Bahrain stands out as a hub for business ventures in the dynamic Middle Eastern landscape, particularly with its thriving Free Zones that attract entrepreneurs and enterprises seeking regional expansion. Embracing the establishment of an onshore entity within Bahrain’s Free Zone unlocks lots of benefits, rendering it an enticing prospect for those venturing into the country.
List of Bahrain Free Zones
- Bahrain International Airport (BIA)
- Bahrain International Investment Park (BIIP)
- Bahrain Investment Wharf (BIW)
- Bahrain Logistics Zone (BLZ)
- Sheikh Khalifa Bin Salman Port (KBSP)
Advantages of Free Zone Setups in Bahrain
- Enjoy 100% foreign ownership across most sectors;
- No obligation to recruit local staff;
- Zero Corporate Tax burden;
- Avail 100% land rental rebates within government industrial zones for the initial three years;
- Benefit from 50% electricity rebates during the first five operational years;
- Import and export goods devoid of duty charges within the Free Zone ambit;
- Tap into Bahrain’s Double Taxation Treaties for added fiscal advantages
Variety in Company Structures within Bahrain Free Zones
- Sole Proprietorship
- Partnership
- Limited Liability Company (WLL)
- Public Joint Stock Company (BSC)
- Closed Joint Stock Company (BSC Closed)
- Foreign Branch
- Representative Office
Streamlined Process for Bahrain Free Zone Company Registration
- Choose a business activity;
- Determine the legal framework;
- Obtain security clearance via the Nationality, Passports, and Residence Affairs (NPRA);
- Reserve the company name;
- Draft the Memorandum and Articles of Association;
- Set up a company bank account;
- Secure a physical office space;
- Obtain final approval from the Ministry of Industry and Commerce (MOIC)
Bahrain Immigration Procedures
- Apply for visas through the Labour Market Regulatory Authority (LMRA);
- Submit a copy of the employee’s passport and a passport-size photograph;
- Provide an offer letter and valid health insurance (mandatory for applicants aged 60 and above);
- Furnish the latest electricity bill for the company and a medical report
Redomiciliation Options for Bahrain Free Zone Entrants:
Businesses eyeing relocation to Bahrain’s Free Zones can opt for redomiciliation, a seamless process that preserves their corporate structure and assets while leveraging the benefits of the Free Zone ecosystem.
Key Criteria for Redomiciliation:
- Both current and future jurisdictions must allow redomiciliation per legislative provisions.
- The company must be in good standing, with all dues and fees settled during the relocation process.
- The company should not be undergoing liquidation or bankruptcy proceedings.
