Welcome to Fahdan!
If you’re looking to establish your business in Bahrain, you’re in the right place. With a supportive environment and a wealth of opportunities, Bahrain is the perfect launching pad for your entrepreneurial journey. Let’s break down everything you need to know, including timelines, steps, and company types!
Company Formation in Bahrain
6 Essential Steps You Need to Know
At Fahdan Business Solutions, we offer a comprehensive and streamlined process to help you establish your business in Bahrain. Here are the detailed steps involved in forming a company through our services:
The first step in forming a company is ensuring that all necessary documents are properly reviewed and approved by the relevant authorities. Our team at Fahdan will assist you in gathering the required documents, including:
- Passport copies of all shareholders.
- Proposed commercial names for the company, ensuring that they are unique and meet the Ministry of Industry, Commerce, and Tourism (MOICT) guidelines.
We will handle the submission and approval process with the MOICT to ensure that your chosen company name is accepted. This crucial step ensures that your business identity is both legally recognised and protected.
Once the preliminary approvals are obtained, all shareholders must go through the National Passports and Residence Affairs (NPRA) security clearance process. This is a mandatory requirement for foreign investors and local shareholders alike. Fahdan Business Solutions will guide you through this process by:
- Collecting the necessary documents, including passport copies of shareholders.
- Submitting the required information to the NPRA for clearance.
Security clearance ensures that all parties comply with Bahrain’s laws and regulations, enabling a smooth progression through the company formation process.
In Bahrain, every company is required to have a valid and verifiable commercial address. Fahdan Business Solutions offers full support in arranging a suitable commercial address that aligns with the legal requirements. Options include:
- Business Incubators: Ideal for startups and new ventures, offering flexible workspaces.
- Business Centers: For more established businesses looking for a professional setting.
- Shutter Shops or Physical Addresses: For retail or physical business operations.
Our team will ensure that your chosen address complies with both MOICT and Municipality regulations. If needed, we can provide options for renting spaces or using incubator services.
The Memorandum of Association (MOA) is a key legal document that outlines the structure and details of your company. It includes information such as:
- Names of shareholders.
- Distribution of shares.
- Initial capital.
- The nature of your business activities.
At Fahdan, we will facilitate the drafting of the MOA and work with notaries, either public or private, to ensure the document is legally notarised. This document is critical to your company’s legal existence and must be prepared and executed meticulously.
Once the MOA is notarised, the next step is to open a corporate bank account in Bahrain. Fahdan Business Solutions will assist you in selecting a suitable bank and help with the process of account creation. Here’s what you need to do:
- Deposit the share capital into the bank account.
- Obtain a Capital Deposit Certificate from the bank, which verifies the successful deposit of the company’s initial capital.
This certificate is a requirement for further regulatory approvals, and we will ensure that the process is handled efficiently with minimal delays.
After the bank account is opened and the Capital Deposit Certificate is received, we will submit the necessary documents, including the MOA, to the MOICT for final approval. Once all conditions are met, the ministry will issue the business license, allowing you to legally operate your company in Bahrain.
At Fahdan Business Solutions, we take pride in providing a seamless and efficient business setup process, ensuring that all legal requirements are met at every step. Whether you are a startup or a multinational corporation, we make company formation in Bahrain easy and stress-free.
FORMATION OF A COMPANY IS EASIER WITH FAHDAN GROUP
Starting a business in Bahrain serves as a strategic entry point to the Gulf region, offering investors a supportive environment. Benefit from the advantage of 100% foreign ownership and a streamlined registration process.
We Provide End-to-End Solutions for Your Success
We offer a comprehensive range of support services tailored to your company’s specific needs, in addition to company registration in Bahrain. Our experts will take care of every detail of setting up your firm, from obtaining investor residency to creating corporate bank accounts. While we take care of the operational and legal complexities, you can focus on growing your business with our help.
Invest in Bahrain, the Heart of the Gulf!
