Company Registration In Bahrain In 2023-24
In the Middle East, the Kingdom of Bahrain is renowned for its business- and corporate-friendly atmosphere. Bahrain, one of the top GCC nations, offers tremendous opportunities for investment and new business endeavors. The Heritage Foundation’s Index of Economic Freedom 2022, has ranked Bahrain as having the 74th-freest economy in the world and the nation is also placed fourth out of 14 nations in the Middle East and North Africa.
Bahrain’s economy has mostly been focused on the extraction of crude oil, natural gas, and petroleum exports. However, Bahrain has built on its long history of trade and transportation to outperform certain other gulf countries in the development of the manufacturing sector as well as in the provision of business and financial activities. Due to Bahrain’s zero corporate and income taxes, it is a popular location for both domestic and international entrepreneurs.
This article will explain the procedure for Bahrain company registration. Bahrain company registration requirements, benefits, costs, taxation structure, and documents will also be discussed.
Procedure for company registration in Bahrain
In order to register a company in Bahrain, an entrepreneur can follow the steps given below:
Decide the business structure
The first step of Bahrain company registration is to choose the corporate structure of your company and its activities.
Obtain Electronic Key
The entrepreneur must acquire the e-key by enrolling with the e-Government Authority in Bahrain.
Obtain Power of Attorney
You can acquire the Power of Attorney in case the e-key is not accessible.
Reserve the business name
After acquiring the electronic key or the Power of Attorney, you must reserve the business name after receiving authorization from the Ministry of Industry, Commerce, and Tourism (MoICT). At least three potential business names must be provided to register a company in Bahrain.
Business address approval
You need permission from the appropriate authority for the corporation’s official address.
Prepare the Memorandum of Association
Create a Memorandum of Association for the business and send it for authorization to the Ministry of Justice. The prepared memorandum must be notarized by a private or public notary after receiving consent from the Ministry of Justice.
Open a business bank account
Open a business bank account and deposit the required capital for company registration in Bahrain.
Apply for business registration
An application for company registration in Bahrain should be filed to the Ministry of Industry, Commerce, and Tourism (MoICT) along with all the necessary information and documents. Following approval from the MoICT, the company will be registered.
Acquire business licenses
Acquire the necessary business licenses in accordance with your business activities.
Documents required to register a company in Bahrain
Here are the various documents that must be submitted for Bahrain company registration:
- Properly completed application for business incorporation
- Power of Attorney
- Memorandum & Articles of Association
- Registered office address details
- Copies of shareholders’ passports
- Copies of the director’s passports
- Capital deposited in the bank
Business entities for company registration in Bahrain
The various business entities for Bahrain company registration are listed below:
1. Limited Liability Company (LLC)
Limited Liability Company (LLC), commonly referred to as With Limited Liability Company (WLL) is a common corporate type for international entrepreneurs and allows for 100% foreign ownership of the majority of enterprises. A limited liability company can have a maximum of 50 members and a minimum of 2 directors. The minimum required capital for an LLC is BDH 20,000.
2. Bahrain Shareholding Company (BSC)
Another name for a BSC is a public joint stock company. A BSC is best suited for companies that want to carry out significant financial and capital investments in large-scale projects. A BSC is best suited for companies who intend to register their businesses on Bahrain Bourse (BHB), the country’s securities exchange, in order to offer its stocks to the public. The required share capital to incorporate a BSC is BHD 250,000.
3. Companies Limited By Shares
The joint partner and the silent partner are two different kinds of partners in companies limited by shares. This type of company needs at least 20,000 BD as share capital. There must be at least 4 individuals to form this kind of company.
4. Partnership Firm
A partnership is an arrangement for two or more people to collaboratively work and split the business’ revenues. The partners’ liability is typically uncapped. It takes a minimum of two partners to create a partnership firm.
5. Branch Office
An overseas branch office is only an addition to the parent corporation. The debts and obligations of the branch office would be the responsibility of the overseas parent corporation. A manager is required to oversee all branch office operations.
6. Single-Person Company
A single-person company is owned by a single individual, and their liability for the business’s debts is limited to the amount of share capital they have invested.
Eligibility criteria for Bahrain company registration
| PROCESS | REQUIREMENTS |
|---|---|
| Shareholder | Minimum 2 |
| Director | Minimum 1 |
| Share Capital | BHD 250,000 |
| Local Company Secretary | Mandatory |
| Local Registered Address | Mandatory (Virtual/Physical) |
| Company Set-Up | 1 to 2 weeks |
