The Bahrain Commercial Companies Law requires that all commercial companies be registered with the Ministry of Industry, Commerce and Tourism. The registration process is relatively simple and can be completed online. Once registered, companies must obtain a trade license from the Bahrain Chamber of Commerce and Industry. Companies must also open a Bahraini bank account and deposit the minimum share capital required by the law. If you are looking for Company formation in Bahrain visit here and contact us.
1- Brief Introduction to Bahrain’s Commercial Companies Law
Bahrain’s Commercial Companies Law (CCL) regulates the incorporation and operation of commercial companies in Bahrain. The CCL is based on the Bahrain Commercial Companies Law of 2015, which was promulgated by Royal Decree No. 22 of 2015.
The CCL applies to all commercial companies incorporated in Bahrain, whether they are Bahraini or foreign-owned. The CCL does not apply to companies that are exempt from its provisions, such as Bahraini public shareholding companies, banks, and insurance companies.
The CCL sets out the requirements for the incorporation of commercial companies in Bahrain. A commercial company must have a minimum of two shareholders and a maximum of fifty shareholders. The company must also have a registered office in Bahrain.
The CCL requires that a commercial company have a board of directors, which must consist of a minimum of three directors. The directors must be natural persons and must be residents of Bahrain.
The CCL sets out the powers and duties of the board of directors. The board is responsible for the management of the company and for ensuring that the company complies with the CCL.
The CCL requires that a commercial company have a managing director. The managing director must be a natural person and must be resident in Bahrain. The managing director is responsible for the day-to-day management of the company.
The CCL requires that a commercial company have a secretary. The secretary must be a natural person and must be resident in Bahrain. The secretary is responsible for the administration of the company.
The CCL sets out the requirements for the share capital of a commercial company. A commercial company must have a minimum share capital of BD 100,000. The share capital must be paid up in full before the company commences business.
The CCL sets out the rights and duties of shareholders. Shareholders have the right to receive dividends and to vote at shareholder meetings. Shareholders are also liable for the debts of the company.
The CCL sets out the requirements for the financial year of a commercial company. A commercial company must have a financial year that runs from 1 January to 31 December.
The CCL sets out the requirements for
2- The Minimum Capital Requirement for Company Formation in Bahrain
The minimum capital requirement for company formation in Bahrain is BD100,000. This must be paid up prior to the registration of the company. The company must also have a registered office in Bahrain. Company registration in Bahrain is a straightforward and reliable process, ensuring a seamless path to establishing your business presence.
3- The Types of Companies that Can Be Formed in Bahrain
There are three types of companies that can be formed in Bahrain: private companies, public companies, and foreign companies.
Private companies are the most common type of company in Bahrain. A private company is a company that is not listed on a stock exchange and does not offer its shares to the public. A private company must have at least two shareholders and cannot have more than 50 shareholders.
Public companies are companies that are listed on a stock exchange and offer their shares to the public. A public company must have at least two shareholders and cannot have more than 200 shareholders.
Foreign companies are companies that are incorporated in a foreign country but do business in Bahrain. A foreign company must have at least two shareholders and cannot have more than 50 shareholders.
4- The Process for Incorporating a Company in Bahrain
The Kingdom of Bahrain is a sovereign state located in the Persian Gulf. The country is an archipelago comprising 33 natural islands, with the largest being Bahrain Island. Bahrain has a population of just over 1.5 million people and a land area of 760 square kilometers. Bahrain is a constitutional monarchy headed by King Hamad bin Isa Al Khalifa. The capital of Bahrain is Manama.
The Bahraini economy is heavily dependent on the oil and gas sector. In recent years, the government has been diversifying the economy and encouraging foreign investment in other sectors such as tourism, finance, and manufacturing. Bahrain is a member of the Gulf Cooperation Council (GCC) and has a free trade agreement with the United States.
If you are interested in setting up a company in Bahrain, there are a few things you need to know about the incorporation process.
1. The first step is to choose a company name. The name must be unique and cannot be the same as or similar to an existing company.
2. The next step is to submit the required documents to the Ministry of Industry, Commerce, and Tourism. The required documents include the company’s Articles of Association, a notarized copy of the passport of the company’s legal representative, and a power of attorney.
3. Once the required documents have been submitted, the Ministry of Industry, Commerce, and Tourism will issue a registration certificate.
4. The next step is to open a bank account in Bahrain. The account must be in the name of the company and must be used for business purposes only.
5. The final step is to register for VAT. Companies in Bahrain are required to charge VAT on all taxable supplies of goods and services.
