Company Formation in Bahrain
Last updated: November 2026
Company formation in Bahrain runs online through Sijilat, the portal of the Ministry of Industry and Commerce (MOIC), and ends with a Commercial Registration (CR). Most commercial activities can be 100% foreign-owned, and the usual vehicle, the W.L.L. (With Limited Liability company), needs only one partner and no statutory minimum capital. There is no general corporate income tax today except on oil and gas; a draft law for 2027 had not been confirmed as enacted by November 2026.
Our company formation services in Bahrain cover the structure, the activity check and the Sijilat filing. We coordinate the Ministry of Interior security clearance and any sector approval, then introduce the company to a licensed Bahraini bank. Each case is quoted once we know the activity, the owners and the location.
| Quick facts | Value |
|---|---|
| Local company form | W.L.L. (With Limited Liability company), equivalent of an LLC / private limited company |
| Partners | One or more; no maximum since 2020 |
| Minimum share capital (W.L.L.) | None by statute; BHD 100,000 for 100% foreign ownership in Table No. 4 activities |
| Foreign ownership | Up to 100% in most commercial activities |
| Registry and portal | MOIC Commercial Register, via Sijilat |
| Security clearance | Ministry of Interior, for foreign individual shareholders |
| Corporate income tax | None except oil and gas (46%); a draft 10% tax on taxable profits above BHD 200,000 from 1 January 2027, not confirmed as enacted by November 2026 |
| Domestic minimum top-up tax | Top-up to 15% for multinational groups with consolidated revenue of at least EUR 750 million in two of the four preceding years (Decree-Law No. 11 of 2024) |
| VAT | 10%; mandatory registration above BHD 37,500 of annual taxable supplies |
| Withholding tax | None on dividends, interest or royalties |
| Bank account | Commercial account at a licensed Bahraini bank, entered on Sijilat |
| Audit | Bahrain-licensed auditor every year |
| Apostille Convention | In force for Bahrain since 31 December 2013 |
Why Form a Company in Bahrain
Open to foreign capital. Most commercial activities can be 100% foreign-owned; a short list still needs Bahraini or GCC owners under Decision No. 40 of 2021, as amended.
A light company form. A W.L.L. needs only one partner and, since Decree No. 28 of 2020, no statutory minimum capital.
Simple taxes today. Bahrain has no general corporate income tax today except on oil and gas, and no withholding tax on dividends, interest or royalties. VAT is 10%, and the tax overview covers the 2027 draft law.
One portal, one financial regulator. Sijilat carries the CR, the beneficial owner filing and the annual accounts, and the Central Bank of Bahrain is the single integrated regulator for financial services. The Bahrain Economic Development Board (EDB) offers investor support and aftercare.
The limits. Foreign individual shareholders need Ministry of Interior security clearance, which has no prescribed statutory timeframe. Every W.L.L. needs a licensed commercial address, a commercial account at a licensed Bahraini bank and a Bahrain-licensed auditor. Comparing Gulf bases? See our UAE, Saudi Arabia, Qatar and Oman pages.
Company Types Available in Bahrain
The Commercial Companies Law, Legislative Decree No. 21 of 2001, governs the forms and was amended notably by Law No. 50 of 2014 and Decree No. 28 of 2020. The official Sijilat Companies Control Guide of July 2023 compares them:
| Form | Name used | Minimum partners | Statutory minimum capital | Minimum management |
|---|---|---|---|---|
| With Limited Liability company | W.L.L. | 1 | None | 1 manager |
| Closed joint stock company | B.S.C. (c) | 2 | BHD 250,000 | Board of 3 |
| Public joint stock company | B.S.C. | 2 | BHD 1 million | Board of 5 |
| General partnership | General partnership company | 2 | None | 1 |
| Non-profit company | N.P.C. | 1 | None | 1 |
Sijilat also lists limited partnerships and individual establishments.
With Limited Liability Company (W.L.L.)
