Company Formation in Bahrain

Your company’s formation will begin by choosing the appropriate business organization type. They include:

• Limited Liability Company (LLC): Limited Liability Company is the most common among small and medium sized enterprises where it can have at most 50 shareholders whose liability are limited to what each of them has contributed in capital.
• Joint Stock Company: This is suitable for big companies as there should be a minimum of two shareholders and specific capital requirements need to be met.
• Branch Office: If you have an existing business somewhere outside Bahrain then you can establish a branch office which operates locally.
• Representative Office: For those who wish to study Bahraini market without incurring expenses on other commercial activities, they may go for representative office so that they are close enough.

After establishing your business structure, there is an initial approval which you are supposed to get from the Ministry of Industry and Commerce (MOIC). This process requires that you provide your proposed business name and activity. Your application with respect to local regulations will be reviewed by the MOIC.

The next thing is to prepare the necessary documents for company registration after obtaining preliminary approval. The following are some of the most common documents that people are required to have:

• An application form that has been completely filled out
• A copy of your passport or national identification card
• A detailed business plan
• Evidence that you have a registered office address within Bahrain
• Any other relevant documentation based on the kind of business structure you have chosen

After you have all the required documents, submit them to MOIC. It takes different periods to process the application ranging from a few days up to several weeks depending on how complex it is. During this period, they will confirm your documents and do any necessary background checks.

Once your request is approved, we will send you a business license that allows you to work in Bahrain. This certificate is a confirmation that your company exists in our country. It will be helpful for you to have one when you need to open a bank account, apply for operating permits as well as legalize any other business transaction.

After acquiring the license we have given above, every person must apply for an identification number at the National Bureau for Revenue. And because businesses are also being charged Value Added Taxes- (VAT); therefore it is mandatory for each company to observe this tax obligation. In fact failure by many to register themselves as taxpayers end up earning them fines from time to time.

Your enterprise may require additional authorizations from relevant authorities depending on what exactly it deals in within Bahrain’s jurisdiction among other nations across the globe. Among those requiring additional authorizations are healthcare providers inclusive of medical specialists such that those wishing to venture into such sectors have no otherwise but to painstakingly investigate into these rules.

To manage funds efficiently while operating companies here it is necessary for them to set up corporate accounts with some financial organizations around towns. Commercial registration certificate joined by tax registration details or identity papers usually forms documents needed before opening such an account. Create room for comparisons among several options before landing on one.