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Company Registration in Bahrain- An Overview

The Kingdom of Bahrain is renowned for its open and investor-friendly business environment. Strategically located in the Persian Gulf, near Saudi Arabia and Qatar, Bahrain ranks high on the World’s Ease of Doing Business Index. The country’s progressive policies and strategic location provide unparalleled access to a wider region, thereby enabling companies to tap into a growing market of over 55 million customers. Company registration in Bahrain opens the door for business enthusiasts passionate about expanding their businesses in Bahrain.

With Corpbiz, the global investors can seamlessly complete their Bahrain business registration with varying costs based on the type of business and other factors. Connect with experts at Corpbiz today to foster growth sectors and opportunities for businesses looking to expand into the Middle East.

Company Registration in Bahrain

What are the Benefits of Company Formation in Bahrain?

The foreign investors applying for company formation in Bahrain’s prime location enjoy a wide range of benefits, as discussed below:

Company Formation in Bahrain
Tax Exemption

Tax Exemption

Bahrain, which imposes no corporate and personal income tax, serves as an ideal launchpad for applicants seeking company formation in Bahrain.

Access to Double Taxation Treaties

Access to Double Taxation Treaties

Bahrain has signed over 40+ double taxation avoidance agreements with countries across Asia, Europe, and the Middle East, thereby helping businesses avoid being taxed on the same income. It is one of the benefits of company registration in Bahrain.

Free Trade Opportunities

Free Trade Opportunities

Company registration in Bahrain offers extensive free trade opportunities through its participation in several trade agreements, thereby giving businesses tariff-free access to the GCC and other major markets.

Allows 100% Foreign Ownership

Allows 100% Foreign Ownership

Company registration in Bahrain allows 100% foreign investors in most industries, thereby enabling investors to operate independently without a local partner.

Business-Friendly Environment

Business-Friendly Environment

Bahrain offers a stable economy, strong government support, and transparent regulations that create an ideal setting for business growth.

Access to Key Markets

Access to Key Markets

Bahrain, strategically located, offers easy access to key GCC markets, including Saudi Arabia, the UAE, Qatar, and Kuwait. It is one of the significant merits of company registration in Bahrain.

Eligibility Criteria to Register Business in Bahrain

The eligibility criteria to register business in Bahrain are as follows:

  • No requirement for minimum authorized share capital (for WLL or SPC)
  • A Closed Joint Stock company must have a minimum of BHD 250,000
  • Public Joint Stock company requires BHD 1 million capital
  • Must have a minimum of 2 shareholders (of any nationality)
  • Must appoint at least 1 director (of any nationality)
  • Ensure the reservation of the company name in Bahrain
  • Mandatorily appoint a local partner or sponsor
  • Must have a skilled and multilingual workforce
  • Secure a registered office space in Bahrain
  • Draft & notarize legal documents outlining the company’s structure
  • Deposit minimum capital in a newly opened corporate bank account
  • Obtain security clearance from the Ministry of Interior

Who Can Apply for Bahrain Company Incorporation?

The checklist of applicants eligible to apply for Bahrain company incorporation is as follows:

  • Citizens or nationals of Bahrain
  • GCC nationals and entities
  • Foreign individuals (who are non-GCC nationals)
  • Foreign corporate entities
  • Free zone investors
Documents Required for Company Registration in Panama

What are the Mandatory Documents for company setup in Bahrain UAE?

The list of documents needed for company setup in Bahrain UAE include:

  • Copy of passports and visas of all shareholders & directors
  • Power of attorney for registration agents, if required
  • Duly filled registration application form
  • Memorandum and Articles of Incorporation (M&AOA)
  • Copy of financial auditor’s report or evaluation letter
  • Certified original bank reference letter
  • Copy of the CPR of Bahraini partners
  • Copy of sponsorship agreement, if applicable
  • Capital deposit certificate from banks in Bahrain
  • Any other additional licenses (if applicable)
  • Document translation in Spanish

How to Apply for Online Company Registration in Bahrain?

The applicants seeking online company registration in Bahrain must comply with the following step-by-step process as provided below:

  • Step 1: Obtain Security Clearance: The first step requires the applicant to obtain security clearance for company formation in Bahrain.
  • Step 2: Choose Business Structure: The next step is to choose among the most common business structures, based on the ownership and rights within the company.
  • Step 3: Secure Business Name Reservation: The next step requires the applicant to reserve a unique business name with the Ministry of Industry and Commerce in Bahrain.
  • Step 4: Prepare Incorporation Documents: Next, the applicants must prepare and notarize the company incorporation documents (M&AOA), defining the company’s structure, objectives, governance, and operating procedures.
  • Step 5: Apply for Commercial Registration: At this stage, the applicants are required to apply for commercial registration (initial approval) online via the Sijilat portal.
  • Step 6: Open a Company Bank Account: Upon obtaining the initial approval, the applicants are required to open a company bank account to deposit initial company funds for registration.
  • Step 7: Obtain Final Approval from MOIC: Lastly, the MOC reviews the documents submitted and grants the final approval certificate, officially allowing commencement of business operations.

