Why Company Formation Bahrain?
- 100% foreign ownership permitted or 49% shared with locals.
- 0% corporate tax
- 0% income tax for men and women
- 100% repatriation of capital and earnings permitted
- Modern day efficient communications and infrastructure
- Abundant and cheap energy
- Excellent help solutions from local authorities
- Foreigners are permitted to hold freehold house
- Geographical location is best for cross border business
The Time Zone is GMT + 3
Bahrain Hours of work
The working week is Sunday to Thursday inclusive, and some companies from Saturday to Thursday from 8AM – 4PM.
Geography and history have played a prominent function in shaping the Kingdom of Bahrain?s position as a significant industrial centre. Its location in the heart in the Arabian Gulf gives it strategic access to each the European and Asian markets, giving entrepreneurs together with the excellent springboard for meeting a wider buyer base.
The Kingdom of Bahrain is an archipelago of islands, the largest becoming Bahrain Island, just off the western shores on the Arabian Gulf and connected to Saudi Arabia by the King Fahd Causeway. Capitalising on its history as a trading nation and to diversify its economy away from oil, Bahrain has sought to position itself as a regional solutions hub.
Bahrain gained complete independence in the UK in 1971. The Home of Khalifa is the royal family of Bahrain. The existing head from the loved ones is Hamad bin Isa Al Khalifa, who became the Emir of Bahrain in 1999 and proclaimed himself King of Bahrain in 2002. Bahrain has a bicameral National Assembly (al-Jam?iyyah al-Watani) consisting of the Shura Council (Majlis Al-Shura) and also the Council of Representatives (Majlis Al-Nuwab). Bahrain is really a member in the Gulf Cooperation Council of Arab States (GCC), Arab League and the United Nations.
The government has developed the transportation, communications and financial infrastructure essential to attract and serve international business enterprise. Bahrain features a somewhat liberal business environment as well as the government is keen to attract foreign investment. The primary aim in the government will be to continue with industrial diversification with an emphasis on knowledge-based industries exactly where service industries are regarded as to be the prime target.
The government is particularly eager to further develop tourism, healthcare, private education and financial solutions. Moreover, Bahrain is recognised as a significant banking and economic centre in the region, using a specific emphasis on investment and Islamic banking activities. Bahrain can also be home to several significant structures, which includes the Bahrain Globe Trade Center along with the Bahrain Monetary Harbour.
Bahrain imposes no exchange handle restrictions on repatriation of capital, profits and dividends, enabling full financial transferability of capital, income and dividends. Bahrain at present levies no taxes on private or corporate earnings. There isn’t any capital gains tax, no withholding tax and no value-added tax (VAT). The Bahraini Dinar (BHD), which can be totally convertible, is pegged to the US dollar at BHD1 = USD2.65.
Forming a company in Bahrain gives excellent access for the GCC states, particularly Saudi Arabia, which is the biggest marketplace inside the region. Bahrain has an expanding treaty network that involves more than 30 double tax agreements with crucial partners in Asia, Europe as well as the Americas, also as the Middle East and Africa. This is supplemented by bilateral investment treaties with countries which includes India, Italy and the US, and Free Trade Agreements with trading partners which include the US and Singapore.
Bahrain provides a range of cars by way of which to do business enterprise ? the decision will be governed by the nature and size from the organization, at the same time because the requirements from the investors. All sorts of Bahraini organization give the shareholders or the directors an Investor?s Residence Visa.
One of the most widespread car in Bahrain will be the With Restricted Liability Business (WLL). Investors who set up a firm in Bahrain can take 100% foreign ownership, no matter whether or not the business is often a WLL, a partnership, a branch or even a representative office. Exceptions to 100% foreign ownership are providers that engage in reserved enterprise activities and public shareholding companies in which foreign investors are restricted to a maximum 49% stake.
Bahrain is house to three specific financial zones. The Bahrain Logistics Zone was established in 2008 next to Khalifa bin Salman port, the island?s most important harbour, and focuses on third-party logistics, storage and distribution. Bahrain International Airport presents cargo facilities, offices and retail space; the foreign trade zone has no customs duties. Bahrain International Investment Park (BIIP) delivers 100% foreign ownership of corporations, duty-free access to GCC markets, exemption from 5% import duties on both raw materials and gear and 100% repatriation of capital.
Bitrixme.com Bahrain also can assist with the following countries ? Kuwait, Qatar, Saudi Arabia, Oman, Jordan, the Lebanon, Iraq and Libya.
Company Formation and Management Services
the nature and size in the proposed organization, as well as the particular requirements of investors govern the decision of legal car in Bahrain. All varieties of Bahraini firms give the shareholders or the directors an Investor?s Residence Visa. The Bahrain Commercial Organizations Law (BCCL) of 2001 replaced the old Bahrain Industrial Providers Law of 1975 and created substantial alterations. This law applies to all legal structures except that of a Sole Proprietorship, which can be registered based on the provisions of Bahrain Law of Commerce, Decree No. 7 of 1987. The principal varieties of automobile are:
Restricted Liability Business ? called organization With Restricted Liability (WLL) A WLL is really a corporation of which partners are responsible for the company debts and liabilities only to the extent of their capital. The maximum quantity of partner is 50 and, if the quantity of shareholders falls under two, the company have to introduce new shareholders within a period of 30 days, or by force in the law, has to be converted to a single particular person firm or proceed to dissolution. A WLL can’t engage in banking and insurance activities and cannot issue public shares, negotiable warrants or debentures. 100% foreign ownership is allowed and regional operations are permitted. A neighborhood office presence is needed but there is certainly no requirement for any local sponsor. The minimum share capital is BHD20,000, the minimum number of directors is two and an annual submission of audited financial statement is expected.