Benefits of Setting up a Business in Bahrain
- 100% foreign ownership permitted
- 0% corporate tax
- 0% income tax for individuals
- 100% repatriation of capital and profits permitted
- Modern efficient communications and infrastructure
- Excellent support services from local authorities
- Foreigners are permitted to hold freehold property
- Geographical location is ideal for cross border business
Top Foreign investment opportunities
We encourage enterprises to take use of Bahrain’s competitive advantages in numerous economic sectors. These are only a few prospects for international investors, businesses, and entrepreneurs entering the Bahraini market. Contact us for a one-to-one discussion on foreign investment.
Financial Services
Manufacturing
Hospitality
Education
Real Estate
Logistics
Health and Wellness
Energy
Select Appropriate Corporate Structure in Bahrain
Individual Establishment
Owned by a single person who has personal liability for every business obligation. Although this structure is straightforward and simple to follow, only citizens of Bahrain or the GCC are permitted to make utilize of it, and personal liability protection is not provided.
Partnership Company
Formed by two or more individuals with joint liability for the company’s obligations. Partnerships allow for shared responsibility and resources but require clear agreements on roles and profit-sharing.
Limited Liability Company (WLL)
This is the best type of company formation in Bahrain which Limits each partner’s liability to their share in the company and can be owned by individuals or corporate entities. This structure is popular due to its flexibility and liability protection, making it suitable for many types of businesses.
Foreign Branch/Representative Office
Allows foreign companies to operate in Bahrain, either fully operational or as a representative office. This structure enables foreign businesses to establish a presence in Bahrain and expand their market reach.
Bahrain:
Your Gateway to Business Success
Business-Friendly Environment
Investing in Bahrain offers a range of financial advantages that streamline your business operations, enhance competitiveness, and maximize profitability. The country boasts a skilled and diverse workforce, ready to support and grow international business ventures. Bahrain's government has also established a robust framework that ensures a high level of business stability and regulatory support.
An Exceptional Quality of Life
Bahrain ranks 1st globally in the 2022 InterNations Expat Insider Survey for providing essential services to expatriates, such as easy access to digital services, streamlined processes for opening bank accounts, and hassle-free visa applications. This makes it an ideal location for both living and working.
A Vision for the Future
Bahrain’s Economic Vision 2030 has laid the foundation for sustainable growth, and the country’s National Development Strategy continues to drive progress toward achieving these goals. This long-term vision positions Bahrain as a thriving hub for businesses and investors looking for consistent growth opportunities.
Key Information at a Glance
- Time Zone: GMT +3
- Currency: Bahraini Dinar (BHD)
- Working Week: Sunday to Thursday
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FAQs
How long does it take to establish my company and obtain an investor visa?
Once all required documents are submitted, the process typically takes 3 to 4 weeks. Your investor visa will be issued after you receive an active Commercial Registration (CR).
What is the minimum capital required to start a company?
There is no set minimum capital requirement. You can start your business with any amount sufficient to support the company’s objectives.
When should I deposit the company's capital in a local bank?
The capital must be deposited in a local bank before obtaining the final CR. A bank certificate confirming this deposit is needed to complete the company registration. Afterward, the capital can be used normally.
What are the costs involved in establishing a new company?
- Government fees: BD 251 (this may vary depending on the business activity).
- Electricity and water insurance: BD 100 (refundable if not used).
- Investor/Employee Visa: BD 344 for two years or BD 172 for one year + BD 5 monthly LMRA fee.
- Family Visa: BD 90 per family member for two years (no BD 5 fee for family visas).
- Office rent: BD 80 per month (depending on the location and size).
- Processing fees: BD 450 for commercial/services or BD 800 for industrial activities.
What are the annual renewal fees for my company?
The annual fee for renewing your company’s CR is BD 50.
When should I sign the rental agreement for my company?
You should sign the rental agreement after receiving security clearance and commercial name approval. Office rents start from BD 80 per month, depending on size and location.
Can I modify my company's details after establishment?
Yes, you can modify various aspects of your company, including changing the name, adding/removing partners, adding/deleting business activities, opening new branches, and increasing capital.
Can GCC nationals open a business in Bahrain?
Yes, GCC nationals are treated the same as Bahrainis and can establish a company or individual establishment with 100% ownership.
Can Americans fully own a company in Bahrain?
Yes, U.S. nationals are treated the same as Bahrainis and can own 100% of any business, including service, industrial, and trading activities.
