✅ What You Need to Know Before Registering a Company in Bahrain (2025 Update)

Bahrain is a business-friendly destination in the GCC, known for its liberal economy, low taxation, and strategic location. Here’s what you should know before setting up your company:

1. Commercial Companies Law (CCL)

– Governed by Legislative Decree No. 21 of 2001, amended over time to match international business practices.
– Applies to all companies operating in Bahrain, whether foreign-owned or local.
– Covers:
  • Company formation and dissolution
  • Capital structure
  • Roles and responsibilities of shareholders and directors
  • Auditing and reporting requirements
Key takeaway: Know your company type—W.L.L., S.P.C., B.S.C., etc.—as each has different legal and capital requirements.

2. Memorandum & Articles of Association (MOA & AOA)

These are the primary constitutional documents of your company:

– MOA outlines:
  • Name of the company
  • Registered office address
  • Share capital and shareholding structure
  • Objectives (business activities)
  • Names and details of shareholders

– AOA governs internal management:
  • Appointment/removal of directors
  • Voting rights
  • Meetings and resolutions
  • Distribution of profits

Tip: The MOA must be notarized and submitted to the Ministry of Industry & Commerce (MOIC) during registration.

3. Bahrain’s Legal System

– Dual legal system: Civil Law + Islamic Sharia Law
– Sharia Law applies mainly in personal matters for Muslims.
– Civil law applies to commercial and financial matters.
Recommendation: Hire a local legal consultant or a business setup advisor familiar with both legal frameworks.

4. Business License & CR (Commercial Registration)

To operate legally, every company must obtain a CR and an Activity-specific License from the MOIC.

Requirements:
– Company name approval
– Office lease agreement
– Capital deposit (some activities)
– Activity classification (NAIC system)
– IDs of owners/directors
– MOA and AOA
– Municipal approval (if needed)

Special Activities Requiring Additional Approvals:
– Medical, pharma, cosmetics – NHRA
– Food – Health Ministry
– Financial Services – CBB
– Travel & Tourism – Tourism Regulatory Authority

5. Company Management and Ownership Disclosure

– Directors are appointed/removed by shareholders.
– Shareholders and directors’ names are publicly available via Sijilat.
– Foreigners can own 100% of most businesses.
Note: You may need a resident director or local address for registration.

6. Financial Reporting & Compliance

– Maintain proper accounting records
– Submit annual financial statements
– Appoint auditor (mandatory for some companies)
– Notify MOIC on:
  • Address change
  • Ownership/directors change
  • Capital restructuring

VAT: Mandatory if turnover > BHD 37,500. Voluntary from BHD 18,750.

7. Foreign Investor Benefits

– 100% foreign ownership in most sectors
– No personal income tax
– 0% corporate tax (except oil/gas)
– Full profit repatriation
– Access to free zones and customs exemptions

8. Types of Companies You Can Register

– W.L.L. – With Limited Liability (2–50 shareholders)
– S.P.C. – Single Person Company
– B.S.C. – Bahrain Shareholding Company (Closed/Public)
– Branch Office – Extension of foreign company
– Representative Office – Non-trading, marketing use only

📝 Summary Checklist for Company Registration: