How to Start a Business in Bahrain (A Practical Guide)

Starting a business in Bahrain can seem daunting at first, but with the right approach and a bit of patience, it is absolutely achievable. I am sharing my personal journey moving from Pakistan to Bahrain and setting up my web development company to help you navigate the process with realistic expectations.

Quick Overview

• Approximate Cost: Around 1000 BHD (varies)
• Timeline: Several weeks from start to finish
• Difficulty: Moderate to challenging (depending on your method)

You generally have two options to start your business:

Option 1: Hire an Agency (Recommended if You Are Abroad)

Since I was not physically present in Bahrain during the formation process, I hired an agency. Here is what you can expect:

• Higher cost (but saves a lot of time and hassle)
• Professional handling of all documentation and steps
• Requires Power of Attorney so they can act on your behalf

Most agencies operate similarly, so it is best to choose one that fits your budget. You do not need a fancy law firm basic business agencies will handle everything just fine.

Step-by-Step via Agency

1. Apply for a CR (Commercial Registration) Without a License

   • Submit company names, services, and investor details.
   • Receive security clearance and name reservation (2 days to a few weeks).

2. Prepare Memorandum of Association

   • Upload a draft online.
   • Appear before a notary or let your agency handle it with your POA.
   • Takes around 3 to 7 days.

3. Get Your License

   • Office Space: Secure an incubator license (90 to 250 BHD).
   • Bank Account: Open a company account (agencies can assist here).

4. Capital Deposit

   • Transfer the registered capital amount exactly as stated.
   • Important: Do not deposit more initially, or the bank may refuse the certificate.

5. Finalize Company Activation

   • Submit lease agreement and bank deposit certificate to LMRA.
   • Your CR will become active once approved.

6. Medical Test

   • Complete a medical examination via WAFID/GAMCA before applying for an Investor Visa if outside Bahrain.

7. Obtain Your Investor Visa

   • Once issued, you can also apply for dependent visas.

8. Travel to Bahrain

   • Complete an in-country medical test.

9. CPR (Central Population Registry) and Bank Activation

   • Update your CPR with your residential address.
   • Activate your company bank account (requires patience and persistence).

Option 2: Do It Yourself (Save Money, But Requires Effort)

If you are already in Bahrain or want to save on agency fees, you can handle the process yourself. Here is a basic outline:

Step-by-Step DIY

1. Get an E-Key

   • Sign up for a "Standard" E-Key.
   • Upgrade to "Advanced" by visiting an E-Key center (requires fingerprints).

2. Create a Company on Sijilat

   • Prepare three unique names (English and Arabic).
   • Submit activities, partners, and shareholding details.
   • Wait for security clearance (can vary).

3. Prepare Legal Documents

   • Upload a draft Memorandum of Association.
   • Sign documents in front of a notary at the Ministry of Industry and Commerce (MOIC).

4. Obtain a License

   • Rent a physical or virtual office (monthly costs range from 100 to 300 BHD).
   • Open a company bank account and deposit your capital.
   • Upload the bank certificate and lease to activate your CR.

5. Register with LMRA

   • Complete LMRA registration.
   • Apply for your Investor Visa.
   • Complete your medical test (if necessary).

6. Finalize Setup

   • Update your CPR.
   • Activate your company bank account.
   • Get an EMS login to manage labor affairs.

Key Requirements to Keep in Mind

• Company Names: Must be appropriate (no religious or political terms).
• Capital Requirements: No strict minimum, but many nationalities require 3000 BHD.
• Local Partner: Some activities allow 100 percent foreign ownership; check Sijilat.
• Activities: You can select 3 activities for free (10 BHD per extra service).
• Office Space: Mandatory to complete registration.

Pro Tips From Experience

• Banking: Opening a company account is often the most frustrating step. Be ready for delays. I used Ahli United Bank, but experiences are similar across banks.
• LMRA Registration: Can be unpredictable in timing. Stay proactive.
• EMS Login: Crucial for managing labor requirements.
• Notary Services: Public notaries are more affordable compared to Bahrain Financial Harbour (BFH).

Tip: If you are not fluent in Arabic or English or you are outside Bahrain, using an agency is highly advisable. If you have strong language skills and patience, doing it yourself is very doable.

Final Thoughts

Setting up a business in Bahrain is a rewarding but demanding process. With persistence, the right help (if needed), and an understanding of the steps involved, you can turn your entrepreneurial dreams into reality.

If you have specific questions or need more details about any step, feel free to reach out or leave a comment!