Skip to content

Thinking of starting a business in Bahrain and navigating the process of company formation in Bahrain? This comprehensive guide simplifies the steps involved in registering your company in Bahrain. Whether you’re an international investor seeking a strategic location with a business-friendly environment or interested in the potential for 100% foreign ownership through a WLL company structure, Bahrain offers a wealth of opportunities and easy process for company registration in Bahrain with optimal cost of setting up a company in Bahrain.

This guide equips you with the knowledge needed to make informed decisions. We’ll explore the advantages of starting a company in Bahrain, including tax incentives, access to regional markets, and a skilled workforce. We’ll also provide a step-by-step breakdown of the company formation process, from obtaining security clearance to opening a corporate bank account.

In the following sections, we’ll delve deeper into additional considerations like choosing a business structure, obtaining licenses, and ongoing compliance requirements. We’ll also explore the current tax environment in Bahrain as of April 2024, including the Value Added Tax (VAT).

The Complete Guide to Company Formation in Bahrain

How to Register a Company in Bahrain (Company Formation or Registration)

Registering a company in Bahrain, also known as company formation or registration, involves these five key steps:

1. Obtain Security Clearance:

  • Get security clearance approval (background check) from the Ministry of Interior.

2. Register Your Business Name:

  • Submit three potential unique names to the Ministry of Industry and Commerce (MOICT) for approval.

3. Secure an Office Address:

  • Choose a registered office address (physical, work desk, private cabin, or virtual).

4. Draft and Notarize Legal Documents:

  • Draft and notarize a Deed of Association (DOA) outlining your company structure.

5. Open a Corporate Bank Account:

  • Deposit the minimum capital and obtain a capital deposit certificate.
Steps For Company Formation In Bahrain

Detailed Explanation for Each Step of company formation in bahrain:

1. Obtain Security Clearance:

  • Before proceeding, you’ll need security clearance from the Ministry of Interior. This involves a background check to ensure eligibility and address any potential security concerns.
  • The Ministry of Interior typically requires copies of passports and other identification documents for all company owners and directors.
    • Processing times can vary, so factor this into your overall timeline.

2. Register Your Business Name:

  • Choose three unique and relevant names for your business. Submit them to the Ministry of Industry and Commerce (MOICT) for availability checks and approval.
  • The chosen name should comply with Bahrain’s naming conventions and not infringe on existing trademarks.
    • Consider conducting a separate trademark search to avoid potential conflicts later.

3. Secure an Office Address:

  • You will need a registered office address in Bahrain. This can be a physical office space, a work desk in a shared workspace, or even a virtual office address.
  • The chosen address must comply with municipal regulations and have the approval of the relevant authorities.
    • Virtual office providers often handle the approval process for their clients.
    • Consider factors like cost, scalability, and professional image when choosing an office address type.

4. Draft and Notarize Legal Documents:

  • A crucial step is drafting a Memorandum of Association (MOA). This document outlines your company’s structure, including details like the company name, objectives, share capital, and management structure. Once drafted, the MOA needs to be notarized by the Ministry of Justice.
  • The MOA serves as a foundational document for your company. Consider consulting a business formation specialist to ensure it accurately reflects your business goals and complies with regulations.
    • The Ministry of Justice may require additional documents along with the MOA for notarization.

5. Open a Corporate Bank Account:

  • Deposit the minimum required capital for your chosen business structure into a newly opened corporate bank account. Once the bank verifies the deposit, you’ll receive a capital deposit certificate. This certificate is a key document for finalizing the company registration process.
  • The minimum capital requirement varies depending on the chosen business structure. Research the specific amount beforehand.
    • Opening a corporate bank account typically involves additional documentation and may require personal appearances at the bank.

Additional Considerations:

  • Business Licenses: Depending on your specific industry, you may need to obtain additional licenses from relevant government authorities.
  • Tax Registration: Register your company for tax purposes with the relevant Bahraini tax authorities.
  • Ongoing Compliance: Maintain compliance with relevant regulations by filing annual reports and renewing licenses.

We Recommend Consulting a Specialist:

While the process is streamlined, navigating the legalities and requirements can be complex. Consider consulting with a Bahrain-based business formation specialist to ensure a smooth and efficient company formation experience. They can guide you through each step, address any specific questions you may have, and help you meet all necessary regulations.

