Company Registration in Bahrain and its Main Advantages


1. Taxes

Like in the UAE, there is no corporate income tax in Bahrain. There is also no personal income tax. By obtaining tax residency in Bahrain, you will avoid all possible taxes. VAT is 10%, however, if you export your goods and services, then its rate will also be 0%. You also don’t have to pay taxes on capital gains.


2. Full Foreign Ownership is Allowed

Any foreigner can register company in Bahrain. There is no requirement for a local director or shareholder, as in many other countries in MENA. Foreigner can be an exclusive owner of real estate as well.


3. Freedom

Among all the Arab countries, Bahrain is considered the most liberal and more tolerant country. The government is friendly to entrepreneurs, creates adequate and favorable conditions for their activities. In 2012, the Economic Freedom Index Foundation voted for Bahrain as the freest economy in the Middle East. In this nomination, the kingdom took 12th place in the world. Bahrain is considered an interesting and profitable place for investing capital for foreign entrepreneurs.


4. Remote Company Formation and Share Capital

Company in Bahrain can be established without a personal visit. In many cases, it is also possible to remotely open a current account for the company.
The process of opening a company in Bahrain, whether remotely or during a visit, will take approximately the same time as in the UAE.
It is also important that in 2020 Bahrain simplified the requirement for the contribution of authorized share capital.


5. Residency and Working Visas

Getting a visa or residency here is much easier, cheaper and faster than in the UAE. There are no overly strict visa, residence and work permit requirements that hinder the free movement of foreign investors and businessmen in Bahrain.


6. Bahrain as a Start-Up Hub

Bahrain is an excellent place for those who would like to establish a start-up company. Back to 2018 government of Bahrain has introduced Fintech Bay, the largest FinTech hub in the MENA region.


7. Apostille

Unlike the UAE, Bahrain is a member of the Hague Apostille Convention, which means that the costly process of legalizing documents is not required. This greatly simplifies the interaction with other countries, counterparties and banks.


8. Bahrain for Relocation

In Bahrain you will find well-developed infrastructure for finance, business, entertainment. Living spaces and offices are spacious, cozy and stylish. Utilities are stable and of high quality, and electricity prices are minimal. Bahrain is great for both business and life. Do not waste your time, order company formation in Bahrain now!


What you Need to Know Before Registering a Company in Bahrain


1. Commercial Companies Law

It was approved by the government of the country at the beginning of the 2000s and is constantly being adapted to new realities. It regulates issues regarding the creation of private companies, their structure, and the management of organizations.


2. Memorandum and Articles of Association

The Memorandum of Associations is an agreement concluded between the shareholders. It reflects information about the activities of the organization, its registered address, share capital. Details of directors and owners are also provided. It also describes a method of profit distribution is within the company.


3. Bahrain Legal Framework

Bahrain has a dual system, which includes elements of civil law and Sharia. Sharia courts in this country have precedence in cases that concern Muslims. It is important to be attentive and solve all problems with the support of an experienced specialist.


4. Financial Statements

Bahrain company must report on financial results of its activities and provide data on profits. Company also needs to submit information about the change of legal or physical address, directors, owners and their shares.


5. License

All companies that are registered in Bahrain have to receive a license based on their main activity. For some types of goods, a requirement for mandatory registration is put forward. These include medicines, cosmetics, medical equipment, food. The process of obtaining a license is a formality and does not require any effort.


6. Management of the Company

Directors of companies based in Bahrain are appointed, fired and replaced by shareholders. Names of owners and directors are publicly available. Therefore, a company in Bahrain is hardly suitable for those who are not used to disclosing their data.

Steps for Company Registration in Bahrain

At the first stage, a mandatory verification of shareholders by Bahrain authorities is carried out. This check is carried out by the Ministry of Interior. To pass this check, we only need copies of the shareholders’ passports. In most cases, this procedure is a formality and is carried out in a few days.

Next, we check the availability of the company name, determine the legal form and the type of activity for the register, and prepare all the necessary statutory documents.
To register a company, you will also need to provide us with certified copies of the passports of all participants, as well as documents confirming the place of residence.

We provide a legal address/office for your future company, prepare documents for opening a bank account, and, if necessary, prepare documents for obtaining residency and work visas.

Then we submit all prepared documents to the registry, register a company, and obtain a license.
The entire registration process will take up to 30 days. For an additional fee express registration is also available.

Thanks to good practices, experience gained, qualified theoretical knowledge, the experts employed by the Private Financial Services will quickly and qualitatively help with company registration in Bahrain.
As an alternative you can also assess an option of opening a company in the United Arab Emirates.

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