Company formation in Bahrain is often simpler than people expect, especially for foreign investors. The key is understanding the ownership rules, the type of business activity you want to register, and the cost involved before starting the process. Bahrain allows full foreign ownership for many activities, which makes it an attractive option for entrepreneurs looking to set up quickly without local partners. When the structure is chosen correctly from the start, the registration process becomes clear, predictable, and free from unnecessary delays.
So how does the process actually work once you decide to move forward? It begins with selecting the right activity and structure, followed by preparing the required documents and submitting them to the authorities. Many clients worry about timelines, approvals, or unexpected requirements, which is why the process is broken into simple, step-by-step stages. From initial approvals to coordinating the company registration, bank account opening, and residency matters, each step is handled in sequence. This way, you always know what is happening, what comes next, and how long each stage of your Bahrain company setup is likely to take.
Connect with us today via Business WhatsApp, email, or by booking an appointment to learn more about how we can assist you.
Company Formation in Bahrain – Fast Setup, Cost & Steps
Quick Answer: Company Formation in Bahrain
- Timeline: Company formation in Bahrain typically takes 15–20 business days when documents are complete.
- Cost: Setup costs usually range between BHD 1,340 and BHD 2,150, depending on office type and support level.
- Requirements: Passport copy, 3 proposed company names, business activity details, a 6-month bank statement, and a recommended BHD 1,000 capital deposit.
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📍 Last updated: December 20, 2025
What Are the Steps for Company Formation and Company Registration in Bahrain?
Company formation in Bahrain (company registration in Bahrain) follows a clear sequence. If your documents are ready and the activity is selected correctly, the process moves smoothly from approvals to CR issuance and bank account opening.
Obtain Security Clearance
Security clearance is requested for all shareholders, directors, and authorized signatories through the Ministry of Interior. You submit passport copies and basic details for background verification. Timing varies by nationality and individual profile, so start this step early.Register the Business Name
Submit 2–3 proposed names to the Ministry of Industry and Commerce (MOICT) to check availability and compliance. The name must follow naming rules and should not conflict with existing names or trademarks. Once approved, the name can be used for company registration in Bahrain.Secure an Approved Office Address
A Bahrain office address is required for company formation, and it must be approved under municipal and regulatory rules. Depending on the activity, you may use a physical office, shared workspace, or an approved virtual office. Your office type affects cost, compliance, and future visa capacity.Prepare and Notarize the Deed of Association
The Deed of Association (DOA) confirms the company structure, activities, ownership, share capital, and management details. It must be notarized at the Ministry of Justice before final registration can proceed. Additional supporting documents may be required depending on the activity and structure.Open the Corporate Bank Account and Deposit Capital
Open a corporate bank account and deposit the required or recommended share capital (commonly BHD 1,000 for smoother compliance). The bank issues a capital confirmation certificate after verifying the deposit. This certificate is used to finalize the commercial registration and activate the company.
What Are the Different Types of Companies in Bahrain?
Bahrain offers several company structures designed to suit different business sizes, ownership models, and investment objectives. Choosing the right type of company is an important decision, as it affects ownership rights, liability, capital requirements, and long-term flexibility.
Below are the main types of companies that can be registered in Bahrain.
