Click Here to WhatsApp Us for Business Inquiries.
Saturday to Thursday 08:00 - 17:00
Office 1502, Building 361, Road 1705, Block 317, Diplomatic Area , Kingdom of Bahrain
Home » Guides
Bahrain Business Guides
Everything you need to know about starting a company in Bahrain — documents, government procedures, timelines, and what to expect at each stage.
At a Glance
Foreigners can own 100% of a company in Bahrain — no local sponsor required, no corporate tax for most businesses (Source: U.S. State Department, 2025). The Commercial Registration (CR) is issued through Sijilat 3.0, and the full company formation process typically takes 15–20 business days. Below you'll find step-by-step guides covering every stage — from CR application to business bank account to investor visa. For a full breakdown of government fees and service charges, see our cost of setting up a company in Bahrain guide.
2,500+
Companies Formed
Since 2018
Established
100%
Foreign Ownership
0%
Corporate Tax
Guides
Which guides do you need for starting a business in Bahrain?
🏢
Company Formation in Bahrain
Sijilat registration, business structures, 100% foreign ownership rules, required documents, and MOICT approval process.
Read Guide →🛂
Investor Visa Bahrain
8-step process from CR to residence permit. LMRA & NPRA procedures, eligibility, documents, and processing timeline.
Read Guide →🏦
Opening a Business Bank Account
Required documents, Bahraini banks, CBB compliance requirements, and common mistakes that lead to account rejections.
Read Guide →📍
Virtual Office in Bahrain
MOICT rules, which banks accept virtual addresses, compliance risks, and how to choose the right registered address.
Read Guide →🌍
Business Ideas for Expats in Bahrain
Top sectors for foreign entrepreneurs, ownership rules by nationality, and practical guidance for expats starting a company.
Read Guide →🔄
CR Renewal Bahrain
Sijilat renewal guide — documents, common mistakes, government fees, and how to renew before the deadline.
Read Guide →Looking for pricing? See the full costs overview, company formation costs, or investor visa costs.
Step-by-Step
How do I start a company in Bahrain? 7 Steps
1
Choose your business activity & legal structure
Select your business activity and legal structure — WLL, Single Person Company (SPC), or branch office. The legal form determines ownership rules and capital requirements under the Bahrain Commercial Companies Law. Our company formation guide explains each structure in detail.
2
Reserve your trade name via Sijilat 3.0
Reserve your trade name through the MOICT's Sijilat 3.0 portal. The name must comply with naming guidelines and must not infringe existing trademarks.
3
Draft & notarize the Memorandum of Association
Prepare the Memorandum of Association (MoA) with details on shareholders, capital structure, and management — notarized by a Bahraini notary public.
4
Apply for your Commercial Registration (CR)
Submit the CR application online through Sijilat 3.0. The review and approval process typically takes 15–20 business days. Sijilat 3.0 is digitally connected to over 50 government agencies (Source: Bahrain EDB). See the full cost breakdown for government fees at this stage.
5
Register your business address
Register a physical or virtual office address. Ensure the address meets MOICT requirements and is accepted by your target bank for account opening purposes. Compare options and pricing on our virtual office pricing page.
6
Open a business bank account with bank-ready documentation
Open a corporate business bank account at a Bahraini bank. Required under the CBB Rulebook (Volume 1, FC Module): CR, MoA, UBO declaration, business plan, and proof of source of funds.
7
Apply for your investor visa via LMRA & NPRA
Apply for your investor visa through the 8-step LMRA and NPRA process. Timeline: 2–4 weeks including all government approvals and medical examination. See investor visa costs for a detailed fee breakdown.
Sources: MOICT Sijilat 3.0 · CBB Rulebook, Volume 1, FC Module · LMRA · NPRA · Bahrain EDB
Key Information
Why bank-ready documentation matters in Bahrain
The most common problem with company formation in Bahrain is not getting the CR — it's what happens afterward. The Central Bank of Bahrain (CBB) requires full KYC verification for every new business bank account under its Rulebook (Volume 1, FC Module): proof of Ultimate Beneficial Ownership (UBO), a detailed business plan, and documented source of funds.
Many entrepreneurs — including expats starting businesses in Bahrain — receive their Commercial Registration but do not prepare bank-ready documentation in advance. The result: weeks or months of delays at the banking stage — or outright rejection. Preparing your KYC documents alongside your CR application, rather than after, is the single most important thing you can do to avoid this bottleneck.
| Requirement | Details | Source |
|---|---|---|
| CR Issuance Timeline | 15–20 business days | MOICT / Sijilat 3.0 |
| Foreign Ownership | 100% in most sectors | U.S. State Dept. ICS 2025 |
| Corporate Tax | 0% (DMTT 15% only for MNEs >€750M) | PwC Tax Summaries / Decree-Law No. 11/2024 |
| Bank Account KYC | UBO declaration, business plan, source of funds | CBB Rulebook, Vol. 1, FC Module |
| Investor Visa Timeline | 2–4 weeks (8-step process) | LMRA / NPRA |
| Bahrain FDI Stock (2024) | $43.6 billion | U.S. State Dept. ICS 2025 |
Have Questions About Company Formation?
If you'd like to discuss your specific situation — business activity, ownership structure, banking requirements — reach out for a free consultation.
