How to Set Up or Expand a Business Into Bahrain

Investor Journey in Setting Up a Business in Bahrain

The EDB team has simplified the process of setting up businesses in Bahrain into 3 easy steps so your business can get started as soon as possible.

Once you’ve completed these steps, you’ll be ready to do business in Bahrain and take advantage of Bahrain’s benefits. You’ll benefit from the ideal location, business-friendly environment, and 0% corporate tax. If you’re ready to get started with a business expansion in Bahrain, we can help you.

Why Invest in Bahrain?

Bahrain offers a compelling environment for foreign direct investment (FDI) with its open and transparent policies. Investors benefit from 100% foreign ownership across most sectors, minimal restrictions on repatriation of capital and profits, and one of the most competitive taxation frameworks in the region. The Kingdom’s forward-thinking approach to business regulation ensures a streamlined process, reducing bureaucratic hurdles and enabling companies to set up swiftly and efficiently.

Bahrain’s commitment to fostering growth sectors such as financial services, ICT, tourism, manufacturing, and logistics presents an array of opportunities for businesses looking to expand into the Middle East. With its strategic location at the heart of the Gulf Cooperation Council (GCC), the Kingdom provides unparalleled access to the wider region, enabling companies to tap into a growing market of over 55 million consumers.

Supported by a business-friendly environment and a highly skilled, bilingual workforce, Bahrain has become a hub for innovation and growth. The Kingdom’s focus on digital transformation and its commitment to sustainability further enhance its position as an attractive investment destination. Coupled with a strong legal framework that protects investor rights, Bahrain continues to provide a stable and secure base for businesses to thrive.

Investing in Bahrain means joining a progressive and dynamic economy, backed by a government that is dedicated to supporting the success of both local and international enterprises.

1
Getting started
- There are a few things required to start a company in Bahrain. First, prepare the required documents, which you can determine using our “Getting Your Business Set Up” tool above. Having your documents ready will be necessary to get approvals to move forward with the process.
- Second, please contact us to assist you in initiating the application process. Our team can help you get everything prepared to set up your business in Bahrain.
2
Obtaining initial approvals

There are many things to prepare before beginning your business in Bahrain including finding the right name for your company, choosing owners, shareholders, and directors, and choosing a business structure. Discover more about these steps below.
- At this step in the process, regulators will approve:
  
  The name of your company. Picking a name can be difficult because it needs to be unique and interesting. There are many resources available to help you choose a name. You will need to decide on both an English and Arabic version of your name for approval.
  
  The owners, shareholders and directors. These people will be the foundation of your business, so you should find the ones that share similar goals for your business.
  
  The business structure. The structure you choose will affect registration requirements, insurance, and terms and conditions. These structures include Company with Limited Liability (WLL) or Foreign Branch.
- Once the above has been approved, you will receive a Commercial Registration Certificate.
- With this initial approval, you can move forward with the first steps of setting up, like:
  
  Opening a bank account. You’ll need somewhere to begin financial transactions, so you’ll want to set up a bank account early.
  
  Leasing office space. Bahrain offers ideal office locations for your business. These might include the Diplomatic Area, which is great for financial services companies, or Seef Area, which is ideal for those in the tourism & leisure industry.
  
  Hiring Bahraini employees. The Bahraini workforce is highly skilled and educated. Bahraini employees provide the skill necessary to move your business forward.
- Keep in mind that you cannot begin business activities and transactions, or hire foreign employees until you complete Step 3.
3
Receiving final license and regulatory approvals
- During this step, and depending on the activities you have chosen, you will:
  
  Receive municipal approvals
  
  Receive approvals from regulators and licensing authorities
  
  Pay for licensing fees and permits
  
  Notarise and endorse the company’s newly formed Articles of Association/Memorandum of Association*
  
  Deposit the company’s paid-up capital to your preference*
- Upon completion, you will receive your activity licenses, which will be reflected on the Commercial Registration Certificate.
*Physical attendance of the authorised signature is required.

I'm interested in pursuing this further

Setting Up or Expanding a Business in Bahrain

You are allowed up to 49% ownership for the activity you selected

Based on your selection, please see below for the legal structure most relevant to your needs, and its required documents.

(Hover the cursor over each requirement for more details.) (Tap each requirement for more details.)

Investor Journey in Setting Up a Business in Bahrain

Why Invest in Bahrain?

Getting started

Obtaining initial approvals

Receiving final license and regulatory approvals

Start setting up your business