With Limited Liability Company (WLL)
A With Limited Liability Company (WLL) is the most commonly registered company type in Bahrain, particularly among small and medium-sized businesses and foreign investors. Shareholders’ liability is limited to their share capital, which protects personal assets from business liabilities. In many business activities, a WLL allows 100% foreign ownership, making it a preferred option for international entrepreneurs. WLL companies are flexible, relatively simple to manage, and suitable for trading, consulting, services, and many commercial activities.Public Shareholding Company (PSC)
A Public Shareholding Company (PSC) is designed for large businesses that require substantial capital and may seek public investment. Shares in a PSC can be offered to the public, and the company is subject to stricter regulatory and reporting requirements. This structure is typically used by major corporations, financial institutions, or companies planning to list on a stock exchange. While offering greater access to capital, PSCs involve more complex governance and compliance obligations.Closed Joint-Stock Company (CJSC)
A Closed Joint-Stock Company (CJSC) is similar to a public shareholding company but with restricted share ownership. Shares are held by a limited number of shareholders and are not offered to the public. This structure is often chosen by family-owned businesses, investment groups, or companies that require a joint-stock format without public listing. CJSCs provide greater control over ownership while maintaining a formal corporate structure.Branch of a Foreign Company
A branch of a foreign company allows an existing overseas business to operate in Bahrain under its parent company’s name. The branch does not have a separate legal identity from the parent company and operates as an extension of it. This option is suitable for international companies looking to enter the Bahraini market without forming a new local entity. The parent company remains fully responsible for the branch’s obligations and activities in Bahrain.
The choice of company type depends on factors such as ownership preferences, capital requirements, regulatory obligations, and long-term business plans. Selecting the correct structure from the beginning helps ensure smoother approvals, better compliance, and easier business operations in Bahrain.
What Are the Requirements for Company Formation and Company Registration in Bahrain?
The requirements for company formation in Bahrain are straightforward and minimal. When documents are complete, the company registration process can proceed smoothly without delays.
To register a company in Bahrain, the following requirements are needed:
Copy of Passport
A clear copy of a valid passport is required for each shareholder and director. No attestation is needed at the initial stage.Three Proposed Company Names
The applicant must provide three proposed company names in order of preference. These names are submitted to the Ministry of Industry and Commerce (MOICT) for availability and approval.Business Activity Information
A brief description of the business activity to be carried out in Bahrain is required. The activity must be selected according to the approved commercial activities listed by the authorities.Six Months Bank Statement
A personal bank statement covering the last six months is required for individual shareholders. If the shareholder is a company, then a six-month corporate bank statement of the parent company is required instead.Share Capital Deposit
Share capital must be deposited into a corporate bank account during the registration process. While the minimum capital depends on the business activity, we recommend depositing BHD 1,000 for most standard company formations.
Once these requirements are submitted and approved, the company registration process can proceed step by step through the relevant authorities in Bahrain.
What Are the Benefits of Company Formation and Company Registration in Bahrain?
Company formation in Bahrain offers a combination of tax efficiency, ownership flexibility, and regional access that makes it one of the most attractive jurisdictions in the Gulf for international investors and entrepreneurs.
Below are the key benefits of registering a company in Bahrain.
100% Foreign Ownership for Most Business Activities
Bahrain allows full foreign ownership in most sectors, including consulting, services, technology, manufacturing, and many trading activities. In most cases, no local sponsor or partner is required, giving investors full control over ownership and management.No Corporate or Personal Income Tax
Bahrain does not impose corporate income tax on most business activities, except for companies operating in the oil and gas sector. There is also no personal income tax, meaning salaries, dividends, and director remuneration are not taxed.Favorable VAT Treatment for International Business
Businesses exporting goods or services outside Bahrain benefit from 0% VAT, provided the activity has no local use or linkage within Bahrain. This makes Bahrain highly attractive for international consulting, IT, digital, and export-focused companies.Strategic Location in the Gulf Region
Bahrain’s geographic position provides direct access to GCC markets and the wider Middle East. It serves as a practical regional hub for companies looking to expand across Saudi Arabia, the UAE, and other neighboring countries.Fast and Predictable Company Registration Process
Company registration in Bahrain follows a structured and transparent process. With complete documentation, most companies can be registered within a defined timeline, allowing investors to plan launches with confidence.Flexible Office and Setup Options
Businesses can choose from physical offices, shared workspaces, or approved virtual offices, depending on the business activity. This flexibility helps reduce startup and operating costs, especially for new or international businesses.Access to Corporate Banking and Investor Residency
Once a company is registered, shareholders and employees can apply for residency permits in Bahrain. The country also offers access to a regulated banking sector suitable for local and international transactions.Stable Legal and Regulatory Environment
Bahrain provides a well-established legal framework, clear commercial regulations, and strong protection for investors. This stability supports long-term business planning and reduces regulatory uncertainty.Skilled and Multilingual Workforce
Bahrain offers access to a skilled workforce with strong English and Arabic language capabilities, supporting both regional and international business operations.
