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Company formation in Bahrain means entering a company in the Commercial Register of the Ministry of Industry and Commerce, and every step of it is filed on Sijilat, the ministry’s commercial registration portal at sijilat.bh. Business setup in Bahrain, company registration and commercial registration (the CR) all describe one sequence: a CR without a licence, which brings the company into existence, then a licence for each activity, which lets it trade. Unlike the UAE, where each emirate and each free zone licenses its own companies, Bahrain keeps a single register for every commercial company.
The rules come from the Commercial Companies Law, Legislative Decree No. 21 of 2001, amended several times and most recently in 2025, and from the Commercial Register Law, Legislative Decree No. 27 of 2015. Under Article 268 a company acquires legal personality only on registration, and anything done in its name before that binds only the person who did it.
Almost every founder chooses the With Limited Liability Company, written W.L.L. after its name. Since Legislative Decree No. 28 of 2020 a single natural or legal person may own a W.L.L.; the same decree abolished the single person company (S.P.C.) and turned the existing ones into W.L.L.s. Sijilat states that a W.L.L. has no minimum capital, but whatever capital the partners choose is divided into equal shares and paid in full before incorporation, with the cash deposited at a licensed bank in Bahrain.
| Form | Owners | Liability | Minimum capital | Worth knowing |
|---|---|---|---|---|
| W.L.L. | One or more natural or legal persons | Up to each partner’s share | None | No insurance, banking or investment of other people’s funds; appoints an auditor |
| Bahraini Shareholding Company, public | At least two founders | Up to the shares held | BD 1 million | Board of at least five; banking and insurance possible with the regulator’s approval |
| Bahraini Shareholding Company, closed | Two or more, or one founder on ministerial conditions since 2025 | Up to the shares held | A statutory minimum applies | Shares not offered to the public |
| Partnership and simple commandite company | At least two partners | Joint partners answer with all their assets | None | Each partner in a partnership acquires the status of a merchant |
| Commandite by shares company | At least four founders | Joint partners unlimited, shareholders limited | BD 20,000 | Managed by the joint partners |
| Branch of a foreign company | The foreign parent | The parent company | None | Prior licence from the ministry; files audited yearly accounts showing its financial position |
Bahrain also has two individual registrations, but neither is open to most foreigners: the individual establishment (ICR) is available to citizens of Bahrain, the other GCC states and the United States, and Sijili, the registration that needs no physical office, is for Bahrainis only. A foreign founder therefore forms a company, normally a W.L.L., or, where a foreign company wants to act under its own name, registers a branch.
Bahrain sets foreign ownership activity by activity. Sijilat states that foreign ownership is 100% permissible in most economic activities, with a limited number allocated to Bahraini and GCC citizens. Its list of activities limited to Bahraini nationals covers public transportation, mobile food service, publishing, distribution of newspapers and magazines, real estate brokerage, manpower recruitment agencies, employment offices, pilgrimage services and individual lawyers, while foreign-owned legal consulting firms are allowed. A further list is prohibited to everyone, among it gambling, the manufacture of alcoholic drinks, narcotics, weapons and cigarettes, pearl farming and letter post, which belongs to Bahrain Post. Article 345 of the Commercial Companies Law lets the Cabinet open reserved activities to companies of foreign capital and lets the Minister approve others of strategic economic significance.
A reserved activity cannot be reached by placing a Bahraini in front of a foreign owner. The ministry’s inspectors list commercial concealment as a violation of the commercial register, and since 2025 Article 18 bis makes whoever actually manages a company, openly or behind the scenes, personally liable for its breaches. Each planned activity is therefore checked on Sijilat before anything is filed; the portal shows the licensing requirements of more than 350 activities.
| Step | What happens |
|---|---|
| 1. Access to Sijilat | A founder holding a Bahraini CPR card applies with an advanced eKey, created with fingerprints at an eGovernment service centre. A founder without a CPR uses a professional body registered with the ministry, or a person holding a notarised power of attorney and an advanced eKey |
| 2. Activities and name | The activities are selected first, then up to three proposed commercial names; a W.L.L. name ends with “With Limited Liability” |
| 3. Application for a CR without licence | Partners, managers and signatories with ID numbers, nationalities and contact details; capital and shareholding; financial year end; passport copies valid for at least six months; a corporate partner’s resolution approving the incorporation, attested where the partner is foreign, which Sijilat allows to follow at the licence stage |
| 4. Ministry review | Sijilat gives up to 3 working days for the ministry and warns that foreign individuals may need up to 7 more working days for security clearance |
| 5. CR without licence | Valid for one year; allows leasing premises, approaching banks and securing the name, but not trading. The licence must follow within that year or the CR is deleted |
| 6. Get licence | Filed with the proposed commercial address and the ultimate beneficial owner details; each licensing authority approves its own activity |
| 7. Capital and notary | Cash capital is paid into a licensed bank in Bahrain; the memorandum, in Arabic or English, is documented before a notary in Bahrain, the final step before the licence is issued |
| 8. CR with licence | The ministry registers the company and publishes it on its website; trading in the licensed activities may begin |
A memorandum notarised abroad is not enough: Sijilat states that documents must be notarised in the Kingdom of Bahrain to register a company there. The public notary needs one working day, and a private notary can attend at a place the founders choose. Article 6 of the law, as replaced in 2021, makes articles of association that are not documented before a notary void.
