One of the most important steps when you set up a company in Bahrain is obtaining a business license. The procedure is handled by the Commercial Register in most cases, however, there are situations where other authorities issue trade licenses in Bahrain.
Here is an overview of the main Bahraini business permits. You can rely on our company formation agents for support in filing for the necessary license in accordance with your enterprise’s activities.
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The most common Bahraini business licenses
The business license a company must obtain when operating in Bahrain depends on the activity it undertakes. Also, licensing is one of the mandatory steps when opening an enterprise in this country.
Here are the most popular business permits in Bahrain:
- the commercial license which is issued for selling or buying goods and services;
- the professional license which must be obtained by natural persons and companies providing services that require specific qualifications, skills, or knowledge;
- the industrial business permit which is suitable for manufacturing and other industrial activities;
- the tourism license which is obtained by businesses operating in the hospitality sector;
- the e-commerce license which was created thanks to the increasing number of online companies selling goods in Bahrain.
All these permits are issued by the Commercial Register. Apart from them, there are other licenses that are issued by specific authorities. This is the case of financial companies that are regulated by the National Bank of Bahrain which is also in charge of the authorization process.
A business license’s cost in Bahrain depends on the area of activity to be completed. However, if you need to file for a trade license, you can rely on our Bahraini company formation specialists. They can also help you if you need to obtain a business license in another country, such as Kuwait.
Steps to obtain a business license in Bahrain
The first step to applying for a business/ trade license is to register a company in Bahrain. Once this phase is completed you must:
- gather the necessary documents for the license you need;
- pay the cost of the selected Bahraini business license;
- obtain other approvals from various authorities (if necessary);
- have your license approved.
You can rely on our local agents for support in preparing the documents required to file for a business permit in Bahrain. This way you will ensure the procedure runs smoothly.
Special considerations when applying for a trade license as a foreigner
Bahrain welcomes many foreign citizens and investors who work or start their own companies here. When it comes to applying for trade licenses in Bahrain, they need to comply with certain requirements. Among them, we mention the following:
- the documents issued by foreign authorities must be translated and duly notarized (our lawyers in Bahrain can offer guidance for this purpose);
- they must prove they have a registered address in Bahrain;
- in certain fields, several years of experience may be required.
Our lawyers can also handle the immigration process in Bahrain, including applying for Bahraini residency.
Best performing companies in Bahrain by industry
Bahrain is slowly turning its oil-based economy into a non-oil one. According to data compiled by the Ministry for Finance and Economy, in the first quarter of 2024:
- the non-oil Gross Domestic Product registered a 3.3% increase, while the oil one rose by 3.4%;
- accommodation and food operations registered one of the highest growths of 10.7%;
- information and communication increased by 6.6%;
- wholesale and retail trade grew by 5.7%.
If you want to operate in one of the above-presented industries and need to apply for a business license in Bahrain, please contact our local agents for support.