World Watch/Bahrain/Starting a Business

Starting a Business · Bahrain

Starting a business in Bahrain: foreigner's guide (2026)

EasyCompanies are formed under Bahrain's Commercial Companies Law (Legislative Decree No. 21/2001, as amended) and registered/licensed by the Ministry of Industry and Commerce (MOIC) through the SIJILAT electronic portal; the Bahrain Economic Development Board (EDB) provides free facilitation to foreign investors.Country index 79 · B+

Bahrain shaded by its starting a business status

Bahrain is one of the most open jurisdictions in the GCC for foreign business formation, permitting 100% foreign ownership across the large majority of economic sectors with no local sponsor required. Company registration and licensing are handled digitally through the MOIC's SIJILAT platform, typically completing in roughly two to four weeks, and Bahrain levies 0% corporate income tax on most businesses. Only a small number of activities (e.g. certain domestic trading and construction) still require Bahraini participation.

Key points

Foreign ownership (broadly liberalized)

Bahrain allows 100% foreign ownership across most economic sectors without a local partner; the EDB states the vast majority of MOIC business activities are open to full foreign ownership. A few sensitive activities still require Bahraini participation (e.g. certain domestic/retail trading and construction).

Digital registration via SIJILAT

Commercial registration (CR) and licensing are processed online through the MOIC's SIJILAT system, which is integrated with other government entities to streamline name reservation, registration and approvals.

Setup steps

Core steps: choose a structure (commonly a With Limited Liability company, WLL, or foreign branch); reserve and approve the company name (English + Arabic); register shareholders/directors; notarize the Memorandum/Articles of Association; lease a registered address; deposit paid-up capital; and activate the CR with any sector-specific licence approvals.

Minimum capital

There is no general statutory minimum share capital for a standard WLL under MOIC legal requirements; capital is set by the shareholders and deposited as working capital. Regulated activities (e.g. financial services, insurance, healthcare) carry sector-specific minimum capital conditions.

Timeline

Per the EDB, registration typically takes about two to four weeks depending on the business structure, document readiness and any required sector approvals.

Investor support and tax

The EDB offers free, dedicated facilitation (relationship managers and sector specialists) to coordinate approvals for foreign investors, and Bahrain applies a 0% corporate tax rate on most businesses with minimal restrictions on profit/capital repatriation.

Timeline - major decisions & events

Dec 18, 2025decisionofficial
Decision No. 71 of 2025 further liberalises foreign ownership

Amending Decision No. 40 of 2021, Bahrain opened more activities (including real-estate brokerage and port operation) to 100% foreign ownership, some unconditionally and others subject to a BHD 100,000 minimum capital and large parent-company revenue. It deepens Bahrain's open-investment regime for new businesses.

UNCTAD Investment Policy Monitor
Sep 12, 2025lawofficial
Decree-Law No. 38 of 2025 modernises the Commercial Companies Law

Effective on publication, the amendment lets companies hold board/shareholder meetings and conduct voting electronically by default and broadly modernises corporate governance, reducing administrative friction for setting up and running companies.

U.S. Library of Congress, Global Legal Monitor
Jan 1, 2024guidance
MOIC Resolution No. 43 of 2024 ties registration to a corporate bank account

The Ministry of Industry and Commerce made opening a Bahraini corporate bank account a prerequisite to finalising commercial registration, adding a compliance step to the company-formation workflow on Sijilat.

KPMG Bahrain (regulatory alert)
Apr 3, 2023guidanceofficial
Bahrain launches the 'Golden Licence' for major investors

The Economic Development Board introduced a Golden Licence for projects worth over USD 50 million or creating 500+ jobs, offering streamlined licensing, priority land allocation, and a dedicated account manager. It created a fast-track setup channel for large-scale ventures.

Bahrain Economic Development Board
Jan 1, 2021decision
Decision No. 40 of 2021 consolidates the foreign-ownership framework

MOIC issued a consolidated schedule defining which commercial activities permit 100% foreign ownership and which remain restricted, becoming the reference framework that later decisions (e.g. No. 71 of 2025) amend.

Mondaq (legal analysis)
Jan 1, 2020law
Resolution No. 28 of 2020 amends the Commercial Companies Law

The resolution allowed joint-stock companies to issue classes of preference shares, let limited partnerships use standalone trade names, and introduced a not-for-profit company form, broadening the menu of corporate vehicles available to founders.

Al Tamimi & Company
Jan 1, 2019lawofficial
Legislative Decree No. 10 of 2019 expands 100% foreign ownership

Bahrain removed many remaining restrictions so that the large majority of MOIC-listed activities became open to full foreign ownership without a local partner, cementing it as a GCC leader in open foreign investment.

UNCTAD Investment Policy Monitor
Dec 7, 2018lawofficial
Reorganisation and Bankruptcy Law (No. 22 of 2018) takes effect

Replacing the 1987 regime, the law introduced statutory reorganisation, an automatic moratorium, a bankruptcy register, and the GCC's first cross-border insolvency provisions, lowering the risk of business failure and improving investor confidence in market entry.

Bahrain Legislation & Legal Opinion Commission
Jan 1, 2018lawofficial
Decree-Law No. 53 of 2018 amends the Commercial Companies Law

A major overhaul of the 2001 law that, together with related reforms, opened the door to full foreign ownership in most sectors and updated governance rules—an inflection point for how easily foreigners can establish companies in Bahrain.

WIPO Lex
May 1, 2015guidanceofficial
Sijilat online commercial-registration portal launched

MOIC and the e-Government Authority launched Sijilat, a single online portal linking the government agencies that issue licences and approvals, enabling end-to-end company registration, renewals, and amendments online.

Ministry of Industry and Commerce
Jan 1, 2001lawofficial
Commercial Companies Law promulgated by Decree-Law No. 21 of 2001

The foundational statute governing the formation, types, management, and dissolution of companies in Bahrain (WLL, BSC, partnerships, etc.). It remains the core legal framework that all later amendments build on.

WIPO Lex

Bahrain - other topics

Last verified 5/23/2026 · Orientation, not legal advice - verify against the primary sources linked above. Explore the full world map →