Why expand your business to Bahrain?
Bahrain is one of the most business-friendly countries in the GCC, offering 100% foreign ownership, zero corporate tax, and easy access to Saudi Arabia and the broader Middle East.
For companies looking to expand, setting up a branch in Bahrain is a strategic and cost-effective way to enter the market without establishing a completely new entity.
This guide walks you through eligibility, the application process, and the key benefits of registering a branch in Bahrain—ensuring a smooth and hassle-free expansion.
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Why open a branch in Bahrain?
Key advantages for foreign companies
✅ 100% foreign ownership – Unlike some GCC countries, Bahrain allows full foreign ownership of branch offices in most industries.
✅ Zero corporate tax – No corporate tax, no personal income tax, and no capital gains tax on business operations.
✅ Fast & digital registration – Business setup can be completed online via Sijilat (Bahrain’s commercial registration portal).
✅ Access to the GCC market – A Bahrain-registered branch can easily expand into Saudi Arabia and the UAE.
✅ Lower setup & operational costs – Office rent, salaries, and business expenses are significantly lower than in Dubai or Riyadh.
📌 Example: A European fintech company opened a branch in Bahrain instead of Dubai because of lower operational costs and better regulatory support for fintech startups.
💡 Key takeaway: Registering a branch in Bahrain provides a cost-effective entry into the GCC with full ownership and tax-free operations.
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Eligibility: Who can register a branch in Bahrain?
Types of companies that can open a branch
✅ Foreign companies expanding to Bahrain – Any legally registered company outside Bahrain can establish a branch.
✅ GCC-based businesses – Companies from Saudi Arabia, UAE, Qatar, Kuwait, or Oman looking to operate in Bahrain.
✅ Multinational corporations (MNCs) – Global companies setting up a regional GCC headquarters.
Key Requirements
📌 To register a branch, your company must:
- Be legally registered in another country and provide company incorporation documents.
- Have an appointed representative in Bahrain (can be a director or legal consultant).
- Operate in a sector that is permitted for foreign ownership in Bahrain.
💡 Key takeaway: Any legally registered business from abroad can set up a branch in Bahrain, provided it meets the ownership and documentation requirements.
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Step-by-step guide to registering a branch in Bahrain
How to complete the process efficiently
Step 1: choose the right branch type
Bahrain offers two types of branches for foreign businesses:
1️⃣ Branch with commercial activities
- Can generate revenue and sign contracts.
- Must register for VAT (if applicable).
- Requires Bahraini national as a contact representative.
2️⃣ Representative Office (RO)
- Cannot conduct direct business operations or generate revenue.
- Only used for marketing, research, and networking.
- No VAT registration required.
Step 2: Register on Sijilat (Bahrain’s Business Portal)
- Visit www.sijilat.bh and log in with eKey credentials.
- Select “Register a Branch Office” and upload required documents.
Step 3: Submit required documents
✅ Parent company documents (Incorporation certificate, MoA, Board Resolution).
✅ Bahraini representative’s CPR or passport copy.
✅ Branch office lease agreement (If renting office space).
✅ Bank statement showing parent company’s financial stability.
Step 4: Pay registration fees & obtain CR
- Registration fees range from BHD 200 – 500, depending on the business activity.
- Once approved, a Commercial Registration (CR) certificate is issued digitally.
Step 5: Apply for additional licenses (If required)
Some sectors require extra approvals from regulatory authorities:
- Fintech & banking – Central Bank of Bahrain (CBB).
- Healthcare & pharmaceuticals – National Health Regulatory Authority (NHRA).
- Legal & consulting – Ministry of Justice.
📌 Example: A UK-based legal consultancy needed approval from Bahrain’s Ministry of Justice before finalizing their branch registration.
💡 Key takeaway: Follow the right steps and obtain all necessary approvals for a smooth registration process.
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Costs involved in registering a branch in Bahrain
Breakdown of setup & registration fees
| Cost Item | Estimated Cost (BHD) |
| Commercial Registration (CR) Fee | BHD 200 – 500 |
| Office Rental (Per Month) | BHD 200 – 800 (varies by location) |
| Regulatory Approvals (If Needed) | BHD 100 – 500 |
| Legal & Notary Fees (If Using a Consultant) | BHD 500 – 1,500 |
📌 Key insights:
✅ Branch registration fees are lower than starting a new company.