Do non-GCC nationals need a Bahraini partner to start a business?
This depends on the business activity. Many industrial and service activities allow 100% foreign ownership. However, for trading activities (import/export), a Bahraini partner owning 51% is required.
Can I work in another GCC country and start a business in Bahrain?
Yes, you can work in a GCC country and still invest in Bahrain.
Can I start my own business while working for another company in Bahrain?
Yes, you can start your own business in Bahrain, provided you obtain a no-objection letter from your current employer.
Can I have multiple business activities under one CR?
Yes, you can register multiple business activities under one CR and open other branches or companies.
What types of residence permits are available in Bahrain?
The types of residence permits include those for property owners, business owners, employees, students, and dependents.
What are my company’s obligations after incorporation?
Your obligations include:
- Annual renewal of the Commercial Registration (CR).
- Biannual renewal of residence permits.
- Payment of rent, electricity, and LMRA bills.
- Preparation of annual financial reports.
What is the Labor Market Regulatory Authority (LMRA) bill?
The LMRA bill is a nominal fee of BD 5 per month for each investor or employee.
Can I get residence permits for my employees?
Yes, you can. The number of residence permits available depends on the size and type of your business. Initially, you may be eligible for two or three visas.
What are the main types of companies that can be formed in Bahrain?
Bahrain offers several business structures, including Limited Liability Company (W.L.L), Bahraini Shareholding Company (B.S.C), Individual Establishments, Partnership Companies, and branches of foreign companies, each catering to different ownership and regulatory needs.
What is a With Limited Liability (W.L.L) Company in Bahrain?
A W.L.L company is a common business form in Bahrain, offering limited liability to shareholders. It requires between 1 and 50 shareholders, who are liable only for the capital they contribute. It is governed by the Commercial Companies Law and regulated by the Ministry of Industry, Commerce, and Tourism (MOICT).
What is a Bahraini Shareholding Company (B.S.C)?
A Bahraini Shareholding Company (B.S.C) restricts ownership to Bahraini nationals and GCC residents in Bahrain. Shareholders enjoy limited liability, but ownership transfer requires regulatory approval. It is regulated by the Commercial Companies Law and MOICT.
What is an Individual Establishment in Bahrain?
An Individual Establishment is a business structure available only to Bahraini nationals. The owner assumes full responsibility for the business’s operations, profits, and liabilities. It is governed by the Commercial Companies Law and regulated by the MOICT.
What are the different types of Partnership Companies in Bahrain?
Bahrain allows General and Limited Partnerships. In a General Partnership, all partners share equal profits and liabilities. In a Limited Partnership, at least one general partner has unlimited liability, while limited partners are liable only for their contributions.
Can foreign companies establish a branch in Bahrain?
Yes, a foreign company can open a branch in Bahrain without forming a separate legal entity. The parent company retains full ownership and control, and the branch must comply with Bahrain’s local laws and regulations under MOICT supervision.
Is 100% foreign ownership allowed in Bahrain?
Yes, most business activities in Bahrain allow 100% foreign ownership, with W.L.L being a common company structure for foreign investors looking to establish their business in the country.
What is the process for converting an Individual Establishment to a W.L.L company?
The process involves adhering to specific regulatory requirements and offers benefits such as enhanced legal protection, greater investment potential, and improved operational flexibility. Compliance with MOICT regulations is necessary to ensure a smooth transition.
What are the advantages of forming a W.L.L company in Bahrain?
A W.L.L offers limited liability to its shareholders, protecting personal assets from business liabilities. It also allows for shared ownership among up to 50 shareholders, making it ideal for both local and foreign investors.
What regulations govern business formation in Bahrain?
Company formation in Bahrain is governed by the Commercial Companies Law, with oversight from the Ministry of Industry, Commerce, and Tourism (MOICT). Specific laws apply to different business structures like W.L.L, B.S.C, and partnerships, ensuring compliance with local regulations.
Let’s Get Started!
Ready to bring your business vision to life in Bahrain? At Fahdan, we’re here to guide you through every step of the company formation process, making it as smooth and efficient as possible. Contact us today for a consultation, and let’s embark on this exciting journey together!
