Foreign companies looking to establish their regional headquarters can open a branch in Bahrain. One of our agents who specializes in company formation in Bahrain can assist foreign companies that wish to secure their presence on the market through a branch office.
| Quick Facts | |
|---|---|
| Applicable legislation | Foreign country |
Best Used For | All types of operations, except telecom, retail and trading |
Minimum share capital (YES/NO) | No, but a bank guarantee is required (USD 133,000) |
| Time frame for the incorporation (approx.) | Approx. 8 weeks |
| Documents to be filed by parent company | – application form, – parent company’s statutory documents, – branch office Memorandum and Articles of Association, – approval for office premises |
| Management (Local/Foreign) | A local manager is required |
| Legal representative required (YES/NO) | Yes, at least one local |
| Local bank account (YES/NO) | Yes |
| Independence from the parent company | Fully dependent on the foreign company |
| Liability of the parent company | Liable for the branch office’s debts and obligations |
| Corporate tax rate | 0% |
| Annual accounts filing requirements | – annual tax return, – audited financial statements |
| Possibility of hiring local staff (YES/NO) | Yes |
| Travel requirements for incorporating branch/subsidiary (YES/NO) | No, a local agent can be appointed |
| Double tax treaty access (YES/NO) | Yes, approx. 45 double tax treaties |
Table of Contents
What companies can expand their activities through branches in Bahrain?
The following enterprises can do so:
- any foreign company that is legally registered in its home country;
- GCC companies: businesses registered in the UAE, Saudi Arabia, Qatar, Kuwait, and Oman;
- multinational companies seeking to establish regional headquarters in a GCC country.
What are the requirements to start a branch in Bahrain in 2026?
Here is a list of the most important requirements for setting up a foreign branch:
- Liability: the parent company is the one liable for the activities of the branch and the liabilities it may incur while performing the operations.
- Guarantee: when opening a branch, the parent company is required to issue a guarantee to the Ministry of Finance.
- Local office: it is mandatory for the foreign branch to maintain a local presence in Bahrain (have a local office).
- Sponsor: the branch will need a sponsor who can be a natural or a legal person.
- Manager: the local branch in Bahrain will also need a manager who will be Bahraini; exemptions apply in some cases.
- Licenses: for branches in some business fields, applying for a proper permit or license is required before they can commence business.
What are the steps to open a branch office in Bahrain?
The procedure for establishing a branch in Bahrain implies:
- completing an application for registration with all relevant information of the parent company and the new branch;
- obtaining preliminary permission from the Ministry of Commerce for registration and registering the Memorandum of Understanding (MOA) and Articles of Association (AOA);
- finding a suitable office space and obtaining an authorization to use from the local municipality;
- notarizing the MOA and other documents, as necessary;
- obtaining a capital deposit certificate and opening a local bank account;
- depositing a guarantee with the bank under the branch’s name, the agent’s, or representative’s name;
- obtaining the Certificate of Registration;
- advertising the incorporation in the Official Gazette;
- registering for social insurance for employing staff.
What are the documents related to the registration of a branch in Bahrain?
These are:
- the application form provided by the Companies Register;
- pre-approved documents by external parties (depending on the business activity);
- certificate for a capital deposit.
Apart from the documents presented above, the parent company must also supply the following:
- a copy of its commercial registration certificate;
- copies of the articles of association, bylaws, and the latest certified financial report (the last document is not required if the company is less than one year old)
- a Resolution of the General Assembly or the Board of Directors designating the Parent Company as the sole shareholder of the branch office;
- a guarantee letter from the parent company accepting full responsibility for its branch.
Is it necessary for the parent company to obtain any licenses/authorizations?
Yes, the parent company must first obtain approval for the activities to undertake from the Ministry of Information, Communications, and Technology (MOICT).
Do branch offices require a minimum share capital in Bahrain?
No, there are no minimum capital requirements applicable to this business form.
Must the foreign company appoint a local director/representative?
Yes, either of the two. If a resident director cannot be appointed, a local representative can be nominated instead. We can also provide such a service.
Do I need to open a bank account for a branch office in Bahrain?
Yes, as it is linked to the commercial transactions of the business.
Here is also a video:
How long does it take to register a branch office in Bahrain?
The procedure can be completed in a fast manner, with the approval from the Companies Register taking 3 working days. However, note that the document preparation stage will add more time.
How are branch offices taxed in Bahrain?
Branches benefit from a very profitable taxation system. Specifically, they are not subject to the corporate tax and can repatriate all the profits to the parent company’s home country.
The main aspect to consider is that when reaching the BHD 37,500 annual revenue, it must register for VAT and pay the tax, which is levied at a rate of only 10%. Also, social insurance must be considered if it hires employees.
What are the reporting requirements applicable to branches?
They are required to submit financial reports on an annual basis.
Can I hire local workforce? How about foreign employees?
You can hire both types of employees. However, it is important to note that in some sectors, minimum work quotas apply. For this reason, it is best to verify with a lawyer in Bahrain the applicable regulations. Also, for foreign employees, work and residence permits must be handled by the employer.
Do I need to apply for other licenses besides the Ministry of Information authorization?
Yes, additional permits may be required, depending on the activities of the branch office.
What are the fees to register a branch in Bahrain in2026?
Our packages start at BHD 700 and can reach BHD 2,600, depending on the services selected.
Contact our team, who specializes in company registration in Bahrain, for more information about opening a branch or for details about the other available options.