Bahrain’s Commercial Companies Law requires that all joint stock companies, limited liability companies and one-person companies be audited annually.
Maintaining a systematic archive of company documents and providing them to the client upon request
(Depending on the type of work and qualifications of the person employed, but not less than 1 900 USD)
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Offshore companies in Bahrain are regulated by the Commercial Companies Law 2001.
All companies must prepare their financial statements in accordance with the International Financial Reporting Standards (IFRS). Small and medium-sized enterprises can use simplified IFRS.
The Bahrain Commercial Companies Law (article 286) requires each incorporated company to keep proper accounting records and present financial statements to the Ministry of Industry, Commerce and Tourism (MOICT):
Bahrain also has free economic zones (FEZ):
Financial statements shall be in Bahraini dinars (BD) and in Arabian.
The following types of legal entities must file financial statements:
All enterprises whose annual taxable turnover exceeds 37 500 BHD must get registered for VAT purposes within 30 days after the date the threshold is exceeded or expected to be exceeded.
The Bahrain Commercial Companies Law requires all joint stock companies, limited partnership companies and single person companies to get audited annually.
Auditors shall be appointed at the annual general meeting of shareholders.
The audit firm must be licensed by the Ministry of Industry, Commerce and Tourism (MOICT).
An audited annual return must be prepared in accordance with the International Financial Reporting Standards (IFRS).
There is an additional requirement for joint stock companies listed on the Bahrain Bourse (BHB) to publish quarterly audited financial statements.
A company has the right to not be audited if:
The board of directors shall publish the balance sheet, profit and loss statement and resume of annual return of the directors as well as the complete auditors’ report in one of local daily newspapers in Arabian at least 15 days before the general meeting of shareholders.
Within 6 months after the end of the financial year, companies must file accounts with the Ministry of Industry, Commerce and Tourism. Therefore, the due date for filing accounts is 30 June.
Companies must file an estimated profit tax return not later than on the 15th day of the third month of the tax year (calendar year).
VAT returns must be filed quarterly or monthly (enterprises with taxable turnover exceeding 3 000 000 BHD).
Enterprises with taxable turnover under 100 000 BHD can file returns on a yearly basis.
A VAT return must be filed online via the portal of the National Bureau for Revenue (NBR): the filing and payment must be completed by the last day of the month following the end of the reporting period.
Failure to file audited financial statements on time (by 30 June) will impede renewal of the company’s commercial registration in the online system of the Ministry of Industry, Commerce and Tourism (MOICT).
Failure to file value-added tax (VAT) returns and to pay the due tax on time can result in significant fines of up to 25% of the amount of the due tax.
Requirements regarding preparation of consolidated financial statements are regulated by the global International Financial Reporting Standards (IFRS).
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