Sijilat accepts documents only in Arabic or English; anything else needs a translation from an accredited translation office. Corporate documents and powers of attorney issued abroad are authenticated either through the embassy and the foreign ministries of both countries or, where the issuing country is party to the Hague Convention, by apostille. A foreign company joining as a partner adds an attested resolution approving the investment, a copy of its own commercial registration and its memorandum.
Sijilat provides a route for founders without a Bahraini CPR: a registered professional body files on their behalf, and its notary guidance allows a representative to attend for them. Whether a bank later wants to meet the owners in person is a separate matter that each bank decides for itself.
| Obligation | Rule |
|---|---|
| Commercial registration | Valid for one year and renewed every year, from six months before expiry; a CR that is not renewed is deleted, and the owners’ and managers’ liability continues |
| Beneficial owners | Natural persons with 10% or more of the capital or votes, or control by other means, entered on Sijilat when the licence is obtained, confirmed every year and updated whenever they change |
| Auditor and accounts | The W.L.L. appoints an auditor and files audited financial statements on Sijilat within six months of the financial year end; the year of incorporation is exempt |
| General assembly | At least once a year, within six months of the financial year end |
| VAT | Registration is due within 30 days once taxable supplies over twelve months pass BHD 37,500; the rate is 10% |
| Economic substance | Only for relevant activities such as holding, headquarters, distribution and service centres, shipping, leasing and intellectual property: adequate staff and management in Bahrain and a return within three months of the year end |
| Staff | Work permits are issued by the Labour Market Regulatory Authority (LMRA) |
There is no general corporate income tax to register for. Only companies producing oil and gas pay income tax, and since 1 January 2025 multinational groups with consolidated revenue of EUR 750 million or more pay a 15% domestic minimum top-up tax. A W.L.L. owned by individuals and trading in Bahrain falls under neither rule. The wider picture of tax and ownership is on our Bahrain company guide.
A foreign-owned company needs a real commercial address: the licence application names it, and the registration without premises is reserved for Bahrainis. One address may serve more than one CR if the authorities approve, and a move is filed on Sijilat and must match the actual place of business. The bank comes into the process earlier than many founders expect. The CR without licence exists partly so that founders can approach banks, and Article 266 requires the cash capital to sit in a licensed Bahraini bank before incorporation, released to the managers only after registration.
Sijilat runs a separate e-service for transferring the ownership of a shelf company, so buying an existing Bahraini company is a recognised procedure. It skips less than people assume: the transfer still passes ministry review and the licensing authorities’ approval, and a new memorandum is notarised. What it adds is an earlier registration date and a CR number that already exists. If those matter, see ready-made shelf companies in Bahrain; if not, a new W.L.L. lets you choose the name, activities and shareholding from the start.
Our part in a Bahraini formation: we can supply a ready-made company or set up a new W.L.L., draft the formation documents and prepare the filings for Sijilat, and help put together the application to a bank. If we have a working contact at a bank that suits the business, we can introduce you, and the decision stays with the bank. How shelf companies work in general is explained on off-the-shelf companies.
Check that each activity is open to your nationality, then apply on Sijilat for a commercial registration without a licence, which creates the company. Within one year you obtain the licence for each activity, giving the commercial address and the beneficial owners, pay any cash capital into a Bahraini bank and have the memorandum notarised in Bahrain. The ministry then issues the CR with licence, and trading can begin.
Yes, in most activities. Sijilat states that foreign ownership is 100% permissible in most economic activities and that GCC nationals and foreigners may own all the shares of a W.L.L. The exceptions are a short list reserved for Bahrainis, such as real estate brokerage, publishing, public transport and manpower agencies, and a list of activities prohibited to everyone. The check is made for each activity before applying.
A With Limited Liability Company, the Bahraini equivalent of a private limited company. Each partner is liable only up to their share of the capital, and since 2020 one natural or legal person may own a W.L.L. alone. There is no minimum capital, but the capital is fully paid before incorporation. A W.L.L. cannot issue negotiable shares or carry on banking, insurance or investment of others’ funds, and it must appoint an auditor.
Sijilat provides for founders without a Bahraini CPR: a professional body registered with the ministry applies on their behalf, and a representative holding a notarised power of attorney can act for them. The memorandum must be notarised in Bahrain, and the notary guidance allows a representative to attend. Documents signed abroad need legalisation or an apostille. Whether a bank wants to meet the owners is for the bank to decide.
Once the company holds a CR without a licence, it files a “Get license” application on Sijilat with the proposed commercial address and the ultimate beneficial owner details. The authority responsible for each activity approves it, and the ministry issues the CR with licence after the memorandum is notarised. A new activity added later follows the same path, and trading in it before approval is a violation.
Sijilat offers a public search of commercial registrations by CR number or by the English or Arabic commercial name. The results show the company type, the registration and expiry dates, the status and the activities. The CR certificate also names the legal representative. Because every CR is renewed yearly, an expired or deleted status is the first thing to look for before dealing with a company.
Planning a company in Bahrain? Tell us the activities and who the owners will be, and we will check them against the foreign ownership rules and set out what the Sijilat application and the licence will need. You can also reach us on Telegram or WhatsApp at +48 663 247 166.