Company formation has been one of the vital revenue-generating sources in Bahrain. As a result, the country has been standing as one of the top-notch investment zones for business investors looking forward to incorporating a new business or expanding the existing one.
Recent research shows that the diverse economy and business-friendly environment have significantly impacted the zone's overall business entities.
If you are an investor or business owner who has a business in Bahrain or is planning to register a company in Bahrain, then a corporate bank account is something you should watch to secure your transactions.
A corporate bank account is a need of any business entity, and this guide will outline all the essentials you should know before proceeding ahead for the same.
Corporate Bank Account in Bahrain
The Bahraini government demands the established business units to hold a corporate bank account as per the corporate laws.
The Kingdom of Bahrain holds a strong banking network across the globe that allows individuals and business entities to proceed ahead with the account setup.
The Central Bank of Bahrain (CBB) is the regulatory body in the nation. The complete banking system of the Kingdom of Bahrain holds the following breakup:
- 19 Retail Banks
- 69 Wholesale Banks
- 2 Specialize Banks
- 36 Representative Offices of Overseas banks
Whereas the CBB holds the complete monetary controls, the Bahrain Bourse (BHB) is the core destination that focuses on the capital market activities in Bahrain.
Islamic Bank Account in Bahrain
When it comes to investment, the Muslim investors widely accept the concept of Islamic finance, and the region hosts several global organizations, which include:
- Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)
- International Islamic Financial Market (IIFM)
- General Council for Islamic Banks and Financial Institutions (CIBAFI)
- Islamic International Rating Agency (IIRA)
- Bahrain Institute of Banking and Finance (BIBF)
Types of Bank Account in the Kingdom of Bahrain
When it comes to a bank account in Bahrain, there are two types of accounts that you'll be introduced to:
The current account can be considered a corporate bank account as it is mainly opted by the corporate entities. Therefore, the entity helps the account holders with instant access to the available funds in the market.
The current account in Bahrain helps the investors to deal with multi-currencies that includes the following list:
- Bahraini Dinars
- Saudi Riyals
- US Dollars
- British Pounds
- UAE Dirham
Below-mentioned is the eligibility criteria for opening a current bank account in Bahrain:
- The applicant must be at least 21 years old
- The initial deposit can be: 300 BD / USD 2,500 / EUR 2,000 / SAR 10,000 / AED 10, 000 / GBP 2,000
Savings and Deposit Account
This kind of account can be opened in any of the retail banks of the country. One of the main reasons for opting for a savings bank account is that the deposited amount can be withdrawn at any point in time.
A few of the features that the savings account hold:
- Free debit card
- A low minimum balance is required
- Competitive interest rates
- Quick access to the funds
How to Open a Bank Account in the Kingdom of Bahrain?
Opening a bank account allows the investors to deal with the corporate finances efficiently. The complete process of bank account opening in Bahrain includes the following steps:
Selection of Bank
The first and foremost task is to select the bank to get started with. This is an essential step because you need to choose the one that suits your business needs.
Understand the Norms
Once you select the bank, you need to understand the norms and objectives. It is essential to understand and have a clear idea about the required details as it can ease the further process.
Submit the Documents
It would help handy with the required documents in the third move. The list of the essential documents includes the following:
- Identity proof of the business shareholders and investors
- Address proof of the business shareholders and investors
- Well-drafted business plan
- Company registration certificate
- Any other document (if required by the bank)
Deposit the fee
After submitting the documents, you also need to deposit the initial fee to the bank. Again, this is a mandatory process that can't be skipped.
Carry out the Transactions
Finally, once the bank account is opened, you can easily carry out the transactions.
Now, the process of opening a bank account is straightforward. However, you might end up facing a fee challenge while proceeding ahead, like:
- Choosing the appropriate bank account
- Difficulty to understand the norms and objectives
- Papers to be submitted
A slight change or negligence can abort the process. So, the best move is to get in touch with professional experts who can help you deal with the proceedings at ease.
At Business Setup Worldwide, we understand the investor's needs, and thus, we cater to the requirements accordingly.
Our expert team is well-versed with the bank account opening process and can guide you accordingly. If you hold any queries, please reach out to our experts. Contact us now-we'd be glad to assist!