How to Setting up a Subsidiary in Bahrain 

Are you considering expanding your business to Bahrain? Setting up a subsidiary in Bahrain can be a strategic move to access the Middle East market and take advantage of the country’s business-friendly environment. In this article, we will guide you through the process of setting up a subsidiary in Bahrain, from understanding the legal requirements to registering your company and getting started with operations.

Why Choose Bahrain?

Bahrain has long been known as a business-friendly destination in the Middle East. With its strategic location, open economy, and supportive government policies, Bahrain offers a conducive environment for businesses looking to expand into the region. Additionally, the country has a well-developed infrastructure, a skilled workforce, and a competitive cost of doing business, making it an attractive choice for international companies.

Legal Requirements for Setting Up a Subsidiary in Bahrain

Before you start the process of setting up a subsidiary in Bahrain, it is essential to understand the legal requirements. As a foreign investor, you will need to adhere to the regulations set by the Bahraini government. Some of the key legal requirements include:

1. Company Registration: You will need to register your company with the Ministry of Industry, Commerce, and Tourism in Bahrain. This involves submitting the necessary documents and obtaining the required permits and licenses.
2. Capital Requirements: There are minimum capital requirements that need to be met when setting up a subsidiary in Bahrain. The amount may vary depending on the type of business activity you plan to undertake.

Steps to Set Up a Subsidiary in Bahrain

Now that you are familiar with the legal requirements, let’s take a look at the steps involved in setting up a subsidiary in Bahrain:

1. Choose a Business Structure: Decide on the type of business structure you want for your subsidiary, whether it’s a limited liability company, a branch office, or a representative office.
2. Select a Local Sponsor: Find a reliable local sponsor who meets the legal requirements and is willing to support your business in Bahrain.
3. Register Your Company: Prepare the necessary documents, such as the memorandum of association, articles of association, and other required forms, and submit them to the Ministry of Industry, Commerce, and Tourism for company registration.
4. Obtain Licenses and Permits: Depending on the nature of your business, you may need to obtain additional licenses and permits from regulatory authorities in Bahrain.
5. Open a Bank Account: Once your company is registered, open a corporate bank account in Bahrain to start your operations smoothly.

Benefits of Setting Up a Subsidiary in Bahrain

Setting up a subsidiary in Bahrain offers several advantages for foreign investors, including:

• Tax Advantages: Bahrain offers a competitive tax regime with no corporate income tax, making it an attractive destination for businesses looking to expand.
• Strategic Location: Bahrain’s strategic location in the Middle East provides easy access to the Gulf Cooperation Council (GCC) markets, allowing for greater business opportunities.
• Business-Friendly Environment: Bahrain has a business-friendly environment with a streamlined process for setting up a company, transparent regulations, and strong legal protections for investors.

Calculate Your Business Setup Cost Now

- Step 1 of 11

Q1 - Choose Your Business Category.

Pick the category that describes your business. *Please SelectAccountingAdvertisingAgriculturalFinanceLogisticsInvestmentReal EstateBrokerageConsultancy - ITConsultancy - MarketingConsultancy - HRConsultancy - MaritimeConsultancy - ManagementConsultancy - AviationConsultancy - FinanceConsultancy - LogisticsConsultancy - MediaDesignLifestyle CoachingProduction - Art/Video/Photography/Graphic DesignEvents/Exhibition OrganizersGeneral TradingTrading - GarmentsTrading - FurnitureTrading - Building MaterialsTrading - FoodstuffTrading - AutomobileTrading - ElectronicsSportsCustomer Care CenterOther

Other (please specify) *

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Q2 - NUMBER OF ACTIVITIES

3 activities are included. Additional activities can be added at AED 1000 per activity. *Please Select12345 or More

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Q3 - HOW MANY SHAREHOLDERS WILL YOUR COMPANY HAVE?

The number of shareholders will help identify the most suitable setup for your business. *Please Select12345 or More

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Q4 - HOW MANY VISAS WILL YOU NEED?

The number of visas you will need should account for your own visa (if required) and visas for the number of employees you plan to hire over the next year. *Please Select0123456

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- Q6 TURNOVER

Q5 - DO YOU HAVE A BUSINESS PLAN?