Types of Company Setup in Bahrain UAE

The different types of company setups in Bahrain UAE are discussed below:

With Limited Liability Company (WLL)

With Limited Liability Company (WLL)

With Limited Liability Company (WLL) is one of the most common business structures, having limited liability up to the value of shareholdings.

Single Person Company (SPC)

Single Person Company (SPC)

A Single-Person Company (SPC) allows one individual or corporate entity to establish a company with limited liability and full ownership control of the business.

Closed Joint Stock Company (BSC Closed)

Closed Joint Stock Company (BSC Closed)

A closed joint stock company (BSC Closed) is one of the business structures with limited ownership and no publicly traded shares of its shareholders.

Public Joint Stock Company (BSC Public)

Public Joint Stock Company (BSC Public)

A public joint stock company (BSC Public) is one of the forms of business structures that comprises partners who act as holders of publicly traded shares with no liability for debts and obligations of the company.

Company Limited by Shares (Commandite by Shares)

Company Limited by Shares (Commandite by Shares)

A company limited by shares, also known as a Commandite by Shares, is a hybrid form of business structure that combines features of a partnership and a corporation.

Partnership Firm

Partnership Firm

This type of business entity is owned and run by two or more partners having a share in profits and liabilities, in the manner as prescribed in the partnership agreement.

Branch Office

Branch Office

A branch office is a subsidiary of a foreign company, enabling international businesses to conduct commercial activities in Bahrain.

Representative Trade Office

Representative Trade Office

A representative trade office is an extension of a foreign company for non-commercial activities, such as market research, liaison, or promotional work.

Holding Company

Holding Company

A holding company is a corporate legal structure that owns shares and manages their operations & assets of the company.

Business Licenses in Bahrain: Which is the Right Choice for Bahrain Company Incorporation?

When setting up a company in Bahrain, selecting the right business license is essential as it determines the type of activities your company can legally carry out. Below are the key business licenses available for Bahrain company incorporation:

S. No. Types of Licenses Description Examples Foreign Ownership
1 Commercial License Issued to entities engaged in trading and commercial activities. Retail shops, trading firms, and import/export companies. Allowed up to 100% in most sectors.
2 Industrial License Required for businesses involved in manufacturing, assembly, or any form of industrial production. Factories, assembly plants, textile or food production units. Allowed up to 100% in most sectors.
3 Professional License Granted to individuals or firms offering professional, consultancy, or specialized services. Law firms, auditing companies, engineering consultants, and IT service providers. Allowed up to 100% in most sectors.
4 Service License For businesses offering general or technical services. Cleaning companies, logistics services, repair and maintenance providers. Allowed up to 100% in most sectors.
5 Tourism License Mandatory for businesses operating in the tourism, travel, and hospitality sectors. Travel agencies, hotels, resorts, tour operators, and event management firms. Allowed up to 100% in most sectors.
6 E-Commerce License Granted to companies that sell products or services online. Online retail stores and digital platforms. Allowed up to 100% in most sectors.
7 Educational License Necessary for institutions providing educational or training services. Schools, universities, training institutions, and coaching centres. Limited, may require a local partner or approval from the relevant Ministry.
8 Financial License Issued by the Central Bank of Bahrain for entities operating in the financial and investment sectors. Banks, insurance companies, investment firms, fintech startups. Subject to CBB regulations, foreign ownership may be restricted.
9 Health License Required for businesses in the healthcare and medical field. Clinics, hospitals, pharmacies, and wellness centres. Allowed up to 100% in most sectors, regulated by NHRA.

Post-BahrainCompany Set Up Compliance

Have a look at the post-Bahrain company set up compliances, as discussed below:

Compliance with KYC and ALM Policies

Compliance with KYC and ALM Policies

Post-company setup in Bahrain, the businesses must ensure compliance with KYC and ALM regulations as mandated by the Central Bank of Bahrain and other relevant authorities.

Compliance with KYC and ALM Policies

Post-company setup in Bahrain, the businesses must ensure compliance with KYC and ALM regulations as mandated by the Central Bank of Bahrain and other relevant authorities.

Apply for VAT Registration

Apply for VAT Registration

Based on the annual turnover and business activity, the registered entities must apply for VAT registration with the National Bureau of Revenue of Bahrain.

Apply for VAT Registration

Based on the annual turnover and business activity, the registered entities must apply for VAT registration with the National Bureau of Revenue of Bahrain.

