Company Setup in Bahrain
The Kingdom of Bahrain is an archipelago in the Persian Gulf, east of Saudi Arabia, in the Middle East. Bahrain provides the most welcoming environment for expats and entrepreneurs in the Gulf. Bahrain is the finest place to live for expats, according to the InterNations Expat Insider 2021 analysis.
Ownership rights for expats:
Expats in Bahrain are allowed 100% business ownership. In Bahrain, foreigners can own 100% of over 350 different types of businesses without the need for a local sponsor. This innovative policy allows you to make your own decisions while still ensuring the safety of your investments.
Efficiency of doing business in Bahrain:
Bahrain was ranked first in the world for work/life balance and first in the Middle East and North Africa for personal happiness. It is known for its employment opportunities, career satisfaction rates, and friendly culture, and is regarded as the world's second easiest place to settle in. Every year, the Bahraini government introduces multi billion-dinar support initiatives for Bahraini startups and businesses. These multi billion-dinar grants are also available to expats.
Steps for company setup in Bahrain:
Step 1: Choose the relevant legal structure
The company structure you choose for your international corporation establishes the framework for your company's success. It is an extremely important milestone for business setup in Bahrain. As a result, the most appropriate legal structure protects your company's sustainability. The legal structure that your company adopts will determine how your company's operations, people, and assets are controlled. It also has an impact on how assets are held.
Legal structure of Bahrain is as follows:
- Limited Liability Company: The shareholders are primarily responsible and liable for the debts of the company up to the amount of cash they invested. It combines the characteristics of a corporation with those of a sole proprietorship or partnership. Foreign investors and entrepreneurs looking for business setup in Bahrain frequently choose a WLL(With Limited Liability) because it allows them to maximise income while paying the least amount of international tax.
- Free Zone Company: A Bahrain Free Zone Company (FZC) is a corporate entity established in a free economic zone, which offers lower and more lenient taxes and laws, as well as complete tax exemption, to encourage economic development. Foreign investors looking for company setup in Bahrain in a free trade zone need to first obtain a trade permit from the Trade Zone Authority before beginning any business activities.
- Branch Office: A Bahrain Branch Office is not really a separate legal entity from the main office, despite the fact that it is physically divided from it. In essence, it functions as a subsidiary of the corporate body. If the firm's industry of operations allows for the formation of an LLC by foreign shareholders, it can be 100 percent foreign owned.
- Shareholding Company: A Bahrain Share Holding Company (BSC) or public joint stock company is best suited for companies looking to embark on large-scale projects that require a significant investment of finances and capital.
- Representative Office: A Representative Office is a legal entity set up by a corporation or organisation to conduct business in countries where a branch office or subsidiary is not authorised. It is important to appoint a local agent or distributor to act as a representative of the foreign company in Bahrain in order to register a Representative Office in Bahrain.
Step 2: Choose and register your company name
The process of company setup in Bahrain includes registering a unique name for your company. Your business name will always be associated with your business. That's why it is important to choose the company name wisely. The Ministry of Industry and Commerce (MOIC) has produced a number of criteria to assist in the search for an appropriate business name. Foreign investors are allowed to submit four company names to the Ministry, with the names that breach the guidelines being rejected. There's also a chance that all four names will be rejected; in that event, investors will have to suggest a new set of four names from scratch.
Step 3: Prepare and approve documents for commercial documents
Commercial registration papers are prepared and obtained from the Bahrain Investors Centre for organisations and enterprises. Individual businesses can apply for commercial registration papers for their business setup in Bahrain at the Ministry of Industry and Commerce's Commercial Registration Directorate.
Step 4: Obtain the necessary licences
To permit the initiation of operations of a certain business within a country, the appropriate licence, or licences, are necessary. For the process of company setup in Bahrain, firms must get license or approval from legally recognized government agencies; nonetheless, some businesses are granted commercial registration without delay. The Business Licensing System allows you to register and licence your business online (SIJILAT)
Probity Corporate is the best choice for obtaining the best consulting services in company setup in Bahrain. Our team of experts are specialized in assisting you with a wide range of operations, from business setup in Bahrain to visa services. If you are curious to learn more, contact us right away. We will be pleased to help you.