DO YOU HAVE A BUSINESS PLAN? *

• Yes
• No

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Q6 - ARE YOU CURRENTLY LIVING IN THE UAE?

Q6 - ARE YOU CURRENTLY LIVING IN THE UAE? *

• Yes
• No

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Q7 - ANNUAL TURNOVER

Your current or forecasted annual turnover for your business in the next 12 months. *

• AED 20,000 - 100,000
• AED 100,000 - 250,000
• AED 250,000 - 500,000
• AED 500,000 - 1,000,000
• AED 1,000,000 - 5,000,000
• AED 5,000,000 +

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Q8 - WHEN DO YOU PLAN TO START YOUR BUSINESS?

Q8 - WHEN DO YOU PLAN TO START YOUR BUSINESS? *Please SelectImmediatelyNext MonthUndecided

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Q9 - WHICH COUNTRY YOU WANT TO START YOUR BUSINESS?

Q9 - WHICH COUNTRY YOU WANT TO START YOUR BUSINESS? *Please SelectUAEBahrainSaudi ArabiaQatarOman

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Q9 - CONTACT DETAILS

First Name *

Last Name *

Email Address *

Phone *

Nationality *AfghanAlbanianAlgerianAmericanAndorranAngolanAnguillanArgentineArmenianAustralianAustrianAzerbaijaniBahamianBahrainiBangladeshiBarbadianBelarusianBelgianBelizeanBenineseBermudianBhutaneseBolivianBotswananBrazilianBritishBritish Virgin IslanderBruneianBulgarianBurkinanBurmeseBurundianCambodianCameroonianCanadianCape VerdeanCayman IslanderCentral AfricanChadianChileanChineseCitizen of Antigua and BarbudaCitizen of Bosnia and HerzegovinaCitizen of Guinea-BissauCitizen of KiribatiCitizen of SeychellesCitizen of the Dominican RepublicCitizen of VanuatuColombianComoranCongolese (Congo)Congolese (DRC)Cook IslanderCosta RicanCroatianCubanCymraesCymroCypriotCzechDanishDjiboutianDominicanDutchEast TimoreseEcuadoreanEgyptianEmiratiEnglishEquatorial GuineanEritreanEstonianEthiopianFaroeseFijianFilipinoFinnishFrenchGaboneseGambianGeorgianGermanGhanaianGibraltarianGreekGreenlandicGrenadianGuamanianGuatemalanGuineanGuyaneseHaitianHonduranHong KongerHungarianIcelandicIndianIndonesianIranianIraqiIrishIsraeliItalianIvorianJamaicanJapaneseJordanianKazakhKenyanKittitianKosovanKuwaitiKyrgyzLaoLatvianLebaneseLiberianLibyanLiechtenstein citizenLithuanianLuxembourgerMacaneseMacedonianMalagasyMalawianMalaysianMaldivianMalianMalteseMarshalleseMartiniquaisMauritanianMauritianMexicanMicronesianMoldovanMonegasqueMongolianMontenegrinMontserratianMoroccanMosothoMozambicanNamibianNauruanNepaleseNew ZealanderNicaraguanNigerianNiueanNorth KoreanNorthern IrishNorwegianOmaniPakistaniPalauanPalestinianPanamanianPapua New GuineanParaguayanPeruvianPitcairn IslanderPolishPortuguesePrydeinigPuerto RicanQatariRomanianRussianRwandanSalvadoreanSammarineseSamoanSao TomeanSaudi ArabianScottishSenegaleseSerbianSierra LeoneanSingaporeanSlovakSlovenianSolomon IslanderSomaliSouth AfricanSouth KoreanSouth SudaneseSpanishSri LankanSt HelenianSt LucianStatelessSudaneseSurinameseSwaziSwedishSwissSyrianTaiwaneseTajikTanzanianThaiTogoleseTonganTrinidadianTristanianTunisianTurkishTurkmenTurks and Caicos IslanderTuvaluanUgandanUkrainianUruguayanUnited Arab EmiratesUzbekVatican citizenVenezuelanVietnameseVincentianWallisianWelshYemeniZambianZimbabwean

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Understanding the Types of Business Entities in Bahrain

When it comes to setting up a business in Bahrain, there are several types of business entities to choose from. Each type has its own set of regulations, requirements, and benefits. Let’s dive into the most common types of business entities in Bahrain:

1. Sole Proprietorship: This is the simplest form of business entity and is owned and operated by a single individual. In a sole proprietorship, the owner is personally responsible for all business liabilities.
2. Partnership: A partnership is a business entity owned by two or more individuals who share the profits and losses of the business. There are different types of partnerships, such as general partnerships and limited partnerships, each with its own set of rules and regulations.
3. Limited Liability Company (LLC): An LLC is a popular choice for small to medium-sized businesses in Bahrain. As the name suggests, the owners of an LLC have limited liability, meaning their assets are protected from the company’s debts and liabilities.
4. Joint Stock Company: A joint stock company is a type of business entity that allows for the issuance of shares to the public. This type of company is commonly used for large-scale business operations and is subject to more stringent regulations than other types of business entities.
5. Foreign Company: If you are looking to establish a presence in Bahrain as a foreign entity, you can set up a branch or representative office of your company. It is important to note that foreign companies are required to obtain a commercial registration and license to operate in Bahrain.
6. Bahraini Shareholding Company: This type of business entity is suitable for businesses looking to raise capital through the sale of shares to investors. A Bahraini Shareholding Company is required to have a minimum number of Bahraini shareholders and must adhere to specific regulations set by the government.

Documents required to establish a subsidiary in Bahrain

When setting up a subsidiary in Bahrain, you will need to prepare and submit several key documents to comply with local regulations and obtain the necessary approvals. Here is a list of the essential documents required:

1. Memorandum and Articles of Association: This document outlines the company’s structure, objectives, and regulations. It needs to be notarized and submitted to the Ministry of Industry, Commerce, and Tourism for approval.
2. Certificate of Incorporation: A certificate of incorporation is essential to prove the legal existence of the subsidiary. This document is issued by the Ministry of Industry, Commerce, and Tourism upon approval of the company’s registration.
3. Shareholder and Director Information: You will need to provide details of the shareholders and directors of the subsidiary, including their names, nationalities, addresses, and passport copies. This information is necessary for the company’s registration process.
4. Proof of Capital: You will need to demonstrate proof of the subsidiary’s capital to meet the minimum requirements set by Bahraini law. This can be in the form of bank statements, letters of credit, or other financial documents.
5. Lease Agreement: If you plan to establish a physical office or commercial space for your subsidiary, you will need to provide a copy of the lease agreement as proof of the company’s address.
6. Foreign Investment License: Foreign investors looking to establish a subsidiary in Bahrain may require a foreign investment license from the Bahraini government. This license is necessary for certain business activities and industries.
7. Tax Registration Certificate: Once the subsidiary is registered, you will need to obtain a tax registration certificate from the National Revenue Authority (NRA) to comply with Bahraini tax regulations.

Benefits of Opening a Bahrain Subsidiary with Us

When you choose to work with us to open your Bahrain subsidiary, you can benefit from:

• Expert Guidance: Our team of experts will provide you with tailored advice and guidance throughout the setup process.
• Local Knowledge: We have in-depth knowledge of the Bahraini market and business practices, ensuring a smooth setup experience.
• Efficiency: We will streamline the setup process for your subsidiary, saving you time and effort.
• Compliance: We will ensure that your subsidiary complies with all local laws and regulations, minimizing the risk of any legal issues.

Connect with Neeja Corporate Services

Are you looking to start your company in Dubai but feeling overcome by the registration process? Don’t worry, you’re not alone. Setting up a business in a foreign country can be challenging, but with the right guidance and support, it doesn’t have to be a stressful experience. Neeja’s business setup services offer complete support and serve as a one-stop shop for company setup in Dubai. We provide a wide range of value-added services, such as subsidiary in Bahrain and VAT registration. Over the years, we have successfully advised many new entrepreneurs to make their business dreams a reality.

To book a free consultation, call on +971 43243031. You can also send a WhatsApp message at +971 50 465 2843. To connect over email, send us your query at incorp@neejacs.com.

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