File Annual Financial Statements

File Annual Financial Statements

The companies registered in Bahrain must file annual financial statements to maintain proper accounting records, varying based on the type of business.

File Annual Financial Statements

The companies registered in Bahrain must file annual financial statements to maintain proper accounting records, varying based on the type of business.

Open a Corporate Bank Account

Open a Corporate Bank Account

The companies registered in Bahrain must open a corporate bank account with a reputable bank of their choice, ensuring the transfer of capital funds in Bahrain.

Open a Corporate Bank Account

The companies registered in Bahrain must open a corporate bank account with a reputable bank of their choice, ensuring the transfer of capital funds in Bahrain.

LMRA Registration

LMRA Registration

The registered companies must apply for Labour Market Regulatory Authority (LMRA) registration to hire staff and process visas and residence permits.

LMRA Registration

The registered companies must apply for Labour Market Regulatory Authority (LMRA) registration to hire staff and process visas and residence permits.

Apply for Investor Visa

Apply for Investor Visa

The foreign investors seeking company registration in Bahrain must apply for an investor visa or work permits, enabling them to legally live and operate a business in Bahrain.

Apply for Investor Visa

The foreign investors seeking company registration in Bahrain must apply for an investor visa or work permits, enabling them to legally live and operate a business in Bahrain.

Social Insurance Contribution

Social Insurance Contribution

Companies must contribute to the Bahrain Social Security Organization (BSIO) for Bahraini employees, covering pensions, workplace injury, and other statutory benefits.

Social Insurance Contribution

Companies must contribute to the Bahrain Social Security Organization (BSIO) for Bahraini employees, covering pensions, workplace injury, and other statutory benefits.

Comply with Labour Law

Comply with Labour Law

The businesses registered in Bahrain must comply with the local labour laws, including employment contracts, working hours, leave policies, and health & safety regulations.

Comply with Labour Law

The businesses registered in Bahrain must comply with the local labour laws, including employment contracts, working hours, leave policies, and health & safety regulations.

Obtain Sectoral and Regulatory Approvals

Obtain Sectoral and Regulatory Approvals

The registered entities in Bahrain must obtain mandatory sectoral and regulatory approvals from authorities such as the Central Bank of Bahrain and NHRA for healthcare.

Obtain Sectoral and Regulatory Approvals

The registered entities in Bahrain must obtain mandatory sectoral and regulatory approvals from authorities such as the Central Bank of Bahrain and NHRA for healthcare.

Get Bahrain Business Registration Services with Corpbiz

  • Pre-Registration Consultation: Get expert guidance on choosing the ideal business structure, understanding ownership options, meeting foreign investment, and regulatory compliance requirements in Bahrain.
  • PRO & Visa Services: Get assistance with investor visa, employment visas, and dependent visas in accordance with Bahrain’s immigration laws.
  • Accounting and Bookkeeping Services: Connect Corpbiz to get end-to-end accounting and bookkeeping services from our qualified accountants and financial advisors.
  • Consultancy and Labour Services: Get consultancy support and labour advisory services to manage human resources, labour regulations, and workforce in Bahrain.
  • Regulatory Filings and Setup Support: Connect us to get regulatory filings and setup support for all commercial and trade licenses in Bahrain.
  • Local Sponsorship Assistance: We help in identifying and managing local sponsorship agreements, where applicable under Bahrain business laws.
  • Offshore Company Formation Services: Connect our team to enjoy offshore company formation services, which simplify international operations in Bahrain.
  • Mainland Business Setup in Bahrain: Connect us to enjoy the Mainland business setup in Bahrain’s strategically growing economy.
  • Bahrain Free Zone Business Setup Services: Choose our Bahrain free zone business setup services to enjoy special incentives like 100% foreign ownership, tax exemptions, and simplified import-export procedures.

Partner with Corpbiz for Company Registration in Bahrain

Assisted 1000+ Businesses

Assisted 1000+ Businesses

We have successfully assisted over 1000 foreign investors with company registration in Bahrain and other GCC countries.

Cost-Effective Business Setup Solutions

Cost-Effective Business Setup Solutions

Connect us to get access to a cost-effective business setup package offering compliant business solutions to companies registering in Bahrain.

Corporate Formation Package

Corporate Formation Package

Get a comprehensive package covering business name reservation, trade license issuance, VAT registration, visa processing, and other regulatory formalities.

10+ Years of Experience

10+ Years of Experience

With over 10 years of experience, Corpbiz acts as a trusted partner offering seamless business setup solutions to foreign investors in Bahrain.

Expert Consultancy

Expert Consultancy

With a network of 10,000+ legal, tax, and business consultants, we provide specialized guidance for company registration in Bahrain.

