ntroduction
Bahrain has one of the most investor-friendly economies in the Middle East, attracting foreign entrepreneurs due to its low taxation and strategic location. This guide explains how foreign investors can register a business in Bahrain.
Can Foreigners Own a Business in Bahrain?
Yes! Bahrain allows 100% foreign ownership in many sectors, including manufacturing, trading, and IT. However, some industries require a local Bahraini sponsor.
Step-by-Step Process for Foreign Business Registration
Step 1: Choose a Business Structure
Foreign investors typically opt for:
- WLL (With Limited Liability Company) – Requires at least 2 shareholders.
- BSC (Bahrain Shareholding Company) – Suitable for larger investments.
- Branch Office – A foreign company can establish a branch in Bahrain.
Step 2: Obtain Commercial Registration (CR)
To register a company, submit an application to the Ministry of Industry, Commerce, and Tourism (MOICT) along with:
- A valid business name
- Shareholder details
- Business activity description
Step 3: Capital Requirements
While most businesses have no minimum capital requirement, some regulated sectors may require initial investment deposits.
Step 4: Apply for a Business License
Depending on the nature of your business, additional approvals may be needed:
- Financial businesses – Central Bank of Bahrain approval.
- Healthcare businesses – Ministry of Health approval.
- Retail & food businesses – Municipality and health department approvals.
Step 5: Open a Business Bank Account
Foreign businesses need to provide:
- Commercial Registration (CR) certificate
- Proof of business address
- Shareholder details
Step 6: Register for VAT and Tax Compliance
If your business revenue exceeds BD 37,500, you must register for VAT and file tax returns quarterly.
Step 7: Obtain Work Visas for Foreign Employees
If you plan to hire non-Bahraini staff, you must apply for work permits through the Labor Market Regulatory Authority (LMRA).
Conclusion
Bahrain’s open business environment makes it an attractive destination for foreign investors. By following the right registration procedures and ensuring compliance with tax and labor laws, entrepreneurs can establish a thriving business in the kingdom.