Overall, company formation in Bahrain combines tax efficiency, ownership freedom, and regional connectivity, making it a strong choice for startups, SMEs, and international businesses alike.
What Are the Taxes in Bahrain for Companies and Business Owners?
Bahrain offers one of the most business-friendly tax environments in the region. Its tax framework is simple, transparent, and particularly attractive for international companies, exporters, and service-based businesses.
Below is a clear and practical breakdown of the taxes applicable to companies registered in Bahrain as on December 20, 2025:
Corporate Income Tax
Bahrain does not impose corporate income tax on most business activities. Companies engaged in services, consulting, trading, technology, manufacturing, and general commercial activities are not subject to corporate income tax.
The only exception applies to companies operating in the oil and gas sector, which are taxed under a separate regime.Personal Income Tax
There is no personal income tax in Bahrain. Salaries, director fees, dividends, and personal earnings of shareholders or employees are not taxed.Capital Gains Tax
Bahrain does not levy capital gains tax. Profits arising from the sale of shares, business assets, or investments are not subject to capital gains taxation.Withholding Tax
There is no withholding tax on dividends, interest, royalties, or service payments made outside Bahrain. Companies can freely repatriate profits without tax deductions.Value Added Tax (VAT) – Standard Rate
Bahrain applies a 10% VAT on goods and services supplied within Bahrain. VAT registration becomes mandatory once annual taxable turnover exceeds BHD 37,500 (taxable supplies in Bahrain), as per NBR VAT registration thresholds.0% VAT on Exported Goods
Goods exported outside Bahrain are generally subject to 0% VAT, provided valid export documentation is maintained. This makes Bahrain attractive for trading and export-oriented businesses.0% VAT on Exported Services
Services supplied to clients outside Bahrain are subject to 0% VAT when:
The customer is located outside Bahrain
The service is performed and completed outside Bahrain
The service has no use, benefit, or linkage within Bahrain
This applies to consulting, IT services, digital services, management services, marketing, and other professional services delivered internationally.
No VAT Where Business Is Conducted Fully Outside Bahrain
If a Bahrain-registered company conducts business entirely outside Bahrain, with no local customers, no local consumption, and no operational linkage within Bahrain, the services may fall outside the scope of VAT or qualify for 0% VAT, subject to correct structuring and documentation.Customs Duties
Imported goods are generally subject to customs duty, commonly 5%, depending on the product category. Goods traded within GCC countries may benefit from exemptions or reduced duties under regional agreements.Government and Regulatory Fees
While Bahrain does not impose direct business taxes, companies are subject to standard government fees such as bank, municipality fees, visa charges, and regulatory licensing costs.
Overall, Bahrain’s tax system supports international business models, exporters, and service providers by offering minimal tax exposure, predictable compliance, and strong legal clarity.