✅ Office rental is optional if using a virtual address (where permitted).
✅ Some industries require higher regulatory fees.
💡 Key takeaway: Budget for setup fees, office costs, and any required approvals before registering your branch.
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Opening a bank account for your branch in Bahrain
A business bank account is required for transactions, payroll, and VAT registration (if applicable).
✅ Choose a Bank – Bahrain’s leading banks for businesses include Bank of Bahrain & Kuwait (BBK), Ahli United Bank, and National Bank of Bahrain (NBB).
✅ Submit Required Documents – CR certificate, parent company’s financials, passport copies of signatories.
✅ Activate Online Banking – Enable international transactions and multi-currency accounts if needed.
📌 Example: A German SaaS company set up a Bahrain branch and secured a multi-currency business account within 10 days.
💡 Key takeaway: Setting up a local bank account is essential for financial transactions and compliance.
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Tax obligations for branches in Bahrain: What you need to know
One of Bahrain’s biggest advantages is its business-friendly tax system, but branches of foreign companies still need to comply with certain tax regulations.
✅ Zero corporate tax – Branches in Bahrain pay no corporate tax, allowing full profit repatriation.
✅ VAT registration (If Applicable) –
- Businesses exceeding BHD 37,500 in annual revenue must register for VAT.
- Standard VAT rate: 10% (applies only to taxable goods and services).
✅ Social insurance contributions – If hiring employees, branches must contribute to Social Insurance Organization (SIO) payments.
📌 Example: A UK-based consulting firm opened a Bahrain branch and only had to register for VAT after exceeding the revenue threshold—with no corporate tax liability.
💡 Key takeaway: While Bahrain has no corporate tax, branches must register for VAT and comply with social insurance rules if hiring employees.
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Hiring employees for your Bahrain branch
If your branch needs local or international staff, you must follow Bahrain’s employment and work visa regulations.
✅ Work visa & LMRA registration –
- Employers must apply for work visas through the Labour Market Regulatory Authority (LMRA).
- Processing time: 2-4 weeks.
✅ Bahrainization requirement – - Some industries have minimum Bahraini workforce quotas—check your sector’s requirements.
✅ Competitive salaries & costs – - Lower salaries & operating costs compared to Dubai & Riyadh.
- Government salary subsidies available for hiring Bahraini nationals through Tamkeen.
📌 Example: A fintech startup in Bahrain secured Tamkeen salary support, covering up to 70% of a Bahraini employee’s salary for the first year.
💡 Key takeaway: Hiring in Bahrain is cost-effective, and government incentives make it even easier to attract top talent.
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Compliance & post-registration responsibilities
Once your branch is registered, you must stay compliant with Bahrain’s business regulations to avoid penalties or disruptions.
✅ Annual CR renewal – Renew your Commercial Registration (CR) yearly via Sijilat.bh.
✅ Financial Reporting & Audits –
- Large companies must submit annual audited financial statements to the Ministry of Industry & Commerce (MOIC).
✅ License renewals (If required) – Any industry-specific licenses (e.g., fintech, healthcare) must be kept valid and up to date.
✅ Business bank account compliance – Banks may require periodic updates on financial transactions and tax filings.
📌 Example: A consulting firm forgot to renew its CR and faced temporary banking restrictions until renewal was completed.
💡 Key takeaway: After registration, ensure timely CR renewals, financial reporting, and regulatory compliance to keep operations smooth.
Final thoughts: Why Bahrain is the ideal expansion hub for foreign businesses
Registering a branch in Bahrain offers a tax-free, cost-efficient way to expand into the GCC, with fast registration and full foreign ownership in most sectors.
✅ Zero corporate tax & full profit repatriation.
✅ 100% foreign ownership with simple registration.
✅ Easy access to the Saudi & GCC market.
✅ Lower costs compared to Dubai & Riyadh.
✅ Business-friendly regulations & online CR registration.
🚀 Thinking of expanding your business? Start your Bahrain branch registration today and unlock new opportunities in the GCC!
