Branch of a Foreign Company in Bahrain

Companies that have been incorporated and registered outside Bahrain can open their branch office in Bahrain to carry out particular activities. The name of the Foreign Company Branch in Bahrain must be identical to the company's original name and shall be followed by the phrase "a branch of a foreign company". 

The company is also allowed to open a representative office of the parent company in Bahrain to follow up and supervise its interests in Bahrain.

The Ministry of Bahrain allows a foreign company to have its branch in Bahrain only if it abides by the following conditions:

  1. The foreign company must obtain a license to incorporate its branch in Bahrain from the Ministry of Commerce and Industry
  2. The branch of the foreign company must have a Bahraini sponsor who must be a businessman or a company. However, the Ministry of Commerce and Industry may exempt the company from this provision if the company's branch or office shall use Bahrain as a regional centre or a representative office for the company's activities
  3. The branch has to register itself in the Commercial Registry in accordance with the laws
  4. If the branch, agency, or office undertakes its activities before the completion of the procedures provided for in the foregoing paragraph, the persons who have undertaken such activities shall be liable personally and jointly

Starting a business in Bahrain can prove to be really fruitful. Learn on our blog why starting a business in Bahrain is a tremendous financial move.

Features of a Foreign Company Branch in Bahrain

  • The parent company must bear all the liabilities of its branch in Bahrain
  • The presence of local office is mandatory
  • The branch must have a local sponsor for an operational office
  • No minimum share capital requirement
  • A branch manager is required
  • Banking, insurance, and investment activities are allowed
  • The parent company is required to issue a bank guarantee in favour of the Ministry of Finance and National Economy
  • A branch is permitted to secure an office, invoice the Bahraini customers, sign local sales contracts and receive income from the clients

How to Set Up a Foreign Company Branch in Bahrain?

The overall process for registration starts with an application to commercial registration after selecting a company name that has to be unique and not allotted to others earlier. The step-by-step guide for registering a branch of a foreign company is as follows:

  1. Fill out the application to form the branch of a foreign company with all the necessary details
  2. Draft standard Memorandum of Association (MOA) and obtain preliminary approval from the Ministry of Commerce at the Bahrain Investment Centre. It takes one daytime, and no cost is associated with it
  3. Obtain a lease approval from the Municipality to set an office
  4. Notarize and send a copy online to the Ministry
  5. Open a bank account and obtain proof of deposit of the capital
  6. Deposit a guarantee to the bank in the name of the branch, the agent or an official representative, and to the order of the Minister of Commerce and Industry
  7. Obtain a certificate of registration from the Ministry of Commerce
  8. Publish the incorporation notice in the official gazette
  9. Register the company and employees with the General Organization for social insurance

Documents Required to Set Up a Foreign Company Branch in Bahrain

  • Completely filled application form of company registration
  • Pre-approval from the external entities
  • Sponsorship agreement signed with a Bahraini trader for operational branches
  • Copy of Commercial Registration Certificate
  • Copy of Memorandum and Articles of Association and its amendments
  • Board of Directors resolution to establish the branch in Bahrain
  • Guarantee letter from the parent company taking full responsibility for the Bahrain branch
  • Authenticated power of attorney

Why Set Up a Foreign Company Branch in Bahrain?

Bahrain is a nation open to making an extraordinary economy that is developing significantly. It has been inviting financial backers to put into the district for quite a while. It has set itself up to be the chief banking and monetary focal point of the Gulf area. Learn more about registering a foreign company in Bahrain on our website.

Bahrain offers a few benefits to foreign investors, including a no personal or corporate tax assessment system, no limitation on capital and profit repatriation, a created framework with magnificent transportation and communication facilities, and duty-free access to Gulf Cooperation Council (GCC) member states for products manufactured in Bahrain

Hence, registering a company in Bahrain, even a branch office, can be profitable for an investor.

Our Role

If you are looking to set up a branch office in Bahrain and are on the lookout for an advisor, then we at Business Setup Worldwide are here to help you with all the monetary and non-monetary obligations. We offer services right from company registration, incorporation, accounting and bookkeeping, to company secretarial services. So contact us, even if it is

Companies that have been incorporated and registered outside Bahrain can open their branch office in Bahrain to carry out particular activities. The name of the Foreign Company Branch in Bahrain must be identical to the company's original name and shall be followed by the phrase "a branch of a foreign company". 

