Bahrain, recognized officially as the Kingdom of Bahrain, is a small Arab state that is located at the Persian Gulf. It is a heavily oiled economy that stands as one of the major exporters of oil and petroleum. Over the years, the government of Bahrain has tried multiple strategies to uplift the non-oil sector. To focus on each segment, specialized zones have been built dedicated to different industries. One such free zone in Bahrain is the Bahrain Investment Wharf (BIW), launched in 2005, which stands as a cutting edge for the industrial investments.
Located at the Al Hidd Industrial Development Zone at Muharraq Island, the zone offers strategic advantages to the business investors who look forward to investing in the manufacturing and logistics domain. As per the Government move, BIW is the only privately owned and managed industrial investment park, an outcome of the Private-Public Partnership between the Inovest and the Government of Bahrain, backed by the Ministry of Industry, Commerce and Tourism (MOICT). Over the years, the BIW has been grabbing the international investments to uplift the economy to the next level.
Key Features of Bahrain Investment Wharf (BIW)
Some of the key features of the Bahrain Investment Wharf (BIW) includes the following:
- Covers an area of 1.7 million square metres
- Ideal for industrial, business, logistics, IT, commercial and real estate business
- An ideal option for light and medium industries
- Well-built structured plots
- Pre-built commercial space
- Pre-built warehouse
- Takhzeen storage facility
- Availability of BIW business park
- The flexibility of hotel and hospitality
With the inauguration of the BIW, starting a business in Bahrain has turned out to be a feasible option for the global business investors and manufacturers to a great extent, which provokes them to start a business in Bahrain at ease.
How to Start a Business in Bahrain?
To incorporate a business in Bahrain, a business investor needs to follow the below steps:
1.Select the Business Entity Type
The first and foremost task is to select a business structure. The Kingdom of Bahrain allows business investors to choose from a vast number of business entities:
- With Limited Liability (WLL)
- Partnership Company
- Bahrain Shareholding Company- Public
- Bahrain Shareholding Company- Closed
- Single Person Company
- Single Commandite Company
- Branch of a Foreign Company
It is recommended to choose a business entity only after understanding the different types and the benefits that each entity provides. The selection of a business structure depends on the total number of od available shareholders and the capital available for the initial investment.
2.Choose a Trade Name
The second task is to select a business name after selecting the business structure. The business name should be chosen wisely as it will turn out to be the brand at a later stage. Now, according to the stated rules, it is to be noted that the trade name should be unique, and shouldn’t turn out to be offensive.
3.Gather the Company Essentials
The company owner needs to be ready with the relevant documents to proceed ahead with the incorporation process. The general list of materials includes:
- A duly filled company registration application form
- Passport and Visa of the shareholder(s) or investor(s)
- Identity proof of the owners
- Address proof of the owners
- A blueprint of the business plan
- Drafted Memorandum and Articles of Association
- List of business activities
- Board of Director’s Resolution
Once the documents are gathered, they need to be submitted to the concerned Government Authorities for approval.
4.Grab the Business License
After scrutinizing the set of documents, the concerned authority will provide the business license that serves to be an essential document to operate the business activity, as it is a legal permit.
By now, you have got a complete idea regarding how to start a business in Bahrain. Well, let’s have a look at the core reasons for starting a business in Bahrain.
Why Start a Business in Bahrain?
Incorporating a business entity in Bahrain turns out to be a smart and profitable investment option because of the multiple benefits that the region provides. By starting a business in Bahrain, you can grab the following benefits:
Tax is a primary concern of business investors at the end of the financial year. The Government of Bahrain takes the necessary steps to set the business investors completely free by setting the tax exemption proceedings. The business owners do not need to pay the personal tax to the government. However, being a part of the GCC network, Bahrain has implemented the VAT proceedings by 1st January 2019. This VAT rule gets implied to the business entities incorporated in Bahrain, wherein they are entitled to pay the VAT at the rate of 5 per cent.
The government of Bahrain has relieved the business investors of paying from any tax when it comes to company liquidation. The business owners and investors hold the complete flexibility to repatriate the total capital invested and profits earned during the entire business cycle.
3.Access to the International Market
Bahrain serves to be an excellent destination for business entrepreneurs and owners who are planning to expand their business. Being a neighbouring location to the other GCC countries like Iran, United Arab Emirates, Oman, Qatar, the business investors gets excellent exposure and ease to enter the international market.
4.A Growing Economy
Over the years, Bahrain has been uplifting itself as one of the growing business grounds. The Bahraini government has been trying multiple steps to boost the non-oil sector as the region holds a background of an oil-economy.
5.Easy Business Setup Process
The business establishment process in Bahrain requires the investor to proceed ahead with a few steps. Ideally, the business setup process turns out to be an easy one if carried out according to the guidance of an expert.
Why Choose a Business Consultant?
Business consultants are experts who have better clarity when it comes to the company establishment process. By having an expert by your side, you can grab the following benefits:
- Experts know the in-and-out of the business setup process
- They have a better idea about the business industries
- The market insights can be fetched out easily
- Legal documentation proceedings are carried out at ease
- Consultants have their network to perform the activities faster
How Can We Help?
Business Setup Worldwide is dedicated to providing the best and secure business setup solutions to the investors and business owners. Since inception, we have helped numerous business entrepreneurs to convert their business ideas into reality into different parts of the world. Our business experts across various regions are well-versed with the business incorporation proceedings, and thus, possess the capability to provide tailored solutions by understanding the business needs.
In case you hold any query, or want to step towards the business setup process in Bahrain, having a word with an expert would help you to understand the point of initiation. To have a word with our advisors, contact us today-we’d be glad to assist.