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World Watch/Bahrain/Starting a Business

Starting a Business ยท Bahrain

How to start a business in Bahrain as a foreigner (2026)

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Bahrain shaded by its starting a business status

Starting a business in Bahrain as a foreigner: easy.

FrameworkCommercial Companies Law (Decree-Law No. 21 of 2001, as amended โ€” most recently by Decree-Law No. 38 of 2025), administered by the Ministry of Industry and Commerce (MOIC) via the Sijilat one-stop online commercial-registration portal; the Bahrain Economic Development Board (EDB) supports investor onboarding.

Bahrain is one of the more liberal GCC jurisdictions for foreign entrepreneurs: MOIC permits 100% foreign ownership across the large majority of commercial activities (roughly 95โ€“98% of the CR activity catalogue) with no local sponsor required, and a WLL (limited liability company) has no fixed minimum capital. Registration is done end-to-end online through Sijilat, and a straightforward WLL is typically incorporated within about 2โ€“4 weeks once security clearance and sector approvals are in hand.

Key points

Foreign ownership

100% foreign ownership is allowed in the vast majority of MOIC activity codes without a local sponsor; a residual list of activities (e.g. press/publishing, Hajj/Umrah services, clearance/expediting offices, workforce/labour supply, real-estate brokerage, and parts of oil & gas and defence) remains reserved or subject to Bahraini participation.

Legal framework & 2025 update

The Commercial Companies Law (Decree-Law 21/2001) was amended by Decree-Law No. 38 of 2025, which modernised company forms (merging the Single Person Company into the WLL structure) and refined foreign-ownership conditions, including lower capital thresholds.

Minimum capital

The WLL โ€” the standard vehicle for foreign investors โ€” has no statutory minimum share capital in general. For wholly foreign-owned entities the previously-required BD 2 million threshold was cut to BD 100,000 effective 18 October 2024, and regulated sectors (finance, insurance, real estate) can require higher amounts set by their sectoral regulator.

Setup steps via Sijilat

Standard flow: (1) reserve trade name and choose legal form on Sijilat; (2) obtain security clearance from the Ministry of Interior for foreign shareholders/directors; (3) obtain any sectoral/activity approvals; (4) sign and notarise the Memorandum/Articles of Association; (5) deposit capital (where applicable) and obtain the bank certificate; (6) collect the Commercial Registration (CR) and municipal/activity licences.

Typical timeline

A straightforward WLL is generally registered in roughly 2โ€“4 weeks (about 11โ€“20 business days for the core CR); more complex or regulated activities requiring additional licences can extend the process to 6+ weeks.

Investor support & tax context

The Bahrain EDB provides free investor-facilitation services, and Bahrain levies no personal income tax and (aside from oil, gas and โ€” from 2025 โ€” the DMTT on large multinationals under Pillar Two) no general corporate income tax, which lowers ongoing compliance friction for new SMEs.

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 โ†—
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 โ†—
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) โ†—
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 โ†—
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) โ†—
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 โ†—
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 โ†—
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 โ†—
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 โ†—
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 โ†—
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 โ†—

Bahrain - other topics

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Last verified 8/5/2026 ยท Orientation, not legal advice - verify against the primary sources linked above. Methodology & how to cite ยท State of Technology Regulation 2026 ยท Explore the full world map โ†’