Free Initial Consultation

Free Initial Consultation

Start with a free 30-minute initial consultation with our experts to understand the incorporation process, ownership options, and tax implications.

Round-the-Clock Assistance

Round-the-Clock Assistance

We provide round-the-clock assistance to streamline company registration in Bahrain at every stage of business operations in Bahrain.

Cross-Border Expansion Support

Cross-Border Expansion Support

Get professional guidance for cross-border expansion support across GCC and other international markets.

Deadline & Compliance Reminders

Deadline & Compliance Reminders

Stay penalty-free and compliant with our automated reminders for key regulatory deadlines and reporting obligations in Bahrain.

FAQs on Company Formation in Bahrain

The cost to register a company in Bahrain, which typically includes the standard government fees and professional services, starts from BD 1,326 to BD 2,151.

The process to register a business in Bahrain requires compliance with the following steps as provided below:
  • Step 1: Obtain Security Clearance
  • Step 2: Choose Business Structure
  • Step 3: Secure Business Name Reservation
  • Step 4: Prepare Incorporation Documents
  • Step 5: Apply for Commercial Registration
  • Step 6: Open a Company Bank Account
  • Step 7: Obtain Final Approval from MOIC

The different types of business licenses granted in Bahrain are as follows:
  • Commercial license for companies engaged in trading, contracting, or general commercial activities
  • Industrial license for businesses involved in manufacturing or industrial activities
  • Professional license for companies providing specialized services based on their expertise
  • Tourism and hospitality license for businesses operating in the hospitality and tourism sector
  • E-commerce license for companies that sell products or services through online modes

The minimum funds required to open a company vary based on the type of legal entity you choose. Have a look at the structure of the capital requirement for company registration in Bahrain:
  • No mandatory capital is required for WLL and SPC
  • A closed joint stock company requires BHD 250,000
  • A company limited by shares requires BHD 20,000
  • A public joint stock company requires BHD 1 million
  • Investment companies of categories 1 and 2 require BHD 1 million
  • Investment companies of category 3 require BHD 125,000

The strategically designed Bahrain boasts three major free trade zones, which help investors experience a specialized infrastructure and world-class facilities. Have a look at the list of the following free zones as discussed below:
  • Bahrain Logistics Zone (BLZ): Regulated and managed by the Ports and Maritime Affairs at the Ministry of Transportation and Telecommunication.
  • Bahrain International Investment Park (BIIP): Bahrain’s flagship site built to attract multinational and export-oriented global businesses.
  • Bahrain International Airport (BIA): The first airport in the Arabian Gulf offering a magnificent business setup locally for global investors.

The list of common challenges faced while obtaining a commercial registration in Bahrain are as follows:
  • Incomplete or incorrect documentation
  • Choosing the wrong or unsuitable legal structure
  • Extended or delayed processing time
  • Failure to account for sector-specific requirements
  • Failure to meet post-registration obligations

To check whether a company is registered in Bahrain, you can use the Sijilat portal, which is Bahrain’s online commercial registration portal.

The 10% tax in Bahrain refers to the standard value-added tax (VAT) rate, which was increased from 5% to 10% in 2022.

Yes, Bahrain is considered a tax haven because it charges no personal income tax, capital gains tax, or inheritance tax for residents or non-residents.

The best business opportunities that help foreigners to start a business in Bahrain are as discussed below:
  • Tourism and Travel Business
  • Hospitality Business
  • E-Commerce Business
  • Fintech and Financial Services
  • Wholesale and Retail Business
  • Transport Business
  • Petrochemicals and Plastics Business
  • Garments and Textile Business
  • Manufacturing Business
  • Logistics Business
  • Information, Communication, and Technology Business
  • Small and Medium Industries

Yes, although Bahrain is largely known as a tax-friendly business environment with no general corporate income tax for most sectors, the businesses in Bahrain pay certain taxes.

Yes, a foreigner is eligible to own and run a business with 100% foreign ownership in major sectors of Bahrain.

A CR certificate, commonly known as the Commercial Registration certificate, is a legal document issued to investors applying for registration of their company with the Ministry of Industry and Commerce.

Yes, but with some flexibility. However, there are no strict nationality requirements to register a business in Bahrain.

No, Bahrain generally has very few foreign investment restrictions in major sectors.

Yes, you are required to have a lease agreement for a registered office, which is a mandatory requirement for company registration in Bahrain.

A minimum of 2 shareholders and 1 director (for LLC) & 3 directors (for JSC) are required for a Bahrain company set up.

Authors

Written by Aarya Pokharel. Last updated on Nov 11 2025, 09:46 PM

Aarya Pokharel brings 3 years of solid experience in legal research and compliance. Her expertise spans tax filing, secretarial compliances, and advisory services, with a strong focus on delivering precise legal research and strategic advisory support.

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