Company Formation Services in Bahrain
How do you start or form a company in a foreign country? Learn various steps and requirements involved with company formation in foreign countries.
- Choose the best company structure based on your requirements in Bahrain
- Set-up the business in your country of choice, as per your requirements in Bahrain
- Get your paperwork and documentation filled professionally with ease in Bahrain
- Manage taxation and licensing requirements in Bahrain through Helpline Group’s dedicated legal compliance mechanism
Learn how to proceed with business interests and investments in Bahrain by forming a business or a company of your choice.
As an Island country located in the Persian Gulf, between Qatar and the Kingdom of Saudi Arabia, Bahrain has strong business opportunities and potential. There are strong opportunities in the oil and gas sector, which has been a major driving force of the economy. In addition to this, petrochemical industries, ship manufacturing, and aluminium refining are also booming in the country. In addition to this, the parliamentary system existing in the country, the Unitary Parliamentary System is highly supportive of business opportunities and corporate goals in Bahrain.
Helpline Group is an ISO 9001-2008 Certified Government Approved Agency
Established in 1998, Helpline Group has achieved widespread presence across the world in the past ~25 years. With its head office located in Dubai, we serve our customers from across the world through out global offices and partner networks.
As one of the most significantly economical power in the Gulf Region, Bahrain has a strong business and economic position in the Middle East. Many investors and businesses are coming to Bahrain for investments and ventures in the region. As a growing sector, there are opportunities for all type of businesses in the country. Helpline Group assists investors and entrepreneurs alike to establish their businesses, set up offices, get taxation and licensing registered as per the requirements of the country.
Transparency in Pricing and Services
Helpline Groups follows a standardised pricing policy, and we follow a transparency policy, which makes sure our customers understand our pricing and what processes and practices are involved in each stage of the process. This helps in maintaining a mutual understanding between us and our clients.
Company Formation Steps in Bahrain
Find A Partner
Every business must have a partner who is a citizen of Bahrain to set up a business in Bahrain. Helpline Group can find a suitable partner for your business in Bahrain
Setting-up the Business
Regulations and requirements of law changes as per the industry and business requirements. Helpline Group can help you understand these changes and makes the best decision.
Licensing and Taxation
Licensing is a key part of getting a business set-up and running in Bahrain. Helpline Group can help you choose the right licences from the numerous options available in Bahrain.
Assurance on Reliability and Quality
Helpline Group's primary motto is to ensure quality and reliability while ensuring the highest customer satisfaction possible so that our customers become our evangelists. You, as a client, can be assured that your company formation processes are in good hands, and your business will be up and running in no time, adhering to the legal and regulatory requirements of the country.
Legal Structures of the Companies in Bahrain
Bahrain has many different legal structures for companies, depending on their nature, requirements, ownership and control needs. Entrepreneurs and individuals should understand their needs and goals before making a decision; Helpline Group can be of help in making such decisions.
- Limited Liability Company Formation
- Branch Offices
- Commercial Agencies
- Representative Trade Offices
- General Partnership Company
- Limited Share Partnership Company
- Holding Company
- Joint Venture
Limited Liability Company Formation in Bahrain
Citizens of other countries can choose from three Limited Liability Company (LLC) options in Bahrain.
1. Single Person Company in Bahrain (Bahrain SPC)
A Bahrain SPC is owned and operated by a single person. Even a foreigner can own a Bahrain SPC. SPC formation in Bahrain is governed by the Commercial Companies Law of 2001. Bahrain SPC allows foreigners to own 100% of the company and shares. You can have the following benefits from a Bahrain SPC. There is the freedom of choosing a business name, but a Bahrain SPC must use the abbreviated S.P.C at the end of the company name.
- 100% foreign ownership
- A unique company name in Bahrain
- Liability of the company is limited to the owner’s investment in business
However, there are some additional requirements as well.
- Only registered shares can be issued
- A Bahrain SPC cannot issue public shares or debentures or negotiable warrants
- Only one director is possible in a Bahrain SPC
- A Bahrain SPC must have a unique name to Bahrain
Helpline Group can provide you with more information on setting up a Bahrain SPC in Bahrain
2. With Limited Liability Company (WLL)
A WLL can be formed with at least two shareholders. In addition to this, a local manager is required to run a WLL. All WLL should be registered with the registrar in Bahrain, so that they would gain legal recognition. Helpline Group begins the registration process by deciding a unique name, followed by filling up and submitting all necessary paperwork and documents. It is a mandatory requirement for a WLL to have the abbreviations W.L.L. used at the end of the company name. Helpline Group can help you set-up and register a WLL in Bahrain.
3. Bahrain Shareholding Company (BSC)
A BSC also require at least two shareholders and directors and a residential manager to handle the business. However, this can also accurate a large group of entrepreneurs and investors. Hence, a BSC is an ideal choice for large investments and holding companies. At the same time, BSC needs only a limited number of shares, but it is possible to divide them into smaller shares to issue for public subscription. However, public shareholding should be listed in the national stock exchange. When a BSC goes public, there should be a minimum of three directors.
Helpline Group has strong expertise and knowledge in these areas and is in a great position to provide you with adequate information and support to set up limited liability companies in Bahrain.
General Partnership Company in Bahrain
A general Partnership Company requires at least two partners, but there is no limit for the maximum number of partners. Similarly, it requires a minimum of two Directors and Promoters for a general partnership company in Bahrain. However, the liability associated with a general partnership company is unlimited, which means, liabilities of the business can be extended up to the personal wealth of the partners in the business. Hence, caution is required while setting up a general partnership company in Bahrain.
