to engage in banking, financial services and insurance.

Holding Company Formation in Bahrain

The Holding Company is formed to invest in the other subsidiaries that can be Bahrain based or foreign companies, operating as an LLC or Joint Stock Companies; till the specified limit to gain managerial control over them.

Joint Venture Formation in Bahrain

Two or more entities can enter into contractual agreement or Memorandum of Association, stating the roles, responsibilities and obligations for a common goal and form a Joint Venture in Bahrain. These companies can be dissolved after achieving the set target, incompetency of any of the companies, expiry of the contract and some other legal issues with respect to the contract.

Various other important aspects related to company formation in Bahrain:

Scope in Real Estate Sector:

Being among the fastest growing sectors across the globe, the real estate projects require a huge initial investment. The regulations for investments in the real estate business are being simplified through the government drawing the encouraging norms. The foreign investors can own the lands in Bahrain today, in the specified areas by the government that are meant for encouraging foreign investments.

Taxation norms:

The tax structure for the foreign investors in Bahrain is simple and they would hardly require paying any taxes. The government doesn’t charge several types of taxes that are usually applicable in various other countries such as corporate tax, withholding tax, gift tax, estate tax, capital tax and so on. However, the companies dealing with the oil and gas sector, such as petroleum and gas companies, oil producing companies and refineries; need to pay taxes to the government, regardless of their location of operation. The companies are entitled to pay 46% of their profits in their Bahrain based operations.

Procedure to acquire a visa:

Except the GCC residents, all the foreign nationals need to get the subsequent visa according to the activity they are supposed to be involved in residing in Bahrain. It is mandatory to get a business visa for the aspiring expatriates planning to form a business in Bahrain, according to the legal structure of the company they are forming. For a work visa, it is mandatory to get a local sponsor from Bahrain.

Regulations for imports:

Custom Bill of Entry would be most essential to import goods to Bahrain. It is required to work with a recognized, licensed and registered clearing agency to complete the import procedures. The following documents are required in Bahrain to carry out import business:

  • Details regarding the type of the goods being imported (whether they are hazardous or non-hazardous)
  • Certificate of origin of the products being imported
  • Delivery order from the dispatching party
  • Supplier’s invoice copy in duplicate, in English & Arabic
  • Packing List
  • Shipping or Air Cargo Bills
  • Payment Receipt or Bank Voucher

Feel free to contact us, as we would be happy to help you to take your business goals further:

You can get your queries resolved mentioning your concerns in the enquiry form provided on your left. Our representative would get back to you shortly to resolve your queries, understanding your requirements. Similarly, you can contact our customer support team through various modes of communication, including WhatsApp, using the following numbers.