Common Types of CBB-Regulated Companies in Bahrain

Summary of the Registration Requirements

Although the licensing requirements differ according to the type of financial services licence, the following are the principal requirements applicable to most regulated companies.

1. 01

   Initial Consultation

   The applicant should first determine the appropriate licence category and discuss the proposed business model with the CBB to ensure that the intended activities fall within the relevant regulatory framework.

2. 02

   Incorporation of the Company

   The legal entity is incorporated in Bahrain through the Ministry of Industry and Commerce, subject to the CBB’s approval. The Memorandum and Articles of Association are prepared in accordance with the proposed licensed activities.

3. 03

   Business Plan

   Applicants must submit a comprehensive business plan, including:

   • Description of the business model
   • Products and services
   • Target markets
   • Marketing strategy
   • Organisational structure
   • Three-year financial projections
   • Capital requirements
   • Risk assessment
4. 04

   Shareholders and Ultimate Beneficial Owners

   The CBB conducts a detailed "Fit and Proper" assessment of:

   • Shareholders
   • Ultimate Beneficial Owners (UBOs)
   • Controllers
   • Source of Wealth
   • Source of Funds
   • Financial standing
   • Reputation and integrity
5. 05

   Directors and Senior Management

   The CBB requires approval of directors and all Controlled Functions, which commonly include:

   • Chief Executive Officer (CEO)
   • Compliance Officer
   • Money Laundering Reporting Officer (MLRO)
   • Chief Financial Officer (CFO)
   • Internal Auditor
   • Risk Manager (where applicable)

   Applicants are normally required to provide:

   • Curriculum Vitae (CV)
   • Identification documents
   • Educational qualifications
   • Professional experience
   • Regulatory history
   • References
6. 06

   Corporate Governance

   Applicants are expected to establish an appropriate governance framework, including:

   • Board of Directors
   • Board Committees (where applicable)
   • Corporate Governance Framework
   • Delegation of Authority
   • Conflict of Interest Policy
7. 07

   Policies and Procedures

   The CBB generally requires comprehensive policies covering, among others:

   • Anti-Money Laundering and Counter Terrorist Financing (AML/CFT)
   • Customer Due Diligence (KYC)
   • Sanctions Compliance
   • Risk Management
   • Operational Risk
   • Compliance Monitoring
   • Internal Controls
   • Internal Audit
   • Information Security
   • Cybersecurity
   • Business Continuity Planning
   • Complaints Handling
   • Outsourcing
   • Data Protection
8. 08

   Financial Requirements

   Applicants must demonstrate:

   • Minimum paid-up capital prescribed for the relevant licence category
   • Adequate financial resources
   • Capital adequacy (where applicable)
   • Liquidity requirements
   • Three-year financial projections
9. 09

   Operational Readiness

   Prior to the commencement of business, applicants are generally expected to have:

   • Suitable office premises in Bahrain
   • Qualified staff
   • Information technology systems
   • Accounting systems
   • Compliance systems
   • Record-keeping procedures
   • Operational infrastructure appropriate to the proposed activities
10. 10

    Final Approval

    Upon satisfactory completion of the review process, fulfilment of all licensing conditions, and approval by the CBB, the financial services licence is issued and the company may commence regulated business.