Legal Structures in Bahrain
Limited Liability Company (W.L.L.)
The most common legal structure among foreign investors in Bahrain is W.L.L which can be 100% foreign-owned for most of the business activities A W.L.L Company is a legal business entity that consists ( 1 to 50 ) shareholders/investors who are totally responsible for the company’s debts and liabilities only to the extent of their shareholding in the capital and there is no requirement for local resident director.
Foreign Company Branch
A foreign company or business that is incorporated outside the country can establish operational branches in Bahrain to carry out business in the country The foreign companies interested in expanding into Bahrain can be established as an operational office or representative office according to the business activity and requirement of the company.
Company Registration process
The company registration process in Bahrain involves multiple steps that can be categorized into pre-registration, registration, and every company must fulfill the requirements for successful registration.
Pre-registration
Before incorporating a company in Bahrain, you must select the business type and its activities.
Next, you decide the share capital and determine the services you want to outsource for registering your company in Bahrain.
Reserve the company name is the next step in the company registration process in Bahrain.
Registration
This stage starts with submitting the application to the Bahrain Ministry of Industry, Commerce (MoIC) with the company name and applicant’s details, the type of business, total share capital, shareholding patterns, copy of passport, and other relevant documents.
Once the MoIC reviews and approves your application. Hence, obtain the relevant business licenses.
The company must have a registered address on the licenses. For this, you need the lease agreement of the office/shop, electricity and water connection.
Next step includes Preparing and notarizing the memorandum, articles, and other legal documents from a public or private notary.
It is mandatory to open a bank account to register a company and start a business in Bahrain. The bank account must be in the company’s name.
last step is submitting the bank certificate and notarized memorandum to the MoIC for the final approval.
Residency Permit For Investors/Employees
Once the entity has been incorporated and the license issued, the investors can apply for a Bahrain residence permit which is valid for two years. Investors are also eligible for Dependents Residency Permit(Bahrain Family visa) a type of visa that allows investor’s family members to live in the country.
Frequently asked questions
Companies in Bahrain have no restrictions on where they operate. The country provides business access to Gulf Cooperation Council (GCC) member states and the Middle East and has trade agreements with more than 40 countries
The cost of incorporating a company in Bahrain depends on multiple factors including
- The nature and type of company
- The number of partners
- Preparation of legal documents
- The legal address of the company
The biggest advantage of doing business in Bahrain is that it has free trade zones to promote trade and investment. Companies in Bahrain are tax-exempt with no restrictions on foreign ownership for most businesses and minimum customs duties. when you incorporate a company in Bahrain, it is exempt from different taxes, including corporate tax, tax on dividends, and withholding tax.