Registration of companies in Bahrain, opening an account in one of the country's banks
The Kingdom of Bahrain is rapidly developing in the Middle East region in various areas of business, oil business and beyond. To attract investors, the government stimulates the trade and financial sectors of the economy, emphasizing low tax rates and the possibility of creating an offshore business. Bahrain is the natural gateway to the Gulf, with particularly favorable access to Saudi Arabia, the region’s single largest market and economy.
A limited liability company (or its legal equivalent) is the most common form of company and the advantage in setting up a business on the mainland is that trade is permitted throughout the country. 2 shareholders are needed. 100% foreign ownership is allowed. The director may be a foreign citizen. The minimum number of directors is one. No one of the owners of the enterprise can act as a director.
Company registration
The first step is to obtain a commercial registration or CR. It is necessary to provide the name, citizenship, contacts, passport details, type of activity, address. Other information may be requested by the Ministry of Industry, Trade and Tourism if needed.
Authorized capital
The law establishes the minimum amount of capital at the level of 10 thousand dinars. All capital must be divided into equal shares, the minimum amount of which is 50 dinars. The law prohibits the division of shares and put them into free circulation. To register a company, it is necessary that all shares are paid up and distributed among the shareholders.
Other Requirements
- An office with registration address in Bahrain.
- The name of the company must have “with Limited Liability’’ or “W.L.L.“.
Bookkeeping in Bahrain
- Annual accounting return - Yes.
- Annual tax return - Yes.
- Annual financial return - Yes.
- Audit requirements - Yes.
Taxation
VAT - No;
Basic corporate tax rate - No;
Capital gains tax - No;
Currency control - No;
Corporate tax rates detail - 0% (except for companies engaged in the oil and gas, for which the rate - 46%);
Stamp duty - No.
If you are interested in company incorporation in Bahrain Andumpark Limited can assist you. Simply send us an email or call now to take your business to the next level!
