Company Formation Services in Bahrain

The Kingdom of Bahrain is synonymous for highly successful business enterprises.  Bahrain offers an open and appealing monetary atmosphere which makes it stand out in the Middle Eastern markets.  Bahrain boasts of levying the lowest individual and corporate duties in the Gulf region, without any limitations for free trade zones. Bahrain permits a 100% overseas business proprietorship in more than 95% of all financial activities, reducing the dependence of a local promoter.  The world bank identifies Bahrain as a high-income economy.

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The Kingdom of Bahrain has been blessed with a natural topographical edge, which is constantly enriched through latest infrastructure developments. The government has been whole-heartedly providing charming incentives to boost business.

Being an elegant tourist destination, Bahrain receives millions of visitors every year. This is where the modern Arab culture meets its archaeological legacy.  With the right guidance, the Kingdom of Bahrain can be a gold mine.  All one has to do is find a vision and team up with the right professionals at the right time.

Gulfline Group is a government approved agency with ISO 9001-2008 certification

Gulfline Group has branches spread all over the world. Established in 1998, Our Head Office is in Dubai.We have special clients in Kuwait and Middle east countries.With strong clients and presence in the countries (India,Kuwait,Middle East)

Company Formation Steps in Bahrain

Finding a Partner

It is highly recommended to have a local partner to promote your business in Bahrain. The local partner can be an individual or an entity. The entity that act as the local promoter is built with a board of directors and will hold power of attorney to act on behalf of the company. We can assist you in finding the ideal local partner in Bahrain.

Business Set Up

Bahrain being the most happening business destination in the middle-east, this is the place where your investments needs to be. We can guide you effortlessly through the entire process.

License Registration

Businesses require various additional licenses that need to be obtained in a timeframe.

Promise on Quality and Reliability

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Legal Structure of the Company

In Bahrain, Business incorporation requires expert guidance. Most business ventures take the easy way and launch a “Limited Liability Company”.

 

Foreign investments and company formations in Bahrain can consider the following options:

  • 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

Limited Liability Company (LLC) in Bahrain exempts overseas promoters with zero commercial tax along with other duty exemptions. Foreigners are allowed to retain 100% of the shares in an LLC. Several kinds of commercial actions within the nation can trigger laws requiring 51% local possession of the shares.

The selected company name should not be similar to any other existing company or legal entity in Bahrain. LLC’s company name must end with “Limited” or use the abbreviation “LLC”.

The offshore promoters have three options for forming Limited Liability companies.

  1. SPC or Single Person Company: A sole proprietorship company which comes under limited liability type. This will require only one shareholder who can manage the company alone.
  2. WLL or “With Limited Liability”: To start a WLL a minimum of two shareholders and two directors is necessary. Apart from this shareholders, a local manager (company secretary) is also needed.
  3. BSC or “Bahrain Shareholding Company”: As in the case of WLL, at least two stakeholders and directors are required along with a local manager. A board of directors comprising of at least three members is also mandatory. All shares shall be sold to the public and the company can be listed in the Bahrain Bourse (Bahrain Stock Exchange).

All the above types of LLCs in Bahrain give limited liability to their shareholders and can be owned 100% by foreign citizens.

Branch office

A division of an overseas business which is incorporated and registered outside Bahrain may be recognized as an operative office or as a representative office. The extent of liability is the same as that of its parent company. Local operations are permitted merely for a working office. A representative office is only allowed to commence promotion and marketing. A division or branch of a foreign company requires an authorized branch manager. A local promoter is compulsory only for an operational office.

Branch offices are appropriate for clients from the engineering and financial industries. Prevailing Commercial Company Law of Bahrain allows an offshore company to start a branch office in Bahrain without setting up a subsidiary division. This commercial body shall be completely owned (i.e.100% foreign ownership) by the non-residents.

  • A bank guarantee of worth minimum $133,00 shall be obtained by the Foreign investors from the parent company and submit the same before the ministry of Finance and national economy.
  • Branch Offices shall have the right to collect invoices from the clients, to guard trade assets and its premises, to sign a sales contract (locally) and to collect income from customers.
  • Branch offices are responsible to appoint a local resident as an agent to manage visa sponsorship or other provincial operational services.

