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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
Services to choose from
Services
SmallMediumLarge
We do the whole registration process, including the preparation of all needed documents, communication with state authorities and notaries
Incorporation
We provide a local contact person who speaks the language and communicates with authorities
Company contact person
You receive from us a legal address for your company, thus, no need to rent/buy a physical office
Legal address for 1 year
You do not need to visit this jurisdiction personally to incorporate - this will save time and money
Remote incorporation
We accompany you during the whole legal process for a successful incorporation
Notary services
We provide a local contact person who speaks the language and communicates with authorities
Company secretary
We will be able to identify nominee shareholders for you, in case you want to become completely anonymous
Nominee shareholder
If you want to be an unknown UBO, a nominee director service is useful. This director will only have limited access and powers, so the UBO will have full control on all levels.
Nominee director
We provide you with the complete accounting needed for this jurisdiction, including monthly and yearly statements
Accounting for 1 year
You grant us a power of attorney to carry out activities for you in the jurisdiction with different powers and terms of validity
Long-term POA
Authenticates the seals and signatures of your official company documents stating the rights and obligations of the entity's members or stakeholders of the company of any form of ownership in accordance with the laws of the jurisdiction
Apostille of documents
A specific amount of hours of legal support by local legal professionals you may use on demand
Additional legal support
We help you to open a corporate account that suits your business model
Corporate account
SHELF COMPANIES
Request
How to start
Choose a jurisdiction1.
Pick a bank2.
Pay for the service using a suitable method3.
Receive credentials of your new legal entity4.
Get credentials of your opened bank account5.
Receive a package with documents delivered to you6.

Roadmap

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

It would be not fair to set your expectations in a way to assume for the incorporation to be finished within a day. In some jurisdictions it is extraordinary fast (for example in Estonia) in some slower. It all boils down to one thing: 'When are the necessary (basic) documents ready?' The process is counted from the moment on we have all the needed documents. Please consult with our consultants to understand what documents you need to kick-start the process.

  • 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

Note: Processing time does not include obtaining of license, if required. Period for this will depend on chosen business activity.

What are the steps to register a company in Bahrain?

The registration process of a company in Company Formation in Bahrain with LegalBison is very simple:

  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

How high are the corporate income tax in Bahrain?

Generally speaking, there is no corporate income tax in Bahrain. Only two cases apply:

  • 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?

To avoid double taxation, Bahrain signed DTAs with the following countries:

Algeria, Bangladesh, Belarus, Belgium, Brunei, Bulgaria, China, Czech Republic, Egypt, France, Iran, Ireland, Jordan, Lebanon, Malaysia, Mexico, Morocco, Philippines, Singapore, Sri Lanka, Syria, Thailand, Turkey, Turkmenistan, United Kingdom, Uzbekistan and Yemen.

VAT 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 to provide 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

  • 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

  • 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

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

LegalBison offers help with all of the above requirements. We assist and are local on ground. Speak now for free with one of our consultants to get your business started.

Known companies in Bahrain

Aluminium Bahrain
Aluminium Bahrain

Bahrain Telecommunications Company
Bahrain Telecommunications Company

GFH Financial Group
GFH Financial Group

FAQs about company registration in Bahrain