About
01
Bahrain imposes no exchange control restrictions on repatriation of capital, profits and dividends, enabling full financial transferability of capital, profits and dividends. Bahrain currently levies no taxes on personal or corporate income. There is no capital gains tax, no withholding tax and no value-added tax (VAT). The Bahraini Dinar (BHD), which is fully convertible, is pegged to the US dollar at BHD1 = USD2.65.
02
Forming a company in Bahrain offers excellent access to the GCC states, especially Saudi Arabia, which is the largest market in the region. Bahrain has an expanding treaty network that includes over 30 double tax agreements with key partners in Asia, Europe and the Americas, as well as the Middle East and Africa. This is supplemented by bilateral investment treaties with countries including India, Italy and the US, and Free Trade Agreements with trading partners such as the US and Singapore.
03
Bahrain offers a range of vehicles through which to do business – the choice will be governed by the nature and size of the business, as well as the requirements of the investors. All types of Bahraini company give the shareholders or the directors an Investor’s Residence Visa.
04
The most common vehicle in Bahrain is the With Limited Liability Company (WLL). Investors who set up a company in Bahrain can take 100% foreign ownership, regardless of whether the company is a WLL, a partnership, a branch or a representative office. Exceptions to 100% foreign ownership are companies that engage in reserved business activities and public shareholding companies in which foreign investors are restricted to a maximum 49% stake.
05
Bahrain is home to three special economic zones. The Bahrain Logistics Zone was established in 2008 next to Khalifa bin Salman port, the island’s main harbour, and focuses on third-party logistics, storage and distribution. Bahrain International Airport offers cargo facilities, offices and retail space; the foreign trade zone has no customs duties. Bahrain International Investment Park (BIIP) offers 100% foreign ownership of companies, duty-free access to GCC markets, exemption from 5% import duties on both raw materials and equipment and 100% repatriation of capital.
06
Sovereign Bahrain can also assist with the following countries – Kuwait, Qatar, Saudi Arabia, Oman, Jordan, the Lebanon, Iraq and Libya.
About
The nature and size of the proposed business, as well as the particular requirements of investors govern the choice of legal vehicle in Bahrain. All types of Bahraini companies give the shareholders or the directors an Investor’s Residence Visa. The Bahrain Commercial Companies Law (BCCL) of 2001 replaced the old Bahrain Commercial Companies Law of 1975 and made substantial changes. This law applies to all legal structures except that of a Sole Proprietorship, which is registered according to the provisions of Bahrain Law of Commerce, Decree No. 7 of 1987. The principal types of vehicle are:
Limited Liability Company – known as company With Limited Liability (WLL)
A WLL is a company of which partners are responsible for the company debts and liabilities only to the extent of their capital. The minimum number of partner is 1 and the maximum is 50. A WLL cannot engage in banking and insurance activities and cannot issue public shares, negotiable warrants or debentures. 100% foreign ownership is allowed and local operations are permitted.
Foreign Company Branch
A branch of a foreign company that is incorporated and registered outside Bahrain may be established as an Operational, Representative or a Regional Office. The limits of liability are the same as the parent company. Local operations are permitted only for an Operational Office, which require local sponsor.
Bahraini Establishment or Sole Proprietorship
Commercial registration for a sole proprietorship or individual establishment is only issued to Bahraini citizens, or GCC or US citizens resident in Bahrain, over the age of 18. The liability of the sole proprietor is unlimited.
Partnerships
A general partnership company is formed between two or more people under a specific name, and the partners assume joint responsibility, to the extent of all of their funds, for the partnership’s obligations. There must be at least two partners, at least two directors and the company must set up a local office. Depending on the category, 100% foreign ownership is permitted and a local sponsor is not required.
SOVEREIGN BAHRAIN – THE ‘GREEN PACK’
Sovereign Bahrain’s ‘Green Pack’ is a bundle of services that is designed to protect and maintain your Bahrain company and ensure that it remains in good standing throughout the year.
