How to Get a Commercial Registration (CR) in Bahrain

"Obtaining a Commercial Registration (CR) in Bahrain is a straightforward process, thanks to the country's investor-friendly policies and efficient regulatory framework. A CR is essential for conducting any business activity legally in Bahrain."

What is CR?

A Commercial Registration (CR) is essentially a business license that authorizes an individual or a company to engage in commercial activities within Bahrain. It is a mandatory requirement for operating legally in the Kingdom.

While having a solid business idea is the initial step, obtaining a CR in Bahrain involves understanding the rules based on the investor's nationality. Bahrain has a progressive policy allowing over 350 business activities to be 100% foreign-owned without the need for a local sponsor.

How to Get a CR in Bahrain in 7 Easy Steps

The innovative Sijilat system has streamlined the process of obtaining a Commercial Registration (CR) in Bahrain, reducing the time and effort involved. Through this efficient system, you can secure your CR within 18-26 working days. Below are the 7 essential steps to obtain a Commercial Registration in Bahrain:

Step 1: Power of Attorney

The first step in registering a business in Bahrain involves granting Power of Attorney (POA) to a representative of Vizera Consultancy . This document authorizes the representative to act on your behalf for business registration.

  • If You Are in Bahrain:
    You can create a Power of Attorney at a public or private notary.

  • If You Are Outside Bahrain:
    You can prepare a Power of Attorney in your home country. If your country is a member of the Hague Apostille Convention, ensure the POA is stamped with an apostille by the foreign office for international validity.

Step 2: CR Name Reservation

At this stage, we will require three proposed commercial names for your business. Our team at Vizera Consultancy will submit a request to the Ministry of Industry, Commerce, and Tourism (MOICT) to reserve your chosen commercial or trade name.

In Bahrain, Commercial Registrations (CR) are categorized based on the owner’s liability. Depending on your business requirements, you can select the most suitable type of CR from the following options:

  • Single Person Company (SPC): A CR owned and managed by one individual.
  • With Limited Liability (WLL): Suitable for partnerships with limited liability for shareholders.
  • Bahraini Shareholding Company (BSC): For larger businesses with multiple shareholders.

Step 3: Licensing

In this step, you will need to provide a commercial address for your business, such as an office, shop, or workshop, which will serve as the company’s official headquarters. To verify the address, the following documents are required:

  • Shop Pictures: Clear images of the premises.
  • Tenancy Agreement Copy: Proof of lease or ownership.
  • Electricity Bill Copy (EWA): Evidence of utility registration.

If your Commercial Registration (CR) involves a specialized activity, approvals from relevant licensing authorities may also be necessary.

At Vizera Consultancy, we handle the licensing process efficiently, ensuring all required documentation and approvals are secured in compliance with Bahrain’s regulatory framework.

Step 4: Memorandum of Company

At this stage, we will prepare the Memorandum of Association (MOA) or Articles of Association (AOA) tailored to your business structure and objectives. Once the draft is ready, it will be shared with you for review and approval.

Step 5: Notarization

Once the Memorandum of Association (MOA) is finalized, it will undergo notarization. You have two options for notarization in Bahrain:

  • Private Notary (Urgent): Ensures faster processing for immediate needs.
  • Public Notary (Appointment-Based): Requires scheduling an appointment for notarization.

Step 6: Company Bank Account

Opening a company bank account and depositing the required capital is a mandatory step for business setup in Bahrain. At this stage, Vizera Consultancy will guide you through the entire process, ensuring a seamless experience. Our experts will assist in preparing the necessary documentation and liaising with the bank to expedite the account opening process, enabling you to meet compliance requirements efficiently.

Step 7: Final Approval by MOIC

For final clearance, send the notarized bank certificate and memorandum to the Ministry of Industry and Commerce (MOIC). Your Commercial Registration (CR) will become formally registered upon approval.

Choosing the Right Type of Commercial Registration (CR) in Bahrain

In Bahrain, Commercial Registrations (CR) are categorized based on the owner's liability. Selecting the right CR type is crucial to align with your business goals.

Individual Establishment

An Individual Establishment in Bahrain is equivalent to a Sole Proprietorship in other countries. The sole owner assumes full responsibility for all business liabilities, as the business is not a separate legal entity. This CR type is exclusively available to Bahraini nationals or GCC nationals.

With Limited Liability (WLL)

A With Limited Liability (WLL) company is a flexible and popular business structure in Bahrain. It offers several advantages and is governed by the Commercial Companies Law (Decree Law No. 21 of 2001).

Key Features of WLL

  • Unlimited Partners: The quantity of collaborators is unrestricted.
  • No Minimum Capital Requirement: A WLL does not require a minimum capital to be established.
  • Unlimited Partners: The quantity of partners is unrestricted.
  • Limited responsibility: The amount of a shareholder’s accountability is capped to their investment.
  • Capital Declaration: The capital amount, type, currency, and ownership percentages are publicly declared.
  • Director Appointments: Directors are nominated to manage the company.
  • Annual Audits: Audited financial reports must be submitted to the Ministry of Industry, Commerce, and Tourism (MOICT) annually, except for the first year.
  • Foreign Ownership: Depending on the business activity, a WLL can be fully owned by foreign nationals.
  • Investor Visas: Shareholders are eligible for investor visas (Residence Permits).

Important Update
The Single Person Company (SPC) registration type has been discontinued, and all existing SPCs have been converted to WLL.
A WLL offers a robust structure for businesses in Bahrain, making it an ideal choice for entrepreneurs and investors seeking flexibility and limited liability.

Partnership in Bahrain Company

A Partnership in Bahrain Company operates similarly to a general partnership in other countries. It requires a minimum of two shareholders, with their liabilities extending to their personal assets. This type of company must appoint representatives and, depending on the business activities, can be 100% foreign-owned.

Simple Commandite Company

A Simple Commandite Company resembles a Limited Partnership. It includes one or more silent partners with limited liability and one or more managing partners with unlimited liability, extending to their personal assets. Silent partners cannot participate in management decisions, while managing partners have full control over operations and decision-making. 

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