Effortlessly incorporate and manage your company in Bahrain with Vepapu—offering all-in-one services from registration to compliance, banking, and visa support.
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Unlock Growth Opportunities in an Emerging Market
One of the lowest operational and administrative costs.
Simplified compliance requirements and regulatory processes.
A large and young population provides a dynamic workforce.
Allows for foreign shareholding up to 100% in the company.
Everything You Need for Seamless Company Formation
Experience seamless company formation from anywhere with Vepapu. Our digital incorporation services ensure you can register your company online without the need to travel or submit paperwork in person.
We guide you through each step of the process, ensuring compliance with local regulations and providing support for any incorporation-related queries.
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Meet the local requirements online with Vepapu. Having a local registered office address is mandatory for your company's registration and we will help you meet this requirement. We will receive, scan, and email you if any mail is received from the authorities at your address.
You can also build a physical presence in the country by opting for our nominee director services, who will act as your company's director while you retain total control over your company.
You can capitalise on our strong banking relationships with traditional banks as well as digital-first banking providers.
You would need to physically visit the bank's location if you opt for a traditional brick-and-mortar bank, while modern digital banking providers welcome you with an online onboarding process.
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Mandatory documents and information required for your company formation
A certified true copy (scanned version) of the passport (valid for at least 6 months)
A comprehensive Curriculum Vitae (C.V.), Resumé, or Linkedin profile.
One of the scanned copies of a bank reference, bank statement, Utility bill, or Driver license.
It should clearly show the holder's full name along with a physical address written in English (P.O. Box addresses are not accepted).
It must be the most recent version and dated within the last 3 months.
Please provide us with certified true copy (scanned version) of the following company documents:
Certificate of Incorporation
Memorandum and Articles of Association / Constitution
Register of Director
Register of Shareholder / UBO
Extract of the company’s details from the Registrar of Companies, which can include any of the following: Business Profile / Certificate of Incumbency / Certificate of Good standing (valid for within 6 months if any).
All members of the corporation, including Directors, Shareholders, Ultimate Beneficial Owners (UBOs), and Contact persons, must provide identity and address proofs as mentioned above.
From Paperwork to Approval: Making Company Formation Fast and Straightforward
Click here and fill out the short form to let us know your requirements.
Afterwards, our team will get in touch with you to guide you through the process.
Begin the company incorporation process by sharing the requested documents, as listed here. This enables us to begin the mandatory KYC and due diligence procedures to comply with local and international laws.
During the process of due diligence, our team might request additional information, documents, or clarification as needed.
If you ever feel lost while organising the documents, please contact us, as your dedicated manager from Vepapu will guide you through it.
Our team will now have the required information and documentation in hand to proceed with completing the required paperwork involved in incorporating your company.
We will complete one or multiple application forms as required and coordinate with the registry to submit them for their official approval.
We will do timely follow-ups with the registry and actively work with them if they require any further clarification or documentation before their approval.
If there are any other registrations with different government departments that are generally required before commencement of any business, required for your specific business industry, or that you have chosen voluntarily, we will promptly complete them.
As Vepapu strongly believes that company incorporation is just the first step in any business journey, we will accompany you throughout your business's life cycle by keeping it in good standing with local rules and regulations.
We will take care of monthly, quarterly, bi-annual, or annual reports and return filings with the authorities. We will timely inform you of the upcoming compliance deadlines, such as conducting an annual general meeting, for your prompt action.
Get in touch and ask us anything. We'd love to help.
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A public shareholding company in Bahrain is designed for large businesses looking to raise capital through public investments, with shares that can be traded on the stock exchange. It offers limited liability to shareholders but comes with stricter compliance requirements, including the need for multiple directors, shareholders, and a significant minimum share capital. Foreign investors can own shares, subject to government approval.
