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Cost of registration
from 6305 USD
The cost of the second year
from 3060 USD
Table of contents
Company registration in Bahrain
Law&Trust International provides company registration services in Bahrain. Favourable economic and tax policies make Bahrain attractive to foreign investors and entrepreneurs. In recent years, the country has been actively working on strengthening its economy.
| Cost of registration | VAT | Corporate tax | Minimum Share Capital | Term of company registration |
| From 6305 USD | 10% | 0% | 0 | From 2 weeks |
Main advantages of company in Bahrain:
- 100% foreign ownership of the company is allowed. Exceptions are some sectors (media, oil and gas industry, etc.) where the participation of a local partner is required.
- Remote company registration procedure is available.
- Tax advantages: no corporate tax for most activities.
Legal form of the company
- Limited Liability Company (W.L.L)
A company where the liability of shareholders is limited to the amount of their contribution to the share capital. - Public Shareholding Company (BSC)
Companies of this type consist of a number of partners who act as holders of publicly traded shares and are not liable for the debts of the company and its obligations except to the extent of the value of their shares. - Partnership Company
A company consisting of two or more persons who are jointly and severally liable for the obligations of the company to the extent of all their assets. - Individual Establishment
Owned by a single individual or legal entity that is authorized to conduct business activities. This person is solely responsible for full financial obligations.
The lawyers and consultants of Law&Trust international will help you choose the most appropriate legal form of company. You can request an individual consultation by phone or via the website.
Main stages of Company Registration in Bahrain:
The main steps of company registration are:
- Selection of the company's activity;
- Selecting the legal form of the company;
- Submission of identification documents for shareholders, directors and authorized signatories for security clearance;
- Registration of the company name: submission of a request for reservation of the company name;
- Obtaining a provisional certificate of incorporation (CR): once the name is approved, a provisional commercial registration (CR) number must be obtained, which is used for initial documentation such as opening bank accounts;
- Obtaining a provisional company licence;
- Preparation of company articles of association: preparation and notarization of the articles of association, which set out the purpose and structure of the company;
- Opening a company bank account: opening a bank account to hold the initial capital needed to start the business.
- Obtaining a Residence Visa and ID, mandatory for the bank account.
- Activation of the company licence.
Documents required for company registration
The following list of documents and information will be required to register a W.L.L company in Bahrain:
- Copies of passports of all shareholders, directors and authorised representatives;
- Power of Attorney if required as part of the incorporation process;
- Company names variations.
Specifics of company registration in Bahrain
There are no residency restrictions for shareholders or directors, except for certain activities.
It is required that the real office is located in Bahrain.
The company is required to appoint one or more auditors who are selected by the general meeting of shareholders.
| Minimum amount of authorized capital | There is no minimum requirement (5-7 thousand Bahraini dinars is recommended), but the authorised capital must be paid in 100% |
| Local registered office | Required |
| Permissibility of foreign ownership | 100% |
| Minimum number of directors | 1 |
| Minimum number of shareholders | 1 |
| Personal presence | Remote registration available |
| Residency requirement for directors and shareholders | No |
Taxation
The rate of corporation tax is 0%.
The standard VAT rate is 10%, but some sectors are subject to a 0% rate, such as health, education and exports. Registration with the National Board of Revenue (NBR) for VAT and levy is mandatory for companies with an annual revenue of BHD 37,000. Optional registration is allowed for businesses with an annual revenue of at least 18,850 BHD.
Stamp duty is charged at a rate of 2%.
| VAT | 10% |
| Corporate tax | 0% |
| Stamp duty | 2% |
| Capital gains tax | None |
| Dividend tax | None |
| Royalty tax | None |
| Personal income tax | None |
| Currency Control | None |
The lawyers and consultants of Law&Trust can help you choose the appropriate legal form and register your company in Bahrain. You can apply for individual consideration of your business task by phone or via the website.
F.A.Q.
Do I need a local bank account?
Yes, a local bank account is required to operate and carry out financial transactions in Bahrain as a prerequisite for company registration and obtaining the relevant licences.
Can I be a sole shareholder of the company?
Yes, you can be a sole shareholder and director of the company.
What documents do I need to register a company?
- Passport
- Proof of address of the shareholder and director not older than 3 months.
Can a foreign citizen register a company?
Yes, you can. Foreign investors can own the company 100% without a local partner or sponsor. But there are activities that require a local partner in the structure.
Is it possible to register a company remotely?
Yes, you can, but you need to be present in person at the time of obtaining residency.
Is it necessary to pay the authorised capital?
It is necessary to pay the authorised capital. The recommended amount is 5000-7000 BHD.
