INCORPORATING A COMPANY IN BAHRAIN

INCORPORATING A COMPANY IN BAHRAIN

Levant Business Management Services will help you through all the steps necessary to establish your business and investment in Bahrain. We are led by an experienced British lawyer who is a graduate of three British universities and has more than twenty years’ experience in Bahrain and a total of over 40 years of legal experience in UK, KSA and Bahrain.

Our Managing Director has a broad range of legal expertise ranging from Corporate Finance, Corporate Governance, Regulatory and non-regulatory Compliance, Investment Banking to Oil & Gas and general Corporate Advisory. He is expert in corporate law including incorporation and capitalization of companies, M&A, Rights Issue and IPOs. He worked for several years as Executive Director, Head of Legal, Compliance and Secretary to the Board for a GCC investment bank and was approved by the Central Bank of Bahrain as Head of Legal and Compliance. He also worked as a Legal Manager and secretary to the Board for a GCC national oil and gas company.

LevantBMS is among the very few who can handle incorporation of Central Bank of Bahrain regulated companies such as Investment companies, Categry1,2 and 3, insurance companies, Crypto companies. We are also very experienced in registering medical and industrial companies.

1. Choose a Business Structure

Bahrain offers several types of business entities, including: 

- Sole Proprietorship, for Bharnis and GCC only.

 - Partnership Company - Limited Liability Company (W.L.L), this is the most used type of legal entity. 

- Single Person Company (SPC), no longer available but still you can own a limited liability company alone but it is now called WLL which simply means a limited liability company. 

- Public Shareholding Company (B.S.C) 

- Closed Shareholding Company (B.S.C. Closed) 

- Foreign Company Branch 

- Holding Company

2. Reserve a Company Name 

The company needs to have a unique name approved by the Ministry of Industry and Commerce

3. Draft the Memorandum and Articles of Association 

These documents outline the company's structure, objectives, and regulations. They must be drafted according to Bahrain’s Commercial Companies Law

4. Obtain Initial Approval 

Submit the required documents to MOICT to get initial approval. These documents typically include: 

- Copy of the proposed company name reservation 

- Draft Memorandum and Articles of Association 

- Copies of the identification documents of the shareholders

5. Open a Bank Account 

Deposit the required capital in a local bank and obtain a certificate of deposit. Generally, there is no minimum capital requirement for commercial companies but there are certain type of companies which have a statutory capital requirements such as investment companies, Crypto and Fund Administrators.

6. Register the Company 

Submit the final documents to MOICT for registration, including: 

- Bank deposit certificate 

- Final Memorandum and Articles of Association 

- Initial approval certificate 

- Lease agreement for the office premises

7. Obtain Necessary Licenses
Depending on the business activity, you may need to obtain additional licenses from relevant authorities. This could include industry-specific licenses, commercial registrations, and more.

8. Register with Social Insurance Organization (SIO) 

If you plan to hire employees, you need to register with the Social Insurance Organization for social security purposes.

9. Register for VAT 

If your company’s annual turnover exceeds the mandatory threshold, you need to register for Value Added Tax (VAT) with the National Bureau for Revenue (NBR).

10. Register the company with the Labour Regulatory Market Authority (the LMRA) 

The LMRA grants Work Permits for all foreigners and non-GCC individuals. Ensure to register your company with the LMRA to obtain your own investor visa and work permits for your staff and compliance with labour laws, health and safety regulations, and any other relevant local laws.

Key Considerations: 

- Minimum Capital Requirements: Different types of companies have different minimum capital requirements. 

- Foreign Ownership: Bahrain allows 100% foreign ownership in many sectors, but there are exceptions, particularly in certain industries such as trading, construction, contracting.