Company Formation in Bahrain

Top 5 Advantages of company registration in Bahrain

1. Strategic location
2. Large economy
3. Low business cost
4. World class ICT infrastructure
5. Very expat friendly

Roadmap Company in Bahrain

How long does it take to register a Company in Bahrain?

• 1-3 working days if done locally provided all requirements are complete
• 7-10 working days if done remotely and all requirements are made available

What are the steps to register a company in Bahrain?

1. Initial consultation and agreement
2. Payment of the full invoice
3. Decide whether to travel to Bahrain or act through a representative through power of attorney
4. Decide whether to travel to Bahrain or act through a representative through power of attorney

Taxes in Bahrain

How high are the corporate income tax in Bahrain?

• 0% corporate income tax on all activities except oil companies
• Oil companies are taxed at the rate of 46%

What Double-tax treaties has Bahrain?

VAT in Bahrain in Bahrain

Without VAT number

• If you haven’t reached the minimum threshold for voluntary registration then you cannot register but you cannot charge VAT on your supplies nor can you recover said VAT on business expenses

With VAT number

• VAT is at a base rate of 5%
• VAT registration is mandatory for businesses with an annual income threshold of BHD 37,000. Voluntary registration is permitted for those with annual income with a minimum threshold of BHD 18,850
• Filing of tax returns and payment is periodic or monthly

Decide first

1. What company structure do you want to register?
2. Do you want to register your own or buy shares from already existing companies (shelf-company)?
3. Can you travel to Bahrain?

Documents needed for company registration in Bahrain

• Passport copies (a scan) of all individuals above, also beneficiary owner if applicable
• A Power of Attorney (POA) from (all) partners/shareholders is needed (in case of a remote company registration)
• Certified company documents (in case at least one of the shareholders is going to be a foreign company)

Information needed to get company registration in Bahrain

• 3 options of your desired name for the company and a company contact email address
• Names, addresses and emails of all shareholders and board members
• Short description of your companies’ activity

Remote incorporation in Bahrain in Bahrain

• Registration can be done remotely through a representative with power of attorney or a professional body
• We can do the whole process online

Accounting and auditing in Bahrain in Bahrain

• Regardless of structure, the company must maintain its book/s (original journal, general ledger) and must be kept locally
• Audited financial statement is also required which must be annually filed with the Ministry of Commerce Affairs. Furthermore, the auditor must be licensed to practice and physically present in Bahrain
• Companies in Bahrain are required to deduct from their annual profit at least 10% and set it aside to the statutory (legal) reserve. The deduction may be suspended if the reserve already amounts to at least 50% of the paid-up capital

Residential requirements in Bahrain

What are the residential requirements in Bahrain?

• There is no restriction as to residency for either the shareholder/s or director/s. Bahrain actually even allows 100% foreign ownership of a company except for some specific industries
• Instead of the owner/s or officer/s, it is only required that the registered office be situated locally