Bahrain Limited Liability Company

A limited liability company is a legitimate corporate structure which, if properly structured, can house international tax-exempt profits. In addition, there is no withholding tax, value added tax (VAT) or personal income tax.

2.

A limited liability company can be 100% foreign owned if:

i) the majority of the company's capital is to be invested in an industrial development; or

ii) the company will be the primary centre for capital investment by the foreign shareholders related to the distribution of its goods and/or services.

3.

Examples of sectors open to 100% foreign investment include i) tourism (e.g. hotels) ii) telecommunications iii) healthcare (e g private doctors, health insurance, hospitals and clinics) iv) Education (private schools, colleges and universities) and v) Business Services (e g conference and exhibition organisers).

4.

To encourage foreign investment in manufacturing and industrial enterprises, a limited liability company is legally 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.

6.

Foreign investors can purchase land outright in Bahrain in certain localities to support the activities of their limited liability company. Applications to purchase land for commercial purposes are lodged with the Ministry of Finance and National Economy.

It is easy to open a Bahrain corporate bank account to support the business activities of a limited liability company. Healy Consultants assists clients to open an account with a leading international retail bank with branches in Bahrain.

Unless the company fulfils the foreign investment requirements highlighted in above, a, limited liability company is required to have a minimum 51% shareholding by Bahraini citizens, in accordance with the Commercial Companies Law. A limited liability company requires a minimum of two shareholders and directors.

2.

Consequently, a limited liability company is a costly entity because of high Bahrain nominee shareholder costs. Furthermore, a limited liability company is required to have a capital of BD20,000 (US$53,800), a percentage of which is paid in full to the Bahrain Monetary Agency (Central Bank) prior to incorporation.

A limited liability company must maintain a statutory reserve deducting 10% from its annual profits accumulating up to 50% of its capital.

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5.

A limited liability company is required to maintain a special register at its headquarters in Bahrain at which the details of all shareholders and director are held, and to which the partners and every interested party (including the public) has access.

6.

A limited liability company is required to prepare annual audited financial statements. Healy Consultants will assist our clients efficiently and effectively to complete this annual statutory obligation.

7.

Receiving work and residence permits for expatriate employees of a Bahrain limited liability company is challenging due to local labour laws which restrict the ratio of foreign staff to Bahraini staff. That said, Healy Consultants assists clients to obtain required visas for entrepreneurs, their families and their staff planning to live in Bahrain.

Please refer to the following links to read more information on Bahrain:

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