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BhBahrain Subsidiary.






Country Capital



Bahraini dinar (BHD)

Expanding your company across borders and into Bahrain can make a big difference in your bottom line, but setting up a Bahrain subsidiary can be complex. However, G-P offers an alternative.  Instead of taking the conventional subsidiary route in Bahrain, we can expedite your entry — no new entities required — enabling you to begin operations in minutes instead of months.

How to set up a Bahrain subsidiary

If you decide to set up a Bahrain subsidiary, you’ll need to consider certain factors, such as the location of your subsidiary and the type of entity you want to incorporate as. Certain regions can operate under separate laws and regulations, and they can also have cultural factors that make it difficult to expand. Start by researching the best physical location for your office to ensure that you make the right decision.

There are 9 different types of company entities you can choose from in Bahrain, including a Bahrain shareholding company (B.S.C), closed shareholding company (B.S.C), partnership company, international company branch, limited liability company (LLC), simple commandite, and more. The most common subsidiary structure is an LLC that can protect both the subsidiary and the parent company from liability.

The process to set up a Bahrain subsidiary changes based on what type of entity you choose, but the common steps include:

  • Selecting a company name that’s available and does not violate public order.
  • Applying for registration by filing prepared company documents and required forms.
  • Completing the registration by receiving a commercial registration certificate.
  • Opening a bank account.
  • Leasing the necessary office space.
  • Hiring employees.

You can register your company at the Bahrain Investors Center, which typically takes 1 to 2 working days. You’ll have to renew your company’s registration every year. Depending on the commercial activity, you may need a license or other approvals.

Bahrain subsidiary laws

According to Bahrain subsidiary laws, certain industries are prohibited or protected for investment by citizens of Bahrain. Gambling and the import and industrial use of restricted chemicals are both prohibited industries. Protected industries and jobs include printing presses, accounting services, the sale of racing car fuel, and more.

Companies must also make payments to employees and authorities in Bahrain from an in-country bank account. If this step is not required as part of the Bahrain subsidiary setup process, you must establish bank accounts before starting payroll.

To incorporate as an LLC, you will need:

  • Minimum paid-up capital of USD 2,660
  • 2 directors
  • 2 shareholders of any nationality
  • 1 manager who lives in Bahrain

Additionally, LLCs are sometimes subject to local shareholding joint venture requirements, depending on their sector. Companies also have to meet certain tax laws, such as submitting yearly tax returns and audited financial statements.

Benefits of setting up a Bahrain subsidiary

The biggest benefit of the Bahrain subsidiary setup process is that you can start operating in the country. If you incorporate as an LLC, both the parent company and the subsidiary can operate somewhat independently. The parent company will not be held liable for the subsidiary’s actions, and the subsidiary will be free to establish a company culture and environment that works for Bahrain.

Other important considerations

If you decide to set up a Bahrain subsidiary, you’ll need to set aside the right amount of money to incorporate. Many parts of the process include a fee, so make sure your company is financially ready for the lengthy process. You should also budget your time or designate another company executive to travel back and forth to Bahrain throughout the process.

Enter new markets with G-P — no new entities required.

Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 Global Growth Platform™ to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.

Get in touch today to learn more about how we can streamline the global growth process.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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