The holding company in Bahrain is incorporated for the purpose of owning shares in other companies either in Bahrain or abroad. It does not engage in commercial activities, it does not provide goods or services. The types of assets owned by a holding company can be shares in other corporations as well as private equity funds, hedge funds, bonds, real estate, patents, trademarks, as well as other valuable assets.
Quick Facts | |
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Legal entities used | – private limited liability company (LLC), -open and closed joint stock corporation |
Incorporation method | Trade Register incorporation required |
Incorporation time | Approx. 12 weeks |
Advantages | – no capital gains tax, -no withholding tax |
Precautions | The holding company cannot engage in commercial activities. |
Shareholding structure | At least 2 shareholders are required. |
Minimum Capital | – USD2,660 for LLC; – USD663,000 for corporations |
Taxation | No corporate tax applies to companies operating in non-oil, gas and petroleum industries. |
Control | Full foreign control is permitted. |
Accounting and Reporting | Annual financial statements in accordance with IFRS standards must be prepared. |
Number of double taxation treaties | Approx. 45 |
Investors who are interested in company formation in Bahrain for the purpose of incorporating a legal entity that will be used to own shares or assets should know that the business will be subject to the requirements set forth for the selected business form.
Our agents can help investors set up a company in Bahrain, either a public company or a limited liability company that will be used as a holding. This business form can also be used for immigration to Bahrain.
As seen from the list above, these business forms present different types of advantages and investors can set up a company in Bahrain based on the degree of liability that will be imposed on them after incorporation as well as by paying attention to other corporate characteristics.
The joint-stock company and the limited liability company are often the two chosen business forms because of the limited liability of the shareholders. They are only liable up to the amount they invest in the company capital. Investors should know that for the joint-stock company the capital is larger, no less than 250,000 BD for the closed joint-stock, with 50% of this amount deposited initially. Investors then have the ability to pay the rest of the capital within no more than three years. For this company, the minimum value of a share is minimum of 100 fils and maximum 100 BD.
In the case of the limited liability company, there is no minimum mandatory capital, however, the value of one share cannot be less than 50 BD. We can assist foreign investors in immigration to Bahrain.
In order to open a company in Bahrain, investors must follow the following steps:
Once the commercial register certificate is issued electronically, a hard copy of the same document can also be obtained for a fee. The final step is for the registration of the company to be published in the Official Gazette or on the website of the Ministry of Industry, Commerce and Tourism. You can also get in touch with our immigration lawyers in Bahrain for more information on the available types of visas.
Holding companies in Bahrain can be successfully used for managing and growing a number of commercial assets while maintaining diverse and active portfolios. They can be used to hold shares in companies across a number of different business fields, such as real estate, financial services, tourism, healthcare, and others. Moreover, the holding can invest in companies that present an attractive growth potential.
We can offer tailored accounting services in Bahrain for your holding company.
Foreign direct investments have increasedin Bahrain, as seen below:
Contact our agents who specialize in company registration in Bahrain for complete details on the steps needed to open a holding company as well as details about the holding company regime. Our agents can provide complete incorporation assistance regarding the type of company or the business field in which it activates. We also work with immigration lawyers in Bahrain in order to support investors seeking to move here.