How Much Does It Cost to Start a Business in Bahrain in 2026?

Q: What is the first step to start a business in Bahrain?

The process begins with obtaining an Initial Commercial Registration (CR) without a license, which reserves the business name, company structure, shareholding details, and declared capital with the Ministry of Industry & Commerce.

Q: When is LMRA registration required?

LMRA registration is completed after the Commercial Registration is activated and is mandatory for applying for investor and employee work permits and visas.

A complete cost breakdown covering company registration, licensing, visas, office setup, and post-registration compliance

Bahrain is widely regarded as one of the most cost-effective and business-friendly destinations in the GCC. With zero corporate tax, flexible ownership rules, and a digitised registration system, the country continues to attract startups, SMEs, and foreign investors alike.

However, while Bahrain offers competitive entry costs, the actual cost of starting a business depends on several factors, including company structure, business activity, office requirements, visa requirements, and post-registration compliance. Understanding these costs upfront helps avoid delays, budgeting errors, and regulatory issues later.

So, how much does it really cost to start a business in Bahrain in 2026, and what expenses should you plan for at each stage?

What Are the Main Cost Components of Starting a Business in Bahrain?

The total cost of starting a business in Bahrain is not a single fixed number. It comprises government fees, licensing charges, office expenses, visa costs, and compliance registrations, spread across the different stages of incorporation.

Broadly, costs fall into three phases:

Company registration and licensing.
Office setup and operational approvals.
Post-registration compliance and visa processing.

Each phase carries mandatory charges that every business must budget for.

How Much Does Company Registration Cost in Bahrain?

Company registration begins with obtaining an initial Commercial Registration (CR) without a license, followed by licensing and final CR activation.

Initial CR (Without License) Costs

As per the official Bahrain process flow, the initial CR stage includes:

Trade name approval and MOIC review.
Shareholding structure and capital declaration.
Security clearance acceptance.

Government fee for issuing an initial CR:

BHD 50, payable to MOIC.

This stage typically takes 4–5 working days, provided documents are in order.

What are the Licensing and Office Setup Costs?

After the initial CR, businesses must obtain the commercial license, which requires confirming a registered office address.

Office and Address Requirements

To proceed with licensing, businesses must submit:

Lease agreement.
EWA electricity bill.
Office or shop photographs (inside and outside).

Office options include:

Business centre or incubator desk.
Commercial office.
Retail shop or warehouse, depending on activity.

Licensing & Municipality Charges

Key government charges during this phase include:

Municipality post-approval fee: BHD 10.

Additional costs may arise depending on:

Office size and location.
Commercial vs professional activity.

Licensing timelines vary depending on approvals from MOIC and the municipality, as well as site inspections.

Are There Notarisation and Bank Account Costs?

Yes. Once the site approval is completed, the company must finalise its legal and banking setup.

Legal Documentation Costs

Drafting the Memorandum & Articles of Association (MOA).
Notarisation of the MOA in the presence of shareholders.

Notarisation costs vary depending on the structure, but are a mandatory expense before CR activation.

Bank Account & Capital Deposit

Corporate bank account opening.
Deposit of declared share capital.
Issuance of capital deposit certificate.

Bank account opening typically takes 5–7 working days.

What Is the Cost of Activating the Commercial Registration?

After notarisation and bank confirmation:

Documents are submitted to MOIC.
Final approval is issued.
The active CR license is released.

This step completes the company formation in Bahrain, allowing the business to legally operate.

What Are the Mandatory Post-Registration Costs?

Once the company is registered, several post-registration registrations are legally required before hiring staff or applying for visas.

1. LMRA Registration Cost

LMRA registration is mandatory for most businesses.

Government charges: BHD 20.
Service charges: BHD 25.
Processing time: 3 working days.

This enables the company to apply for work permits and visas.

2. GOSI Registration Cost

GOSI registration is required for social insurance compliance.

Government charges: BHD 0.
Service charges: BHD 30.
Processing time: 3 working days.

3. eKey Registration Cost

An advanced eKey is required to access Sijilat, LMRA, and MOIC portals.

Government charges: BHD 60.
Service charges: BHD 40.
Processing time: 3–4 working days.

How Much Does It Cost to Get a Bahrain Residence or Investor Visa?

Foreign owners and directors typically require a Bahrain residence visa.

Investor / Work Visa Costs

Government charges:
- BHD 177 for a one-year visa.
- BHD 349 for a two-year visa.
Service charges: BHD 15.
Processing time: Approx. 25 working days.

Additional costs may apply if:

The applicant is outside Bahrain.
A newspaper advertisement is required.
Visit-to-work visa conversion is used.

What Is the Cost of CPR (Bahrain ID)?

Once the residence visa is issued, the applicant must apply for a CPR (Central Population Registration).

Service charge: BHD 15.
Validity: 5 years.
Processing time: 3 working days.

