How to Establish Individual Establishment in Bahrain?

by Zaara 28, Jun 2021

How to Establish Individual Establishment in Bahrain?

An individual establishment is a private enterprise operated by a single legal owner. Only Bahraini residents and nationals of the Gulf Cooperation Council ( GCC) nations (must reside in Bahrain) can enroll in an individual establishment in the Kingdom of Bahrain. The independent establishment is a non-incorporated company that is controlled by a single independent only.

The individual establishment is also known as the Individual Company Registration (ICR) as the commercial establishment’s approval does not allow for any defense of liability. In other terms, the company is responsible for all obligations and losses accrued by the corporation to the value of its properties.

(Note: The Gulf Cooperation Council (GCC) nations only apply to and include the Kingdom of Bahrain, the Sultanate of Saudi Arabia, the United Arab Emirates, the State of Kuwait, the Sultanate of Oman, and the State of Qatar.)

Requirements for Establishing an Individual Establishment in Bahrain

  • Must be a resident of the Kingdom of Bahrain
  • Age of at least 18 years
  • Must be a resident of GCC member nation residing in Bahrain
  • Possess a valid visa
  • Have no criminal history
  • The non-corporate firm must have only one legal holder.
  • Must have an independent auditor
  • The annual submission of the audited financial statements to MOICT is mandatory.

Benefits of Establishing an Individual Establishment in Bahrain

  • Unlimited liability corporate framework
  • Local branch existence is required.
  • Must have an independent auditor
  • The annual submission of the audited financial statements to MOICT is mandatory.

Business Environment in the Kingdom of Bahrain

  • English is primarily used to make company processes smoother.
  • Liberal and entrepreneurship-friendly strategies
  • No payroll taxes, capital gains, and inheritance taxes
  • Stable financial and banking industries
  • Strategic position in the Middle East and low maintenance costs
  • Excellent access to Saudi Arabia and other CCG countries
  • Access to the dual taxation treaties of Bahrain

Documents required to Establish an Individual Establishment in Bahrain

General Documents

  • Individual business registration application
  • Commercial name authorization application
  • Copy of passport (only for GCC residents)
  • Copy of CPR Bahrain ID card for Bahrain residents
  • Proof of residency in Bahrain for GCC residents
  • Evidence that the applicant is not involved in any other employment
  • If the applicant is employed, he/she should issue a no-objection certificate signed and dated by the client’s employer/managing director.
  • Copy of the client’s educational qualifications and experience letter (depending on the level of company activity)
  • Proposed commercial address at which the licensed trading operation will operate (copy of the signed office lease agreement if one exists)

Who We Are

We at Commitbiz can also offer constructive assistance and strategic advice at every stage of your company with our experience in Bahraini local rules, legislations, and customs. If you want to know the business growth potential in the Kingdom of Bahrain, please contact us. We are a group of experts experienced in Setting up Business Operations in Bahrain.