5- The Documentation Required for Company Formation in Bahrain
The documentation required for company formation in Bahrain is as follows:
1. A copy of the company’s memorandum and articles of association.
2. A completed registration form.
3. A registration fee of BD100.
4. The company’s registered address in Bahrain.
5. The names, addresses and passport details of the company’s directors and shareholders.
6. A bank certificate of deposit for the company’s corporate bank account.
7. A certificate of good standing from the company’s registered agent in Bahrain.
8. A copy of the company’s Certificate of Incorporation.
9. A copy of the company’s Memorandum and Articles of Association.
10. The company’s registered address in Bahrain.
11. The names, addresses and passport details of the company’s directors and shareholders.
12. A bank certificate of deposit for the company’s corporate bank account.
13. A certificate of good standing from the company’s registered agent in Bahrain.
14. A copy of the company’s Certificate of Incorporation.
15. A copy of the company’s Memorandum and Articles of Association.
16. The company’s registered address in Bahrain.
17. The names, addresses and passport details of the company’s directors and shareholders.
18. A bank certificate of deposit for the company’s corporate bank account.
19. A certificate of good standing from the company’s registered agent in Bahrain.
20. A copy of the company’s Certificate of Incorporation.
6- The Registered Office and Agent Requirements for Company Formation in Bahrain
The Bahrain Commercial Companies Law (CCL) requires all companies to have a registered office and a legal representative in Bahrain. The registered office must be the company’s principle place of business, and the legal representative must be authorized to represent the company in all legal matters.
The CCL also requires that all companies appoint a registered agent in Bahrain. The registered agent must be a Bahraini national or a company licensed to do business in Bahrain. The registered agent must be authorized to receive legal service of process on behalf of the company.
The requirements for registered office and registered agent are set forth in Article 7 of the CCL.
Article 7 – Registered Office and Registered Agent
(1) Every company shall have a registered office in Bahrain which shall be its principle place of business.
(2) Every company shall appoint a registered agent in Bahrain who shall be a Bahraini national or a company licensed to do business in Bahrain.
(3) The registered agent shall be authorized to receive service of process on behalf of the company.
(4) The registered office and registered agent of a company may be changed by a resolution of the board of directors.
(5) The registered office and registered agent of a company shall be listed in the company’s articles of incorporation.
The requirements for registered office and registered agent are essential for company formation in Bahrain. These requirements ensure that companies have a physical presence in Bahrain and that they are represented by a qualified Bahraini national or company. These requirements also ensure that companies are able to receive legal service of process in Bahrain.
7- The Procedures for Obtaining a License to Conduct Business in Bahrain
The Bahrain government has set up a number of procedures that must be followed in order to obtain a license to conduct business in the country. These procedures are designed to ensure that businesses operate in a legal and compliant manner, and to protect the interests of consumers and other businesses.
The first step in the process is to submit an application to the Ministry of Industry, Commerce and Tourism. This application must include the company’s Articles of Association, as well as a business plan and other supporting documentation. The Ministry will review the application and, if satisfied, will issue a trade license.
The second step is to register the company with the Ministry of Social Development. This registration is necessary in order to obtain a work permit for foreign employees. The registration process includes the submission of certain documents, such as the company’s Articles of Association, a business plan, and proof of financial solvency.
The third step is to obtain a permit from the Ministry of Labour. This permit is necessary in order to hire foreign workers. The application process for this permit includes the submission of the company’s Articles of Association, a business plan, and proof of financial solvency.
The fourth and final step is to obtain a commercial registration certificate from the Ministry of Industry, Commerce and Tourism. This certificate is necessary in order to engage in commercial activities. The application process for this certificate includes the submission of the company’s Articles of Association, a business plan, and proof of financial solvency.
After the company has been registered and all the necessary permits and licenses have been obtained, it is then free to commence business operations in Bahrain.
8- The Approval Process for Foreign Ownership of a Bahraini Company
The Bahrain government has a very open and welcoming attitude towards foreign investment, and as such there are few restrictions on foreign ownership of Bahraini companies.
The approval process for foreign ownership of a Bahraini company is very straightforward. The first step is to submit a formal application to the Bahrain Economic Development Board (EDB).
The EDB will then review the application and, if satisfied that the investment is in line with Bahrain’s economic development plans, will grant approval.
Once approval has been obtained from the EDB, the investor can then proceed to register the company with the Bahrain Chamber of Commerce and Industry.
The registration process is relatively simple and straightforward, and once the company is registered it will be fully operational and able to conduct business in Bahrain.