For W.L.L. company formation in Bahrain, one partner is enough. Decree No. 28 of 2020 removed the old cap of 50 partners and the old BHD 20,000 minimum capital, though some activities set their own minimum on Sijilat. The company may act as a holding company. Banking, insurance and investing third-party funds need a B.S.C. Our minimum share capital comparison sets Bahrain beside other countries.
What does W.L.L. mean?
W.L.L. stands for "With Limited Liability", the name the official Sijilat guide uses for a Bahraini limited liability company (LLC). It is the local equivalent of a private limited company: one or more partners, no statutory minimum capital and no personal liability for the partners. It is the usual vehicle for foreign founders.
Single Person Company (S.P.C.)
Decree No. 28 of 2020 merged the separate single person company into the W.L.L., and existing S.P.C.s had six months to convert. The July 2023 Sijilat table lists no S.P.C., so a sole founder forms a one-partner W.L.L.
Branch and Representative Office
A branch takes the parent's name plus "branch of a foreign company", has a manager, and leaves the parent liable for its debts. The parent's CR and audited accounts are filed, and the branch keeps an auditor and files accounts every year. A representative or regional office may only market and promote the parent, with no direct trading with Bahraini clients.
Foreign Ownership Rules in Bahrain
Business setup in Bahrain starts with the activity. It fixes the ownership tier under Decision No. 40 of 2021, which specifies the commercial activities foreign capital companies may be licensed to practise. The Prime Minister amends it on the proposal of the Minister of Industry and Commerce, after Cabinet approval; the latest amendment we found is Decision No. 71 of 2025. Our foreign ownership comparison sets Bahrain beside other countries.
| Ownership tier | What it requires |
|---|---|
| Open activities | Up to 100% foreign ownership; the vast majority of commercial activities |
| Table No. 4 activities | 100% foreign ownership only on the three conditions below |
| One Bahraini or GCC share | At least one Bahraini or GCC shareholder |
| Bahraini or GCC majority | At least 51% Bahraini or GCC ownership |
| Fully Bahraini or GCC | 100% Bahraini or GCC ownership |
Activities that still need Bahraini or GCC owners include fishing, customs clearance offices and postal and private mail carrying. Since Decision No. 71 of 2025, retail through vending machines (code 4799-1) needs at least one GCC shareholder. We check your activity code against the current tables before filing.
Table No. 4: Full Foreign Ownership on Three Conditions
Article 5 of Decision No. 40 of 2021, as replaced by Decision No. 53 of 2024, allows 100% foreign ownership in Table No. 4 activities only on these conditions:
- Capital of the Bahraini company of at least BHD 100,000
- Revenue of the parent of at least EUR 750 million
- Presence in ten markets
Decision No. 53 of 2024 was issued on 17 October 2024 and took effect the day after its Gazette publication. Decision No. 71 of 2025 opened five more activities fully, among them electric power generation and real estate brokerage, and seven more on these conditions.
Authorised Distributors
Authorised distribution (Table No. 2, clause 21) needs Bahraini participation, and Ministerial Decision No. 29 of 2024 sets at least 51% Bahraini ownership. Foreign owners can still hold up to 100% where one of these applies:
- A 51% Bahraini distributor of the same brand already exists
- The global brand owner distributes itself and meets Article 5
- The Cabinet approves a brand of economic importance (Article Four bis)
How to Register a Company in Bahrain: Step by Step
Company registration in Bahrain runs through Sijilat, MOIC's electronic platform. MOIC keeps the Commercial Register, Bahrain's company registry, and issues the CR. As your formation agent in Bahrain, we prepare each step below and confirm its order with MOIC for every file.
- Choose the activities on Sijilat. They fix the ownership tier, any sector approval and any capital minimum.
- Reserve the trade name and file the CR application with MOIC.
- Security clearance. The Ministry of Interior clears each foreign individual shareholder before registration.
- Sector approvals. Some activities need a regulator's approval before the CR is issued, such as the Central Bank of Bahrain for financial services.
- Memorandum and articles of association. The partners sign them.
- Licensed commercial address. The Sijilat guide requires every establishment to have an existing and licensed commercial address.