Tax Type | Rate in Bahrain | When It Applies | Key Notes |
Corporate Income Tax | 0% | Most business activities | Applies to services, consulting, trading, manufacturing, technology, and general commercial activities. Only oil & gas companies are taxed under a separate regime. |
Personal Income Tax | 0% | Individuals, shareholders, employees | Salaries, director fees, dividends, and personal income are not taxed in Bahrain. |
Capital Gains Tax | 0% | Sale of shares or business assets | No tax on capital gains from selling shares, assets, or investments. |
Withholding Tax | 0% | Payments made outside Bahrain | No withholding tax on dividends, interest, royalties, or service payments to foreign entities. |
VAT (Standard Rate) | 10% | Local supply of goods or services | Applies when goods or services are supplied and consumed within Bahrain. VAT registration required once threshold is exceeded. |
VAT on Exported Goods | 0% | Goods exported outside Bahrain | Zero-rated VAT applies if valid export documentation is maintained. |
VAT on Exported Services | 0% | Services delivered outside Bahrain | Applies when the customer is outside Bahrain, service is completed outside Bahrain, and there is no local linkage. |
VAT on Business Conducted Fully Outside Bahrain | 0% / Out of Scope | International-only operations | If business is executed fully outside Bahrain with no local benefit or consumption, VAT may be zero-rated or outside scope. |
Customs Duty | Usually 5% | Import of goods into Bahrain | Rate depends on product category. GCC-origin goods may be exempt under regional agreements. |
Municipality & Regulatory Fees | Fixed / Variable | Business operations | Includes CR renewal, municipality fees, visas, licenses, and regulatory charges (not taxes). |
How Long Does It Take to Form a Company in Bahrain?
The time required for company formation in Bahrain depends on the business activity, company structure, and the level of support chosen during registration. While each case is different, most companies are registered within a predictable timeframe when documents are complete and approvals proceed smoothly.
Below are the typical timelines based on commonly selected options.
Premium Package – 15 to 20 Business Days
This option is suitable for businesses that require a faster setup. It is often chosen by investors with straightforward activities, complete documentation, and no complex approvals. The shorter timeline is achieved by prioritizing submissions and coordination with the relevant authorities.Gold Package – 15 to 20 Business Days
The Gold Package is the most commonly selected option. It offers a balance between speed and thorough processing and is suitable for most standard business activities. This timeline allows sufficient time for approvals, office arrangements, and bank account coordination without unnecessary delays.Standard Package – 15 to 20 Business Days
This option follows the standard registration flow and is typically selected by businesses with more detailed requirements or flexible launch timelines. It allows for additional review time, extended approvals, or more complex documentation, depending on the company structure.
Actual processing time may vary based on factors such as the completeness of submitted documents, government approval timelines, bank compliance procedures, and the nature of the business activity. Delays can also occur if additional information or corrections are requested during the process.
Premium Package (15-20 Business Days)
Ideal for those seeking a quicker turnaround, perfect for businesses with a tight launch schedule.
Gold Package (15-20 Business Days)
This is the most common option, offering a balance between speed and thoroughness. It's suitable for most business formations.
Standard Pacakge (15-20 Business Days)
This is the most common option, offering a balance between speed and thoroughness. It's suitable for most business formations.
What is the cost of Company Formation in Bahrain?
The cost of company formation in Bahrain varies based on the business activity, company structure, and the level of support you require during setup. In most standard cases, the total cost typically falls between BHD 1,340 and BHD 2,150. This range depends on factors such as whether you choose a virtual office or a physical workspace, require assistance with a corporate bank account, or plan to apply for investor residency as part of the setup.
Some businesses can be registered with minimal requirements and lower costs, while others need additional approvals, office arrangements, or compliance steps that affect pricing. This is why understanding the full scope of what is included—registration fees, documentation, office address, and post-incorporation support—is essential before proceeding. A clear breakdown from the beginning helps you avoid unexpected expenses and allows you to plan your Bahrain company setup with confidence.
Company Formation Packages in Bahrain
Choose Your Package
We offer a range of options to cater to your specific needs and budget. Each package includes expert guidance, streamlined registration, and essential services to get your business up and running efficiently.
3 Months
Includes: Establishing a company with a virtual office and opening a bank account. Residency Fees: BHD 755 for one year, BHD 953 for two years.
BHD
1340
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✅ Office Address
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❌ Internet
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✅ Telephone Services
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❌ Receptionist Service
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✅ Mail Handling
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❌ Security
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❌ Cleaning & Maintenance
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❌ Kitchen
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❌ Office Boy
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❌ Parking
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❌ Printing & Scanning
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❌ Administration Support
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✅ Meeting Room
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❌ VAT Registration
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✅ Company Formation
6 Months
Includes: Establishing a company with a virtual office and opening a bank account. Residency Fees: BHD 755 for one year, BHD 953 for two years.
