Business Setup in
Bahrain
Business setup in Bahrain is a straightforward process that every business or individual needs to follow to start the business in the country. The government of Bahrain welcomes foreign investors to invest in the booming economy of the country. The business ecosystem of the country makes it the most popular place to invest in various sectors of the economy. There are many business consultants available offering PRO services in Bahrain. The business friendly policies by the government are the one of the main reasons after being the gateway of the Gulf Region.
The Steps of Company Registration in Bahrain
The main steps of the Company Registration in Bahrain are as follows;
Secutiney Clearance
This is to be the first step towards the big success of business registration in Bahrain. All the basic IDs are to be sent to Nationality Passport and Residence Affairs Bahrain for approval. The authority approves the documents after deep analysis. The required documents are as follows:
- Copy of the passport
- Signed KYC Forms
- Signed Engagement Letter
- Authorization Letter
Commercial Name Reservation
After registering the company the name reservation is important. You can choose any name that falls under the rules and regulations of the country. In this step the investors can provide three suggested names for reservation. The common rules and laws are as follows:
To Do’s
- The business name can be the name of a person
- The business name can be the part of the name of a person
- An innovative name is acceptable
- The business name can be a mix or a blend of the above mentioned
- The business name can include the business activity description
- The name of the business must be unique i-e it must not be registered already
Not To Do’s
- It must not be as per the common word or a general trade likewise hospital or mechanical.
- It must be opposite to the business activity you are intended to launch
- It must not be against the national laws and local values
- It must not be the same as any international company like Apple, Microsoft, etc.
- It must highlight any of the political affiliation or religious beliefs
- It must not be similar to any honorary name or social organization
- It can be the translation of any reputable brands
Head Office Registration
After the reservation of the name, the office needs to be registered. All the businesses need an office address and it can be a shop, office or a commercial incubator. To register the head office the photos will also be required.
Memorandum of the Company
This is the crucial step in the company registration and here the business needs to set up the memorandum of association and the article of association. This will include the suitable clauses for the specific business nature. It will be submitted to MOIC for approval.
Notarize the Memorandum
- All the shareholders must appear before the notary public
- If not physically present then Power of Attorney must be submitted
- The original passport of the shareholders is the key
- The memorandum must be signed by all the shareholders and the signs must comply with the passport signatures.
Open Company Bank Account
Opening a Bank account is crucial with a local bank. The account must be a company account. All the businesses are required to submit at least 1000 BD in the account as the shared opening capital. There are certain requirements to open such a account and these are as follows:
- The bank statement of last six months and it must be signed by the concerned authority.
- All the business shareholders must physically present themselves before the bank authorities where they want to open up the company account.
- Supporting documents that show the business activity.
- A financial plan that projects your business revenue and expenses.
Get Final Approval
Free Zones In Bahrain
Register business in the free zone in Bahrain because it is really worthed and classified. The important thing is that the entire country is a free zone because there is only a difference of the activities but there are certain areas available in the country which are called as free zones.
Tax Structure of Bahrain
- The value of corporate tax in Bahrain = 0%
- The value of VAT in Bahrain = 10%
- The Value of income tax in Bahrain = 0%
Organizational Structure in Bahrain
- Minimum shareholders required to open company = 1
- Maximum shareholders required to open company = unlimited
- The requirement of locals = No
- Residency of directors in Bahrain = Not Required
- Residency of shareholders in Bahrain = Required by the banking laws
- Residency of authorized signatories in Bahrain = Not Required
Capital Requirement in Bahrain
- Minimum capital required = no limit by laws
- The share capital public disclosure = Required
- Capital in form of cash = Allowed
- Capital in form of Kind = Allowed
The Regulatory Bodies in Bahrain
- The Ministry of Industry, Commerce and Tourism (MOIC) oversees the commercial registration in the country.
- The labor law is regulated by the Labor Market Regulatory Authority (LMRA)
- The tax regulations are implemented by the National Bureau of Revenue (NBR)
Foreign Company Ownership in Bahrain
- Individual Establishment of Company = Allowed to the nationals of the United States and other GCC nationals.
- Single Person Company = Allowed
- Partnership Company = Allowed
- With Limited Liability Company (WLLC) = Allowed
- Limited Partnership = Allowed
- Public/Private Joint Stock Company = Allowed