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| Bahrain Company Set Up | |||||||
Bahrain company set up is a convenient, tax-efficient way of setting up a company that can operate globally while taking advantage of the many economic opportunities that the Gulf Region has to offer. Below are some of the considerations an international entrepreneur should be mindful of prior to choosing to set up a company in Bahrain.
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| 1. | Investors who set up a company in Bahrain are able to take 100% foreign ownership, regardless if the company is a Bahrain Limited Liability Company (LLC) or a Bahrain Exempt Company (WLL). However a LLC is only eligible for 100% foreign ownership if they are engaged in technology, tourism, manufacturing-related industries, consultancy services, industrial projects or highly specialised sectors such as scientific laboratories.
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| 2. | In line with Bahrain Commercial Companies Law, unless a company fulfills the criteria needed to be considered a for full foreign ownership, it is required by law to have a minimum of 51% of its shares held by Bahraini citizens. LLCs require a minimum of 2 shareholders and directors. | ||||||
| 3. | Investors forming a company in Bahrain should note that after incorporating a Bahrain company, there is no restriction on repatriation of capital, profits or dividends.
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| 4. | Bahrain company formation allows investors to benefit from its reputation as a major trading jurisdiction. In 2007, Bahrain's Gross Domestic Product (GDP) grew by 6.5% which makes incorporating a company in this dynamic economy highly favorable for investors.
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| 5. | As long as no business is conducted within Bahrain itself, investors incorporating a Bahrain company are not required to pay corporate, personal, value-added or withholding tax. This makes Bahrain Company formation extremely tax efficient.
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| 6. | An Exempt Company can be 100% foreign-owned. However, a minimum of two shareholders and two directors are required, although they need not be resident in Bahrain. Corporate directors are not permitted.
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| 7. | The minimum capital required to form a Bahrain Exempt Company is 20,000 Bahraini Dinars (US$53,800), which is required to be paid in full prior to incorporating a Bahrain company. | ||||||
| 8. | Many investors choose to set up a company in Bahrain to take advantage of the Kingdom's strategic location at the heart of the Gulf. Bahrain company formation is ideal for foreign investors as it offers unrestricted access to the GCC, particularly to Saudi Arabia, the largest market in the region. | ||||||
| 9. | Investors incorporating a Bahrain company with 100% foreign ownership should note that the entity cannot operate solely in Bahrain. It can only conduct regional services. | ||||||
| 10. | It can be difficult for a local company to obtain employment visas for expatriate employees to who are incorporating a Bahrain company. | ||||||
| More information | |||||||
For more detailed information on how establishing a company in Bahrain please refer to Healy Consultants' Asia Business Setup guide.
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| Contact Us | |||||||
For more information on how establishing a company in Bahrain, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120.
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Back to Bahrain Company Formation page
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