A small Arab nation called the Kingdom of Bahrain is situated on the Persian Gulf’s western shore in a bay. The country, which has Manama as its capital, borders both Qatar and Saudi Arabia, making it an accessible entry point into the global economy. Bahrain is a well-liked travel destination in the Middle East and has been solidifying its reputation as one of the most renowned locations for company incorporation. Bahrain is ranked among the world’s top ten most improved economies in the Doing Business 2020 report. Despite the region’s dominance in the oil industry, The region’s yearly real GDP growth rate surged to 2.2 percent in 2018, with a growth of 3 percent in the non-oil sector. 2018 was a year of amazing development. The Bahrain government has implemented new laws and rules that will enable investors to make investments in a relevant sector across a wide range of commercial operations. A foreign firm registered in Bahrain is something that foreign investors look forward to because it is usually much more profitable.
How can a business be registered in Bahrain
The following procedures must be followed by business investors in Bahrain to launch a firm:
Choosing a legal framework
Regarding the business structure that is based on the availability of the shareholders and shares capital, business investors need to be clear.
Pick a business name
The next step for business investors is choosing the company trade name. According to Bahrain trade name law, several requirements must be met while choosing a name for a Bahrain firm:
- It needs to be fresh and original.
- It must be distinct from other trade names or trademarks.
- The Registry books shouldn’t include a record of it.
- Arabic language may be used to register a Bahrain trade name.
- It shouldn’t have a hostile tone.
- There shouldn’t be any religious material in it.
- It shouldn’t violate laws or regulations.
The Ministry must receive an application together with several required papers. Within ten (10) days at most, the Directorate must decide whether to approve or reject the proposal.
Registrar the business papers
The following are among the commercial paperwork that must be filed to the appropriate government authorities:
- Bahraini visa and the shareholder’s passport (s).
- Properly completed application for company registration.
- Resolution of Bahrain’s Board of Directors approving the draft of the Memorandum and Articles of Association.
- Identity documents for the company’s employees.
- Each company partner’s resume.
- A list of commercial operations.
- Appointment letter, power of attorney, specimen signature, bank reference letter, sponsor’s NOC.
- The lease for the business’s place of business.
Collect the necessary licenses
Business enterprises in Bahrain are required to obtain a business license to operate legally. The relevant government authorities will issue the business license after carefully examining the submitted documentation.
Start your business’s operations
Business owners and investors can move forward with conducting the necessary business activities once they have secured a business license. It should be mentioned, nonetheless, that following incorporation, the main problem is administering the corporate entity. A business owner must take the initiative to add numerous services, such as accounting and auditing.
Foreign businesses may only operate in Bahrain for company registration if they have received Ministry of Trade and Commerce authorization (MOIC). Bahrain has a large number of free zones that allow for 100% foreign ownership, 0 customs duties, and government refunds on land, and electricity. Remote company registration in Bahrain will set up a branch to sign local sales contracts, invoice local clients, and profit from local clients.
According to international norms, the financial institution of Bahrain (CBB) is responsible for the licensing, management, and control of the money industry. However, some commercial activities require a license or approval from one or more governmental bodies before receiving an industrial registration. When the investor complies with all license and approval requirements established by the competent authorities for the manner of company registration in Bahrain, the Ministry of Trade & Commerce may solely award a Cr under such circumstances.
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