A closed shareholding company is a private entity where shares are not offered to the public. This structure is ideal for businesses wanting to limit ownership to a few shareholders while still benefiting from limited liability. It requires a lower minimum share capital than a public B.S.C. and can be entirely foreign-owned, though specific business sectors may require some Bahraini ownership.
A W.L.L. is a flexible and popular option for small to medium-sized businesses, especially for foreign investors, as it allows 100% foreign ownership. It provides limited liability to partners, meaning they are only responsible for the company's debts up to their investment amount. This structure does not allow for public share issuance and has fewer regulatory requirements compared to shareholding companies.
In a partnership company, partners share unlimited liability, meaning they are personally responsible for the company’s debts. This type of company does not require a minimum capital and can be fully foreign-owned. It is suited for those who prefer a straightforward business structure without the need for limited liability protection.
This company type is a hybrid structure combining partners with unlimited liability and shareholders with limited liability. It allows for a mix of active management by general partners and passive investment by limited partners. It requires a modest minimum capital and is suitable for foreign investors who want to limit their liability while still having a role in the company.
A foreign company can establish a branch in Bahrain to extend its operations. The branch’s liability and governance are tied to the parent company. This option is ideal for foreign businesses looking to enter the Bahraini market without creating a separate legal entity.
A holding company in Bahrain controls other companies by owning a majority of their shares. This structure is used to manage and oversee a portfolio of businesses, providing centralized control for foreign investors with multiple investments in the region.
These offices are set up by foreign companies to represent and promote their products or services in Bahrain. They do not conduct commercial transactions but serve as a local presence to support the company’s main operations elsewhere. This is a strategic option for companies testing the Bahraini market or needing regional representation.
Yes, foreigners can incorporate a company in Bahrain, and the country has implemented several measures to encourage foreign investment, particularly through structures like the With Limited Liability Company (W.L.L.) and freezone companies. A W.L.L. is one of the most popular company types for foreign investors because it allows 100% foreign ownership. Partners in a W.L.L. are only liable for the company’s debts up to the amount of their shareholding, providing protection against personal liability. The minimum share capital required to establish a W.L.L. is BHD 20,000, and the company can have between two to fifty partners. Bahrain’s regulations for W.L.L.s are relatively flexible, with no requirements for a local resident director or annual general meetings, which makes it an attractive option for foreign entrepreneurs seeking a straightforward and investor-friendly structure.
Bahrain has also established various free zones, such as the Bahrain International Investment Park (BIIP) and Bahrain Logistics Zone (BLZ), which offer additional incentives for foreign investors. Companies operating within these zones can benefit from 100% foreign ownership, no corporate taxes, and full repatriation of profits and capital. Furthermore, Bahrain’s Foreign Direct Investment (FDI) policies have been reformed to create a more attractive environment for foreign businesses. The country has eliminated restrictions on most sectors, allowing foreign investors to own up to 100% of companies in many industries. These reforms are part of Bahrain’s broader strategy to diversify its economy and attract international businesses, positioning the country as a competitive hub for investment in the Gulf region.
For a W.L.L. in Bahrain, the minimum requirement is typically one director. There are no restrictions on the nationality of the director, meaning the director can be a foreign national. Corporate directors are not permitted in W.L.L. structures; therefore, the director must be an individual. Additionally, there is no requirement for the director to be a resident of Bahrain, which offers flexibility for foreign investors. In the case of freezone companies, similar rules apply regarding the directors, and there is no mandate for a local director.
A W.L.L. in Bahrain requires a minimum of two shareholders, though more can be included, up to a maximum of fifty. Shareholders can be either individuals or corporate entities, and there are no nationality restrictions, allowing 100% foreign ownership. Unlike directors, shareholders may have residency requirements depending on banking needs but are generally not required to be residents of Bahrain. In freezone companies, the flexibility regarding shareholders remains, with the added benefit of no restrictions on the number of shareholders.
