Bahrain company formation is a legal, tax-efficient way for international entrepreneurs to conduct business in Bahrain and globally. The following information will help you determine whether Bahrain company formation is the optimum corporate structure to fulfill your international business objectives:

1.

High oil prices and investment-friendly policies have fueled the growth of Bahrain's economy in recent years. That said, Bahrain's economy is diversified. Consequently, the local market in Bahrain presents opportunities for foreign-invested companies operating in a range of sectors, including manufacturing and services.

2.

If properly-structured, a Bahrain company is legally tax-exempt, regardless of where the company sources its income. Furthermore, Bahrain imposes no withholding tax, value added tax (VAT) or personal income tax.

3.

A Bahrain Exempt (Offshore) Company can be 100% foreign-owned, and shareholders and directors can be resident anywhere in the world.

4.

A Bahrain limited liability company can be 100% foreign-owned if the company plans to enter selected sectors including manufacturing; tourism; business services and private healthcare.

5.

To encourage foreign direct investment, a limited liability company is exempt from customs duty on capital goods and goods for re-export, raw materials for manufacturing, semi-finished commodities imported for further processing, imports required for development projects, and initial import of capital goods by a manufacturing company.

Bahrain ranks a positive 19th in the Heritage Foundation's 2008 Index of Economic Freedom, particularly for its business, trade and fiscal freedom. Consequently, foreign investors can expect to freely conduct international business. For example, a limited liability company is able to remit capital, profits and dividends freely from Bahrain.

Bahrain is a regional financial centre, and a range of financial services are offered to support Bahrain company formation, particularly through the Bahrain Stock Exchange and the Bahrain Development Bank.

Some businessmen and contractors choose Bahrain company formation as a gateway into  neighbouring Saudi Arabia, the Gulf's largest economy.

9.

Healy Consultants can open a corporate bank account in Bahrain or internationally to support Bahrain company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.

Unless eligible for 100% foreign ownership (see paragraph 4 above), a limited liability company must have a minimum 51% shareholding by Bahraini citizens Both an Exempt Company and limited liability company require a minimum of two shareholders and directors. Shareholders' and directors' details for a limited liability company are available for public viewing.

2.

Bahrain company formation is expensive. A limited liability company is required to deposit a minimum capital of 20,000 Bahrain Dinars (US$53,000) with the Central Bank prior to incorporation. Furthermore, a limited liability company requires a Bahraini shareholder, with nominee shareholders charging upwards of US$10,000 annually.

A Bahrain Exempt Company is not allowed to conduct any business in Bahrain, but must maintain an office in Bahrain.

Although not perceived as a tax avoidance vehicle in the same way as a BVI or Bahamas company, a Bahrain Exempt Company is less attractive to international entrepreneurs for tax-exempt global trading than a Singapore or Hong Kong entity, particularly if image is important.

4.

Bahrain company formation is challenging because of inconsistent regulations and slow-moving bureaucracy. Bahrain is negatively ranked as the 43rd least corrupt country in the world according to the 2008 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. Moreover, Bahrain is poorly ranked as only the world's 43rd most competitive economy in the World Bank's Global Competitiveness Report 2007-2008.

5.

All Bahrain companies are required to prepare annual audited financial statements. Healy Consultants will assist our clients efficiently and effectively to complete this annual statutory obligation.

6.

Bahrain has signed no double taxation agreements with other countries to support Bahrain company formation.

7.

It can be difficult to obtain work visas for expatriate employees to support Bahrain company formation.

Refer to the following links to read more information on Bahrain company formation:

For more information on Bahrain company formation, contact email@healyconsultants.com or telephone us at (+65) 6735 0120.