Summary about company formation in Bahrain process

Great news – starting your business in Bahrain is a cakewalk, especially for international investors! At Setup in Bahrain, we’re your go-to for crystal-clear and honest company formation consultancy to successfully register your business in Bahrain Company Register Sijilat. Here’s the scoop:

  1. Effortless Process:

    • Bahrain’s business welcome mat is rolled out just for you. Easy-peasy, right?
  2. Tailored Options:

    • WLL (formally Limited Liability Company LLC) or another business flavor, take your pick. We’ve got the perfect company formation consultancy package for you.
  3. No Surprise Costs:

    • Total transparency – we spill all the financial details, so you know exactly what you’re getting into.
  4. Guidance at Your Fingertips:

    • Lost in the business mountain? Our experts are your virtual Sherpas, ready to guide you via WhatsApp or email.
  5. Seize the Moment:

Ready to kickstart your business adventure? Let’s chat and turn your Bahrain business dreams into reality! 🚀💼

Types of Companies in Bahrain | Company Formation in Bahrain

Bahrain offers a variety of structures to suit your business needs:

  • Limited Liability Company (WLL): (Most Popular) Minimum 1 partner, minimum capital BHD 1, limited liability.
  • Branch of a Foreign Company: Extension of an existing foreign company.
  • Partnership Company: 2+ individuals share ownership and management.

Additional Company Types:

  • Bahraini Shareholding Company (Closed): Restricted share ownership.
  • Simple Commandite Company: 1 general partner (unlimited liability) & 1+ limited partners.
  • Commandite By Share Company: Hybrid of general partnership and WLL (with limitations).
  • Investment Limited Partnership: Partnership for investment purposes.
  • Protected Cell Company: Single legal entity with segregated business activities.
  • Individual Establishment: Single GCC citizen owner (unlimited liability).

Company Formation in Bahrain Cost (Starting at BHD 800)

The cost of setting up a company in Bahrain, also known as company formation, depends on your office needs:

  • Basic Registration (No Office): BHD 800. This covers the essential registration process without a physical office address.
  • Registration with Virtual Office: BHD 1,340. This includes registration and a virtual office address.

Additional Costs to Consider:

Keep in mind other expenses that might factor into the total cost:

  • Company registration fees
  • Business taxes
  • Legal consultation (optional)

Total Cost Variation:

The final cost can vary depending on several factors, including:

  • Number of company founders
  • Specific business activities
  • Chosen company type (e.g., WLL)

Transparency and Flexibility:

At Setup in Bahrain Business Centre, we believe in transparent pricing and offer various packages to suit your needs. Here are some additional options:

  • Work Desk: Starting at BHD 1,700 (if you require a physical workspace)
  • Private Cabin: Starting at BHD 2,150 (for a dedicated office space)

Get a Personalized Quote:

For a more precise cost estimate tailored to your specific situation, feel free to contact us. Our team is happy to answer your questions and guide you through the company formation process in Bahrain.

Process Time for Company Formation in Bahrain

The typical process time for company formation in Bahrain can vary depending on the chosen package:

  • Fast-Track Option (20-25 Business Days): Ideal for those seeking a quicker turnaround.
  • Standard Option (35-45 Business Days): This is the most common option, offering a balance between speed and thoroughness.
  • Comprehensive Option (25-35 Business Days): Provides additional attention to detail for a more intricate setup.

Factors Affecting Processing Time:

Several factors can influence the processing timeline, including:

  • Complexity of the company structure
  • Government agency workloads
  • Availability of required documents

Transparency and Guidance:

We understand the importance of knowing the timeframe for your company formation. Our team is committed to transparency and can provide a more precise estimate based on your specific situation.

This revised version prioritizes a clear and concise answer at the beginning, presenting the typical processing times for different packages in bullet points. It avoids promotional language and focuses on user needs.

Here’s how this can be used with your existing content:

Process Time for Company Formation in Bahrain

The typical process time for company formation in Bahrain can vary depending on the chosen package (see above).

For Fast Response please Click the given WhatsApp Link below

Taxes in Bahrain (May 2024):

Bahrain continues to offer a competitive tax environment for businesses and individuals as on May 20, 2024. There is still no personal income tax, corporate income tax (except for the oil & gas sector), capital gains tax, or inheritance tax. This makes Bahrain an attractive location for establishing a business or relocating as an expat. However, a 10% Value Added Tax (VAT) is applied to most goods and services. Some essential items and specific sectors may be exempt from VAT. It’s advisable to consult with a tax professional to understand the specific implications for your business activities in Bahrain, especially considering any potential future tax changes.

Key Points :

  • As of April 2024: No personal income tax, corporate income tax (except oil & gas), capital gains tax, or inheritance tax.
  • 10% VAT applies to most goods and services (with some exceptions).

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 Advantages:

  • 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.

Call to Action:

Contact us to learn more about how Setup in Bahrain can help you navigate the company formation process.


Can I set up a company in Bahrain?

Yes, foreigners can set up companies in Bahrain.

New legislation allows 100% foreign ownership for services and manufacturing businesses. However, there are minimum Bahraini shareholding requirements for other sectors:

  • Trade Sector: 1 Bahraini share (0.01%) minimum ownership
  • Construction Businesses: 51% Bahraini ownership required

How much time does it take for a Company Formation In Bahrain?​

25-45 business days This is an estimated timeframe, and the actual processing time can vary depending on several factors, including:

  • Chosen Package: Different packages may offer expedited processing for an additional fee.
  • Company Complexity: More intricate company structures might require additional time for approval.
  • Government Agency Workload: Processing times can fluctuate based on current workloads.

Transparent and Efficient Service:

At Setup in Bahrain, we strive for efficiency. We can provide a more precise estimate based on your specific situation.

Can a foreigner set up a company in Bahrain?

Yes, foreigners can set up companies in Bahrain with 100% ownership (for most sectors).

New legislation allows full foreign ownership in services and manufacturing. However, there are minimum Bahraini shareholding requirements for other sectors:

  • Trade Sector: Minimum 1 Bahraini share (0.01% ownership) required.
  • Construction Businesses: 51% Bahraini ownership required.

What are the requirements for company formation in Bahrain?

General Requirements for Company Formation in Bahrain:

While specific requirements can vary depending on the chosen business structure, some general documents are typically needed:

  • Passports: Copies of passports for all company owners and directors.
  • Business Names: A few proposed business names for availability checks.
  • Registered Address: Proof of a local business address (virtual or physical).
  • Business Plan: A basic outline of your business activities and goals (may be required).

Additional Considerations:

  • Company registration fees
  • Minimum capital deposit (amount varies depending on the company type)
  • Business licenses

We Recommend Consulting a Specialist:

For a more precise understanding of the specific requirements for your situation, consider consulting with a Bahrain business formation specialist. They can guide you through the process and ensure you meet all necessary regulations.

How to start a business in Bahrain?

Steps to Start a Business in Bahrain (Simplified):

  1. Choose a Business Structure & Name: Select the right company type and check name availability.
  2. Prepare Documents: Gather necessary documents like passports, business plan, and proof of address.
  3. Deposit Capital: Deposit the minimum required capital for your chosen structure.
  4. Submit Application: Apply for registration with the Ministry of Industry, Commerce and Tourism (MOICT).
  5. Obtain Licenses: Acquire any necessary business licenses based on your industry.
  6. Register for Taxes: Register your business for tax purposes.
  7. Open a Bank Account: Open a corporate bank account for your business transactions.

Additional Considerations:

  • Consulting a business formation specialist can simplify the process and ensure compliance.
  • The specific steps and requirements may vary depending on your chosen business structure.

How many Resident Permits (Visas) I will get after company formation in Bahrain?

Resident Permits After Company Formation in Bahrain:

  • Typically, each shareholder gets a “Businessman/Investor” visa.
  • Dependent visas (spouse and children) may be available for shareholders.
  • Companies can initially get 2 work permits for employees, with the potential to increase later.

How much does it cost to set up a company in Bahrain?

BHD 800 – BHD 1,340+ This is a starting range, and the total cost can vary depending on several factors, including:

  • Chosen Company Structure: More complex structures may involve additional fees.
  • Government Registration Fees: These can vary depending on the business type.
  • Agent Fees (Optional): Using a company formation service will incur additional fees.
  • Business Licenses: Obtaining required licenses may have associated costs.

For a More Accurate Estimate:

Contact us for a personalized quote based on your specific needs.

What is the legal form of company in Bahrain?

Most Popular Legal Form in Bahrain: Limited Liability Company (WLL)

The most commonly chosen legal form for companies in Bahrain is the Limited Liability Company (WLL). It’s similar to a Limited Liability Company (LLC) found in many other countries.

Benefits of a WLL:

  • Limited Liability: Owners’ liability is limited to their investment in the company.
  • Minimum Requirements: Relatively easy and affordable to set up, with a minimum of one partner and a low minimum capital requirement.

Other Legal Forms:

While WLLs are popular, Bahrain offers other options like:

  • Branch of a Foreign Company
  • Partnership Company
  • Shareholding Company (Closed or Public)

Choosing the Right Form:

The best legal form depends on your specific business needs and goals. Consider consulting with a business formation specialist in Bahrain for tailored advice.

What are the benefits of company formation in Bahrain?

Top Benefits of Company Formation in Bahrain:

  • Tax Advantages: Favorable tax regime with exemptions for many businesses (e.g., 0% corporate tax).
  • Strategic Location: Easy access to regional markets and global trade routes.
  • Stable & Business-Friendly Environment: Secure and supportive government policies.
  • Skilled Workforce: Multilingual talent pool with a growing university graduates population.
  • Modern Infrastructure: Excellent transportation, communication, and logistics networks.
  • Financial Hub: Access to banking, insurance, and financial services.

Additional Advantages:

  • Streamlined company formation process.
  • 100% foreign ownership for most business sectors.
  • Competitive office space costs.
  • Welcoming and multicultural environment for entrepreneurs and residents.

Overall Appeal:

Bahrain offers a combination of strategic location, tax benefits, a supportive business environment, and a talented workforce. This makes it an attractive option for international businesses looking to expand in the Middle East.

What are the easiest and good business to scale in Bahrain?

Easiest Businesses to Scale in Bahrain (Consider These Factors):

  • Low Initial Investment: Businesses requiring minimal equipment or infrastructure are easier to scale.
  • Growth Potential: Look for sectors with high demand and opportunities for expansion into regional markets.
  • Scalable Operations: Consider businesses with models that can easily adapt to serve more clients without significant overhead increases.

Examples of Potentially Scalable Businesses in Bahrain:

  • Information Technology (IT) Services: High demand, skilled workforce, and potential for remote service delivery.
  • Consulting Services: Expertise in various fields can be offered to a wider client base with minimal overhead.
  • Digital Marketing: Growing online presence in Bahrain creates demand for these services.
  • E-commerce: Leverage Bahrain’s free trade agreements and regional reach for online sales.
  • Education & Training: Offer online courses or cater to a wider student base as your business grows.


Market research and a well-defined business plan are crucial for success in any industry.

Let’s Get Connected!

There are many other business for expats in Bahrain that they can setup in Bahrain, feel free to talk us we will provide company formation consultancy for you and support you professionally. Please contact us with your idea to discuss more about Business for Expats in Bahrain. You also can contact us for Company Formation in Oman and investor visa in Oman.

CR is a short form of commercial registration, It is compulsory renew the CR every year and we can assist you to renew your CR in a faster way.

Our professionals are capable of handling all of your LMRA operations. They can assist you in Visa processing, address updating Ceiling Offence Removal on time.

Are you looking for assistance in Audit Finalization?Our experienced professionals can help you in managing your accounting data.Are you looking for assistance in Audit Finalization?Our experienced professionals can help you in managing your accounting data.

There is 10% value added tax on all products and services. Later or sooner all businesses are required to be VAT registered.

We can assist you for all types of amendments in your commercial registration like change of Partners, directors, authorized persons, activity, address, name and etc.

Photo Of Company Company Formation in Bahrain
Company formation in Bahrain | Setup in Bahrain Business Centre
Floor 15,EBC Tower, Building 361, Road 1705, Block 317,
Diplomatic Area , Manama , 99999 Bahrain