Source-cited draft: company formation & entity choice for Bahrain (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Every figure is drawn from this Tax Guide and cited to its source.
Most common entity type
With Limited Liability company (W.L.L.) - allows a single shareholder of any nationality (subject to activity restrictions)Commercial Companies Law (Decree-Law No. 21 of 2001), as amended by Decree-Law No. 28 of 2020View source ↗
Single Person Company (SPC)
Discontinued - converted into a single-shareholder W.L.L. under Decree-Law No. 28 of 2020Commercial Companies Law amendment (Decree-Law No. 28 of 2020)
Other entity types
Bahrain Shareholding Company (B.S.C. - closed and public), partnership, branch of a foreign company, and representative officeCommercial Companies Law (Decree-Law No. 21 of 2001)
Minimum capital - fully Bahraini-owned W.L.L.
No statutory minimum (often cited as nominal, e.g. around BHD 50) BHD ((approx - confirm current MOIC requirement))Commercial Companies Law (Decree-Law No. 21 of 2001), as amended
Minimum capital - W.L.L. with foreign shareholders
Around BHD 20,000 commonly required for foreign-owned W.L.L.s BHD ((approx - varies by activity; confirm with MOIC))MOIC commercial registration requirementsView source ↗
Minimum capital - B.S.C. (closed)
BHD 250,000 BHD ((approx - confirm with MOIC))Commercial Companies Law (Decree-Law No. 21 of 2001)
Registration portal / authority
Sijilat online portal, operated by the Ministry of Industry and Commerce (MOIC)MOIC Sijilat commercial registration systemView source ↗
Trade name reservation
Reserved via Sijilat; valid 60 days; fee around BHD 10 BHD ((approx - confirm current fee))MOIC Sijilat naming guidelines
Core incorporation steps
Reserve name, submit application and documents on Sijilat, select activities, obtain inter-agency approvals, pay fees, receive electronic Commercial Registration (CR)MOIC Sijilat commercial registration process
Typical incorporation timeline
Around 1-3 working days for straightforward W.L.L.s; longer (often 1-3 weeks) where licences/approvals are needed ((approx - varies by activity))MOIC Sijilat commercial registration process
Core post-registration / annual compliance
Open a corporate bank account, register with SIO if employing staff, register for VAT if turnover exceeds BHD 37,500, renew the CR annually, and obtain sector licencesMOIC commercial registration requirements; VAT Law (Decree-Law No. 48 of 2018)
Commercial Registration renewal
CR must be renewed annually with MOICMOIC commercial registration requirements
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Companies register with the Ministry of Industry and Commerce (MOIC) through the Sijilat online portal. The With Limited Liability company (W.L.L.) is the most common vehicle; the former Single Person Company was folded into a single-shareholder W.L.L. under Decree-Law No. 28 of 2020. Many sectors permit 100% foreign ownership.
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Other Bahrain computations in the OpenAccountants Tax Library.