Tagged as one of the developing nations in the Middle East, the Kingdom of Bahrain serves to be home to various industries and business setup processes. Prince Khalifa Bin Salman Al Khalifa, the backbone of the Bahraini economy has been taking numerous initiatives to boost the business establishment processes in the Kingdom of Bahrain. Be it a small, medium or a large-sized business, the region of Bahrain has got a platform for all, backed by a cheap establishment cost. By the end of this article, you will get an idea of setting up a company in Bahrain at a lesser price.
Business Incorporation in the GCC Market
The Gulf region can be termed as a business ground for foreign investors. Covering the countries like UAE, Bahrain, Oman etc. the region is rich in oil and gas fields and has built a stronghold on business foundations. Even after being a dominant player in the oil industry, the region has introduced the concept of VAT to diversify the source of revenue. Moreover, the GCC region has widened its scope to uplift the non-oil sector business to a great extent. Now, let’s have a look at the business incorporation in Bahrain.
Incorporating a Business in Bahrain
According to a recent KPMG report, Business leads its way in setting up a business entity among the other GCC countries as the set-up cost is considerably cheap by 35%. The commercial rent stands as comparatively four to five times less, and the staff cost stands at a cost of 60%. An add-on to this turns out to be the availability of free zones in Bahrain. The Bahrain Economic Development Board states that the Financial services in the region are undergoing numerous changes due to the involvement of FinTech. However, the process of establishing a business turns out to be much easier in Bahrain, backed by the essentials provided. Let’s have a look at the process.
Types of Business Entities in Bahrain
It is known that every country holds certain criteria regarding the types of business entities that a business owner can incorporate. If you choose to incorporate a business in Bahrain, you can choose one from the below-mentioned entity types:
- Bahrain Shareholding Company (B.S.C)-Public
- Bahrain Shareholding Company (B.S.C)- Closed
- With Limited Liability Company (W.L.L)
- Partnership Company
- Simple Commandite
- Commandite by Shares
- Single Person Company (S.P.C.)
- Individual Establishment
- Foreign Company Branch
How to Set Up a Company in Bahrain?
While setting up a company in Bahrain, certain guidelines are to be followed that is expected in order to carry-out a hassle-free process. Have a look at the below-mentioned points.
1.Legal Structure Selection
The Kingdom of Bahrain offers a comprehensive platform to various types of entities, that makes it suitable for small, medium and large organizations to choose the best entity that suits them. Selection of the legal structure serves to be the first step in the company establishment process, but before you choose one, you need to understand the pros and cons of each of them and accordingly select the best according to your business needs. The list mentioned above has highlighted the respective structures that can be incorporated in the region.
2.Choosing an appropriate Company Name
In the next step, you need to choose a proper name for your business organization, which needs to obtain the approval of Ministry of Industry & Commerce, and you will have an option to propose four company names. If any name violates the stated guidelines, the company name approval process will be rejected by the authorities.
3.Registration of Commercial Papers
The next step is to register the commercial papers of the company in the designated Government Authorities. In the case of individual establishments, the papers are to be registered at the Bahrain Investors Centre (BIC). When it comes to the companies and organizations, the essentials are to be submitted at the Ministry of Industry and Commerce Registration Directorate (MOIC).
4.Obtaining Required Licenses and Approvals
After registering the commercial papers, the next step is to obtain approvals from the relevant Government Authorities. Once the essential licenses and approvals have been obtained, you can commence the business operations.
Documents Required to Set Up a Company in Bahrain
To set up a company in Bahrain, the following essentials needs to be submitted accordingly:
- Company registration application form
- Copy of Memorandum and Articles of Association
- Board of Directors resolution
- Copy of National ID card of shareholders
- The CV of each partner
- Lease agreement
Once the aforementioned documents are submitted, the company formation process gets initiated. The proceedings carried out needs to abide by the legal laws standardized by the Government Authorities of Bahrain. Let’s proceed ahead and have a look at the gist of the business industries.
Business Industries You Can Focus on to Start in Bahrain
As you have seen that the business establishment cost turns out to be lower than other locations, let’s have a look at the business industries. The list below states the list of different industries:
- Petrochemicals and Plastics
- Food Processing
- Garment Industries
- Small and Medium Industries
If you are dealing with the above stated business industries, then Bahrain turns out to be the ultimate ground. You need to make sure that your business incorporation proceedings are in safe-hands and are carried out in a hassle-free and error-free way.
To ease the process, business investors mostly opt for experienced professionals who can help in the company setup process in a hassle-free way, and at a lesser cost. At Commitbiz, our business experts take charge of clearing all the proceedings so that you can dedicate your time in core business planning. To have a word with our experts, do contact us-we’d be glad to assist.