Frequently Asked Questions about Bahrain

Below are some of the most frequently asked questions about Bahrain Company Formation:

Can a Bahrain Company be used to do business internationally?

Is a Bahrain Company a secure long-term solution?

Are there any restrictions on ownership of a Bahrain Company?

Are there any financial restrictions on a Bahrain Company?

What are the tax implications of Bahrain Company formation?

Does Bahrain have a good network of double tax treaties?

Can a Bahrain Company be used to do business internationally?
There are no restrictions on where a Bahrain Company can operate. Bahrain provides market access to the Middle East and the Gulf Cooperation Council (GCC) states. There bilateral trade and economic agreements with 43 countries (including Singapore, China, India, France and the UK) and signed a Free Trade Agreement with the United States in 2004.

Is a Bahrain Company a secure long-term solution?
Bahrain is a reputable trading jurisdiction. Bahrain is competing against Malaysia to be the largest global islamic banking centre. It is known for being the freest economy in the Arab Free Trade Zone. and is a member of major organisations such as the World Trade Organisation (WTO).

Are there any restrictions on ownership of a Bahrain Company?
100% foreign ownership is allowed for companies engaged in technology, tourism, manufacturing-related services; consultancy services; industrial projects and highly specialised sectors such as scientific laboratories. Some restrictions include; real estate services; press and publication; film and cinematic services; the transportation sector and business in commercial agencies. However, joint share companies, limited liability companies and partnerships still require 51% shareholding by a Bahraini national in sectors such as trade, retail and tourism. Foreign companies are also allowed to own real estate and land in Bahrain.

Are there any financial restrictions on a Bahrain Company?
There are no financial restrictions for companies in Bahrain. Free movement of capital, profits or dividends is a financial advantage in Bahrain.

What are the tax implications of Bahrain Company formation?
Most Companies in Bahrain are not subject to corporate tax, except those operating in the oil industry. In addition, there are no personal, value-added or withholding taxes. Bahrain also offers 100% customs duty exemption 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.

Does Bahrain have a good network of double tax treaties?
Bahrain has in excess of 20 double taxation agreements in place, including with the UK.

For more information on any of our Bahrain corporate services, please e-mail email@healyconsultants.com or telephone us at (+65) 6735 0120.

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