- Commercial bank account. The company opens an account with a licensed Bahraini bank and enters it on Sijilat (Decision No. 43 of 2024).
- CR issued, then registrations. LMRA registration for work permits and social insurance registration follow, plus VAT registration with the National Bureau for Revenue (NBR) above the threshold.
Required Documents for Company Formation in Bahrain
The usual list is short:
- Passport copies
- Shareholder or board resolution
- Power of attorney
- For a corporate shareholder or a branch: the parent's CR and audited accounts
- The memorandum and articles of association, signed during the filing
The Hague Apostille Convention has been in force for Bahrain since 31 December 2013, so public documents from other Convention states can carry an apostille instead of legalisation. Before anything is signed abroad, we confirm with MOIC whether a document also needs an Arabic translation.
Timeline and What Our Package Covers
We found no statutory deadline for MOIC to issue a CR, and the Ministry of Interior clearance has no prescribed statutory timeframe. The pace depends on the clearance, sector approvals, the address, the bank and authenticating documents abroad. Our formation time comparison shows other countries side by side.
Our package covers:
- Structure choice: W.L.L., branch, representative office or B.S.C.
- Activity check against Decision No. 40 of 2021
- Trade name, CR application and beneficial owner filing on Sijilat
- Coordination of the security clearance and sector approvals
- Memorandum and articles of association, plus an apostille plan for the documents issued abroad
- Bank introduction, then the LMRA, social insurance and NBR registrations
The total depends on the activity and its approvals, the ownership tier, the shareholders, the address, the visas and the location. We quote each case in writing.
Tax Overview for Bahrain Companies
Bahrain has no general corporate income tax today except on oil and gas, taxed at 46% of net profits (rate applicable in 2026). A draft law for a 10% corporate income tax on taxable profits above BHD 200,000 from 1 January 2027 was referred to the legislature on 29 December 2025. Its enactment had not been confirmed by November 2026. We check the status before you decide.
| Tax | Rate or rule (November 2026) |
|---|---|
| Corporate income tax | None, except oil and gas at 46% of net profits |
| Draft corporate income tax | 10% on taxable profits above BHD 200,000 from 1 January 2027; enactment not confirmed by November 2026 |
| Domestic minimum top-up tax | Top-up to 15% for multinational groups with consolidated revenue of at least EUR 750 million in two of the four preceding years |
| VAT | 10%; mandatory registration above BHD 37,500 of annual taxable supplies, voluntary at BHD 18,750 or more |
| Withholding tax | None on dividends, interest or royalties |
| Employer social insurance | 18% for Bahraini employees from 1 January 2026, 3% for expatriates, up to a salary ceiling |
The top-up tax rests on Decree-Law No. 11 of 2024 and applies to financial years starting on or after 1 January 2025. In-scope groups register with the National Bureau for Revenue. VAT runs under Decree-Law No. 48 of 2018, at 10% since 1 January 2022, and a non-resident registers on its first taxable supply. E-invoicing is not in force.
PwC listed 50 double tax treaties in force on 26 July 2026, and Law No. 32 of 2026 ratified a treaty with Saudi Arabia. Our corporate tax rates by country table compares Bahrain with other jurisdictions.
Commercial Registration in Bahrain: The CR on Sijilat
Sijilat, MOIC's electronic platform, handles a Bahrain CR from the first application to the annual filings.
What is a CR in Bahrain?
A CR in Bahrain is the Commercial Registration that MOIC issues through Sijilat when a company enters the Commercial Register. It records the licensed activities. The bank account, beneficial owners and audited accounts are filed on Sijilat, and LMRA issues work permits only to an employer holding a CR.
Virtual CR (Sijili)
The virtual CR, Sijili, lets an individual practise listed activities without a commercial address, but its holders cannot get permits to bring in foreign workers. MOIC's January 2026 guide describes it as a service for Bahraini citizens, and Ministerial Resolution No. 51 of 2024 widened eligibility among Bahrainis who own or direct other businesses. A foreign founder, even for an online business, registers a company with a licensed commercial address instead.
