Company Formation in Bahrain — The Right Way

Yes. Under Bahrain's Commercial Companies Law and Royal Decree-Law No. 38 of 2025, 100% foreign ownership is allowed for most business activities including services, manufacturing, export trading, and holding companies. Construction requires 51% Bahraini ownership, and trading inside Bahrain requires at least one Bahraini share (9999+1 structure). GCC and USA citizens get 100% ownership across all sectors under bilateral trade agreements. Full details in our company formation guide.

With complete documents, company registration through the Sijilat 3.0 system takes 1–3 business days. The full process from document preparation to bank account opening typically takes 1–2 weeks with professional guidance from Setup in Bahrain.

Bank-ready means your company documents — Memorandum of Association, Articles of Association, Board Resolution, Company Profile, and business plan — are prepared to pass bank compliance and Anti-Money Laundering (AML) checks. This is critical because approximately 30–40% of newly registered companies face bank account rejections due to documentation gaps. Setup in Bahrain's bank-ready approach ensures documents meet CBB compliance standards from day one. Learn more in our bank account guide.

Bahrain requires a registered commercial address for CR registration. A virtual office satisfies this requirement for most business activities. Virtual office prices range from BHD 440 to BHD 1,250 per year. MOICT regulations require the address to be a legitimate commercial space. See our virtual office guide and pricing comparison.

An investor visa requires company formation with a valid CR, then applying through LMRA and NPRA. The cost ranges from BHD 755 to BHD 953. The 8-step process covers: CR registration, document authentication, LMRA application, medical examination, biometrics, NPRA submission, visa stamping, and residence permit issuance. Full details: investor visa guide and cost breakdown.

Bahrain has 0% corporate income tax for most businesses. Only oil and gas companies pay corporate tax. There is no personal income tax, no capital gains tax, and no withholding tax. A 10% Domestic Minimum Top-Up Tax (DMTT) applies from January 2025 only to multinational enterprises with global revenues exceeding EUR 750 million (OECD Pillar Two). For SMEs and most foreign investors, the effective tax rate remains 0%.

Required documents include: passport copies of all shareholders (valid 6+ months), Memorandum of Association (MOA), Articles of Association (AOA), Board Resolution, Company Profile with business plan, proof of registered commercial address (virtual office agreement), and for certain nationalities, authenticated documents from the Ministry of Foreign Affairs. Bank-ready formations also require an AML-compliant company profile and source of funds documentation.

Sijilat (version 3.0) is Bahrain's official online Commercial Registration system operated by MOICT. It handles company registration, CR renewal, activity amendments, and partner changes. The platform digitized Bahrain's entire business registration process, enabling CR issuance in 1–3 business days. Government fees through Sijilat for a standard CR registration are approximately BHD 432.

Several Bahraini banks accept new company accounts: National Bank of Bahrain (NBB), Bank of Bahrain and Kuwait (BBK), Ahli United Bank (AUB), Bahrain Islamic Bank (BisB), Kuwait Finance House Bahrain (KFH), and Al Salam Bank. Each bank has different AML requirements. With bank-ready documentation from Setup in Bahrain, account opening takes approximately one hour with IBAN certificate issued same day.