Single Particular person Corporation (SPC) An SPC is often a limited liability firm that has 1 shareholder who is accountable for the business debts and liabilities only to the extent of its capital. An SPC cannot engage in banking and insurance coverage activities and cannot concern public shares, negotiable warrants or debentures. 100% foreign ownership is permitted and regional operations are permitted. A local office presence is essential but there is no requirement for a neighborhood sponsor. The minimum share capital is BHD50,000 and an SPC requires at the least a single director.
Foreign Corporation Branch A branch of a foreign enterprise that is certainly incorporated and registered outside Bahrain may be established as an Operational, Representative or even a Regional Workplace. The limits of liability are the similar because the parent corporation. Nearby operations are permitted only for an Operational Office, which need nearby sponsor. Representative and Regional Offices are only permitted to undertake marketing and promotion activities. A nearby workplace presence and also a branch manager are expected. Banking and insurance activities are allowed for Operational Offices only.
Bahraini Establishment or Sole Proprietorship Industrial registration for any sole proprietorship or individual establishment is only issued to Bahraini citizens, or GCC or US citizens resident in Bahrain, over the age of 18. The liability with the sole proprietor is limitless.
Partnerships A basic partnership firm is formed between two or far more folks under a distinct name, as well as the partners assume joint duty, for the extent of all of their funds, for the partnership?s obligations. There must be at the least two partners, at the very least two directors as well as the firm will have to set up a nearby workplace. Based on the category, 100% foreign ownership is permitted in addition to a neighborhood sponsor just isn’t needed.
A very simple restricted partnership firm (Easy Commandite) is established involving two categories of partners, joint and limited partners. Joint partners are jointly and severally accountable, for the extent of all their funds, for the company?s obligations. Limited partners invest capital within the company but don’t undertake management and are not held accountable for the company?s obligations save to the extent of his share inside the capital. Joint partners have to be Bahraini nationals and their share on the capital has to be no less than 51%.
A limited partnership by shares (Commandite by Shares) is established among two categories of partners, joint and restricted partners. Joint partners are jointly accountable, for the extent of all their funds, for the company?s obligations. Restricted partners, the shareholders, will not be liable for the company?s obligations except to the extent of their shares inside the capital. There should be at the least 4 partners and at the very least two directors. All joint partners must be Bahraini nationals as well as the percentage of their capital have to not be significantly less than 51%. The minimum capital is BHD 20,000. The business should have a nearby office but a local sponsor isn’t required and 100 % foreign ownership is achievable.
The costs of incorporation differ significantly, depending around the sort of entity required along with the activity that it undertakes. Every enterprise activity requires specific pre-approval from the relevant government department. While Bitrixme.com will manage all procedures, the timescales is often uncertain. Rates are within the range of BHD1,500 to BHD5,000. When we have an understanding of the nature of your company as well as the style of entity necessary, we are going to offer a extensive all-inclusive quotation ahead of proceeding
Once incorporated, we supply a domiciliary service, which consists of the provision of organization secretarial, registered workplace and nominee shareholder solutions. Full management solutions from our personal licensed corporate directors are also accessible and hugely advisable in most situations. Re-mailing solutions are accessible at modest price for all providers established by Bitrixme.com.
Note: Ancillary solutions
Furthermore to delivering incorporation, domiciliary and management (directorship) services, a range of ancillary solutions at competitive costs is available on request. These services include, but aren’t limited to: provision of devoted phone lines; workplace and personnel help; designated employees members (temporary or permanent availability); assistance with office relocation, introduction to true estate agents, government agencies and other third parties.
Trust Formation and Trustee Solutions
Trusts have lots of applications and benefits, including the protection and preserving of assets, tax planning or just avoiding the expense and delays of acquiring probate under a will. They also provide a higher degree of confidentiality. The usage of trusts as a signifies of holding and passing on family wealth, even for modest estates, has improved significantly in current years.
In contrast to a enterprise, a trust is not a legal entity. It is actually ideal described as a partnership; an arrangement whereby house is transferred from one particular person (the settlor) to a different person (the trustee) who holds the house for the benefit of specified people today or objects (the beneficiaries). A trust deed sets out the terms and conditions upon which the trustees must hold and administer the trust assets. The trust deed also sets out the rights and interests with the beneficiaries.
While Bahrain will not be a regular ?trust jurisdiction?, Bitrixme.com administers trusts through our licensed trust corporations in Gibraltar, Guernsey, the Isle of Man as well as the Turks and Caicos Islands. Fees for drafting a trust deed and for the provision of trustee solutions will likely be quoted on a case-by-case basis. For additional information on the establishing of a trust and how it could assist you and your loved ones, please speak to a consultant, company formation Bahrain.