Conditions for registering a company in Bahrain

Kingdom of Bahrain in the Middle East region is rapidly developing in various business sectors, especially in the oil industry, expanding the banking sector, and so on. In order to attract investors, the government promotes the economy, trade, and financial sectors, emphasizing low tax rates and the opportunity to establish offshore businesses.

Management Structure 

The most common form is W.L.L. (With Limited Liability) "with limited liability". It requires 2 shareholders for its establishment. 100% foreign capital is allowed. The director can be a foreigner. The company owner cannot hold the position of director. There are certain requirements if the company has more than 10 shareholders.

Company registration

The first step is to obtain commercial registration or CR. The following information must be provided: name, surname, nationality, contact details, passport information, type of activity, and address. If necessary, the Ministry of Industry, Commerce, and Tourism may require additional specific information.

Registered Capital

The law sets a minimum capital requirement of 10,000 dinars. The entire capital must be divided into equal shares, with a minimum value of 50 dinars each. The law prohibits the division of shares and their issuance for public trading. To register a company, all shares must be paid up and distributed among the shareholders.

Other Requirements for Opening a Company in Bahrain

 The law requires offshore companies to:

 1. Have an official office in Bahrain.

 2. Conduct commercial activities outside the country. 

3. The company name must end with the abbreviation "W.L.L.," meaning "with limited liability."

Finance and Audit

All companies, regardless of their business nature, must regularly submit financial reports to government agencies. Mandatory audit requirements also apply to these reports.

Key Taxes

Companies registered in Bahrain are not subject to income tax, capital gains tax, VAT, stamp duty, etc., if they conduct business outside the country.

Main prices (in Bahraini dinars):

  • Registered Capital – min 10 000
  • Company formation from – 4 750
  • Operating license from – 1 150
  • Bank account opening from – 2 500

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