Offshore Business

Bahrain is one of the most liberal environments for doing business. Zero taxation applies to private companies. Investors setting up a company in Bahrain have a whole range of opportunities through which they can do business. Being a shareholder or director of the company at the same time you will get the local residence permit.

Geography and history has played an important role in shaping  Bahrain as the main shopping center. Its location in the heart of the Persian Gulf gives strategic access to both European and Asian markets, providing entrepreneurs the ideal place to locate your business.

Bahrain is a developed country in terms of industry.

Benefits

  • no requirement to file an annual tax return.
  • no income tax in Bahrain.
  • no withholding tax in Bahrain.
  • no tax on the income because of the lease in Bahrain.
  • no property taxes in Bahrain.
  • no capital gain tax in Bahrain.
  • no inheritance tax in Bahrain.
Types of Company

General Partnership

Citizens of Bahrain can become general partners of a partnership, who cooperate together under a common name and have unlimited liability for the obligations of a partnership.

Association in Participation

This type of structure is generally formed for realizing specific projects.

Bahrain Shareholding Company (B.S.C.)

Foreigners can be shareholders of this type of company.

Limited Partnership

This type of company is not popular in Bahrain, and a Limited Liability Company is often chosen for incorporation rather than a Limited Partnership.

Join Stock Company

All the members of this type of company must be citizens of Bahrain, and this is usually a public company which undertakes banking or insurance business.

Requirements
  • Obtain lease agreement
  • Draft standard memorandum of association and obtain preliminary approval from the Ministry Of Commerce at the Bahrain’s Investments Centre one-stop shop
  • Obtain the approval from Municipality
  • Notaraize memorandum of association
  • Open an account at the bank and obtain proof of deposit of capital
  • Obtain certificate of registration from Ministry of Commerce
  • Register the company and employees with the General Organisation of Social Insurance
Taxation

An individual

  • There is no income tax in Bahrain.
  • There is no tax on the income because of the lease in Bahrain.
  • There are no property taxes in Bahrain.
  • There is no inheritance tax in Bahrain.

Legal person

  • There is no income tax in Bahrain.
  • There is no withholding tax in Bahrain.
  • There is no tax on the income because of the lease in Bahrain.
  • There are no property taxes in Bahrain.
  • There is no capital gains tax in Bahrain.

Legal regulations

Bahrain has signed an agreement on avoidance of double taxation with Poland.

Legal regulations on economic activity in Bahrain are contained in the act Commercial Companies of 2001.

Bahrain has signed the Law on Money Laundering Act of 2001.

Accounting & Audit
It is required to submit annual financial statements, the audit is not required.
Bank account & banking
In Bahrain there are over 400 licensed institutions.

The banking sector in Bahrain plays a very large role and is one of the leading financial centers in the region.

  • Popular Bahrain’s banks:
  • HSBC Amanah
  • Bank of Bahrain and Kuwait
  • Bank of Tokyo Mitsubishi
  • Islamic Development Bank
Company registration form