BUSINESS START-UP GUIDE FOR BAHRAIN IN 2025

To start a business in Bahrain, you need to obtain a Commercial Registration (CR), which allows you to legally conduct commercial activities.

Steps to Start a Business in Bahrain:

  1. Choose the Business Activity: 
  2. Choose the Business Name: 
  3. Find a Suitable Location:
  4. Partner with an Expert Consultant: 
START YOUR DREAM BUSINESS IN BAHRAIN

FORMATION OF A COMPANY MADE EASY WITH VIZERA CONSULTANCY

Vizera Consultancy simplifies the process of starting your business in Bahrain by providing expert guidance and comprehensive support. We are not just a consultancy but one of the leading service providers in Bahrain, specializing in company formation.

Our team of professionals ensures a seamless experience, helping you navigate the complexities of setting up a business in the Middle East. Whether you are an entrepreneur or an investor,Vizera Consultancy is your trusted partner for turning your business dreams into reality.

Start your journey with confidence—contact Vizera Consultancy today and take the first step toward establishing your business in Bahrain.

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In 2025, Bahrain has introduced significant changes impacting business setup. The banking sector now allows corporate bank accounts to be opened within 1-3 business days, streamlining the financial process for entrepreneurs. However, a new visa policy requires visit visa holders to leave the country before applying for residency, adding complexity for international investors. Additionally, ongoing upgrades within Bahrain Municipality may cause temporary delays in business-related procedures. These developments present a mix of opportunities and challenges for businesses establishing operations in Bahrain.

Business for Foreigners in Bahrain

Businesses in Bahrain are 100% owned by foreigners! The following benefits are available to foreigners who own a business in Bahrain:

Easy closing within 2 years.

Investor Resident Permit

100% Ownership

Family Resident Permits

Govt Support for 1st 2 years

Employee Resident Permits

About Bahrain

The Kingdom of Bahrain, a Middle Eastern island nation spanning 765.3 km², is situated east of Saudi Arabia.Bahrain is a popular destination for investors and businesses due to its outstanding lifestyle and business-friendly atmosphere. With no corporate or income tax, its economy is primarily driven by petroleum exports, alongside aluminum as a significant secondary export. In 2019, Bahrain introduced a 5% VAT, later increased to 10% in 2022. While Bahrain offers numerous opportunities, understanding the local business landscape is crucial to avoid potential challenges when starting a business.

Step 1: Choose Your Business Activity

The first step to starting a business in Bahrain is determining your eligibility to practice a specific business activity. Bahrain classifies business activities into the following categories:

  • 100% Ownership Allowed for Foreigners, GCC Nationals, Americans, Singaporeans, and citizens of Iceland, Liechtenstein, Norway, and Switzerland.
  • Limited Foreign Ownership: Up to 49% foreign ownership or requiring a Bahraini shareholder.

Check your eligibility based on your nationality and business activity. If a Bahraini partner is required, you can either find one independently or seek assistance to identify a suitable partner. Understanding these requirements is essential for a successful business setup in Bahrain.

Step 2: Give Your Company an Unique Name

Selecting a unique business name is a crucial step in starting a business in Bahrain. According to Law No. (18) of 2012 with respect to trade names, the following guidelines apply:

Allowed:

  • A person’s name or part of it.
  • An innovative or creative name.
  • A combination of the above.
  • A name that describes the business activity.

Not Allowed:

  • Common words alone (e.g., “Hospital,” “School,” “Mechanical Workshop”).
  • Names contradicting business activities, local laws, or values.
  • Names of internationally known companies or entities.
  • Names reflecting religious, political, or military affiliations.

Step 3: Find a Suitable Business Location

Choosing the right location is a critical step in setting up a business in Bahrain. Business location requirements can be classified into the following categories:

  • Administrative Offices: Ideal for businesses that do not require product displays. Options include Incubation Centers, Business Centers, or Private Offices.
  • Retail Shops: For businesses needing a space to display products or services, it’s essential to research the market and choose a strategic location. For example, GOSI Complex is renowned for mobile phones and accessories.
  • Workshops & Factories: These require approvals and compliance with specific regulations set by relevant ministries and authorities.

Finding the perfect location can be challenging, especially when aligning it with business needs. Vizera Consultancy specializes in assisting startups with location selection, ensuring cost-effective and suitable solutions tailored to the nature of the business. From business registration to advisory services, Vizera Consultancy provides comprehensive support to help businesses thrive in Bahrain.

