Bahrain is one of the high-income economies and one of the most economically liberal countries in the world. It is considered the gateway to Arab state due to its strategic location in the centre of Middle East. The country has access to shipping traffic through the Persian Gulf and land route to the Arabian Peninsula. This combination of economic conditions, infrastructure and geographic location makes Bahrain a vital link in the global supply chain connecting the Middle East market to the world market.
The country is not only affluent; the society is urbanised as well. The kingdom’s official language is Arabic; however, English is spoken widely as expatriates constitute half of the resident population of Bahrain. The society of this country is considered one of the most progressive in the Middle East. The estimated population of Bahrain is 1.3 Million. The majority of the population lives and works in the densely populated northern half of the main island known as Al-Awal-island.
Historically this country is known for its business environment, one of the founding members of the World Trade Organization, it ranks among the most economically free countries. The attitude of this country towards foreign investment is liberal which makes it the fastest growing economy in the world. It’s also has been long established as the principal financial and banking centre of the region.
Till now Bahrain’ business culture, local trade, language and geographical location have been stated as the advantageous feature of the country. Specifically, there are some other benefits for the foreign investors which are listed below:
- No personal or corporate taxation
- No VAT or other sales tax
- A well-developed infrastructure with excellent transport and communication facilities
- No restriction on capital and profit repatriation
- No exchange control
- Duty-free access to Gulf Cooperation Council (GCC) member states for products manufactured in Bahrain
Apart from few prohibited activities mainly concerning alcohol, tobacco, waste products and firearms, all types of foreign investments are accepted in Bahrain. There are few areas which are reserved for Bahrainis such as publishing, car rental, the supply of oil and gas products.
Getting Started with Business Setup in Bahrain
To establish a business in Bahrain, there are certain legal requirements that a company or foreign investor needs to fulfill. To conduct business in Bahrain, a legal presence is required. An international representative office (RO) of the expatriate investor is a possible solution. However, having an RO will only allow the investor to operate internationally and not with the local clients in Bahrain. To establish a business in Bahrain, a Foreign Investor has to form a company, a Bahraini Limited Company (WLL), other types are also possible. The process requires submission of various documents and certificates to the Ministry of Industry and Commerce.
To help foreign investors, business professionals, and companies in Bahrain, the government, has specially set up a Bahrain Investor Centre (BIC) to help to streamline of licenses and approval procedures by the Ministry of Industry and Commerce. BIC constitutes of all the Representatives from the relevant ministries and private sectors such as banking, legal, telecommunication and consulting institutions.
Business Setup with Business Setup Worldwide Consultants
Company formation in Bahrain and setting up a business in Bahrain requires some rigorous procedures and documentations. The local knowledge and network reduce the time taken to accomplish the task in half the estimated time, rather than struggling to do all by yourself. Starting a business in Bahrain has many benefits, local ecosystem, community and the liberal society makes it a very lucrative area for investment. Hence to get the best of both worlds, Business Setup Worldwide provide the best possible solution along with timely updates which reduce your cost and helps you make decisions effectively. To know further about our consultation service, kindly connect with us at [email protected] our consultants will be happy take your questions and assist you further.