A Complete Guide to the Company Formation in Bahrain
Making a decision for the business setup in a different country is always a risky process. It is usually a complex and difficult decision. If you are into the business world, then in the present days the name of Bahrain as a heaven for businessmen is on the rise. After getting the basic knowledge you can not start the process of company formation in Bahrain. This is because Bahrain is the island of opportunities for young entrepreneurs. The country has an efficient business set up system. The country has a liberal investment climate and this makes Bahrain a suitable place for investment for all.
The Benefits of Investment in Bahrain
- The company formation in Bahrain is always a good decision because the government has a liberal outlook.
- The Bahraini government is offering many benefits to the investors for the purpose of investment in the country. Moreover many Bahrani institutes provide lucrative benefits to the investor for the purpose of investment. These institutes are Bahrain Logistics Zone, Bahrain Development Bank , Bahrain Economic Development Board, Bahrain International Investment Park and Tamkeen. Among investments available, formation of a company in Bahrain and duty free access to other GCC nations attract the attention.
- The location of Bahrain makes it a world-class place for investment and business. The WLL company structure provides the best results for the company formation.
- The WLL company formation in Bahrain provides the best results in company formation and aids to add more shareholders. This structure helps the entrepreneurs to add the shareholders and provides transparency of all sorts.
The Benefits of WLL Company in Bahrain
- Be the 100% Owner of your Company.
- You can buy property for the company.
- 100% repatriation of the capital and profits allowed.
- An efficient communication network and system.
- 0% corporate tax.
- Local government assistance is always great.
- 0% income tax.
- World-class infrastructure of the country.
- Multiple entry visa available with a limit of 5 years time.
- Location of the country is important strategically.
Steps of Business Setup in Bahrain
The steps to set up the company in Bahrain are not straightforward. Choosing the correct name of the company, designating owners, shareholders and directors require concrete steps to follow.
Step 1- Pre Registration Preparation
This step has more parts as well.
Selection of the Company Name
The name of the company is actually very important because it appeals to the customers and it becomes word of mouth. For approval of the company name you must choose the company name in Arabic and English as well. Bahrain company registration for foreigners is necessary for all foreigners to start the business here. The Ministry of Industry, Commerce and Tourism (MOICT) registers the names.
Secession of Shareholders, Directors and the Beneficial Owners
These persons are the key and the backbone of the company. It is a good practice to select these people before starting the process of registration.
The Business Structure
The business structure will definitely impact your overall business style. It actually impacts on registration requirements like tax, insurance and business requirements. For Instance the companies with Limited Liability (WLL) and branches of a company are examples of such companies.
Step 2 – Commercial Registration (CR)
Once the above steps are complete now move forward towards the next step as well. After these steps the documents need to submit and the CR process is complete. The documents need to submit in the MOICT through the Sijilat Portal.
After the approval of the CR, you can move with the company formation process.
Opening a Bank Account
To open a bank account is really essential because without the bank account no financial transaction is possible. The corporate company account is mandatory for all the companies. You can take help of a business setup consultant in Bahrain because it is one of the company formation requirements in Bahrain.
Lease The Office Space
Bahrain has an excellent landscape and the facilities are up to the mark. You can set up the company in the strategic area or the Seef area which is good for tourism companies. The business consultants in Bahrain provide the list of the companies
Securing the Local Licenses
During this step you will need to get the licenses.
- Municipality Approvals
- Receive approvals from the regulators and the authorities.
- Payment of the license fees
Documents For the Business Setup
- A company registration application form
- CD (Capital Deposit) Certificate
- Copies of Passport
- Copies of Visa (Owner and shareholder)
- Power of Attorney (POA)
- Company Business Plan
- Commercial Office Address
- Notarised copies of Article of Association
- Notarised copies of Memorandum of Association
FAQs
How much does it cost to set up a company in Bahrain?
The cost to set up a company in Bahrain depends on many factors. It merely depends on the business plan of yours. The industrial business definitely is the most costly.
Can a foreigner own a company in Bahrain?
Yes, foreigners can own a company in Bahrain. It is the 100% ownership of the company.
What is the minimum capital of a company in Bahrain?
There is no minimum limit of the capital in Bahrain to set a company. It actually depends on your business idea, location of the office and the area of business.
How to start a company in Bahrain?
The article provides complete and concrete information on this topic. Mainly you need the business license in Bahrain to start the company.
