Legislation of Bahrain

Service packages Legislation Tax System Audit Services

List of laws and regulations

Act name
Scope of law
Commerce
Auditors
Reorganization and Bankruptcy
Arbitration
Anti-Commercial Fraud
Commercial Register
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Tax treaties entered

Algeria
Austria
Bangladesh
Barbados
Belarus
Belgium
Bermuda
Bulgaria
Brunei
China
Czech Republic
Cyprus
Egypt
Estonia
France
Georgia
Hungary
Iran
Ireland
Isle of Man
Jordan
Lebanon
Luxembourg
Malaysia
Malta
Mexico
Morocco
Netherlands
Pakistan
Philippines
Portugal
Republic of Korea
Seychelles
Singapore
Sri Lanka
Sudan
Switzerland
Syria
Tajikistan
Thailand
Turkey
Turkmenistan
United Kingdom
Uzbekistan
Yemen

Tax Exchange Information Agreement (TIEA)

List of state regulatory authorities

Council of Representatives
Ministry of Foreign Affairs
Ministry of Industry and Commerce
Central Bank of Bahrain

Corporate info

Legal system
Based on Islamic law and English common law
Types of entity
General Partnership Company;
Limited Partnership Company;
Association in Participation;
Shareholding Company;
Limited Partnership by Shares;
Limited Liability Company;
Single Person Company;
Holding Company
Shelf companies permitted
No
Incorporation timescale for a new company
About 3 weeks
Company suffix
Yes
Sensitive words
Cyrillic alphabet permitted in company name
No
Local registered office
Yes
Local registered agent
No
Information to be kept at the registered office
Corporate documents
Seal required, type of seal
Needed
Redomiciliation (to, from) permitted
Redomiciliation is possible

Director and secretary

Minimum number of directors
1
Residency requirements for directors
No
Corporate directors permitted
No
Directors’ meetings/frequency/location
No restrictions
Disclosure to local agent
Yes
Disclosure to public
No
Company secretary required
No
Residency requirements for a secretary
No
Qualified secretary required
No
Corporate secretary permitted
No

Shareholder and beneficiary

Minimum number of shareholders
2
Residency requirements for shareholders
No
Corporate shareholder permitted
Yes
Meetings/frequency/location
No restrictions
Disclosure to local agent
Yes
Disclosure to public
No
Beneficiary info disclosure to
Yes

Shares and share capital

Minimum authorized share capital
20 000 BHD
Minimum issued share capital
20 000 BHD
Minimum paid share capital
20 000 BHD
Authorized capital payment deadlines
When registering a company
Issued capital payment deadlines
When registering a company
Standard currency
BHD
Standard authorized share capital
20 000 BHD
Standard par value of shares
50 BHD
Shares with no par value permitted
No
Bearer shares permitted
No

Taxes

Personal tax
No
Сorporate tax
No
Corporate tax (in detail)
No income tax
Capital gains tax
No
Capital gains tax. Details
No capital gains tax
VAT
10%
VAT. Details
Applies only to domestic transactions
Withholding tax
0% (dividend), 0% (interest), 0% (royalty)
Other taxes
Social Security Contributions, Excise Taxes, Municipal Tax
Exchange control
No
Government fee
No
Stamp duty
Charged upon transfer and/or registration of real estate - 2% of the value of the real estate

Accounts

Requirement to prepare accounts
Yes
Requirement to file accounts
Yes
Publicly accessible accounts
No
Requirement to file Annual Return
No
Publicly accessible Annual Return
No
Audit required
Yes

General information shortly

Location
The state is located in the Persian Gulf on a small archipelago: 51 natural islands and 33 artificial ones concentrated around the island of Bahrain
Total area
766 sq. km.
Population
1 501 635 (2020)
Capital
Manama
National currency
Bahraini dinar
Conditional reduction of currency
BHD
Against USD
2,65 (2024)
Climate, average max and min t°
The country has a dry, tropical climate. Winters are warm (average temperature in January: +17 ° C), summers are very hot (average temperature in July: +40° C)
Time difference from Moscow
No
Dialing code
+973
State language
Arabic
Ethnic groups
Arabs, 55%; Persians, 6,4%; Asians, 36%; Europeans, 1,8%; Americans, 0,5%
Literacy rate
95,7% (2019)
History
Credit rating
B+
Government type
Dualistic monarchy
Executive branch
The government is headed by a prime minister. The cabinet consists of 23 ministers
Legislative branch
Bicameral Parliament. The lower house (Council of Representatives) is elected by popular vote; the upper house (Shura Council) is appointed by the king. There are 40 deputies in each chamber
Judicial branch
Civil Law Courts, Criminal Courts and Sharia Courts. The judges of the intermediate and lower courts are appointed by the Supreme Judicial Council of Bahrain and by royal decree.
Unemployment
5,0% (2020)
GDP per capita rank
37 (2021)
Corruption perceptions index rank
42 (2021)

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Banks of Bahrein

Bank
The cost of opening an account, $
Global rating
Countrywide rating
GSL rating
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