Company formation in Bahrain

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Bahrain, an archipelago in the Persian Gulf, is an attractive destination for company registration due to its strategic location, liberal business environment, and strong economic fundamentals. The government of Bahrain has implemented several reforms to enhance the ease of doing business, including streamlined registration processes and reduced bureaucratic hurdles.

Foreign investors are welcomed with open arms, and 100% foreign ownership is permitted in most sectors, which is a significant advantage compared to many other countries in the region. The Bahrain Economic Development Board (EDB) actively promotes investment and provides support to businesses looking to establish a presence in the country. Bahrain also boasts a favorable tax regime, with no personal income tax, wealth tax, or capital gains tax, and corporate taxes are minimal and sector-specific.

The country’s strategic location in the Middle East makes it an excellent hub for accessing the Gulf Cooperation Council (GCC) market, offering businesses proximity to major regional economies like Saudi Arabia and the UAE. The Bahrain International Investment Park (BIIP) and other free zones offer additional incentives such as tax exemptions, customs duty waivers, and relaxed regulations to attract foreign enterprises. These zones are particularly attractive for manufacturing, logistics, and technology companies.

Manimama ensures a seamless company registration process in Bahrain. Trust us to provide expert guidance and support, so your business can thrive from day one in Bahrain. Start your journey with confidence, knowing you have the best team by your side.

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Our Packages

Our comprehensive packages simplify the process of setting up the perfect legal entity for your business whether you are a small start-up, a non-profit company, or an international company. Let us guide you through every step, ensuring your business begins on a solid foundation.

Incorporation

  • Obtaining a license
  • Company formation
  • Memorandum of Association
  • Establishment card
  • Banking account
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Visa Issues

  • Investment visa
  • Business visa
  • Employment visa
  • Other types of residence
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Taxation and Accounting

  • Corporate tax registration
  • VAT registration
  • Tax reporting
  • Accounting
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Key Numbers about Incorporations

minimum 1

director for a company

up to 4 weeks

timeline for a company registration

no

minimum share capital

0%

corporate income tax (CIT)

0%

personal income tax (PIT)

10%

value added tax (VAT)

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Set up Your Company in Bahrain in Several Steps

  1. Step 1. Initial setup
    • Initiating a preliminary project assessment
    • Preparation and filing of the package of documents
  2. Step 2. Company registration
    • Obtaining an electronic key by registering at the offices of the e-Government Authority in Bahrain before embarking on a request for registration
    • Electronically applying for all business through the e-gateway of the register system by providing the required documents and fees
    • Determining the legal form of the company, noting that some commercial activities require a particular legal form
    • Determining the commercial name of the company
    • Opening a corporate bank account and depositing the capital
    • Submitting the application for commercial registration electronically to the Commercial Register
    • Obtaining security clearance for foreign investors
    • Obtaining all necessary approvals and licenses to practice your desired business activity
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Requirements for Company Formation in Bahrain

Before deciding to set up a new company in Bahrain, read the information below to understand the characteristics of a With Limited Liability Company (WLL):

    Shareholders: the company is required to have at least 1 shareholder (partner).

    Director: the company is managed by a manager or managers from among the partners or others who are appointed for the first time through the founders and are appointed after that by a decision of its general assembly.

    Company secretary: there is no requirement.

    Minimum share capital: there is no minimum capital requirement. The company shall not be incorporated unless all cash and in-kind shares are distributed between the partners as well as being fully paid and the in-kind shares are delivered to the company. The company also must maintain reserve share capital.

    Legal address: the company needs a registered office address in Bahrain (this can be a physical office space / a work desk in a shared workspace / a virtual office address).

    Liability: partners are liable by the amount of their share in the share capital of the company.

    Auditor: the company is required to appoint 1 auditor or more who shall be selected by the general meeting of partners.

    Accounting: the manager of the company must:

    • prepare, for each financial year and within at least 3 months from the end thereof, the company’s balance sheet, profit and loss account and a report on the company’s activities and financial position together with their recommendations as regards profit distribution
    • forward to the MoIC a copy of each of the balance sheet, the profit and loss account, the annual report and the auditor’s report (no audit for 1st year) within 10 days from the date of preparing such documents

    Taxes in Bahrain

    Corporate income tax (CIT)

    • In general, there is no CIT in Bahrain.
    • Сorporate tax is only exist for companies whose activities are related to the gas and oil sector - 46%

    Personal income tax (PIT)

    There is no PIT regime in Bahrain.

    Value-added tax (VAT)

    • The standard rate is 10%.
    • The reduced rate 0% applies to some goods and services and others will be exempt from VAT.
    • All entities or individuals conducting an economic activity independently to generate income and make annual supplies exceeding the mandatory threshold of BHD 37,500 (~ € 91,184) are required to register for VAT purposes and are required to be registered with the National Bureau for Revenue to obtain a VAT registration certificate and a dedicated VAT account number.
    • Being a VAT registered business, the company is obliged to file a VAT return.

