Deciding on which countries to expand your business to can be a complex and difficult decision. As an aspiring entrepreneur, you might have heard of the lucrative business environment of Bahrain and might be wondering about the process of starting a business in Bahrain as a foreigner.
In this article, Tetra Consultants has provided a complete guide to business setup in Bahrain for a foreigner so that you may better understand this business phenomenon and make a more informed decision about whether you should register company in Bahrain.
Benefits of starting a business in Bahrain
- The investment climate in Bahrain is typically favorable for company registration since the government has a liberal foreign investment perspective and is actively seeking foreign investors and businesses.
- In order to promote foreign direct investments, the Bahraini government provides many benefits to international businesses conducting business in Bahrain. Various Bahrain-based institutions, including the Bahrain Logistics Zone (BLZ), Bahrain Development Bank (BDB), Bahrain Economic Development Board (EDB), Bahrain International Investment Park (BIIP), and Tamkeen, Bahrain’s semi-autonomous government agency, provide numerous lucrative advantages. Among the incentives available are support in company formation in Bahrain and the start-up of a business, monetary Assistance Duty-free access to other GCC nations for Bahrain-made items as well as import duty exemptions for equipment and machinery.
- Bahrain is a world-class location for a variety of economic and commercial activities. Many entrepreneurs and businesses have benefited from the WLL kind of corporate structure in making their business aspirations a reality.
- The WLL company formation in Bahrain has aided several shareholders and entrepreneurs in developing new ideas and ways for diverse company operations. Furthermore, the WLL company formation in Bahrain has been successful in articulating the most modern ways and strategies for developing its business and ensuring complete transparency and competence in its services.
Here we have enlisted some key benefits of WLL company formation in Bahrain.
- 100% foreign ownership is permitted.
- Foreign property ownership is unrestricted, and there are no limits on capital and profit repatriation or exchange controls.
- A dependable and efficient communication infrastructure
- No too stringent visa, residence, and work permit rules impeding international investors and ex-pats from freely traveling in Bahrain
- Nil corporate tax
- Abundant affordable energy
- Excellent local government assistance
- Long-standing political stability, safety, and security
- Nil personal income tax
- World-class infrastructure
- Location strategically important for cross-border commerce and investment
- Multiple entry visas with a five-year validity period are now available.
Steps to business set up in Bahrain
There are several things to consider when starting a business in Bahrain, such as choosing the correct name for your company, designating owners, shareholders, and directors, and deciding on a corporate structure. Learn more about these steps by reading below.
Step 1: Pre-registration preparation
- At this step in the process, you are required to prepare for the following things:
- Selection of company name: It might be challenging to choose a name since it must be original and appealing. There are several tools available to assist you with naming your entity. For approval, you must choose both an English and an Arabic version of your name. Tetra Consultants recommends having two alternate names wherein our team will assist with the preliminary check for the availability of names. Once confirmed, our team will register the name available with the Ministry of Industry, Commerce, and Tourism (MOICT).
- The shareholders, directors, and beneficial owners: These individuals will be the cornerstone of your business, so identify those that have similar ambitions for your company.
- The business structure: Your choice of structure will have an impact on registration requirements, insurance, and tax implication of your entity. Companies with limited liability (WLL) and foreign branches are examples of these structures.
Step 2: Commercial registration
- Once the above step has been completed, you can proceed with the submission of the aforementioned information and documents prepared thereto to the MOICT through the Sijilat Portal. Once approved, you will receive a Commercial Registration Certificate.
- With this initial approval, you can further the process of company registration:
- Opening a bank account: You need to have a corporate bank account opened in order to deposit the minimum capital amount. Tetra Consultants team can assist with the process of corporate bank account opening with a local or internationally reputable bank of your choice. Usually, we expect to secure the corporate bank account for the entity within 4 weeks.
- Leasing office space: Bahrain provides excellent office space for your company. These might include the Strategic Area, which is good for financial services companies, or the Seef Area, which is ideal for businesses in the tourist and entertainment industries. Tetra Consultants can assist with the provision of local offices in Bahrain. We will list the office space available in the nation and additionally prepare a lease agreement to be submitted for company registration at a later stage.
- Bahraini local employees: Bahrain’s workforce is highly educated and competent. Bahraini personnel has the expertise required to propel your company ahead. Our HR team can assist with the hiring of local employees in Bahrain (if required).
Step 3: Securing local license and final company registration
- Local licenses: During this step, and depending on the activities you have chosen, you will:
- Receive municipal approvals
- Receive approvals from regulators and licensing authorities
- Pay for licensing fees and permits
- Upon completion, you will receive your activity licenses, which will be reflected on the Commercial Registration Certificate.
- Preparation of documents: You need to prepare the following documents to register company in Bahrain.
- Duly filled company registration application form
- Capital Deposit Certificate
- Copies of Passport and Visa for company shareholders
- Power of Attorney for Outsourced Consultant
- Company Business Plan
- Commercial office address details
- Copies of Certificates of education and training of the applicant
- Notarise and endorse the company’s newly formed Articles of Association/Memorandum of Association
- Deposit the company’s paid-up capital to your business bank account
- Tetra Consultants’ legal team is proficient with the collation and preparation of the aforementioned documents. We will additionally get it notarized and translated for the final registration of your entity with the MOICT. Upon completion, you will receive a Certificate of Incorporation, a Certified Article of Incorporation, and other administrative corporate documents.
Navigating the country of Bahrains’ complex business climate as an entrepreneur planning to register a company in the nation might be a challenging process – a hassle to say the least. As such, Tetra Consultants hopes that this article has provided you with a much better understanding of the business culture of Bahrain s so that you can truly decide whether you should do so yourself. So, what are you waiting for?
Contact us to find out more about the process of starting a business in Bahrain s, and our dedicated and experienced team will respond within the next 24 hours.
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