The minimum share capital for a W.L.L. in Bahrain is BHD 20,000, which must be fully paid up at the time of incorporation. There are no legal restrictions on the maximum capital, giving investors the flexibility to decide based on their business needs. Share capital can be contributed in cash or kind, providing further flexibility. For freezone companies, while there is no specific minimum capital requirement, capital adequacy should align with the nature and scale of the business activity.
A physical office is required for both W.L.L. and freezone companies in Bahrain. This can be a registered office within Bahrain’s commercial areas or, in the case of freezone companies, within a designated freezone area. The physical office serves as the company’s official address and is necessary for meeting regulatory compliance. However, the process for acquiring office space is straightforward, and Bahrain offers various business centers and incubation spaces to support new enterprises.
To incorporate a company in Bahrain, you need to prepare and submit various documents. These documents are essential to comply with Bahrain regulations and ensure your business operates legally. The documents will be used in KYC due diligence procedures, application preparation, and document submission to the authorities.
Incorporating a company in Bahrain involves several essential steps, each crucial for successfully establishing your business in the kingdom. Here’s a detailed explanation of each step based on a comparison of different websites:
To begin incorporating your company in Bahrain, you must reserve a company name through the Bahrain Commercial Registry. This process is managed by the Ministry of Industry Commerce and Tourism (MoICT). You can propose up to three company names, following specific naming guidelines to ensure compliance with local laws and values. If all proposed names are rejected, you must submit another set of names. The name reservation ensures that your chosen name is unique and not similar to existing registered names.
Once the name is reserved, the next step is to submit the application for commercial registration. This step varies depending on your business structure: individual establishments should apply through the Bahrain Investors Center (BIC), while companies or organizations must submit their papers via the 'SIJILAT' portal managed by the MOICT. This application does not include obtaining a business license but is necessary for formalizing the business presence in Bahrain. The application must include details about your business structure, proposed activities, and any other relevant information required by the MOICT.
After obtaining the commercial registration, you may need additional licenses and approvals depending on your business activity. Certain sectors require specific permits from various governmental and regulatory agencies. The process involves identifying the necessary permits and obtaining them to comply with Bahraini regulations. This step ensures that all aspects of your business operations are legally compliant and authorized to function within the kingdom.
To register your company officially, you need to prepare and submit several supporting documents. These include leasing a local office (providing a lease agreement for the registered address), drafting the company’s articles of association, and assembling KYC documents for directors and shareholders. The articles of association should outline the company’s structure, share capital, and business activities. This comprehensive documentation is crucial for gaining final approval from the Ministry of Works, Municipalities Affairs, and Urban Planning for the commercial address and other regulatory bodies.
Opening a corporate bank account is critical for handling business transactions in Bahrain. The process involves consolidating required documents and choosing a reputable Bahraini bank. The presence of directors or shareholders may be required at the bank, or alternatively, a conference call might be arranged. The minimum share capital must be deposited into this account, and upon successful opening, the bank issues a deposit certificate, which is essential for the final company registration step.
This final step involves submitting all prepared and verified documents to the MOICT for the last review and approval. Upon approval, your company is officially registered in Bahrain. The MOICT will issue the Certificate of Incorporation along with the Memorandum and Articles of Association. These documents are then couriered to you, marking the completion of the incorporation process.
Once your company is established, you must obtain a Tax Identification Number (TIN) from the National Bureau for Revenue (NBR). This number is essential for filing VAT returns and managing other tax-related obligations in Bahrain, where VAT is set at 10% but corporate and income taxes are at 0%.
Bahrain offers a highly favorable tax environment, with no corporate, capital gains, or payroll taxes except for companies in specific sectors like oil, gas, exploration, and mining, which are taxed at 46%. Companies must comply with VAT regulations, where a standard 5% VAT applies to most goods and services, although certain sectors like financial services and real estate are exempt. Companies are also required to submit audited financial statements within six months of the financial year-end. This is critical as failing to meet this requirement can result in penalties of 1% per month. Furthermore, companies must file quarterly tax returns, even if just to report changes in authorized share capital, as part of maintaining compliance. The presence of a Double Taxation Avoidance Agreement (DTAA) with over 40 countries further eases the tax burden for foreign companies operating in Bahrain.