What Is the Total Estimated Cost to Start a Business in Bahrain?

While costs vary by activity and structure, a typical SME setup may include:

Initial CR and licensing fees.
Office registration costs.
Legal and notarisation charges.
LMRA, GOSI, and eKey registration.
Investor visa and CPR processing.

The total startup cost varies based on applicable government charges, office requirements, and the visa needs outlined above.

Are There Any Taxes to Budget For?

Bahrain remains one of the most tax-efficient jurisdictions in the region:

Corporate tax: 0%.
Personal income tax: 0%.
Withholding tax: None.
VAT: 10% (applicable only if registered).

Also Read: 7 Compelling Reasons Why Bahrain is The Best Place to Start A Business

Final Thoughts

Understanding the costs of starting a business in Bahrain is essential for realistic planning and smooth execution. While Bahrain offers low government fees and zero corporate tax, costs still arise across licensing, office setup, visas, and post-registration compliance.

The key to cost efficiency lies in choosing the right structure, preparing accurate documentation, and following the proper approval sequence from day one.

Planning to start a business in Bahrain?

Contact Fahdan Business Solutions for end-to-end support with company formation, document clearance, visa processing, and ongoing compliance.

Frequently Asked Questions

1. What is the first step to start a business in Bahrain?
The process begins with obtaining an Initial Commercial Registration (CR) without a license, which reserves the business name, company structure, shareholding details, and declared capital with the Ministry of Industry & Commerce.

2. Is an office address mandatory to obtain a business license in Bahrain?
Yes. A registered office address is mandatory to proceed with licensing. Businesses must submit a valid lease agreement, an Electricity and Water Authority (EWA) bill, and photographs of the office or shop for approval.

3. How long does the company registration process usually take?
Timelines vary by activity and approvals, but the process follows defined stages, including Initial CR issuance, licensing approvals, notarisation, bank account opening, and final CR activation.

4. Is notarisation of the Memorandum of Association required?
Yes. The Memorandum of Association must be notarised in the presence of all shareholders before the Commercial Registration can be activated.

5. When is LMRA registration required?
LMRA registration is completed after the Commercial Registration is activated and is mandatory for applying for investor and employee work permits and visas.

6. Is GOSI registration compulsory for all companies?
Yes. Companies must register with the General Organization for Social Insurance to comply with statutory requirements before hiring employees.

7. Do foreign shareholders need a Bahrain residence or investor visa?
Yes. Foreign owners, directors, and authorised signatories are required to obtain a Bahrain residence or investor visa to legally reside and manage the business in Bahrain.

8. Can Fahdan Business Solutions handle post-registration compliance?
Yes. Fahdan Business Solutions provides end-to-end support for LMRA registration, GOSI registration, eKey setup, visa processing, and ongoing compliance management.

Glossary of Key Terms

Term	Definition
Commercial Registration (CR)	The official license issued by the Ministry of Industry & Commerce that legally allows a business to operate in Bahrain.
Initial CR	A preliminary registration issued without a license is used to reserve the business name, structure, and capital before full approval.
Active CR License	The final approved Commercial Registration permits a company to legally commence operations in Bahrain.
Ministry of Industry & Commerce (MOIC)	The primary regulatory authority responsible for company registration, licensing, and business oversight in Bahrain.
Memorandum of Association (MOA)	A legal document defining the company’s ownership structure, business activities, and governance framework.
Municipality Approval	Local authority approval confirming that the business location complies with zoning and commercial regulations.
Electricity and Water Authority (EWA)	The government body provides utility connections and bills required for office and licensing approvals.
Labour Market Regulatory Authority (LMRA)	The authority responsible for issuing work permits, employment visas, and regulating labour compliance in Bahrain.
General Organization for Social Insurance (GOSI)	The government entity managing social insurance registration and compliance for employers and employees.
eKey	A secure digital identity is required to access Bahrain’s official government portals, such as Sijilat and LMRA.
Investor Visa	A residence permitis issued to foreign shareholders or directors, allowing them to live and manage a business in Bahrain.
Work Permit	An authorisation issued by the LMRA allowing a company to legally employ foreign staff in Bahrain.
CPR (Central Population Registration)	The national identity card is issued to Bahraini residents upon visa approval.
Paid-up Capital	The amount of share capital deposited into the company’s bank account during or after incorporation.
Value Added Tax (VAT)	A consumption tax of 10% is levied on taxable goods and services in Bahrain, subject to registration thresholds.

About This Guide

This guide is based on 17 years of experience supporting over 6,000 company formations across Bahrain and the GCC. Fahdan Business Solutions specialises in company formation, licensing, document clearance, visa processing, and ongoing compliance management.

For personalised cost estimates and a clear setup roadmap, connect with our expert team. We ensure your Bahrain business setup is completed efficiently, compliantly, and right the first time.