Company Formation in Bahrain, Foreign Company Registration in Bahrain
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Company Formation in Bahrain

PRE-INCORPORATION ADVICE

IMC has the experience and expertise to advice customers on the suitable company type taking in to account the laws of the land and the unique customer’s needs. We have the experience having handled different industries and geographies across the world. We understand finance and the legal framework required to handle a company’s operations. We will advise on the percentage of shareholding allowed for foreigners, and the rights which go with that percentage and other such business matters. IMC has been operating in GCC for over 10 years.

Company Incorporation

Having decided on the type and structure, we can assist in every step of the way starting from drafting the incorporation documents, listing out the documents required to be filed, documents to be notarized and other formalities. We can advise on the licenses required for specific industries. If a local attorney or a CPA need to be hired, we will handle this. We will coordinate filing the applications, getting the name approved and all the steps required. We can also assist in opening the bank account for the company.

Types of Companies

  • With Limited Liability Company (W.L.L.)
  • Partnership Company
  • Bahrain Shareholding Company (B.S.C.) – public
  • Bahrain Shareholding Company (B.S.C.) – closed
  • Simple Commandite Company
  • Commandite by Shares
  • Single Person Company
  • Branch of a Foreign Company
  • Holding Company

Documents required for Company Formation

  • Company Registration application form
  • Draft Memorandum of Association
  • Board of Directors resolution resolving to establish the company in Bahrain (for corporate partners)
  • National ID card (Central Population Registry (CPR)) copies of the company’s representatives. If the partners are not present themselves to register the company, copies of the ID cards of their lawyers/other representatives must be provided.
  • CVs of individual partners.
  • Lease agreement as proof of the company’s commercial address.

Free Zones in Bahrain

The island nation of Bahrain is diversifying its economy away from unsustainable hydrocarbons resources to sectors such as banking and finance, trade and industry, retail and tourism. Its physical link to Saudi Arabia – via the King Fahd Causeway, constructed in 1986 – has facilitated trade, tourism and retail.In 2013, Bahrain was ranked as the 12th most- free economy in the world by the US’ Heritage Foundation think tank. Bahrain is home to THREESpecial Economic Zones, all of which were ranked in the top 20 locations for inward investment, economic development and business expansion in FDI Magazine’s Global Free Zones of the Future 2012/13 report.

Advantages of Free Zone Company Formation:

  • FZ companies do not require a Bahrain national shareholder for trading and commercial activities. While it is mandatory to rent a free zone office at a low rent, it is not necessary to hire staff.
  • Land rental rebates of 100% in government industrial areas for the first three years.
  • Electricity rebates of 50% for the first five years of operation.
  • No duties are imposed on goods imported and exported from the Free Zone.

Bahrain Logistics Zone (BLZ):The Bahrain Logistics Zone was established in 2008 next to Khalifa bin Salman port, the island’s main harbour. Placed 16th in the FDI Magazine ranking, the port zone offers land plots of 3,000 square metres and more for lease. The 100- hectare zone focuses on third-party logistics, storage and distribution (for export and re- export), as well as other logistics services and activities. In the first quarter of 2013, container throughput stood at 95,828 20-foot equivalent units, with an average processing time of 32 minutes.The BLZ is ideal for regarding-exporting and logistics companies benefiting from zero-tax and duty exemptions. It is also a boutique center for manufacturers in component assembly, packaging, testing, and repair companies.

Bahrain International Airport (BIA):Bahrain International airport sits in 19th place in the free zones of the future list, and is ranked fifth-best airport zone in the world. Offering cargo facilities, offices and retail space, the foreign trade zone has no customs duties. It is governed by Mumtalakat, the government vehicle for Bahrain’s non-oil and gas investments, established in June 2006 by royal decree.100% foreign ownership is allowed and it has a “bonded cargo terminal” allowing for delayed payment of duties until products leave the facility.

Bahrain International Investment Park (BIIP):BIIP offers100 per cent foreign ownership of companies, duty-free access to GCC markets, exemption from import duties on both raw materials and equipment and 100 per cent repatriation of capital. Located 5 kilometers from Bahrain International airport, BIIP consists of 2.5 million sq m of leasable land, costing $1.33 a sq m a year to rent. GCC free zones are considered as being outside the country, so goods are taxed at 5 per cent when exported to Bahrain. BIIP is not treated as a free zone, so is not subject to the 5 per cent tax when shipping goods to Bahrain.The Bahrain International Investment Park is ideal for large manufacturing operations, including food process, medical technology, electronics, and materials. Export led services including insurance claims, administration, and software and information systems.

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