CR Renewal and Good Standing
Violations block CR renewal. A missing bank account entry is one (see banking below), and beneficial owner details and audited accounts are filed every year. We track the renewal date and these filings with you.
Free Zones and Investment Parks in Bahrain
PwC describes three zones:
| Zone | Location and focus | Incentives |
|---|---|---|
| Bahrain Logistics Zone (BLZ) | Next to Khalifa Bin Salman Port; logistics | Customs duty exemptions; 100% foreign ownership |
| Bahrain International Investment Park (BIIP) | Salman Industrial City; manufacturing, technology and export | Profit repatriation, no import or export duties, simplified licensing |
| Bahrain Airport Free Zone | Aviation, air cargo and e-commerce | Terms confirmed with the zone per project |
How to Set Up a Company in a Bahrain Free Zone
Pick the zone by activity: logistics at the BLZ, manufacturing, technology or export at BIIP, and aviation, air cargo or e-commerce at the Airport Free Zone. We confirm the legal form, the ownership rules and the registration route with the zone before filing. To compare with the Emirati zones, see our guide to business setup in Dubai.
Zone Tax Claims
Some sites promise BIIP companies a guaranteed ten-year zero corporate tax. We found no official source for it, and the top-up tax already reaches large multinational groups.
Visas and Work Permits
Work permits come from the Labour Market Regulatory Authority (LMRA). The employer must hold a CR, and the contract is in Arabic or bilingual. LMRA processes a permit in 3 working days for an applicant inside Bahrain and 21 working days for one abroad.
Residence for Owners and Investors
Foreign owners and partners can apply for a self-sponsored investor residence permit of 2, 5 or 10 years. The eGovernment portal's conditions include a share of at least BHD 100,000, shown in the memorandum and the CR, and medical insurance issued in Bahrain. Golden Residency from NPRA, the residence authority, covers long-term resident employees, retirees, property owners and talented individuals. Company ownership alone is not a category. NPRA lowered the property minimum in late 2025, so older figures online are out of date. A Golden Residency holder who is an investor and partner needs no separate work permit, LMRA says.
Bahrainisation
LMRA sets a minimum share of Bahraini staff by activity and company size, and parallel Bahrainisation allows hiring above the quota against an extra fee. We check your quota first. The flexi permit ended on 17 February 2023.
Banking for Bahrain Companies
Decision No. 43 of 2024 requires every commercial establishment to transact through at least one commercial account at a licensed Bahraini bank and to enter it on Sijilat. Existing CRs had until 13 June 2025. A CR without the entry gets a violation that blocks renewal and further Sijilat applications. Banks answer to the Central Bank of Bahrain, the single integrated regulator for financial services.
Before the introduction, we obtain the bank's document list and ask whether it wants to meet the shareholders or the manager. Our bank account opening team prepares the file.
Compliance and Reporting Obligations
A W.L.L. reports to MOIC on Sijilat and, for tax, to the NBR. The table lists the recurring duties.
| Obligation | Rule | Timing |
|---|---|---|
| Annual general meeting | W.L.L. and B.S.C. | Within six months of the year end |
| Auditor and accounts | Bahrain-licensed auditor; audited report or auditor's solvency letter on Sijilat | Every year |
| Statutory reserve | 10% of net profit | Yearly until it reaches 50% of paid-up capital |
| Books and records | Sijilat guide | Kept 10 years |
| Beneficial owners | Natural persons with 10% or more of capital or votes, or other control (Ministerial Order No. 83 of 2020) | Filed on Sijilat at incorporation and on change; renewed annually |
| Economic substance | Headquarters, distribution and service centre, holding company, IP, shipping and leasing activities (Ministerial Order No. 106 of 2018) | Annual return on the NBR portal |
Central Bank of Bahrain licensees are exempt from the beneficial owner filing. Our accounting and tax compliance service can track these dates.
