Manama is the capital city in Bahrain and the largest urban center in the nation. It has a long history as being a hub for international trade and today is it a testimony of the country’s rich cultural heritage.
The city has a diverse population and it is the economic center of the country, with many companies activating in banking, finance or tourism being based here. A good road network and the Bahrain International Airport facilitate access to the city.
Our agents who specialize in company formation services in Bahrain offer complete solutions for investors who wish to set up their company in Manama.
The list below includes the type of business entities that can be incorporated by those interested in forming a company in Manama:
Apart from the branch, foreign companies in Manama can also establish their presence through a representative office. This office cannot engage in commercial activities with Bahrain clients and can only be used for marketing or research purposes.
Investors can reach out to our agents who specialize in company registration in Bahrain for complete information about each of these types of business entities as well as personalized assistance for incorporation.
Companies in Manama and Bahrain, in general, are regulated as per the Commercial Companies Law 2001. This is the main legal resource for all matters concerning company formation in Bahrain as well as management.
The Ministry of Industry, Commerce and Tourism is the one that regulates the conditions for doing business, along with the Central Bank of Bahrain, another important regulatory authority.
Our lawyers in Bahrain can offer more information on the Company Act.
There is no corporate income tax for companies in Bahrain other than for those engaged in business activities related to oil, gas or petroleum. These legal entities are subject to a corporate income tax of 46%. All other companies, like those in tourism or financial services, are not subject to tax on their profits. Other taxes include stamp duty and a levy on the gross turnover for first-grade restaurants and hotels. A 10% municipality tax applies for the rental of commercial and residential property by expatriates.
The taxation regime in Bahrain does not impose any withholding taxes, there is no payroll tax, no real property tax, and no capital duty. The employer is required to make a social insurance contribution of 12% for Bahraini nationals. For foreign employees, this contribution is 3%, meant to cover employment injuries. The VAT applies to the supply of goods and services.
Company registration in Bahrain increased from 2017 to 2018, as highlighted by the following report issued by the Ministry of Industry, Commerce, and Tourism:
Bahrain’s geographical location in the Persian Gulf makes it one of the top commercial centers in the region. Investors can start a business in Manama with the help of our agents who specialize in company registration in Bahrain. Contact us for more information about our services.
Our lawyers in Bahrain are also at your disposal with a wide array of services. They specialize in both Civil and Commercial Law cases, thus being able to assist Bahraini and foreign nationals and corporations established in this country or using a non-resident form to operate here. If you have any questions, we kindly invite you to write to us for a first reply followed by a thorough review of your case.