ABCN Goes To Bahrayn
Bahrain also known as Bahrayn (the two seas).
The first gulf country to discover Oil and Oil refineries. The first Gulf state to develop Finance sector and is now a leading country for Finance in comparison to Oil and Gas sector. This place provides Tax free Economy, No Vat and Variety of incentives. With highly developed transportation and communications facilities, Bahrain is a fast-growing market at the heart of the Gulf.
The cost of doing business in Bahrain is relatively low, approx. 40% lower than Dubai and Qatar*.
The basic costs such as rents for offices and industrial land are lower than elsewhere in the region. The highly developed telecommunications also account for Bahrain’s success in the industry and financial sector.
The real estate market in Bahrain is also becoming more established due to a strong investor demand which is helping the Kingdom’s rapidly growing economy. In the Gulf region, Bahrain is regarded as one of the most developing countries in the real-estate sector. Bahrain has been named the top expat destination in the Middle East, according to the Inter Nations Expat Insider 2015 survey. Bahrain was ranked the 17th most popular destination for expats in the world, ahead of the UAE in 19th and Oman in 24th out of a total of 64 countries analyzed.
So, why must you make Bahrain your first choice for your MENA business operations?
- Bahrain is the gateway to Middle East with the best market access to the growing Gulf economies
- The Middle East’s freest market and the most liberal business environment
- The longest, most mature track record with the most experience
- A great place to live amongst an open and liberal society
- Competitive costs & taxes
- The most educated skilled Gulf workforce
There are several ways of starting business in Bahrain, the most common being through the formation of a limited liability company (locally known as a WLL). Alternatively a client may choose to set up another type of business entity in Bahrain, such as a free zone company (FZC) as well as a branch or a representation of office of their existing overseas company.
Let’s have a close look on the Business entities in Bahrain in detail as bellow.
The Bahrain limited liability company (WLL)
- Locally known in Bahrain as a private limited liability company (WLL), a limited liability company is the type of business entity most commonly used by foreign entrepreneurs willing to do business in Bahrain. Its formation requires i) the appointment of the two directors ii) two shareholders and iii) a minimum paid up capital of US$ 53,100
- It is also possible to form a limited liability company with a sole director and shareholder. This type of company is publicly known as a “a single person company (SPC) and requires a minimum investment of US$ 133,000 before the company is fully registered:
- SPC’s and WLL’s are required to appoint a resident manager in Bahrain. Trading companies in some industries are furthermore subject to joint venture requirements with a local partner in Bahrain, who must own at least 51% of the shares.
The Bahrain free zone company (FZC)
It is possible to obtain a permit to operate in a free zone for the companies incorporated both locally and abroad. Such free zone companies are recommended for the clients intending to use Bahrain as a regional manufacturing or distribution base, with the bulk of their business conducted outside the Bahrain Kingdom. Free zones can also be used by import/export companies who only require an office in Bahrain. In Bahrain free zones, these corporate entities also enjoy zero customs duties and government rebates.
The Bahrain branch.
- The Bahrain Commercial Companies Law regulates the registration of a branch by a foreign company in Bahrain and stipulates they may 100% foreign owned, if their industry of operations is also fully open to the formation of a LLC by a foreign shareholders. Such business entity is allowed to invoice Bahrain customers, sign local sales contracts and receive income from customers. A local Bahrain agent or distributor must be appointed to sponsor visas and licenses. The foreign company must also issue a bank guarantee of US$ 133.000 in favor of the ministry of finance.
- For the registration of a branch in Bahrain, the incorporation documents of the overseas company must be translated and legalized at i) the Bahrain embassy in the country of incorporation and then i) by the ministry of Foreign Affairs of Bahrain. Parent company documents to be translated into Arabic include i) two years audited financially statements ii) a Board of directors resolution authorizing opening of the branch in Bahrain iii) a power of attorney issued in the favor of general manager of Bahrain branch and iv) the overseas company’s Memorandum of association and certificate of incorporation
The Bahrain shareholding company (BSC)
- This entity is also called as public joint stock company and suitable for large projects of operations involving a large investments of funds or raising private or public capital
- Main requirement to form BSC in Bahrain include i) minimum share capital of US$ 663,000 ii) a minimum of 50 members and iii) a Board of members consisting of a minimum 3 members
The Bahrain representative office
The representative office of a foreign company is not permitted to make sales within Bahrain. Such an office will only be allowed to engage in activities such as i) promoting the business of parent company ii) market research. A local Bahrain agent or distributor must be appointed to represent the overseas company locally.
So why wait! Let’s do business and find office space in Bahrain with ABCN.