Our company formation advisors in Bahrain help clients open the most appropriate legal structure for their business projects in this country. Our services include company formation and also corporate advisory services or corporate secretarial services, among others.
| Quick Facts | |
|---|---|
| Types of companies | Limited Liability Company (restrictions apply in certain industries) Single-Person Limited Liability Company Free Zone Company Shareholding Company (the equivalent of the public company) |
Minimum share capital for LTD Company | USD2,660 paid at once |
Minimum number of shareholders for Limited Company | 1 |
| Time frame for the incorporation (approx.) | 6 weeks |
| Corporate tax rate | The standard rate is 0%, however companies in the oil, gas and other related sectors are subject to a 46% corporate tax. |
| Dividend tax rate | No withholding tax on dividend payments |
| VAT rate | The standard rate is 5%. A 0% rate applies to certain goods. |
| Number of double taxation treaties (approx.) | 45 |
| Do you supply a registered address? | Yes |
| Local director required | Yes |
| Annual meeting required | Yes. Electronic conference meetings are also allowed for private companies. |
| Redomiciliation permitted | No |
| Electronic signature | Yes |
| Is accounting/annual return required? | Yes |
| Foreign-ownership allowed | Yes, except for industries like trade, media,retail where a Bahraini partner is required. |
| Any tax exemptions available? | No corporate and dividend taxes.
|
| Tax incentives | No |
What is the main business structure in Bahrain?
The main business structure used by foreign entrepreneurs in Bahrain is the LLC (limited liability company). These business vehicles can be owned entirely by foreign citizens. There are, though, certain restricted sectors in which a company entirely owned by foreigners cannot operate.
What are the types of LLCs foreign investors can set up in Bahrain?
Foreign citizens can set up three different types of limited liability companies (LLCs) in Bahrain:
• The single-person company (SPC) is a limited liability company owned by only one proprietor;
• The company with limited liability (WLL) needs at least two shareholders and two directors in order to be set up. Additionally, a local manager is needed. This person generally is the company secretary;
• Bahrain shareholding company (BSC), similarly to a WLL, requires at least two shareholders and directors, together with a resident manager. This structure is ideal for a large number of entrepreneurs for large projects.
All three types of LLCs in Bahrain confer limited liability to their shareholders and can be owned 100% by foreign citizens.
How much does it cost to register a company in Bahrain in 2026?
Our company formation packages in Bahrain start at BHD 700 (USD 1,800) and can reach BHD 2,600 (USD 6,800), depending on the package you select. These costs do not include government registration fees.
How can foreign companies extend to Bahrain?
Foreign companies can operate through:
- branch offices: extensions of the parent business, and which are bound to carry out the same activities as the foreign enterprise;
- subsidiaries: independent entities in which the parent company holds the majority of shares;
- representative/liaison offices: entities under which foreign companies cannot carry out commercial undertakings; however, they can be used to test and/or promote the parent entities’ services/products.
What are the steps to open a company in Bahrain?
Here are the steps to register a Bahraini company in 2026:
- security clearance for the shareholders (applicable to foreign nationals);
- trading name reservation;
- legal address registration;
- Memorandum of Association drafting and notarization;
- license activation with the relevant authority;
- bank account opening and share capital deposit;
- Ministry of Industry and Commerce approval and Registration Certificate issuance;
- Labour Authority registration.
Important: Following these steps, the foreign shareholder can apply for a business visa and obtain the ID card, which enables them to stay in Bahrain.
Here is also an infographic on how to start a Bahraini company:
What are the required documents to register a company in Bahrain?
Here is the list of papers to prepare as a foreign investor when setting up a Bahraini company:
- passport copy;
- proof of company registered address in Bahrain (this is a service we can supply through a virtual office);
- business name proposal for reservation (we recommend at least 3 names to be chosen);
- power of attorney for representation.
How is the company registration procedure completed in Bahrain?
Through the Commercial Registers System or SIJILAT. This is an electronic system for company registration in Bahrain that is also connected with the licensing system. It links the electronic systems used by all official authorities that issue specific licenses and approvals, and thus manages to greatly simplify the entire company registration and licensing process.
Is it possible to register a company in Bahrain remotely?
Yes, remote registration is possible under a new simplified procedure, which is completed with SIJILAT through a local representative, such as our affiliates.
How long does it take to incorporate a company in Bahrain in 2026?
Around 10 working days, even if you are a foreigner who wants to complete the process remotely.
Are there specific share capital requirements to consider when starting a business in Bahrain?
The minimum capital to deposit depends on the activity of the company. From this point of view, there are industries where no specific amount is required; however, we recommend clients to deposit between USD 5,300 (BHD 2,000) and USD 13,000 (BHD 5,000), depending on the number of shareholders, as it will ease the bank account opening procedure.
What are the services your company offers?
Here is a list of the services you will find with our licensed agents:
- guidance in business form selection;
- documents drafting, notarization, and submission with the Ministry of Commerce;
- private notary services;
- license document drafting and filing with the relevant authorities;
- virtual office/desk-space office rental;
- employment registration;
- bank account opening;
- VAT registration;
- accounting services;
- business consulting and planning;
- human resources and employee outsourcing;
- visa and residence permit issuance.
You can select the services you want from the list and create your own personalized package.
If you have more questions about setting up a company and immigration in Bahrain, please feel free to get in touch with us.