Opening an offshore company in Bahrain

The Kingdom of Bahrain is located on an archipelago of three islands in the Persian Gulf near Saudi Arabia. Despite the absence of corporate tax, the state is not considered offshore. Creating a company here will cost a lot, but the jurisdiction will be of interest to entrepreneurs who intend to trade with India and Pakistan.

Official language

Arabic

Legal forms of companies

• WLL (With Limited Liability);
• BSC (Bahrain Stock Company or Bahrain Shareholding Company);
• SPC (Single Person Company).

Capital

Manama

Major cities

Muharraq, Rifah, Madinat Hawad

Form of government

Dual Monarchy

Legal system

Mixed with a predominance of religious (Islam)

Currency

Bahraini Dinar

What is included in the price

1. Advice from lawyers specializing in international and tax law on all issues of opening a company in Bahrain, including the choice of the legal form of a legal entity.
2. Issuing a power of attorney for a representative.
3. Due Diligence – identification of the ultimate beneficiary.
4. Preparation, translation, notarization of documents.
5. Paying duties and taxes.
6. Support, consulting support throughout the registration procedure.
7. Getting documents.

Documents provided after registration

1. Minutes of the founders' meeting.
2. Memorandum of association, articles of association.
3. Share Certificate
4. Certificate of registration.

Working algorithm

1. We provide a detailed consultation on registration, principles of operation of a legal entity in Bahrain, taxation in the country, and answer all your questions.
2. You pay for services.
3. Performing Due Diligence.
4. We prepare and collect the documents necessary to open a company in the territory of the jurisdiction.
5. We are engaged in legalization, apostilization of documents.
6. We pay fees, duties, submit documents to the registration authority.
7. We receive a certificate, other documentation, we pass them on to you.

Principles of jurisdiction

1. Zero corporate tax (excluding oil companies).
2. Bahrain is not included in the "black" and «gray» OECD, FATF, EC lists, in Ukraine the country is also not considered an offshore.

Disadvantages of jurisdiction

1. The high cost of registering business entities (at least $10,000).
2. The mentality is strikingly different from Ukrainian.

List of banks in jurisdiction

• National Bank of Bahrain
• ABC Bank
• Gulf International Bank
• Bank of Bahrain and Kuwait
• Standard Chartered

Company Requirements

The office must be located on the territory of the state. To be exempt from tax, the activity must be carried out outside the jurisdiction. Information about directors and beneficiaries is public. Audit and bookkeeping are obligatory.

WLL requirements:

• authorized fund – 20 thousand dinars, paid immediately;
• 2–50 members;
• minimum 2 directors;
• Shares are not subject to division.

BSC opening conditions:

• Authorized capital – 250 thousand Bahraini dinars (50% paid immediately, the rest - over a three-year period);
• The number of shareholders can be two or more.

SPC – the form of the entity is similar to individual entrepreneurship and assumes that the director and owner are the same person. Authorized capital – 50 thousand dinars, the liability of the owner is limited to the amount of the contribution.

Corporate law

• Business Companies Act 2001
• Orders of the Ministry of Commerce

Tax Information Agreements

The government of the jurisdiction has adopted a BEPS plan. The country has been a party to the MCAA Convention on the Automatic Exchange of Tax Information since September 1, 2018, with 61 states signed bilateral agreements on the exchange of data on financial transactions. Ukraine is not among them.