The Middle East is rapidly transitioning to a digital economy. Countries in the region are investing in technology, creating innovation hubs, and actively supporting international IT businesses. Against this backdrop, Bahrain looks particularly interesting: opening an IT company in Bahrain is faster and cheaper than in other countries in the region. And the procedure itself is available through online services. But among the country’s main advantages is its strategic location between Saudi Arabia and the UAE, which provides direct access to solvent customers and large markets in the region.
Why Bahrain?
For over 10 years, Bahrain has been known as a reliable and technologically advanced jurisdiction for international business. The country has created a comprehensive ecosystem for IT development:
- Geographical location. Bahrain is located in the center of the Persian Gulf. It is an ideal entry point for those who are building an IT business in the GCC countries and want to work with Saudi Arabia, the UAE, and Qatar.
- Tax policy. Bahrain has no income tax or VAT for those offering digital services.
- Transparent regulation. The legislation provides services at the highest level, protecting the interests of investors. All government procedures and payments are available through a single digital service.
- Ease and speed of starting a business. Registering an IT company in Bahrain is as simple as possible. You can obtain a license or open bank accounts online through an accredited representative.
- Developed IT infrastructure. The state actively invests in cloud solutions, data centers, and cybersecurity.
Features of doing IT business in Bahrain
The state’s focus on the digital economy
The Bahraini government is currently implementing a digital economy program called the National Digital Economy Strategy 2023–2030 (NDES). It includes:
- Development of digital infrastructure — creation of broadband networks, construction of data centers, implementation of cloud platforms.
- Strengthening the regulatory framework — personal data protection, e-commerce regulation, Fintech policy.
- Support for human resources and digital skills — training specialists, developing competencies in cybersecurity and AI.
- Creating attractive conditions for exporters of digital solutions — freedom to enter global markets, development of startups.
- Promotion of digital government services — automation of public services, introduction of e-services, identification.
- Formation of a global digital hub — attracting technological investments, strengthening the country’s status as a technological hub.
100% foreign ownership of companies
Although Bahrain was one of the first countries where oil was discovered, it turned out that its reserves were limited. Therefore, in the 2000s, the country decided to focus on other sectors of the economy that could be developed by attracting global companies. To this end, it lowered the requirements for foreign investors and allowed 100% ownership of enterprises throughout the country.
This rule applies to all areas of IT: software development, technical consulting, cybersecurity, hosting, cloud services, and other digital solutions. Restrictions only apply to companies that work under government contracts or have access to national security systems.
Important! Unlike the UAE, Bahrain’s free zones for IT differ little from other territories: there are no restrictions on conducting business throughout the country, no requirements to hire local citizens or choose an office location. However, there are three zones that are more convenient for doing business than others.
| Zone | Purpose | Features |
|---|---|---|
| Bahrain Logistics Zone (BLZ) | IT companies working with logistics, e-commerce, SaaS | Useful for IT companies that develop solutions for e-commerce, logistics, or supply chain management. The zone has many clients from these industries. |
| Bahrain International Investment Park (BIIP) | Technology startups, R&D, cloud solutions | Ready infrastructure for large offices and data centers, support from the Bahrain Economic Development Board. |
| Bahrain International Airport (BIA) | Companies focused on fast delivery and technical support | Convenient for those who serve customers in the GCC. Offers fast integration with neighboring markets, licenses for technical support and cloud solutions. |
The offshore zone in Bahrain for IT companies is also not isolated from the domestic market. Unlike traditional offshore jurisdictions, it allows you to work with clients from the GCC without restrictions on local contracts, banking operations, and licensing.
Simplified licensing process for SaaS, IT services, and startups
Licensing of IT companies in Bahrain is regulated by the Ministry of Industry and Commerce and carried out through the national digital platform Sijilat. Licenses are available in the following areas: Software Development, IT Consultancy, Cybersecurity Services, E-Commerce, and Cloud Solutions.
Documents can be submitted remotely — the system accepts electronic copies of the charter, passports, and business plan. It is important to prepare them correctly — it is better to consult with a lawyer or licensed agent who is familiar with MoICT requirements. This will help avoid application rejection and speed up the approval process.
After verification, the documents are automatically sent for approval to the relevant authorities. If there are no comments, the license is usually issued within 5–10 business days. For startups, there is a simplified package with no minimum capital requirements and no mandatory office at the registration stage.
Ability to work with GCC residents without separate permits
For IT companies registered in Bahrain, regional borders are almost non-existent. The country is a full member of the Gulf Cooperation Council (GCC), so a company established here can freely cooperate with clients from Saudi Arabia, the UAE, Kuwait, Oman, and Qatar.
No additional permits or export licenses are required: a contract concluded in Bahrain is recognized in all GCC countries. This is especially convenient for IT companies that provide online services, technical support, or cloud solutions — projects can be carried out in several countries at once without creating separate legal entities for each one.
Key industries where IT is most in demand
Digital transformation in Bahrain is developing systematically, and demand for IT services is growing in several areas at once:
- The most active growth is observed in fintech — the country was one of the first in the region to launch a regulatory “sandbox” for financial technologies under the Central Bank of Bahrain.
