Bahrain Company Formation - Company Registration - IMC
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bahrain company formation company registration IMC

The Kingdom of Bahrain is an archipelago of 36 islands in the Persian Gulf (Middle East), east of Saudi Arabia. The capital, Manama, is on the main island of Bahrain. Bahrain’s legal system is based on Islamic law (Shari’a) and English common law. The Government of Bahrain (GOB) has a generally liberal approach to foreign investment and is eager to improve Bahrain’s attractiveness to international investors and businesses. Top government officials build frequent public statements citing the expansion of foreign investment as one of the government’s main priorities. The Bahrain Economic Development Board (EDB) is a dynamic public agency with overall responsibility for Company Formation in Bahrain, company registration, company setup and supporting initiatives that help enhance the investment climate in the country. Scroll down to read the full article on company setup in Bahrain.

Bahrain Company Formation and Company Registration

  • After company formation in Bahrain, foreign companies may only conduct a business after it is licensed by the Ministry of Industry and Commerce (MOIC).
  • A company Formation in Bahrain boasts several free zones that allow for 100% foreign ownership, zero customs duties and government rebates on land and electricity
  • A foreign company formation in Bahrain can register a branch to invoice customers, sign local sales contacts and receive income from local customers.

Licensing in Bahrain Company Formation

  • Foreign countries may only conduct a business after it is licensed by the Ministry of Industry and Commerce (MOIC).
  • Following company registration the Ministry of Industry and Commerce (MOIC) does not permit two different classified business activities under one license e.g. medical and educational service
  • The Central Bank of Bahrain (CBB) is responsible for the licensing, supervision and regulation of the financial sector in accordance with international standards.
  • Some business activities, however, need a license or approval by one or additional Government Authorities prior to obtaining the commercial registration. In such cases, the Ministry of Industry & Commerce may solely grant a CR once the capitalist meets all licensing and approval requirements set forth by the relevant authorities for the process of company registration in Bahrain.


  • Bahrain has no exchange control limitations on return of capital, profits and dividends, sanctioning full monetary interchangeableness of capital, profits and dividends.
  • Bahrain has a Double Taxation Avoidance Agreement (DTA) with 39 countries
  • There is 10% municipal tax on commercial and residential property occupied by expatriates
  • Bahrain offers lots of incentives to the prospect of starting a business and investment in Bahrain including its tax free economy and no VAT

Type Limited Liability Company (WLL)
Under Bahrain law, foreigners can own 100%
Share Capital US$ 133,000
Director Minimum Two
Memorandum and Articles of Association Yes
Shareholders Minimum two
Can the entity hire expatriate staff in Bahrain Yes
Bahrain Resident Secretary Required Yes
Statutory audit required Yes
How long to open Corporate Bank Account One Day
Annual Return Must be filed
Annual Tax Must be filed
Timeframe for Incorporation: 1 month
Access to Bahrain double tax treaties Yes