 

Commercial Agencies

Commercial agency represents a principal (other person) for the supply of stocks or exhibiting them for sale or trading commitments with an aim of profit or commission or providing amenities of any type whatsoever including overland travel, shipping, or airline agencies (freight, air, land), tourist and travel agencies, service, insurance, printing, publishing, press, publicity, advertising agencies, firms, and any other commercial activities to be specified by an order of the Minister of Industry, Commerce and Tourism. The legislation of The Agency Law or Commercial Agency Law of 1992 in Bahrain is regulating Commercial Agencies.The commercial agent can be a Bahrain citizen or Bahrain company (holding major share).

All the agreement related to the commercial agency must be registered in Commercial Agencies Register.

Representative Trade offices

Foreign investors are permitted to open Representative trade offices in Bahrain as per the Commercial Company Law. Representative Trade Offices cannot involve in profit-making activates. It is necessary to have a local promoter to operate a representative trade office. This legal structure of business is apt for those who are looking to do research in the local public of Bahrain or willing to do business promotion of their parent company.

General Partnership Company

A Partnership Company is a company without limited liability and is formed among two individuals or more below a definite name, and in which partners undertake combined obligation, to the amount of all their whole private assets, for the partnership’s debts and liabilities. Even if there is no local sponsor required, a local office presence is compulsory. Citizens of the Gulf Co-operation Council (GCC) are allowed 100 % ownership. Foreign (non GCC) investors may attain up to 100 % of the company (depending on business activities).

This legal structure is not suitable for businesses like banking, investment and insurance but it is apt to start a small business in Bahrain.

Limited Share Partnership Company

Limited Share Partnership Company is formed by two or more individuals and both of them are responsible to the level stated in the agreement. Limited Share Partnership Company has two different kind of partners, the first kind is a General Partner, who is responsible for taking managerial decisions in the company and have full liability to the limit of their personal wealth. Second kind is a, Limited Partner who only donates capital and has liability to the limit of their capital invested in the company.

Holding Company

Bahrain Holding Company is broadly classified into two. Bahrain Share Holding Company (B.S.C) – Public and Bahrain Share Holding Company (B.S.C) – Closed.

 

A Public Shareholding Company shall be with any number of partners but should be not less than seven, who contribute therein by way of negotiable shares. Partner’s liability for the company’s debts and obligations is limited to the extent of the value of their shares. Local sponsor is not mandatory but a local office presence is a must. Citizens of the Gulf Cooperation Council (GCC) are allowed 100 % ownership. Foreign (non GCC) investors may allow keeping 49 % of the company.

 

A Closed Shareholding Company comprises of a number of persons not less than two who subscribe there in by way of negotiable shares. The shares are free to sell, however not allowed to offer it to the general public for subscription. There is a minimum share capital required to start a closed Share Holding company. A minimum of 50 % of the capital must be paid initially. The balance is to be paid within three years. There is no local sponsor required, however a local office presence is necessary. Citizens of the Gulf Cooperation Council (GCC) are allowed to hold 100 % ownership. Foreign (non GCC) investors shall hold up to 100 % of the company (depending on business activities).

Joint Venture

Joint ventures can be started by two organizations or entities to work together for a common purpose. It doesn’t enjoy the feature of a separate identity. Both the companies participating under a joint venture may have a common goal. A joint venture will end when this common aim is attained.

The joint ventures can be dissolved under certain other conditions like incompetence of one or more companies, fulfilment of objective, the expiry of agreement and other legal challenges to the agreement. All the rights, duties and obligations are required to be listed in the Memorandum of Association with the clear indication of limit to share profit and loss.

Get in touch with Gulfline Group today to take your goals further.

Our Company Formation Services are available in many countries. To know more about our services, please leave a message, stating your requirements on the left. Alternatively, you may contact us through either of the following methods. Gulfline Group associates will contact you as soon as possible.