Bahrain is a classic offshore and attracts investors from abroad, since there is no direct taxation in this state. A corporation established on the territory of the kingdom does not pay income tax and tax on its turnover. Foreign entrepreneurs, most often, choose the WLL Company form for their enterprises, which corresponds to a society with a limited type of liability.
The corporate environment is regulated by the Law on Business Enterprises, passed in 2001. Local legislation is quite loyal to foreign businessmen, however, it provides for the presence of a resident co-founder in a foreign company. Usually, this person actually runs the firm, while the non-resident partner finances the structure.
The main stages of the procedure
The establishment of a company in Bahrain consists of the following several stages.
- The direction of the firm’s activity is determined. It should be noted that foreigners are not allowed to do business in all industries.
- A name is chosen for the future organization. The name must be unique.
- The circle of shareholders is limited.
- The directors of the company are appointed.
- Capital is being formed.
- A Memorandum of Association and a Statute are being drafted. You must first obtain approval for these documents from the ministry that regulates trade.
- A local account is created.
- Documents are submitted for company registration.
The whole procedure is not that complicated, so there are no serious difficulties for foreign entrepreneurs.
Features of the procedure and jurisdiction in general
First of all, a foreign investor should find out whether non-residents in Bahrain are allowed to engage in the activities that he has chosen for himself. For example, foreign businessmen cannot work in the field of insurance and banking services. In addition, a number of industries require a special license permit.
1 person can act as the founder of the enterprise, however, it will be necessary to hire a manager who must be a resident. When registering, the amount of the authorized capital is clearly determined, the time frame during which it will be paid is indicated, and in what order. For an LLC in Bahrain, the minimum capital requirement is RSD 20,000.
The amount of time it takes to register a company depends on the organizational form of the company. On average, the process takes about 12 weeks.
If you need to register a company in Bahrain, our specialists will help you register a company quickly and efficiently. Also, you can buy a ready-made company in Bahrain. Write to us in the CRM form and we will help you register a company.
Eternity Law International specialists will provide you with qualified advice on the acquisition of an offshore company, opening a bank account in any jurisdiction, as well as further support of your company’s activities at any stage.
We offer ready-made European and offshore companies. It takes 2 days to reissue documents for new owners.
If you have any questions or need advice on registering or buying a company, call us at the phone numbers listed on the website, or write to us in the CRM form located at the bottom of the page. Our specialists will answer you online.