Bahrain Allows 99% Foreign Ownership for Trade Sector

by commitbizadmin 29, Oct 2021

Bahrain Allows 99% Foreign Ownership for Trade Sector

Bahrain has always sought a liberal approach to foreign investment and actively looked out to attract foreign investors and businesses. The constant evolving involved simplification of processes, improved regulatory initiatives, pro-business laws, etc.

In an economy largely dominated by state-owned enterprises, the Bahraini Government (GOB) aims to foster a more significant role for the private sector in economic growth. Government efforts focus on encouraging foreign direct investment (FDI) in the manufacturing, logistics, information and communications technology (ICT), financial services, and tourism sectors.

In an effort to push to improve the country's economic value, the Ministry of Industry and Commerce silently changed the foreign ownership rules for trade-related business activities. Earlier, a Bahrain national could own up to 51% of shares to set up a trade business. However, this rule created a significant hurdle for investors and companies who found it challenging to have a trustworthy investor. A foreign national can set up a trade business with a Bahraini partner regardless of the ownership percentage with the new rules. In layman terms, a foreign national can own up to 99% of the company, while the Bahraini shareholder can hold the remaining 1%.

This is an excellent step by the government in efforts to increase foreign investment. Furthermore, this policy will positively impact Bahrain's "Ease of Doing Business" as foreign shareholders can easily find a 1% shareholder to set up a business in Bahrain without insecurity.

However, also note that full foreign ownership is still allowed for Bahrain's Service and Manufacturing sector.

Best Opportunity to Register a Business in Bahrain

For any entrepreneur wanting to incorporate a company in Bahrain, this is the best opportunity. With the lower shareholding of a Bahrain national in the business, it will be easier to run the business operations smoothly.

Some of the additional reasons to open your company in Bahrain are –

  • Low customs duty in Bahrain, thus favoring export
  • Business-friendly corporate policies in the nation
  • The legal system is lucid and simple
  • The banking sector in Bahrain is developing at a rapid pace, leading to advanced banking facilities there
  • There is vast scope for business growth

If you are looking to open your business in Bahrain, then we at Commitbiz can assist you. Our experts take care of the entire Banking, Visa, Legal, and Licensing formalities and allow you to go through with your company formation process without worrying about the bureaucratic red tape and legal formalities.

Get in touch with us today – even if it's for a piece of friendly advice.

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