8 Steps to Register Your Offshore Company in Bahrain 2019

The term "offshore" is the very definition of about being located, situated or based beyond or across your country of origin. It talks about an area or location across national boundaries. An Offshore Company refers to the incorporation of a business entity in a foreign country or nation that functions in accord with the organizational principals of that particular foreign country; or the ability to operate or run a business outside the country of company formation. Thus, "setting up an offshore company in Bahrain" is nothing but incorporating a business in Bahrain which has its main office or head office located in another country.

Benefits of Forming an Offshore Company in Bahrain

  • Firstly, Bahrain is a petite country situated in the Arabian Gulf. For many years Bahrain has been a forum for many trade routes for several GCC member countries, thanks to its tactical position and geographic formation of a cluster of about 30 islands.
  • Second, Bahrain allows 100% foreign ownership and taxation in Bahrain sees an additional 0% income tax for individuals across several sectors, industries, and business entities, making Bahrain an attractive location for foreign investment and starting overseas companies.
  • To support its position as a hub for trade and commerce, Bahrain invested time and effort into building up infrastructure, communication, and overall development to become on par with the modern global level.
  • It is a known fact that Bahrain holds a great abundance of inexpensive energy sources.
  • And finally, foreigners are allowed to have freehold property in addition to exemplary support services from local authorities overall ease of doing business in Bahrain.

Formation of an Offshore Company in Bahrain

Regulations and Acts

The procedure to register an Offshore Company in Bahrain necessitates abidance to the Law of Commercial Companies (2001). Understand and take the provisions under substantial consideration. Other regulatory acts to consider are by the Ministry of Commerce. Based on the nature of the company and the laws and acts it is required to follow, company operations are greatly affected.

Prerequisites and Requirements

The following documents and prerequisites are essential to go ahead with the registration of an Offshore Company in Bahrain.

  • A completely filled application form of company registration
  • A legal affirmation or pre-approval from the external entities
  • A signed sponsorship agreement with a Bahraini trader for operational branches
  • A legal copy of Commercial Registration Certificate
  • A copy of Memorandum and Articles of Association along with 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

Registration Procedure for Offshore Business Formation in Bahrain

The procedure of registration consists of 8 main steps.

1. Be Clear About the Business Activities

Define the nature of the activities and the scope of your business. Transparency will eliminate possible complications arising by not mentioning what the business deals with. Note that, not all industries in Bahrain are open to foreign investors opening an Offshore Company. Therefore, prior affirmation of the business dealings will ensure that you won't end up on a rocky road.

2. Name Your Offshore Company

First, you are required to list out the selection of names for the enterprises or entity in order to ensure problems associated with repetition of already registers names, trademarks and brands do not occur.

3. List out The Shareholders

A restrictive range of shareholders must be listed out along with all the previously mentioned requirements. The range of shareholders must be mentioned earlier, their names and nationalities, along with identification proof.

4. Appoint the Directors

Just like any other business entity, you are required to appoint the directors for your Offshore Company. They must be listed out in a manner similar to the list of shareholders.

5. Capital Formation

Next you are required to form the authorized capital of the company. Minimum capital of BHD 1,003.

6. Form the Memorandum of Association

Devise the Memorandum of Association along with the prior approval of the collected documents by the Ministry of Commerce.

7. Open a corporate bank account

Having a corporate bank account for your offshore company will keep a track of all your business transactions. Set up an account with any national bank in Bahrain and procure the Certificate of Bank Deposit.

8. Fill the Application of Registration

Finally, file for an application for registration of the company in Bahrain accompanied by the complete set of required documents mentioned previously. The application can be collected and submitted to The Ministry of Industry and Commerce through Registration Agents.

Advantages of Setting up an Offshore Company in Bahrain

There are many advantages of starting a business in Bahrain like,

  • Offshore companies create a scope for interaction and interdependence among organizations. A high degree of information sharing and knowledge transfer takes place within offshore companies.
  • Investing in offshore companies allows entrepreneurs and businesses to diversify their assets in countries which may yield a greater return on investment. Reasonable taxation despite foreign expansion.
  • When done right, the extent a company can manage to save up and wave away from heavy taxation under offshore companies is quite outstanding.
  • Through the formation of offshore companies, one is able to feed the assets to the company, thus enabling them to be the part way from being associated with the individual. Therefore, should there be a lawsuit involving an asset search, they cannot be tied back to the individual.

We at Business Setup Worldwide specialize in bringing you an array of business-related services. Through our highly capable Advisors, we offer a plethora of services and the relevant information to set up an Offshore Company in Bahrain and many other locations across the globe. From Company incorporation to Corporate Secretarial Services, our business solutions are derived from a synergy of all our operating branches. To know more, contact us – we’d be happy to help.


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Saniya has always been driven by art and aesthetics. She is constantly in the frame of mind to sketch something new. Looking out for creativity in her work, she found her calling in content writing. She has an esoteric personality and maybe the Protector of Gotham.