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Company Formation Services in Bahrain

Bahrain is one such nation which has laid a huge emphasis on the economy as well as the business structure of the nation. With increasing investments from across the globe, various global enterprises has made Bahrain their abode in order to set up their new businesses and firms. This has created a demand for effective services in Company Formation which plays a leading role in helping modern day entrepreneurs in developing their Business goals into reality. These services have had a positive impact on improving the Business Landscape in Bahrain.

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Bahrain is a small island nation located in the Persian Gulf that has successfully built a robust and reliable economy. The economy of Bahrain is a diversified one, with avenues in different sectors such as Hospitality, Engineering, Oil & Gas, Travel& Tourism which has helped to provide various jobs as well as business opportunities for clients from across the world.

With 90% of the total population being expats, there is no shortage of finding skilled and qualified labor which makes setting of various new firms and businesses much easier. These factors have attracted various new businesses and enterprises from across the globe which thereby has initiated creation of a friendly business environment within the nation. The new age business activities have had a deep impact on the economy of the nation and enabled to provide wings to the dreams of new entrepreneurs.



Some of the steps that are initiated for the setting up of various new businesses are as follows

Choosing a Legal Form of Business Entity

The investors must choose a type of Business entity which is suitable for business growth and in order to plan their Business activities with precision and accuracy.

Choosing a Suitable Company Name

A suitable and exclusive name has to be selected before your own venture or enterprise. A Unique Name plays an important role in increasing the brand awareness of the firm or business.

Setting up Company Documents

The Articles of Association has to be setup by the Company and included in the files for Registration.

Depositing a Capital Amount

A capital Amount has to be deposited in the Bank Account before starting the company. The financial dealings with regard to the Business Activities has to be done using this Bank Account.

Filing For Registration

Once the documents are submitted, the investors can submit the application for registration to the Company Register. The Company Register comes under the Ministry of Industry, Commerce and Tourism and is the primary authority in charge of receiving company registration applications.

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.

Other Factors You Should Consider for Bahrain Business Formation

Real Estate

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.

Tax System

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.

Visa System

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. 

Importing System

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.