Company Registration in Bahrain

At its core, Bahrain is one of the promising nations for starting business endeavors. Its investor-friendly policies, zero taxes, free trade zones, etc, make it an ideal business hotspot for investors globally. With the inclusion of revised trade policies, the trade barriers have been extinguished, making international business an ease for aspiring business minds. All in all, choosing Bahrain would be a win-win proposition for anyone seeking success on the global stage. Let’s take a detailed walkthrough of the legalities for securing company registration in Bahrain.

Why Choose Bahrain to fulfill your global ambition?

Bahrain fosters an investor-friendly environment thanks to the inclusion of liberal trade policies. The establishment legalities are not stringent either. For most business structures, there is no requirement to appoint local directors or shareholders. Foreign companies are free to keep their finances isolated from public disclosure. 

Recently, the Kingdom of Bahrain has entered into five trade agreements with 22 nations to strengthen the business environment and mitigate trade barriers. These endeavors have resulted in an almost 33% increase in imports. The tax structure in Bahrain is also business-friendly, with zero income tax and nil corporate tax. The VAT is as low as 10%.

Here are some benefits at a glance for registering a company in Baharian:

• Investor Resident Permit
• Family Resident Permits
• 100% Ownership
• Govt Support for 1st 2 years.
• Employee Resident Permits
• No Income Tax
• No Audit for 1st year.
• No Corporate Tax
• Easy closing within 2 years.

Business Structures for Company Registration in Bahrain

Securing company registration in Bahrain is the first step toward establishing a new venture. The registration process involves various steps, such as reserving a business name, selecting a company structure, securing approvals from different ministries, etc. Speaking of company structures, the following structures are available for company registration in Bahrain.

Individual Establishment

This simple business model confers 100% ownership right to the owner. This means no one else would have access to the profit generated by the company except the owner. However, there is one downside to selecting this model. The lack of legal distinction can incur unlimited liabilities for the owner.

Single Person Company

A single-person company is an advanced and more stable version of a sole proprietorship. Limited liability does not apply here, allowing owners to keep their assets safe from the company’s losses or winding up.

Bahraini Partnership Company

A partnership company works fine for two or more individuals seeking to accomplish a common business objective. Although it does not attract limited liability, it is not as flexible as other alternatives.

With Limited Liability Company

WLL (With Limited Liability Company) is the most preferred structure among overseas entrepreneurs. The structure is business-friendly and attracts minimal compliance and taxes.

Limited Partnership

Limited Partnership, as the name suggests, clearly defines the role of each partner in an agreement. Unlike a basic partnership, it is less ambiguous flexible, and fosters transparent management. 

Bahraini Shareholding Company

Much like how a public limited company pans out, a Bahraini shareholding company falls in the same basket. It supports management boasting several shareholders and directors. Its shares are publicly tradable and listed on recognized stock exchanges.

Branch of a Foreign Company

The branch office is a simple yet effective business model, mostly preferred by the overseas entity seeking an additional business arm. These structures cannot perform commercial chores and lack a distinct legal identity, leading the parent company to address its liabilities.

What are the benefits of Trademark Renewal?

The benefits of Trademark renewal are as follows:

• It helps in the protection of the Trademark associated with the business


• In case of Trademark infringement, it helps in acting against the infringement.


• It protects the brand value of the company from other third parties.


• In trademark infringement, it helps to obtain remedies for the same.

Documents required for Company Registration in Bahrain

Arrange the following documents without fail for company registration in Bahrain:

• Memorandum of Association
• Passport Copy.
• Power of Attorney or E-key.
• Office Address (Electricity Account).
• NOC (For employees in Bahrain only).
• Capital Deposit Certificate.

Governing Authorities Helming Bahrain’s Corporate Landscape

• The Ministry of Industry, Commerce & Tourism has the authority to grant commerical registration in Bahrain.
• The Commercial Companies Law Bahrain DECREE LAW NO. (21) OF 2001 governs all commerical establishment in Bahrain.
• The norms concerning labours’ recuritment and provisioning is overseen by the Labour Market Regulatory Authority Bahrain.
• National Bureau for Revenue underpins the tax regulations in the country.

Company Registration in Bahrain: A Step-by-Step Guide

Company registration in Bahrain is a multistep process requiring authentication from several authorities. To simplify and expedite the incorporation process, the Ministry of Industry and Commerce in Bahrain rolled out an online portal called Sijilat 3.0 in August 2023. This new system mitigates the requirement of Power of Attorney for incorporation purposes.

Step1: Security Clearance

Getting security clearance approval is the first step in this process. To do so, first, arrange and sign the KYC documents serving as an annexure. This paperwork shall be verified by the Nationality Passport and Residency Affairs Bahrain. Here is what you need to verify:

• Clear copies of passports
• Duly signed Engagement letter
• Duly signed KYC forms
• Authorization letter

Step 2: Reserve Commercial Name

This step involves name selection and reservation. Visit the concerned authority portal to perform the name search. Be ready with 2-3 names in advance to expedite the process. Avoid names that are already in use or being trademarked by other entities.

Step 3: Find and Register the Head office

Once you reserve the apt name, it is time to find an apt office space cum head office for your company and get it registered. The typical paperwork for this purpose includes office photographs, a lease agreement, and an EWA. The last two shall be required post-approval.

Step 4: Prepare Memorandum of Company

Draft the charter documents of your company, such as memorandum of association and Articles of Association, in a prescribed manner. The MoA must entail the mission, vision, and norms of the company, whereas the AoA should serve as a regulatory handbook, boasting the operational norms, management rules, and shareholders’ details. Once drafted, these documents are verified by the MIOC.

Step 5: Notarize the Memorandum

This step requires the notarization of a memorandum via a public or private notary. Ensure that the Memorandum entails the required clauses and follows a structure as prescribed by the authority concerned.

Step 6: Open Bank Account for business transaction

For company registration in Bahrain, it is vitally essential to have a corporate bank account in place to conduct business-related transactions. Choose any designated bank for this purpose and deposit the required upfront capital to get started. Opening a bank account requires various documents, as mentioned below:

• A bank statement boasting the last six months' transactions and a seal on each page.
• The in-person availability of all the company’s shareholders at the bank
• Supporting paperwork validating the company’s income source
• A document declaration reflecting business type, scope, and future financial plan

Step 7: Secure Final Approval from MOIC

Finally, submit the bank certificate and authenticated memorandum to the MOIC for final verification and approval. Upon scrutinizing these, the authority shall grant the company incorporation certificate.

Adviso: Get the most out of your business endeavors in Bahrain

Setting up a new business in Bahrain can be taxing for new entrepreneurs. They must be ready for unwelcome obstacles in the form of complicated regulations and tedious paperwork. At Adviso, we resolve this fundamental problem by providing top-tier incorporation services. Our professionals work rigorously on simplifying overseas regulations thus making things easier for the clients. Here’s why you want to get aboard with us!

• Profound understanding of overseas regulations
• Hands-on experience in incorporating hundreds of enterprises abroad.
• In-depth comprehension of required paperwork and application process
• Undisputed competency in resolving incorporation issues arising from authority’s ends.