Business Setup in Bahrain

Bahrain offers a variety of legal business structures to accommodate local and foreign investors. These include Limited Liability Companies (W.L.L) and Single Person Companies (S.P.C), which are ideal for small to medium-sized businesses, offering limited liability protection and flexible ownership. For larger ventures, Bahraini Shareholding Companies (B.S.C) are available in both public and closed forms, allowing businesses to raise capital either publicly or privately. Foreign investors can also establish a presence through Foreign Company Branches or Representative Offices, depending on whether they intend to conduct business or just promote their services.

Additionally, there are Partnership Companies, which can be general or limited, where partners share liability according to their involvement. Holding Companies are also recognized, typically structured as B.S.C (Closed) or W.L.L, used to manage and control subsidiary companies. Joint Ventures are another option, usually formed through contracts for specific projects without forming a separate legal entity. These options provide flexibility to suit a wide range of business needs and strategies in Bahrain.

The cost of establishing a company in Bahrain typically ranges between BHD 1,000 and BHD 5,000, depending on the business activity, legal structure, and licensing requirements.

Yes, foreign investors are permitted to directly participate in the process of setting up a company in Bahrain.

Yes, as a foreigner, you can own a company in Bahrain with 100% ownership in most sectors. Bahrain allows full foreign investment in areas like IT, consulting, manufacturing, and more. However, some sectors may require a local partner or special approvals.

Best Businesses to Start in Bahrain (2025 & Beyond)

1. IT & Tech Services

• Software development

• FinTech solutions

• Cybersecurity & cloud computing

• Web/mobile app development

Bahrain’s supportive regulatory environment and widespread digitization make it a great base for tech startups.

2. E-commerce & Online Retail

• Niche product stores

• Cross-border e-commerce platforms

• Digital marketplaces

With a growing internet-savvy population and strong logistics links, e-commerce is booming.

3. Business Consultancy & PRO Services

• Corporate setup consultancy

• Visa & PRO services

• Accounting, tax, and legal advisory

Ideal for professionals with regional business knowledge.

4. Logistics & Transport

• Freight forwarding

• Warehousing

• Last-mile delivery

Bahrain’s location makes it a gateway to Saudi Arabia and the Gulf, ideal for logistics and distribution.

5. Food & Beverage (F&B)

• Cafés and restaurants

• Cloud kitchens

• Health food products

Strong expat population and consumer demand for diverse cuisines.

6. Tourism & Hospitality

• Boutique hotels or serviced apartments

• Travel agencies and tour services

• Cultural and eco-tourism experiences

Government efforts to boost tourism present new opportunities.

7. Education & Training

• Language training centers

• Online tutoring or e-learning platforms

• Corporate training and skills development

Increasing demand for private education and professional development.

8. Real Estate & Property Management

• Rental property businesses

• Real estate brokerage

• Facility and asset management

Bahrain’s rental market is active, especially for commercial and expat housing.

9. Health & Wellness

• Fitness centers and gyms

• Nutrition consultancy

• Mental health and wellness coaching

Health-conscious lifestyles are growing trends.

💡 Tip:

If you're a foreign investor, consider forming a 100% foreign-owned company, or setting up in Bahrain's free zones for additional tax and regulatory benefits.

Steps to Register a Business in Bahrain

Step 1: Reserve a Unique Business Name
Select a unique company name and obtain initial approval from the Ministry of Industry, Commerce, and Tourism (MOICT).

Step 2: Draft and Notarize the Articles of Association (AoA)
Prepare the Articles of Association, outlining the company’s objectives and activities. The AoA must be notarized by a public notary and certified by the Bahrain Chamber of Commerce and Industry.

Step 3: Deposit the Share Capital
At least 50% of the proposed share capital must be deposited into a corporate account at a local bank in Bahrain.

Step 4: Obtain the Business License
Apply for and secure the appropriate Business License from the MOICT to operate legally in Bahrain.

Step 5: Register with Immigration Authorities
Register your company with the General Directorate of Nationality, Passports, and Residence (NPRA) to facilitate visa and residency processing.

Step 6: Register for Taxation
Complete tax registration with the National Bureau for Revenue (NBR) for VAT and other applicable tax obligations.

Step 7: Open a Corporate Bank Account
Finalize your setup by opening a corporate bank account with a licensed local bank to manage your business finances.

Steps to Set Up a Company in Bahrain

Step 1: Issue a Power of Attorney (PoA)
Authorize a representative to act on your behalf in legal and administrative matters by issuing a Power of Attorney.

Step 2: Reserve the Company Name
Select a unique business name and submit it for reservation and approval through the Ministry of Industry and Commerce.

Step 3: Register the Company’s Head Office Address
Provide and register the official business address (physical or virtual) as your company’s legal head office.

Step 4: Draft the Memorandum of Association (MoA)
Prepare the Memorandum of Association, detailing the company’s structure, objectives, shareholders, and capital.

Step 5: Notarize the Memorandum
Submit the MoA for notarization by a public notary and ensure it is legally recognized by relevant authorities.

Step 6: Open a Corporate Bank Account
Set up a business bank account with a licensed bank in Bahrain to deposit share capital and manage financial operations.

Step 7: Obtain Final Approval from the Ministry
Submit all finalized documents and receive the Commercial Registration (CR) and final approval from the Ministry of Industry and Commerce, allowing your company to legally operate.