The company is also allowed to open a representative office of the parent company in Bahrain to follow up and supervise its interests in Bahrain.

The Ministry of Bahrain allows a foreign company to have its branch in Bahrain only if it abides by the following conditions:

  1. The foreign company must obtain a license to incorporate its branch in Bahrain from the Ministry of Commerce and Industry
  2. The branch of the foreign company must have a Bahraini sponsor who must be a businessman or a company. However, the Ministry of Commerce and Industry may exempt the company from this provision if the company's branch or office shall use Bahrain as a regional centre or a representative office for the company's activities
  3. The branch has to register itself in the Commercial Registry in accordance with the laws
  4. If the branch, agency, or office undertakes its activities before the completion of the procedures provided for in the foregoing paragraph, the persons who have undertaken such activities shall be liable personally and jointly

Starting a business in Bahrain can prove to be really fruitful. Learn on our blog why starting a business in Bahrain is a tremendous financial move.

Features of a Foreign Company Branch in Bahrain

  • The parent company must bear all the liabilities of its branch in Bahrain
  • The presence of local office is mandatory
  • The branch must have a local sponsor for an operational office
  • No minimum share capital requirement
  • A branch manager is required
  • Banking, insurance, and investment activities are allowed
  • The parent company is required to issue a bank guarantee in favour of the Ministry of Finance and National Economy
  • A branch is permitted to secure an office, invoice the Bahraini customers, sign local sales contracts and receive income from the clients

How to Set Up a Foreign Company Branch in Bahrain?

The overall process for registration starts with an application to commercial registration after selecting a company name that has to be unique and not allotted to others earlier. The step-by-step guide for registering a branch of a foreign company is as follows:

  1. Fill out the application to form the branch of a foreign company with all the necessary details
  2. Draft standard Memorandum of Association (MOA) and obtain preliminary approval from the Ministry of Commerce at the Bahrain Investment Centre. It takes one daytime, and no cost is associated with it
  3. Obtain a lease approval from the Municipality to set an office
  4. Notarize and send a copy online to the Ministry
  5. Open a bank account and obtain proof of deposit of the capital
  6. Deposit a guarantee to the bank in the name of the branch, the agent or an official representative, and to the order of the Minister of Commerce and Industry
  7. Obtain a certificate of registration from the Ministry of Commerce
  8. Publish the incorporation notice in the official gazette
  9. Register the company and employees with the General Organization for social insurance

Documents Required to Set Up a Foreign Company Branch in Bahrain

  • Completely filled application form of company registration
  • Pre-approval from the external entities
  • Sponsorship agreement signed with a Bahraini trader for operational branches
  • Copy of Commercial Registration Certificate
  • Copy of Memorandum and Articles of Association and its amendments
  • Board of Directors resolution to establish the branch in Bahrain
  • Guarantee letter from the parent company taking full responsibility for the Bahrain branch
  • Authenticated power of attorney

Why Set Up a Foreign Company Branch in Bahrain?

Bahrain is a nation open to making an extraordinary economy that is developing significantly. It has been inviting financial backers to put into the district for quite a while. It has set itself up to be the chief banking and monetary focal point of the Gulf area. Learn more about registering a foreign company in Bahrain on our website.

Bahrain offers a few benefits to foreign investors, including a no personal or corporate tax assessment system, no limitation on capital and profit repatriation, a created framework with magnificent transportation and communication facilities, and duty-free access to Gulf Cooperation Council (GCC) member states for products manufactured in Bahrain

Hence, registering a company in Bahrain, even a branch office, can be profitable for an investor.

Our Role

If you are looking to set up a branch office in Bahrain and are on the lookout for an advisor, then we at Business Setup Worldwide are here to help you with all the monetary and non-monetary obligations. We offer services right from company registration, incorporation, accounting and bookkeeping, to company secretarial services. So contact us, even if it is just for a piece of friendly advice!