Starting a business in Bahrain is quite straight forward. In fact, Bahrain is ranked 3rd in the MEA region, and 43rd world wide in the Ease of Doing Business Index, ranking ahead of Italy, Hungary, or Saudi Arabia. While it is not particularly difficult to start doing business in Bahrain, we have compiled the best information that should make the process of setting up a business in Bahrain even easier for you.
Contents:
- Step 1: Choose an appropriate business name
- Step 2: Get an address (optional with Sijili)
- Step 3: Choose the right business activities
- Step 4: Prepare your documents
- Step 5: Start your application on Sijilat.bh
Steps for Starting a Business in Bahrain:
Step 1 – Determine a Business Name:
If the name you choose is in the dictionary, it will make the process easier as it does not have to be trademarked. If you can, choose a name like “Inspire Co” rather than “Inspyr Co” as a unique name (which may require further processes to register).
Your business name must adhere to certain rules:
- Must not conflict with Bahrain’s religious or cultural norms
- Must not already be used by another business in the same field
- The name must show on your letterhead and near or on top of the door of your business
Tip: Have at least three options ready in case your first option is not approved
Step 2 – Aquire an Address:
It is necessary to have an address if you plan on hiring employees in the future, however, you CAN register a small business without an address if you are willing to get the easier “Sijili” (type of registration aimed to encourage micro and virtual businesses). Sijili has certain limitations (e.g. you cannot issue visas to foreign employees). You can read more about Sijili here.
Tip: you have many choices for addresses
- Shared office: such as Spire Hub or Diwan
- Standard office: the main business area in Bahrain are Seef and Diplomatic Area (Manama))
- Business Incubators: see list here
Step 3: Decide on the Business Activities:
Activities are the fields your company will operate within. As an example, you can choose (Marketing, Web Design, and PR). Your new commercial registration allows you to choose up to three activities for the new business (for additional activities, there is a further fees, around BD 100 per additional activity). It is important to consider these carefully as each activity requires approvals from different governmental bodies (e.g. restaurants require health clearances, whereas “marketing” require approval from the Ministry of Information among others).
Tip: You can check the various activities as well as their requirements by visiting the official Sijilat page.
Step 4 – Document Preparation:
Each business will require specific documents depending on the activities the are planning to run. But in general you will need the following:
- Official IDs/Passport copies of owners/partners
- Phone and email of owners/partners
- Proposed Commercial Name
- Company Legal Type
- Intended Business Activities
Here is an example of the requirements to start a restaurant in Bahrain extracted from the Sijilat.bh:
Step 5: Start your Application:
Now that you have gathered all the details, you can start your application by going to the official website Sijilat.bh and launching the web service.
Now that you have officially launched your application, it is a good time to start thinking about your branding. Head over to our branding work page to get inspired, or contact us once you are ready to start turning your dream to reality. If you are from KSA, make sure to check our Branding Agency Saudi Arabia page. For instagram lovers, you can check out our Instagram: Marketing & Branding Agency Bahrain & Riyadh @ Instagram
F.A.Q:
Can I start a business in Bahrain as a non-Bahraini (foreigner or Expat)?
Yes, certainly! Expats have the opportunity to fully own businesses in Bahrain, reflecting the country’s welcoming position towards foreign investment. Almost all business activities permit complete 100% ownership by foreigners. However, it’s crucial to verify the specific business activity you intend to pursue, as certain activities may be restricted for security or other regulatory reasons. To embark on your entrepreneurial journey, the initial step involves applying for a Commercial Registration (CR).
What is a CR (Commercial Registration) in Bahrain?
A commercial registration CR is a license to conduct business in Bahrain issued via Sijilat.bh online platform, it allows you to conduct business in Bahrain. Every CR has activities attached to it which allow you to conduct business in those fields.
How much does it cost to open/register a CR (Commercial Registration) in Bahrain?
The cost of issuing a commercial registration (CR) in Bahrain is BD 100 ($ 265) for 3 activities or less, and additional activities costing BD 100 each.
How much does it cost to start a business in Bahrain?
It is generally not expensive to start a business in Bahrain. The EDB (Economical Development Board indicated a minimal BD 190 ($ 500) excluding rent and initial capital. Note that some business sector do require a minimal initial capital. You can see those on Sijilat.bh then go to PLAN then ACTIVITY SEARCH.
What is the most profitable business in Bahrain?
Some of the most profitable businesses in Bahrain are in the following fields:
- Gold & jewellery (especially wholesale)
- Retail (fashion, clothing, and consumer staples)
- Franchises of global brands
- Restaurants & coffee shops
- Car washes
- Construction
It is important however to find a need that you will fulfill and conduct a complete competitive study to determine the best business for you.
