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by husain abdulelah 26, April 2024 | Last update 26, April 2024

Company formation in bahrain

Mikal Consultancy W.L.L. specialized in company registration in bahrain & business setup since 2014, we register more than 500 company in bahrain can be an attractive option for many businesses due to the country’s pro-business environment and numerous advantages it offers. kingdom of Bahrain is known for its strategic location in the Gulf region, which provides access to a large market and serves as a gateway to the Middle East. Additionally, Bahrain boasts a well-developed infrastructure, a skilled workforce, and a business-friendly regulatory environment.

BUSINESS SETUP IN BAHRAIN

One of the key advantages of business setup in Bahrain is its favorable tax regime. The country offers competitive tax rates*, with no personal income tax, no corporate tax, this can result in significant cost savings for businesses operating in Bahrain.

Furthermore, Bahrain has a strong regulatory framework that protects intellectual property rights and promotes transparency and accountability in business dealings. The government has also implemented various initiatives to support entrepreneurship and innovation, such as startup incubators and accelerators, which can provide valuable support to new businesses.

START A BUSINESS IN BAHRAIN

Starting a business in Bahrain involves several steps, including obtaining the necessary licenses and permits, register a company, and complying with the local laws and regulations. Here is a general overview of the process**:

  1. Determine the type of business entity you want to establish: Bahrain offers several types of business entities, including sole proprietorships, partnerships, limited liability companies (W.L.L), and joint stock companies. Each type of entity has its own requirements and benefits, so it’s important to research which one is best for your business.
  2. Choose a business name: Once you have decided on the type of entity, you need to choose a name for your business. The name should be unique and not already registered in Bahrain.
  3. Obtain necessary licenses and permits: Depending on your business activity, you may need to obtain specific licenses and permits from the relevant government authorities. For example, if you are starting a restaurant, you will need to obtain a food license from ministry of health***.
  4. Company registration in Bahrain: To register your company in Bahrain, you need to submit the necessary documents and pay the registration fees to the Ministry of Industry, Commerce, and Tourism. The documents required may vary depending on the type of entity you are establishing.
  5. Obtain a commercial registration certificate: Once your company is registered, you will receive a commercial registration certificate, which business needs required to open a bank account and conduct business in Bahrain.
  6. Comply with local laws and regulations: As a business owner in Bahrain, you must comply with the local laws and regulations, including tax laws, labor laws, and immigration laws. It’s important to seek professional advice to ensure that you are in compliance with all the requirements.
Overall, starting a business in Bahrain can be a straightforward process if you follow the necessary steps and seek professional guidance where necessary.

company registration process

First Step is the Initial Commercial Registration (CR without license).

With the guidance of this service, you can register your business as a commercial entity without the need for a business license. This will enable you to take care of preliminary business establishment tasks like renting space for your business, contacting banks and vendors, securing a commercial name, and any other tasks that don’t require obtaining a business license. Please be aware that you cannot practice the activity with your commercial registration without a license unless you first secure the required business permits. After receiving your commercial registration, you can seek to get a license to conduct the required activity to achive business goals. The commercial registration without a license is only valid for a year, so please be aware of that.

If you hold a Bahraini CPR: Getting an advanced e-key is a prerequisite for applying for this service. To sign up for an advanced e-key.

In addition individual establishment company type allowed only for bahraini , GCC , Amarican only.

If you don’t have a Bahraini CPR, you can apply through the Commercial Registration Portal “Sijilat” by working with a professional body that is registered in Bahrain to process of company formation.

When applying, make sure that the following details are available.
Names of the Board of Directors, Authorized Personnel, and Partners
Names of partners, authorized individuals, and the board of directors’ ID numbers
Nationality of the Board of Directors, Authorized Personnel, and Partners
Partners’ and the Board of Directors’ phone numbers and emails
The suggested company name according to commercial companies law of bahrain
choosing a business structure & type of business activity related to your company.
Ownership structure of capital and shares

Company financial year end is it 31/12 or 30/06 or you like to have special one.

Not necessary for individual establishments, but necessary for all categories of legal businesses. – Authorization letter, if the applicant is a member of a professional body registered with the Ministry of Industry and Commerce (which is our company) specialist in bahrain or, if the partner or owner is a corporate partner, submitted by a staff member registered with the corporate partner. If the applicant is not a related person, an official power of attorney must be submitted; if the applicant is a partner, no document must be submitted.

Second Step Obtain License (Final CR).

Proof of average basic salary is 2,000 Bahraini Dinars or more in the past 5 years of residency.
Proof of basic salary is 4,000 Bahraini Dinars or more per month.

This step will be required from you to finalize rent agreement (not include Sijili type CR)

There are three types of commercial address:
  1. Commercial flat / Shop / Showroom / workshop.
  2. business center.
  3. business incubator.
Then Signing the Memorandum of association and there are many details here to control this process like What kind of addition documents if not all partner will attend Infront of notary? Final stage of obtain license is open under formation bank account. After submitting all required documents to bank and deposit capital amount as registered in MOIC, Paying Bank charge for Capital letter certificate. You can upload now Memorandum & Capital letter certificate to get Final CR.

type of company & business structure

1- individual establishment.

2- limited liability company.

3- partnership company.

4- bahrain shareholding company.

5- offshore company.

business environment

Bahrain is home to several free trade agreements and economic zones, which provide businesses with access to regional and international markets. The country’s well-developed transportation and logistics infrastructure further facilitate trade and business operations. Overall, Bahrain’s business-friendly environment, strategic location, favorable tax regime, and supportive regulatory framework make it an attractive destination for companies looking to establish a presence in the Middle East. By setting up a company in Bahrain, businesses can benefit from the numerous advantages the country has to offer and position themselves for growth and success in the region.
National Bureau For Revenue https://www.nbr.gov.bh
Process & stages pages https://mikal.bh/process/
ministry of health https://www.moh.gov.bh
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