For companies in Bahrain, convening shareholder meetings is mandatory. Limited liability companies (W.L.L.) must hold these meetings within six months after the financial year ends, while joint-stock companies must convene within three months. Additionally, joint-stock companies are required to hold quarterly board meetings, totaling four meetings annually. For W.L.L.s, board meetings are only necessary if stipulated in the company's articles of association. These meetings ensure transparency and proper governance, aligning with Bahrain’s corporate regulations.
Even in a tax-friendly environment like Bahrain, companies must stay compliant by submitting VAT returns to the National Taxation Authority (NTA) annually. Moreover, maintaining active business registration with the Ministry of Industry, Commerce & Tourism (MOICT) and, if applicable, with the Central Bank of Bahrain, is mandatory. These registrations ensure that the company remains legally recognized and in good standing within the Bahraini business ecosystem.
The investor visa in Bahrain is specifically designed for individuals who invest significant capital into a Bahraini company. This visa grants the holder the right to reside in Bahrain, manage their investments, and fully participate in business operations. With an investor visa, shareholders can also obtain residency permits for their dependents, such as spouses and children. This visa allows multiple entries and is often valid for up to two years, with the possibility of renewal. The investor visa also offers extensive business privileges, including the ability to control 100% of the business and the freedom to travel within the region without restrictions.
The businessman visa, while similar to the investor visa, is tailored for individuals who not only invest in a Bahraini company but also possess the skills necessary to actively manage and operate the business. This visa is ideal for those who intend to play a hands-on role in the day-to-day running of their company in Bahrain. Like the investor visa, it allows for residency in Bahrain, permits for dependents, and offers the flexibility of multiple entries. Additionally, it opens the door to operate across a wide range of industries with full foreign ownership.
When a company is set up in Bahrain, it initially comes with two work permits for employees, which can later be increased by providing the Labor Market Regulatory Authority (LMRA) with documentation justifying the need for more staff based on workload. The employee visa is essential for foreign nationals who are hired to work in Bahrain, ensuring they can live and work in the country legally. This visa is sponsored by the employer and can be renewed as needed. It also allows the employee to sponsor visas for their immediate family members.
Bahrain generally does not impose corporate income tax on most businesses, making it a tax haven for many companies. However, companies operating in the oil, gas, and petroleum sectors are an exception, facing a 46% corporate tax rate. This absence of corporate tax for other industries makes Bahrain an attractive destination for foreign investors seeking to maximize profits.
Bahrain implemented VAT in 2019 at a standard rate of 5%, which was later increased to 10%. VAT is applied to most goods and services, but there are exemptions for specific sectors such as financial services, real estate, and education. Additionally, essential food items and oil and gas exploration activities are VAT-exempt. Companies in Bahrain must register for VAT if their annual taxable supplies exceed the mandatory registration threshold and are required to file VAT returns periodically.
For companies owning or leasing commercial or residential properties in Bahrain, a 10% municipal tax is applied. This tax is levied on the rental value of the property and is an important consideration for businesses with physical offices or other real estate holdings in the Kingdom.
Bahrain imposes a 5% customs duty on most imported goods. Certain products, such as alcohol and tobacco, attract higher duties—125% and 100%, respectively. Companies involved in importing goods into Bahrain must be aware of these duties and factor them into their pricing and cost strategies. All imported goods must go through customs clearance, which requires compliance with the Director-General of Customs regulations.
Bahrain does not impose withholding tax, capital gains tax, or payroll tax, further enhancing its appeal as a tax-efficient jurisdiction for companies. Additionally, Bahrain has signed Double Taxation Avoidance Agreements (DTAAs) with over 40 countries, which helps to prevent the double taxation of income and promotes cross-border trade and investment.
