Registering a business in this region is particularly suitable for international trade and logistics organisations. Unlike the UAE, where their activities may be restricted by bank transfers, compliance and corporate tax, in Bahrain it is possible to operate throughout the territory with a zero profit tax rate. The jurisdiction is also attractive to large IT companies that need to accept payments from around the world while optimising their tax burden.
Why Bahrain is chosen as an alternative to the UAE: key factors
Bahrain is increasingly being considered as a replacement for the UAE. In 2023, the Sijilat 3.0 corporate registry began operating here. This is convenient, as services have become digital. And when you turn to accredited experts, it becomes easier to open a company in Bahrain. Specialists will help you complete the steps online: submit documents, obtain a CR (company registration number), and apply for a licence.
There are no taxes on profits and income here — no conditions or thresholds, only 10% VAT, while in the UAE, there is a 9% corporate income tax rate and 5% VAT when the limit is exceeded. The exception is the oil and gas sector. It is easier to open a corporate account — all it takes is a few visits and KYC verification. Office requirements are minimal, and business costs are lower.
The country offers more freedom for international work: no local partner is required (for most types of activities), and many procedures are carried out online and take less time. Investors automatically receive a visa when they open a company. As a result, Bahrain offers transparency in corporate procedures, tax savings, and lower administrative costs. All of this is particularly valuable for companies operating in the global market.
Advantages of registering a company in Bahrain
Bahrain stands out for its stable economy and comfortable environment for international companies. It is easier to plan business development and work with foreign markets here. The main advantages of registering a business in Bahrain include:
- Moderate competition. There are still a few overheated niches and large players in the country. Therefore, it is easier for new companies to develop.
- Business culture is focused on partnership. English is widely spoken. Government and banking services are adapted for expats.
- Strong financial centre in the region. Bahrain remains one of the most developed banking hubs in the Persian Gulf. Access to international payments and corporate services is stable and predictable.
- Comfortable living and working conditions. The country’s infrastructure is not overloaded, the climate is milder than in neighbouring countries, and the cost of living is lower.
- High level of security. A stable legal system and low crime rate allow entrepreneurs to plan their strategy without unnecessary external risks.
All these factors create favourable conditions for the successful launch and development of business in the region. Bahrain is ideal for companies that value predictability, comfort and stability in the business environment.
Legal requirements for starting a business in Bahrain
Obtaining a CR and choosing an activity
To work officially, you need to obtain a CR — Commercial Registration. It is necessary to open a bank account, rent an office or hire employees. During registration, the entrepreneur selects activities from the Sijilat catalogue. Each item is subject to approval: commercial activities are confirmed by the Ministry of Industry and Trade, and licensed areas are additionally checked by relevant regulators. These include:
- CBB — Central Bank of Bahrain.
- MOH — Ministry of Health.
- MOE — Ministry of Education.
- LMRA — Labour Market Regulatory Authority.
- IAD — Industrial Areas Directorate.
After approval of the selected activities, the company receives a CR number. Next, you can apply for licences and continue with business registration. The approval period depends on the agency and takes from 1 to 7 working days.
Please note! If the company starts operating without a number or incorrectly specifies its activities, this may result in administrative sanctions and revocation of the licence. Banks also verify actual activities against the CR profile. Any discrepancies are grounds for suspending operations and additional KYC checks.
Choosing the legal form of the company
The legal form determines the ownership structure, capital requirements and business management rules. Several basic forms are used in Bahrain, each suited to its own tasks and type of activity.
- W.L.L. (With Limited Liability). This is the most popular option for small and medium-sized businesses. It is suitable for the service, IT and consulting sectors. WLL allows for one or more participants, does not require a fixed minimum capital for unregulated industries, and allows for the appointment of one or more directors.
- SPC (Single Person Company). Suitable for those who start a business on their own and want to maintain limited liability. An SPC can be registered with minimal symbolic capital if the activity does not fall within the licensed areas. One director and founder is sufficient to manage such a company.
- B.S.C. (Bahrain Shareholding Company). This is a joint-stock form designed for large projects, investment funds, financial services, industry, and regulated areas. BSC requires minimum capital (usually from 250,000 BHD, sometimes higher), a mandatory board of directors, and a more complex reporting structure.
Exceptions and nuances are possible.
Some licensed areas, financial services, fintech, investment activities, only allow the BSC form or require increased capital. For small businesses in the service sector, WLL or SPC remains the optimal form.
Office requirements
Every company must have a legal address in Bahrain. Acceptable formats:
- traditional office;
- Flexi-Desk (workspace in a business centre);
- Virtual Office (address for registration without physical presence).
The choice of address affects the type of licence. Some licences, such as financial or medical, require a full-fledged office. The use of a virtual address is acceptable for consulting or IT.
By the way, we cooperate with business centres that provide dedicated offices for the entire duration of the CR. This solution eliminates the need for clients to search for premises on their own and makes the registration process faster and easier.
Risk factors associated with the choice of activity
The choice of activity directly determines how difficult it will be to register a company in Bahrain. Some areas require prior approvals, the involvement of local specialists or the completion of specific procedures.
- Licences with prior approval. Finance, medicine, education, industry, and HR services must be approved by the relevant authorities — CBB, MOH, MOE, Industrial Areas Directorate, or LMRA — before a licence can be issued.
- Complex and regulated areas. Activities in the fields of fintech, investment, insurance, asset management, healthcare, and education fall under the regulated segment. Such licences are subject to requirements regarding capital, management structure, and internal policies.
- Separate regulations on safety and production. Production processes, equipment operation, material storage, and warehouse management require approval from the Industrial Areas Directorate and compliance with technical standards.
Get advice from a licensed professional now to avoid common mistakes in the future!
What documents are required to register a company in Bahrain?
Documents required for registration
First, the investor prepares a package of documents for submission to the MOIC (Ministry of Industry and Commerce) through the SIJILAT system:
- Constitutive documents — Memorandum and Articles of Association of the company; we provide turnkey preparation of these documents, so the client does not need to do it themselves.
- Copies of passports of all founders/shareholders, as well as the appointed manager;
- information about capital: confirmation of the minimum authorised capital and distribution of shares;
- office lease agreement — a legal address is required for a licence; we can help you find one through our partner business centres;
- application for company registration, indicating the type of activity;
- if necessary — prior approval for regulated areas.
Without a complete set of documents, MOIC will not issue a CR number. And without it, the company will not be able to open an account and start operating.
Documents required after preliminary approval
Once the MOIC has given preliminary approval for registration, the investor must provide additional documents to complete the process:
- confirmation of the opening of a corporate bank account;
- appointment of a manager with signing authority;
- licences from relevant regulators for specific types of activities;
- documents for obtaining visas for the investor and his family members through the LMRA;
- notarised translations of all documents into English or Arabic.
At this stage, the company’s compliance with the selected licence and type of activity is verified.
Errors and inaccuracies in the documents may lead to a delay or refusal of final registration.
Procedure for registering a company in Bahrain
Registration is carried out entirely online through the Sijilat system and consists of several stages:
- Preparation of founding documents.
- Choice of legal form and submission to CR.
- Selection of activities and approvals.
- Licence registration.
- Specifying a legal address.
- Obtaining CR.
Description of steps
- Step 1. You need to submit passport details, founders’ decisions, articles of association, memorandum, and proof of address. If the founder is a company, corporate documents are added..
- Step 2. At this stage, the structure (WLL, SPC, or BSC) is determined, participant details are added, and documents are uploaded. The application is sent to the Ministry of Industry and Trade.
- Step 3. The founder marks the appropriate categories in Sijilat, after which the system automatically sends them for verification to the relevant state authorities.
- Step 4. Once the activities have been approved, the system grants access to the necessary licences. In some cases, proof of specialist qualifications must be provided.
- Step 5. Next, the address of the office or workplace is entered.
- Step 6. Once all the data has been verified, the company receives its Commercial Registration.
The process usually takes from a few days to two weeks, depending on the activity chosen and the availability of preliminary approvals. The registration process can be tracked in real time on Sijilat.
Submit a request to receive qualified assistance at any stage of registration or for a turnkey solution!
Company registration timeframes in Bahrain
Thanks to the Sijilat online system, the process of registering a company in Bahrain takes relatively little time. The speed depends on the chosen activity and the need for approval from regulators.
- Submission of documents and selection of legal form — 1 to 2 working days.
- Verification of activities — often 2–5 days.
- Licence registration — from several hours to 3–5 days.
- Receipt of CR — immediately after completion of all stages
Companies operating in standard service categories are registered more quickly. Licensed sectors — finance, medicine, education, industry — require additional verification, so the process may take longer.
Errors can also affect the timeframe, so it is best to enlist the support of specialists. The experts at Dynasty Business Adviser will help you correctly select the types of activities, prepare documents, and obtain approvals without delay.
How much does it cost to start a company in Bahrain?
The cost of setting up a company in Bahrain usually ranges from BHD 1,600 to BHD 4,300, which is approximately USD 4,240 to USD 11,400 for standard registration and basic licenses. Below are the main items of expenditure for setting up a business and the basic ongoing costs.
Price table
The table shows the costs of registering a company in Bahrain and the factors that impact them.
| Expense Element | Estimated Price | Factors Affecting Price |
|---|---|---|
| Company registration (CR + initial fees) and trade license | 1 600 – 4 300 BHD (≈ 4 240 – 11 400 USD) | Company type, number of founders, range of activities |
| Name registration and administrative fees | 50–200 BHD (≈ 130–530 USD) | Number of declared destinations, additional confirmation required |
| Opening a bank account | 1100 BHD (≈ 2900 USD) | Minimum deposit, ownership structure, KYC procedures |
| Office rental (if needed) | from 225 BHD/(≈600 USD/) | Location, office format (virtual/physical), license requirements |
| Administrative costs | from 600 BHD (≈ 1600 USD) | Notary services, document preparation, legalization, translations |
List of costs for maintaining a company in Bahrain
This table shows the main expenses that arise after registration — for operating, servicing and maintaining the company in active status.
| Expense item | Estimated cost | Comment |
|---|---|---|
| Annual renewal of CR and licenses | 1 600 – 4 300 BHD (≈ 4 240 – 11 400 USD) | Depends on type of business; service companies have a minimum |
| 600 – 1200 BHD/year (≈ 1600 – 3200 USD/year) | Required for most companies; virtual office is cheaper | |
| Accounting and reporting | 50 – 150 BHD/month (≈ 130 – 400 USD/month) | Accounting support, VAT reports if necessary |
| Administrative support | 50 – 150 BHD/month (≈ 130 – 400 USD/month) | ОSijilat data updates, extensions, service processes |
What taxes do businesses pay in Bahrain?
Bahrain’s tax system is geared towards attracting foreign capital, so the burden on companies is minimal. The main mandatory payments are as follows:
- Corporate tax — 0%. Applies to all types of businesses, except the oil and gas sector, where the rate is 46%.
- VAT — 10%. Mandatory registration for annual tax turnover of 37,500 BHD, or more, voluntary registration for 18 750 BHD or more.
- Import duties — 5% on average. Depends on the category of goods.
- Tax on dividends, interest, royalties — 0%. There is no additional taxation on passive income.
Requirements may vary depending on the type of activity and the regulated status of the company. You can clarify the necessary information during a consultation.
How Dynasty Business Adviser supports company formation?
Registering a company in Bahrain involves technical, administrative and banking procedures: preparing documents, selecting activities, and obtaining various approvals. Each stage requires precision and proper interaction with regulators. We take care of these processes to ensure that the company is launched quickly and without errors. Our support includes:
- preparation of founding documents and correct completion of forms for Sijilat;
- selection of activities taking into account regulatory requirements;
- interaction with the bank — support with remote KYC and account opening;
- obtaining visas for founders and employees;
- administrative support until CR is obtained.
If necessary, we work on a turnkey basis, taking care of all the main processes. A partial format is also possible, when the client only needs assistance at certain stages. The owner’s participation is required at specific moments: identity verification, signing of certain forms, provision of personal documents and business data.
Our support speeds up the process significantly, reduces the risk of rejection and simplifies communication with government agencies and banks. Contact us, and we will help you open a company in Bahrain as quickly as possible and at minimal cost.
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