- All partners in a general partnership company have a similar responsibility and full liability towards the business
- The company name must include the titles of one or more partners
- There are no specific requirements towards the minimum share capital required for a general partnership company in Bahrain
- Foreign investors can have full ownership in a general partnership company in Bahrain
- Local sponsors and company agents are not required for a general partnership company in Bahrain
Limited Share Partnership Company in Bahrain
Two or more persons can set-up and register a Limited Share Partnership Company and their liability is extended towards the extent it is mentioned in the contract. There are general partners and limited partners in a Limited Share Partnership Company in Bahrain. While the general partners are responsible for making managerial decisions and have a full liability that is extended towards the personal wealth, a limited partner is only liable towards the extent of the capital he has invested in the company. Limited partners in the business cannot make managerial and corporate decisions. Minimum capital requirements are not mentioned for a Limited Share Partnership Company in Bahrain.
Holding Company Formation in Bahrain
A holding company is the one that used for holding shares in foreign or native Bahraini companies. It is possible for Holding Companies to own stocks in LLCs, Joint Stock Companies, and can have more than 50% of share ownership in a subsidiary company. In addition to this, a holding company also have the freedom to form a single person company, a limited liability company or a joint stock company in Bahrain. Contact Helpline Group to get more information on setting up and managing a holding company in Bahrain.
Joint Venture Formation in Bahrain
A joint venture is formed between two companies in Bahrain with a common goal. It means, a Joint Venture may come to a conclusion when these goals are met with. However, a Joint Venture is also subjected to other conditions and requirements. A Joint Venture operates on the basis of the conditions and clauses specified in the Memorandum of Association. The rights and responsibilities of the companies involved in a Joint Venture is also based on the agreements and contactual clauses specified in the Memorandum of Association. Joint Venture usually have clear indications and clauses concerning how companies are going to share profit and loss as well. However, Joint Ventures in Bahrain do not enjoy the same rights of a separate entity.
Representative Trade Offices in Bahrain
The Bahraini Commercial Company Law allows foreign investors to open and run Representative Offices in Bahrain. Helpline Group helps in setting up Representative Offices in Bahrain. While Representative Offices in Bahrain cannot engage in profit-generating activities, these are suitable business forms to conduct research in local regions or promote their business interests. It is a mandatory requirement for Representative Offices in Bahrain to have a local representative to run its operations.
Commercial Agencies in Bahrain
Commercial Agencies in Bahrain are established to gain an alternative legal presence in the country. A parent company or a foreign company can appoint a commercial agent in Bahrain, which is regulated by the Commercial Agency Law of 1992. Foreign companies or parent companies may use their Commercial Agencies in Bahrain to provide services or goods on behalf of the parent organisation. A commercial agent should be a Bahraini citizen or a Bahraini company. Registering Commercial Agencies in Bahrain in the Commercial Agencies Register is necessary.
Branch Offices in Bahrain
Companies may set-up Branch Offices in Bahrain in order to deal with customers, engineering, financing activities, or business promotions. The Bahraini Company Law permits foreign companies to set up Branch Offices in Bahrain without having to worry about setting up a subsidiary business. It means, it can be 100% owned and operated by a foreign company. However, there are some mandatory requirements for Branch Offices in Bahrain.
- There is a minimum bank guarantee of $133000 to be given to the Ministry of Finance and National Economy.
- Branch offices may involve in business activities such as collecting invoices, signing sales contracts, and collect income from customers
- Branch Offices in Bahrain must appoint an agent who is a local resident to manage visa obligations and regional operational activities.
Helpline Group Company Formation Services
Other Factors You Should Consider for Bahrain Business Formation
Managing Real Estate is a necessity while setting up a business in Bahrain. Whether you want to get into the real estate business or have a requirement for handling and managing real estate for your business, Helpline Group can help you make necessary arrangements. There are different legal requirements and conditions concerning owning and using real estate for business use in Bahrain. Helpline Group can help you deal with your real estate requirements in Bahrain.
Although Bahrain is one of the most generous countries for businesses, in terms of taxation practices, there are some mandatory requirements companies must meet. While there is hardly any tax levied on business owners and entrepreneurs, a certain type of companies are required to pay taxes to the government. These are gas and petroleum companies, oil producing companies and refining companies. Apart from these, there is no corporate tax, or estate or gift and inheritance tax and such in the country. However, you must consult with Helpline Group to make sure your business does not come under the taxation requirements in the country.
Helpline group is an established player in visa processing to Bahrain. We can not only provide you with company formation services but also assist you with your needs for getting visas, processing them and so on, in Bahrain. Don’t let local requirements get into your way of setting up your business in Bahrain. We can help you with your requirements for business and investor visa, work visa, visiting visa, or any other visa requirements to Bahrain.
There are different requirements when it comes to imports to Bahrain. Foreign investors should get a licence to manage to import to the country. In addition to this, the following documents may be necessary.
- Certificate of origin of products
- Type of goods imported / hazardous / non-hazardous
- Delivery order from the person shipping the goods
- A duplicate copy of the supplier’s commercial invoice (both in English and Arabic)
- Packing list
- Bill of lading/Airway bill
- Bank voucher or payment receipt
However, you must consult with Helpline Group to make sure you meet all mandatory requirements to ensure legal compliance in importing.
Get in touch with Helpline Group today to take your goals further.
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