A corporation is a legal entity that is legally separate from its owners, with its own rights and obligations, and is the most widely used legal vehicle for operating a business. But failure to manage a company correctly can not only mean that intended objectives and benefits are not realised but can also lead to unintended consequences and liabilities.
Other information
The costs of incorporation vary considerably, depending on the type of entity required and the activity that it undertakes. Each business activity needs specific pre-approval from the relevant government department. Whilst Sovereign will handle all procedures, the timescales can be uncertain. Prices are in the range of BHD1,500 to BHD5,000. When we understand the nature of the business and the type of entity required, we will provide a comprehensive all-inclusive quotation before proceeding
Once incorporated, we provide a domiciliary service, which includes the provision of company secretarial, registered office and full management services. Re-mailing services are available at modest cost for all companies established by Sovereign.
Note: Ancillary services
In addition to providing incorporation, we provide PRO services , which can keep the company in a good standing, renewing the commercial license onetime, pay the company various bills, applying and renewing residency permits etc. also assistance with office relocation, introduction to real estate agents, government agencies and other third parties.
Trademark and Intellectual Property Services
The intellectual property (IP) associated with a business name or system can be one of its most valuable assets – but only if it is properly protected. Any business that wishes to establish a national or international identity should take steps to protect the use of its name, logo or other IP, such as patent rights, formulae/processes, designs, trademarks, franchises, licence agreements, “know-how” and copyrights. Given the importance of IP to modern businesses, Sovereign has established an intellectual property division that specialises in registration, monitoring, advice and proactive assistance.
The intellectual property (IP) associated with a business name or system can be one of its most valuable assets – but only if it is properly protected. Any business that wishes to establish a national or international identity should take steps to protect the use of its name, logo or other IP, such as patent rights, formulae/processes, designs, trademarks, franchises, licence agreements, “know-how” and copyrights. Given the importance of IP to modern businesses, Sovereign has established an intellectual property division that specialises in registration, monitoring, advice and proactive assistance.
Income from IP rights may be derived by way of royalties. As with other sources of income, the tax planning of IP should focus on maximising the after-tax profits. To ensure that arrangements made to receive royalties are effectively constructed, it is necessary to analyse how various countries treat the payments of royalties, whether tax is withheld on such payments and how the income receipts and expenditures are treated.
Why Bahrain?
- 100% foreign ownership permitted
- 0% corporate tax
- 0% income tax for individuals
- 100% repatriation of capital and profits permitted
- Modern efficient communications and infrastructure
- Abundant and inexpensive energy
- Excellent support services from local authorities
- Foreigners are permitted to hold freehold property
- Geographical location is ideal for cross border business
Time
The Time Zone is GMT + 3
Hours of work
The working week is Sunday to Thursday inclusive
Useful Links
Central Bank of Bahrain – www.cbb.gov.bh
Bahrain Economic Development Board – www.bahrainedb.com
Nationality, Passports and Residence Affairs (NPRA) – www.npra.gov.bh
Commercial Services
Landmark can help clients manage and protect their wealth through our established trust administration services in Hong Kong providing a full suite of Family Office services.
Corporate Services
With Hong Kong’s ideal geographical location and accessibility to international markets and the Greater Bay Area, Landmark is set up to help any company establish itself in Hong Kong and provide support services to manage those companies. We can assist any entrepreneurial start-up to establish ESOPS, IPO Trusts and company secretary work for listed companies.
Private Client Services
Hong Kong combines an established, low tax system with a pensions framework that attracts legitimate and transparent pension planning for both local and international clients. The basis of Hong Kong’s corporate pensions’ infrastructure is provided by the Occupational Retirement Schemes Ordinance (ORSO), which established a registration system for occupational retirement schemes that were established voluntarily by employers to provide retirement benefits for their employees.
Landmark Law
World-Class Bespoke Integrated & Versatile Corporate Solutions With A Holistic Approach.
Landmark Law Copyright © Registered 2022
Contact
Get In Touch
British Virgin Islands Office: