Setting up a company in Bahrain
The Kingdom of Bahrain permits a foreign investor to own a company outright in most activities, in accordance with the regulations in force and the nature of the activity. Al Qabas arranges the steps and follows up the conditions of each authority, from determining the activity and legal form through to the issue of the commercial registration.
Which form suits your activity
Limited liability company (W.L.L.)
A form suited to trading and service activities. Shares are divided between partners, and each partner’s liability is limited to their share.
Limited liability company with one owner
One owner holds the whole of the capital. Since Legislative Decree No. 28 of 2020 this is a limited liability company, not a single-person company.
Branch of a foreign company
An extension of a company already established abroad, trading in its name and activity. It calls for attested documents from the parent company’s country.
Formation in seven steps
The usual period from complete documents to an issued commercial registration is fifteen to twenty working days, and it runs longer for activities that need further regulatory approvals.
- 01Ministry of Industry and Commerce
Settling the activity and the legal form
The activity is selected from the unified economic activities directory, and the legal form follows the number of partners and the nature of the business. Some activities call for a regulator’s approval before registration.
- 02Nationality, Passports and Residence Affairs
Security approval for non-Bahraini partners
Every foreign partner and board member is screened. A refusal halts the whole formation, so the documents are checked against the records before filing.
- 03Ministry of Industry and Commerce · Sijilat
Reserving the trade name
The name is reserved through Sijilat and checked for conflict and for compliance with the naming rules. More than one name is filed, in order of preference.
- 04The Municipality
Approval of the commercial address
The lease and proof of address are filed so the premises can be checked against the activity. Business-centre addresses are accepted for certain activities and not for others.
- 05Ministry of Justice · Notary Public
Notarising the memorandum and articles
The memorandum and articles are drawn up and notarised. The partners attend, or an attorney signs for them under a duly attested power of attorney.
- 06A commercial bank in the Kingdom
Opening the bank account and depositing the capital
An account is opened in the company’s name and the capital deposited before the registration is completed, under Ministry of Industry and Commerce Resolution No. 43 of 2024. The bank issues confirmation of the deposit.
- 07Ministry of Industry and Commerce
Registration and issue of the licence
The commercial registration is issued with its numbers and licence, and the company’s files are opened at the authorities that follow: labour, social insurance and residency.
- 15–20working days on the ordinary route, from the point the documents are complete.
What is asked of you
From individual partners
- —A valid passport for each partner
- —A recent photograph
- —A correspondence address and contact details
- —An attested power of attorney where attendance is not possible
From a parent company or corporate partner
- —The commercial registration and memorandum of association, attested
- —A board resolution to incorporate or open the branch
- —Authorisation of the legal representative
- —A certified translation of anything not in Arabic or English
The registration is a beginning, not an end
Once registered, a company needs open files with the relevant authorities, valid residencies and a working bank account before it begins operating.
Investor residency
Issued to the investor and their family, tied to the commercial registration and to the conditions of the category the company falls under.
Authority files
Opening the company’s file with the Labour Market Regulatory Authority, Social Insurance and the tax authority where it applies.
The bank account
Know-your-customer documents are prepared and the investor is accompanied to the bank’s appointments. The decision rests with the bank alone.
What is asked about formation
How long does forming a company in Bahrain take?
Formation runs through seven stages before five authorities, and no stage begins before the one before it is complete. The period follows the longest of them: security approval for non-Bahraini partners, then notarising the memorandum, then depositing the capital. Each case has its own schedule, by activity and by the partners’ nationalities.
Can a foreigner own a company outright in Bahrain?
Yes in most activities, with no local partner and no sponsor. Some activities are reserved for nationals or for GCC nationals, some require local participation, and some are regulated under special licences. That is why the study starts from the activity, not the legal form.
Which legal forms are available today?
The company with limited liability for trading and service activities — the same form where the owner stands alone, since Legislative Decree No. 28 of 2020 abolished the single-person company and merged it into the W.L.L. — and the branch of a foreign company where the venture extends a company already established abroad.
Must a bank account be opened before the registration issues?
Yes. An account is opened in the company’s name and the capital deposited before the registration is completed, under Ministry of Industry and Commerce Resolution No. 43 of 2024, and the bank issues confirmation of the deposit.
What are the government fees for formation?
280 BHD on the ordinary route, and 166 BHD a year to keep the registration in force. Every item is published on the fees page, and all of it sits outside the office’s own charge.