Starting a business in Bahrain requires following a few essential steps:
1. Obtain Security Clearance:
Before initiating your business setup, you’ll need to obtain security clearance from the Ministry of Interior. This process involves a background check to verify the eligibility of all owners and directors, addressing any security matters. You’ll typically need to submit passport copies and other identification documents. Keep in mind that processing times can vary, so ensure you account for this in your overall timeline.
2. Register Your Business Name:
Select three unique and relevant names for your company. Submit these to the Ministry of Industry and Commerce (MOICT) for approval and availability checks. The chosen name must adhere to Bahrain’s naming conventions and avoid conflicts with existing trademarks. To prevent potential future disputes, it is advisable to conduct a separate trademark search.
3. Secure an Office Address:
A registered office address in Bahrain is mandatory. This could be a physical office, a shared workspace, or even a virtual office address. The address must comply with local municipal regulations and receive approval from the relevant authorities. If opting for a virtual office, the provider usually handles the approval process. When deciding on an office type, consider factors such as cost, scalability, and the professional image of your business.
4. Draft and Notarize Legal Documents:
An essential step in the process is preparing the Memorandum of Association (MOA). This document outlines the structure of your business, including details like the company’s name, objectives, share capital, and management setup. Once the MOA is ready, it needs to be notarized by the Ministry of Justice. As a foundational document for your company, it’s important that the MOA accurately reflects your goals and complies with local regulations. It’s recommended to consult with a business formation expert to ensure everything is in order. Additional documents may also be required by the Ministry for notarization.
5. Open a Corporate Bank Account:
You will need to deposit the minimum required capital for your selected business structure into a newly established corporate bank account. After the deposit is confirmed, the bank will issue a capital deposit certificate, which is essential for completing the company registration. The minimum capital requirement depends on your chosen business structure, so research the exact amount in advance. Keep in mind that opening a corporate bank account might require personal visits and additional documents.