BHD
1700
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✅ Office Address
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✅ Internet
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✅Telephone Services
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❌ Receptionist Service
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❌ Mail Handling
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✅ Security
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✅ Cleaning & Maintenance
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✅ Kitchen
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✅ Office Boy
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✅ Parking
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✅ Printing & Scanning
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✅ Administration Support
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✅ Meeting Room
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✅ VAT Registration
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✅ Company Formation
12 Months
Includes: Establishing a company with Private Cabin and opening bank account. Residency Fees: BHD 755 for one year, BHD 953 for two years.
BHD
2150
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✅ Office Address
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✅ Internet
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✅ Telephone Services
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✅ Receptionist Service
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✅ Mail Handling
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✅ Security
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✅ Cleaning & Maintenance
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✅ Kitchen
-
✅ Office Boy
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✅ Parking
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✅ Printing & Scanning
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✅ Administration Support
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✅ Meeting Room
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✅ VAT Registration
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✅ Company Formation
Popular
Summary about company formation in Bahrain process
Company formation in Bahrain is a structured process that can be completed efficiently when the documents are prepared correctly and the business activity is chosen properly. In most service and export-oriented activities, 100% foreign ownership is available, and Bahrain remains attractive due to its business-friendly environment and straightforward compliance framework.
For most clients, company registration in Bahrain typically takes around 15 to 20 business days, depending on approvals, document readiness, and bank compliance requirements.
To start, you normally need a passport copy, three proposed company names, your intended business activity, a six-month stamped bank statement (personal or company, depending on the shareholder), and a recommended initial capital deposit of BHD 1,000 to support smoother bank account processing.
If you want a clear timeline, cost estimate, and document checklist for your exact activity, you can contact us on WhatsApp or book an online consultation.
we will assist you in any issue and legal compliance
Connect with our Bahrain business setup specialists today. During your consultation, we will discuss your goals, answer your questions, and provide a customized roadmap for your successful business registration in Bahrain. Let’s turn your vision into reality!
Why Choose Company Formation in Bahrain?
Bahrain offers several advantages for businesses considering expansion to the Middle East:
- Strategic Location: Easy access to neighboring countries for trade and collaboration.
- Business-Friendly Environment: Stable economy, government support, and clear regulations.
- Tax Benefits: Favorable tax arrangements due to international agreements (e.g., with the US).
Additional Considerations:
- No minimum capital requirement for company formation.
- Culturally diverse and welcoming environment for foreign entrepreneurs.
- Skilled and multilingual workforce.
- Streamlined processes for visas and work permits.
- Competitive office space options.
- Financial hub with easy access to banking and insurance services.
Overall Benefits:
Choosing Bahrain offers a combination of strategic location, a supportive business environment, and tax advantages. This makes it an attractive option for international businesses looking to establish a presence in the Middle East.
Frequently Asked Questions About Company Formation and Company Registration in Bahrain
1. What services are included in your company formation packages?
All company formation packages include a registered business address, internet, telephone services, receptionist and mail handling, administrative support, meeting room access, office boy services, parking, printing, cleaning, and security. The main difference between packages is the duration of the office address, which can be 3, 6, or 12 months.
2. How quickly will I receive a response to my inquiry?
All inquiries are normally responded to within 24 hours during business days, excluding public holidays in Bahrain.
3. What documents are required to register a company in Bahrain?
To register a company in Bahrain, you generally need a copy of a valid passport, a six-month stamped personal bank statement (in English), and a share capital deposit (recommended minimum BHD 1,000).
4. How many visits to Bahrain are required during the setup process?
Two visits are required. The first visit (around Day 15) is to sign the Memorandum of Association and open the corporate bank account (usually a one-day visit). The second visit is after residency issuance, typically lasting around three days.