Step 4: Find an Experienced Consultant

Starting a business in Bahrain requires partnering with a professional and authorized service provider to ensure a seamless setup process. Vizera Consultancy, a trusted and authorized service provider in Bahrain, offers comprehensive services, including:

  • Guidance on selecting a business activity, name, and location.
  • Handling shareholder security clearance.
  • Facilitating swift bank account opening.
  • Processing investor, employee, and family residence permits.
  • Ensuring compliance with Bahrain’s laws and regulations.
  • Providing continuous support and expert advice.

Choosing an experienced consultant like Vizera Consultancy is vital for compliance, reliability, and efficiency. Their deep understanding of Bahrain’s legal landscape ensures your business adheres to statutory requirements. With established networks and local insights, they streamline processes like banking, permits, and compliance while offering strategic market intelligence. By partnering with Vizera Consultancy, you can achieve a secure, efficient, and successful business setup in Bahrain.

10 Reasons for Establishing a Company in Bahrain

Bahrain is an ideal destination for entrepreneurs and investors, offering numerous benefits for startups. Here are 10 compelling reasons to start a business in Bahrain:

  1. Strong Currency: A stable and reliable currency supports financial security.
  2. Strategic Location: Centrally positioned in the Gulf, Bahrain provides access to regional and global markets.
  3. 100% Foreign Ownership: Many business sectors allow complete ownership for foreign investors.
  4. No Geographical Restrictions: Businesses can operate across the Kingdom without limitations.
  5. Forward-Thinking Government: Pro-business policies and economic reforms encourage investment.
  6. Exceptional Lifestyle: A safe, cosmopolitan environment with high living standards.
  7. Talented Human Capital: Access to a skilled and multilingual workforce.
  8. Conducive Business Environment: Streamlined processes and a supportive regulatory framework.
  9. Business Support Programs: Initiatives to help startups and SMEs thrive.
  10. Advanced Banking System: Efficient and modern banking services facilitate business operations.

Strong Currency

Start your business in Bahrain, home to the world’s second-strongest currency, the Bahraini Dinar (BHD). With 1 BHD equaling 2.65 USD, Bahrain offers a stable economic environment, minimizing concerns about currency depreciation and safeguarding your investment.

Strategic Location

Invest in Bahrain and gain access to the $2 trillion GCC market. As the natural gateway to the Gulf, Bahrain offers unparalleled connectivity, with direct access to Saudi Arabia, the region’s largest market and economy.

100% Foreign Ownership

Bahrain stands out in the Gulf region by allowing 100% foreign ownership in 375 business activities without requiring a local sponsor. This policy ensures investment security and offers unparalleled freedom for international investors to operate and grow their businesses.

No Geographical Restrictions

Bahrain offers unmatched flexibility for businesses with no geographical restrictions. Unlike other Gulf countries, you can set up your business anywhere in Bahrain, regardless of your nationality, allowing you to target the market that best suits your goals.

Forward-Thinking Government

Bahrain’s government is known for its progressive policies, leading the region in business reforms. Recognized by The World Bank in 2019 for enacting the most reforms, Bahrain continues to implement initiatives that empower businesses and drive sustainable growth.

Exceptional Lifestyle

Bahrain offers an outstanding quality of life, ranking 1st globally for work-life balance and leading the MENA region in personal happiness. Known for its career opportunities, cultural friendliness, and ease of settling in, Bahrain provides an ideal environment for professionals and families alike.

Talented Human Capital

Bahrain offers access to MENA’s top talent, with a highly skilled and motivated workforce. The Kingdom ranks highest in the region for human capital development, as recognized by The World Bank, making it an ideal hub for businesses seeking exceptional talent.

Conducive Business Environment

Bahrain fosters a collaborative business ecosystem, working closely with businesses and regulators to enhance commercial conditions. Recognized as the 4th most improved economy in 2019 by The World Bank, Bahrain continues to introduce initiatives that empower innovation and business growth.

Business Support Programs

The Bahraini government launches multi-billion dinar projects every year and provides a wide range of support programs for new companies.New businesses can benefit from up to 50% government support for services like audit and accounting during their first two years, fostering growth and sustainability.

Advanced Banking System

Bahrain boasts a robust financial sector with over 362 financial institutions, including 87 banks (as of June 2022). The Kingdom also offers multiple reliable payment gateway providers, ensuring seamless and secure online payment solutions for businesses.

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