    Double taxation avoidance agreements in Bahrain: Algeria, Austria, Bangladesh, Barbados, Belarus, Belgium, Bermuda, Brunei, Bulgaria, China, Cyprus, Czech Republic, Egypt, Estonia, France, Georgia, Hungary, Iran, Ireland, Isle of Man, Jordan, Republic of Korea, Lebanon, Luxembourg, Malaysia, Malta, Mexico, Morocco, the Netherlands, Pakistan, Philippines, Portugal, Seychelles, Singapore, Sri Lanka, Sudan, Switzerland, Syria, Tajikistan, Thailand, Turkey, Turkmenistan, the United Kingdom, Uzbekistan, and Yemen.

    Start Your Company Formation Process with Manimama

    There are numerous reasons why Manimama is the leading company formation agent in Bahrain:

    Expertise in Regulations of Bahrain

    • 1. Manimama has an in-depth understanding of Bahrain's legal and regulatory framework.
    • 2. Our team ensures all legal requirements are meticulously met for a seamless company formation process.

    Local and International Experience

    • 1. With extensive experience in both local and international markets, Manimama can cater to a diverse range of business needs.
    • 2. Our expertise spans various industries, providing customized solutions for each client.

    Efficient and Timely Service

    • 1. We pride ourselves on our swift turnaround times, ensuring your company is registered promptly.
    • 2. Our efficient processes minimize delays and get your business up and running quickly.

    Client-Centric Approach

    • 1. Manimama prioritizes customer satisfaction by offering personalized support and guidance.
    • 2. Our dedicated team is always available to address any concerns and provide expert advice.

    Robust Network of Local Partners

    • 1. We have established strong relationships with local authorities, banks, and service providers.
    • 2. This network ensures that your business receives the best possible support and resources.

    Ongoing Compliance Support

    • 1. We provide continuous support to ensure your business remains compliant with laws of Bahrain.
    • 2. Our team keeps you updated on any regulatory changes that may impact your company.

    Frequently Asked Questions

    • Can foreigners fully own a company in Bahrain?
      Yes, Bahrain permits 100% foreign ownership in most sectors, making it an attractive destination for foreign investors.
    • How long does it take to register a company in Bahrain?
      The process typically takes 4 weeks, depending on the completeness of the documentation and the type of business.
    • Is there a residency requirement for company directors or shareholders?
      No, there are no residency requirements for directors or shareholders in Bahrain.
    • What taxes are applicable to businesses in Bahrain?
      Bahrain has no personal income tax, wealth tax, or capital gains tax.
    • Is it mandatory to have a local partner?
      No, having a local partner is not mandatory as Bahrain allows 100% foreign ownership in most business sectors.
    • What are the annual compliance requirements for companies?
      Companies must submit annual financial statements, conduct audits if applicable, and renew their commercial registration annually.
    • Is there a need for a registered office in Bahrain?
      Yes, companies are generally required to have a registered office in Bahrain.
    • What is the process for renewing a company’s commercial registration?
      The commercial registration must be renewed annually by submitting the renewal application along with the required documents and paying the renewal fee.
    • Are there any special economic zones in Bahrain?
      Yes, Bahrain has several special economic zones and industrial parks, such as the Bahrain International Investment Park (BIIP), offering additional incentives for businesses.
    • Where can I find more information on company registration in Bahrain?
      More information can be found on the Bahrain Economic Development Board’s.
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    Manimama as the Best Solution for Your Company Formation in Bahrain

    Choosing the right partner for company registration is crucial for a smooth and successful business launch. At Manimama, our legal experts specialize in navigating complex legal landscapes, providing holistic solutions tailored to your needs.

    1. Comprehensive Legal Expertise

      Since our inception, Manimama has been at the forefront of tackling intricate legal challenges with innovative and thorough solutions. Our team of dedicated lawyers evolves alongside our firm, reflecting our people-centric philosophy and commitment to excellence.

    2. Results-Driven Approach

      Manimama is a results-oriented law firm that offers an extensive array of legal services to both individuals and corporate entities. We pride ourselves on maintaining the highest standards of integrity and a "client-first" approach, leveraging our extensive skills and knowledge to achieve the best outcomes for our clients.

    3. Global Presence and Local Expertise

      Our journey began with the establishment of Manimama OU's first European office in Estonia, a country renowned for its progressive regulation of virtual currencies, international investments, fintech, and gambling sectors. Estonia’s favorable tax system and digital-friendly investment climate provided a robust foundation for our expansion.

    4. Community Commitment

      At Manimama, we believe in giving back to society and making a positive impact. Our commitment to social responsibility is integral to our operations, ensuring that we contribute to making the world a better place while helping our clients achieve their business goals.

    By choosing our company formation service in Bahrain, you are partnering with a law firm that values integrity, expertise, and client satisfaction. Let us help you set up your company in Bahrain and pave the way for your business success.

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    We are a team that maintains a high level of integrity and a “client first” approach, applying our skills and knowledge.

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