- With the development of online commerce in Bahrain, there is a growing need for companies that can develop IT solutions for e-commerce. Businesses need payment system integrators, developers of cloud platforms for marketplaces, and specialists in analytics and trade process automation.
- In addition, the country needs to develop educational and medical technologies and digital logistics. This means that data analytics, automation, and SaaS platforms are in demand.
The Bahraini market now needs IT services more than ever, offering solutions not only for businesses but also for government agencies.
How to open an IT company in Bahrain: 6 steps
IT companies in Bahrain are registered online through government platforms. Below are the key steps that foreign investors need to take:
- Choosing a legal form
- Registering a company through the Bahrain Investor Centre.
- Obtaining a license.
- Opening a bank account.
- Connecting to government digital services.
- Obtaining visas for founders and employees.
Description of steps
- Step 1. There are two main forms available for IT businesses: With Limited Liability (W.L.L.) — an analogue of LLC for small and medium-sized enterprises, and Bahrain Shareholding Company (B.S.C.) — a format for large projects and holding companies. You also need to choose a jurisdiction — a free zone or mainland territory.
- Step 2. А state-run online investor service center. The founder submits an electronic application with a package of documents, selects the type of activity and organizational and legal form. All data is verified by the Ministry of Industry and Commerce (MoICT) and automatically entered into the commercial register. Once the application is approved, the investor is issued a Certificate of Incorporation.
- Step 3. For IT companies, the Information Technology Services License or related categories — Software Development, E-Commerce, Cloud Solutions — are suitable. Licensing is done through the Sijilat online platform, where you can track the status of your application and pay fees.
- Step 4. After registering the company, you need to open a corporate account with one of the local banks (e.g., Bank ABC, Ahli United Bank) or licensed fintech platforms that support remote services for non-residents.
- Step 5. The founder must create a corporate account in the eGovernment system (bahrain.bh) and activate an electronic signature through the eKey service. This provides access to tax reporting, employee registration, payment of government fees, and online application submission. For companies operating in the IT sector, it is also important to connect to the Tamkeen support program. Through it, you can receive subsidies for staff training, equipment purchases, and digital product development.
- Step 6. After completing registration, the company submits an application to the Labour Market Regulatory Authority (LMRA) to obtain visas for owners, managers, and specialists.
What documents are required for registration
To open an IT company in Bahrain, you need a standard set of documents:
- Passports of the founder and directors — scans of all pages of documents with personal data.
- A utility bill or bank statement issued no earlier than three months ago to verify residency.
- Memorandum of Association — describes the capital structure, participants, and distribution of shares.
- Articles of Association — defines the objectives of the company, types of services, and management procedures.
- Business plan. To work in the IT sector, it is sufficient to provide a description of the project, the services to be provided (e.g., SaaS, development, consulting), the expected profit, and the cost structure.
- License application — to be completed online, including the selection of the type of activity according to the MoICT classifier and the attachment of copies of documents.
- Lease agreement or virtual office. A legal address in Bahrain is required — state-approved virtual office services are permitted.
- Confirmation of payment of state fees. Payments for registration and licensing are made through the Sijilat service, which issues an electronic receipt.
This set of documents is usually sufficient to register an IT company. No additional approvals or technical checks are required.
How much does it cost to start an IT company in Bahrain
Registering a business in the Middle East is quite profitable: Bahrain offers a low entry threshold and predictable annual payments. Basic costs usually range from USD 11,500. The main items of expenditure are:
- State registration fees — from USD 1,500. These include: name reservation, obtaining a certificate of state registration, and administrative fees.
- License for IT activities — from USD 1,600.Information Technology Services / Software Development / Cloud Solutions — the rate depends on the selected activity code and the number of areas.
- Legal address from USD 3,000.An approved virtual office is permitted in IT. Its cost is lower than that of a physical office, and it is taken into account when renewing the license.
- Registration agent/consultant services from USD 1,500. Includes preparation of the charter, submission of documents, support until the license is obtained, and assistance in opening an account.
- Bank account — from USD 2,400. The price depends on the bank. Usually, the amount includes the cost of the service, plus a non-negotiable balance.
- Visas for founders and employees — from USD 2,400. LMRA fees and medical examination are paid separately.
- Electronic services and signature — approximately USD 100. Issuance of eKey for working with eGovernment, payment of small fees for connecting to individual services.
How to simplify the registration of an IT company in Bahrain
Registering and launching an IT business in another country requires knowledge of local rules and strict adherence to procedures. To avoid wasting time searching for information and obtaining approval from government agencies, you can order services from our team. We help companies planning to migrate their business through Bahrain to go through all the stages of registration.
What is included in the support:
- consulting on the choice of business form and type of license;
- preparation of constituent documents and submission of an application through Sijilat;
- organization of a legal address and registration with the Bahrain Investor Centre;
- opening an account with a local bank or fintech service;
- obtaining visas for founders and employees.
If necessary, we also provide comprehensive business structuring through Bahrain — from setting up the main company to organizing branches. This approach is particularly convenient for IT companies that work with clients from different GCC countries and want to centralize management in one jurisdiction.
Contact us to discuss your project goals and choose the optimal registration format. We will help you start your business in Bahrain quickly, legally, and without unnecessary bureaucracy.