No Nominee Services and Commercial Concealment
We do not provide nominee shareholders or nominee directors in Bahrain. Fronting through a Bahraini's CR, known as commercial concealment, is an offence. It covers a Bahraini or GCC national who rents or lends a CR or licence to a non-Bahraini for a restricted activity. It is pursued under Decree-Law No. 1 of 1987 on the sale and lease of commercial stores and the Commercial Registry Law, Legislative Decree No. 27 of 2015. Holding shares through a Bahraini or GCC nominee to get around Decision No. 40 of 2021 is commercial concealment under these laws. Consequences include fines, removal from the register, closure, referral to the Public Prosecution and imprisonment for repeat cases. MOIC and the Bahrain Chamber have run a joint campaign against it since 2021.
Forming a Bahrain Company as a Non-Resident
A non-resident can own up to 100% of a W.L.L. in an activity open to foreign ownership, and one partner is enough. Restricted activities still need Bahraini or GCC owners. Each foreign individual shareholder needs Ministry of Interior security clearance, and we confirm before filing whether the manager must live in Bahrain.
A non-resident individual supplies a passport copy, a power of attorney and the shareholder resolution. A non-resident corporate shareholder adds the parent's CR and audited accounts, with the apostille or legalisation described above. Filing runs online on Sijilat. Whether MOIC or the bank wants to see you in person is confirmed before you book travel.
The company still needs a licensed commercial address and a commercial account at a licensed Bahraini bank. A non-resident owner who wants to live in Bahrain applies separately, for example for the self-sponsored investor residence described above.
Frequently Asked Questions
Can a foreigner own 100% of a company in Bahrain?
Yes, in most commercial activities. Decision No. 40 of 2021, as amended, keeps a short list for Bahraini or GCC owners, from one Bahraini or GCC share up to full ownership. Table No. 4 activities allow full foreign ownership only on conditions, including capital of at least BHD 100,000.
How do I start a business in Bahrain as a foreigner or expat?
Start with the activity: it decides how much a foreign owner can hold under Decision No. 40 of 2021. Then file the trade name and CR application with MOIC on Sijilat. Foreign individual shareholders need Ministry of Interior clearance, and the company needs a licensed commercial address and a commercial account at a licensed Bahraini bank.
How long does company registration in Bahrain take?
It depends on the file: we found no statutory deadline for the CR, and the Ministry of Interior clearance has no prescribed statutory timeframe. Sector approvals add their own time. After the CR, LMRA processes work permits in 3 working days for applicants in Bahrain and 21 working days for applicants abroad.
Does Bahrain have corporate income tax?
Not in general: Bahrain has no general corporate income tax today except on oil and gas, taxed at 46%. A draft law for a 10% corporate income tax on taxable profits above BHD 200,000 from 1 January 2027 was referred to the legislature on 29 December 2025. Its enactment had not been confirmed by November 2026, and we check the status before you decide.
What does the total for company formation in Bahrain depend on?
It depends on the activity and its approvals, the ownership tier and how many shareholders need security clearance and authenticated documents. The commercial address, the bank, visas, Bahrainisation and any zone location add to it. The simplest structure is a one-partner W.L.L. with no statutory minimum capital. We quote each case in writing.
What are the different types of companies in Bahrain?
The July 2023 Sijilat guide lists the W.L.L., the closed B.S.C. (c), the public B.S.C., the general partnership and the non-profit company (N.P.C.), and Sijilat also lists limited partnerships. A foreign company can open a branch or a representative office. The single person company was merged into the W.L.L. in 2020.
Which business is best or most profitable to start in Bahrain?
The best fit is an activity open to 100% foreign ownership under Decision No. 40 of 2021, and some activities also match a zone. Logistics fits the Bahrain Logistics Zone, manufacturing, technology and export fit the Bahrain International Investment Park, and aviation, air cargo and e-commerce fit the Airport Free Zone. Financial services need Central Bank of Bahrain approval.
Get Started: Form Your Bahrain Company
Send us the activity, the owners and where you want to operate. We check the ownership tier first, then prepare the Sijilat file and the bank introduction. Our contact page takes the details for a written quote.
Call +48 2222 5 2222 or email info@companyformation24.com to start.
Content prepared by Aleksandra Kowalska, Corporate Client Service. Approved by Tomasz Bielski, Managing Director.