5. What company formation packages are available?
Three main packages are available: Premium Package (BHD 2,150) – 12-month office address with full services; Gold Package (BHD 1,700) – 6-month office address with balanced features; Standard Package (BHD 1,340) – 3-month office address for budget-focused setups. All packages include company registration, office services, and bank account support.
6. Do I need to travel to Bahrain to form a company?
Yes. Physical presence is mandatory for signing the Deed of Association and opening a corporate bank account. Remote or fully online company formation is not permitted under current regulations.
7. What happens if I do not renew my office address?
If the office address is not renewed after the package period expires, authorities such as ministries, banks, or LMRA may request clarification or conduct inspections. Maintaining an active office address is essential for compliance.
8. How long does company registration in Bahrain take?
Company registration typically takes 15 to 20 business days, depending on the selected package, document readiness, and approval timelines.
9. What is the process for opening a corporate bank account?
Opening a corporate bank account requires physical presence in Bahrain and typically includes a six-month stamped bank statement, a business plan or customer agreements (if applicable), and a capital deposit (recommended BHD 1,000). Banks may apply additional compliance checks based on the business activity.
10. What are your business support hours?
Support is available from Saturday to Thursday , 8:00 to 17:00 (Bahrain time).
11. What are the steps to register a business in Bahrain?
The main steps are security clearance using passport details, trade name registration (three proposed names), office address approval by municipality, signing the Deed of Association before the Ministry of Justice, and opening a corporate bank account and depositing capital.
12. Is there a minimum capital requirement?
There is no legal minimum capital requirement. However, a capital deposit of BHD 1,000 is recommended to facilitate smoother bank approval.
13. How often are VAT returns filed in Bahrain?
VAT returns can be filed monthly, quarterly, or annually, depending on the company’s turnover and VAT registration status.
14. Do you assist with VAT registration?
Yes. Assistance is provided for VAT registration in Bahrain, whether registration is mandatory or voluntary.
15. Does Bahrain charge corporate or income tax?
No. Bahrain does not charge corporate income tax, personal income tax, capital gains tax, or withholding tax. A 10% VAT applies locally, with 0% VAT on exported goods and services.
16. What are the total setup and residency costs?
Typical costs include company formation packages (BHD 1,340 to BHD 2,150), residency fees (1-year: BHD 755; 2-year: BHD 953), visa renewal (BHD 278 for 1 year; BHD 449 for 2 years), dependent visa (BHD 170), and LMRA residence maintenance (BHD 5 per month).
17. When is VAT registration mandatory in Bahrain?
VAT registration becomes mandatory once annual taxable turnover exceeds BHD 37,500. Registration is optional below this threshold.
18. Can expatriates own 100% of a company in Bahrain?
Yes. For services, manufacturing, and export-based businesses, 100% foreign ownership is permitted. Local trading activities may require a Bahraini partner holding a nominal share.
19. Is medical fitness required during the process?
Yes. A medical fitness test is required when applying for a residency visa, in line with LMRA regulations.
20. What is Sijilat and why is it important?
Sijilat is Bahrain’s national commercial registration system. All companies must be registered on Sijilat to operate legally, obtain licenses, and apply for visas.
21. What company structures are available in Bahrain?
Common company structures include With Limited Liability Company (WLL), Branch of a Foreign Company, Public or Closed Joint Stock Company, and Limited Partnership.
22. What are common challenges in company formation?
Common challenges include choosing the wrong business activity, incomplete documentation, visa delays related to office type, and bank rejections due to weak compliance profiles.
23. Can I book an online consultation?
Yes. Online consultations are available via Zoom, Google Meet, or Microsoft Teams to discuss structure, timelines, and requirements.
24. Can I register a Single Person Company (SPC) in Bahrain?
The SPC model has been merged into the WLL structure. A single individual can now own 100% of a WLL company, with all legal and commercial benefits retained.
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