Comparison
How does Bahrain compare to Dubai and Saudi Arabia?
| Criterion | 🇧🇭 Bahrain | 🇦🇪 Dubai (UAE) | 🇸🇦 Saudi Arabia |
|---|---|---|---|
| CR Issuance | 15–20 business days | 3–7 business days | 5–10 business days |
| Corporate Tax | 0% (DMTT 15% only MNEs >€750M) | 9% (on profit above AED 375,000) | 20% (foreigners) / 2.5% Zakat (Saudis) |
| Foreign Ownership | 100% (most sectors) | 100% (Free Zone) / 49–100% (Mainland) | 100% (most sectors since 2021) |
| VAT | 10% | 5% | 15% |
| Domestic Market | 1.5 million population | 10 million (total UAE) | 36 million population |
| Access to Saudi Market | King Fahd Causeway (25 km) | By air / sea | Direct access |
| FDI Stock (2024) | $43.6 billion | $174 billion | $261 billion |
Sources: U.S. State Department Investment Climate Statements 2025 · PwC Tax Summaries · OECD BEPS Pillar Two · Bahrain EDB · UAE FTA · ZATCA Saudi Arabia
For a detailed cost comparison, see our cost of setting up a company in Bahrain page, which includes side-by-side government fee breakdowns.
FAQ
Frequently Asked Questions
Can foreigners own 100% of a company in Bahrain?
Yes — according to the U.S. State Department Investment Climate Statement 2025, Bahrain permits 100% foreign ownership "without the need for a sponsor or local business partner." Exceptions under the Bahrain Commercial Companies Law: Construction requires 51% Bahraini ownership, and domestic trading requires at least one Bahraini share (the 9999+1 structure). GCC and U.S. citizens receive full ownership rights across all sectors. See our company formation guide for a full breakdown of ownership rules by sector and nationality.
How long does it take to set up a company in Bahrain?
The full company formation process — from CR application through Sijilat 3.0 to final approval — typically takes 15–20 business days. This includes document verification, MOICT review, and inter-agency coordination. The investor visa follows an 8-step process through LMRA and NPRA, taking an additional 2–4 weeks.
What documents are needed for company formation in Bahrain?
The core documents include: a completed Sijilat 3.0 application, Memorandum of Association (notarized), shareholder passports and KYC documents, trade name reservation, business plan, proof of registered address, and UBO declaration for bank account opening under CBB requirements. Our company formation guide includes the complete document checklist.
Why do most entrepreneurs fail to open a bank account in Bahrain?
The Central Bank of Bahrain (CBB) requires full KYC verification under its Rulebook (Volume 1, FC Module): UBO declaration, business plan, and source of funds. Many entrepreneurs receive their CR but do not prepare bank-ready documentation in advance — leading to delays or outright rejections at the banking stage. Preparing these documents alongside your CR application is strongly recommended. Read our full business bank account guide for the complete checklist and common mistakes to avoid.
Do I need an office to register a company in Bahrain?
No — a virtual office is acceptable for many business types. However, not all banks accept virtual addresses for account opening. Our virtual office guide covers which banks and addresses are compatible, and you can compare packages on the virtual office pricing page.
Is there corporate tax in Bahrain?
Bahrain has no general corporate income tax for most businesses (Source: PwC Tax Summaries, 2025). Since January 2025, a 15% Domestic Minimum Top-Up Tax (DMTT) applies under Decree-Law No. 11/2024 — but only to multinational enterprises with over €750 million in consolidated annual revenue. In December 2025, the NBR submitted a draft 10% corporate income tax for companies with over BHD 1 million in revenue (Source: Bloomberg Tax, January 2026). This draft has not yet been enacted. For a full breakdown of all government fees, see our cost of company formation page.
How does Bahrain compare to Dubai for company formation?
Bahrain generally has lower formation costs than Dubai, charges 0% corporate tax (vs. 9% in the UAE on profit above AED 375,000), and permits 100% foreign ownership without a sponsor in most sectors. Dubai offers a larger international business network, more free zones, and faster CR issuance. The detailed comparison table above breaks down each criterion side by side.
Overview
Why choose Bahrain as your business location?
✅ Advantages
- 0% corporate tax for most sectors (PwC, 2025)
- 100% foreign ownership — no sponsor required (U.S. State Dept.)
- Full CR process through Sijilat 3.0
- Direct access to Saudi market via King Fahd Causeway (25 km)
- Stable financial system, CBB-regulated
- No currency restrictions, no capital controls
- FDI stock $43.6 billion (2024) — strong international investor confidence
⚠️ Considerations
- Strict AML/KYC banking requirements (CBB Rulebook)
- Construction sector requires 51% Bahraini partner
- Domestic trading: at least one local share (9999+1)
- Annual CR renewal required
- Smaller domestic market (1.5M) than UAE (10M) or Saudi Arabia (36M)
- VAT at 10% (higher than UAE's 5%)
- Draft 10% corporate income tax proposed (Dec 2025, not yet enacted)
Sources: U.S. State Dept. Investment Climate Statements 2025 · PwC Tax Summaries · CBB Rulebook · Decree-Law No. 11/2024 · Bloomberg Tax (Jan. 2026)
Ready to get started? Read the full company formation guide, check all costs, or contact us for a free consultation.