GCC ยท Jurisdiction profile

๐Ÿ‡ง๐Ÿ‡ญ Doing business in Bahrain

Foreign founders most often use a WLL. Bahrain follows civil law, with corporate tax of 0% (15% DMTT for large MNEs) and personal income tax of 0%.

Entity at a glance

Typical vehicleWLL
Foreign ownership100% in most sectors
Minimum capitalBHD 50 (activity-based)
Time to incorporate10โ€“30 days
Corporate tax0% (15% DMTT for large MNEs)
VAT / GST10%
Dividend withholding0%
Resident directorNot required
Physical officeRequired
Annual running costUSD 6,000โ€“14,000
AuditThreshold-based
Legal systemCivil law
Currency controlsNone

Regulatory profile

  • Data transfers: PDPL 2018 โ€” whitelist or authority approval (residency approach: conditional).
  • Employment termination: protective regime.
  • Beneficial ownership register: regulator-only.
  • Economic substance test: applies.
  • Information exchange: CRS + FATCA IGA Model 1.

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Figures are indicative and change often. Verify with qualified local counsel. Xc.legal is not a law firm.