A business-friendly country, Bahrain always welcomes foreign investors. Having an easy and streamlined procedure for foreigners to invest in the nation, Bahrain also offers them many added facilities while they establish their business. For foreign company registration in Bahrain, you should be aware of the country’s business environment. To do this, the first step is to find about the various types of business entities possible in the country, followed by how to incorporate a company, and then what is the required legal documentation. Seems like a lot of information to find? Worry not! In this article, we have collated all the important information that will help you to set up a company in Bahrain in 2019.
Steps to set up a Company in Bahrain
To start a legal business in Bahrain, there are various things you need to complete. As a first step, you need to find which all approvals you would need and then fill an Application Form for Commerce Registration in the Bahrain Investors Centre (BIC). Then with the guidance of a BIC representative, you have to visit the particular ministry and after paying a fee of BD 2 post gaining the needed approvals, you would have to submit the required legal documents. You must note that the registration process typically takes 1 to 5 business days. Here are the detailed steps to establish your company in Bahrain:
- Opt for a Legal Structure: The most important decision as an owner of a business is to decide a legal structure for the enterprise you are starting. This decision would affect how your business would be managed, what will be the company’s owner’s personal liability, and how the ownership would be held. You could opt out of the following legal structures:
- Bahrain Shareholding Company (BSC – Open)
- Bahrain Shareholding Company (BSC – Closed)
- With Limited Liability Company (WLL)
- Partnership Company
- Simple Commandite
- Commandite by Shares
- Single Person Company (SPC)
- Individual Establishment
- Foreign Company Branch
- Finalizing a Company Name: A company name represents your products or services, brand and business forever; therefore, the ministry of Industry & Commerce (MOIC) has fixed certain guidelines to enable business owners search for the most apt company name. Investors should ideally recommend four business/company names; however, if any of the suggested names violate the guidelines, it would be rejected.
- Commercial Registration Papers: Commercial registration papers for companies are made at the Bahrain Investors Centre. But if it’s an individual enterprise, the papers will have to be made at the Ministry of Industry and Commerce Commercial Registration Directorate.
- Licensing and Approval: Some enterprises are given the commercial registration immediately from the Ministry of Industry and Commerce, but a few others might need a license/approval especially from over one government authority before getting a commercial registration.
Documents for starting a company in Bahrain
- A duly-filled company registration application form
- Draft of memorandum of association
- A resolution from board of directors resolving to set up the company in Bahrain
- Company representatives’ national ID card copies
- Resumes of all partners
- Lease agreement as a proof of the business’ commercial address
Bahrain is not only a thriving economy, but is also offering very beneficial opportunities and multiple avenues for setting up new businesses to investors. If you are looking for some professional help for getting foreign company registration in Bahrain, our team of expert business advisors will guide you at each step. Thinking of starting your own company in Bahrain? Do contact us and we would be pleased to help you!
