Official market-entry guide
How to do business in Bahrain
Direct answer
Bahrain uses Sijilat as the integrated commercial-registration and licensing gateway. A commercial registration without licence can establish the legal record, but the business may operate only after all activity licences and external approvals are in place.
- Editorial author
- Horizon Strategies
- Last verified in the editorial record
- Scope
- Bahrain · Business setup
| Fact or procedure | Recorded evidence | Authority and source | Checked |
|---|---|---|---|
| Commercial registration | CR first, licence before operation — A CR without licence can establish the legal record and enable preparatory steps, but commercial activity begins only after the relevant licences and approvals are obtained. | Bahrain National PortalOriginal source | 2026-10-28 |
| Activity catalogue | 350+ activities — Activities have different ownership, premises and approving-authority requirements; Sijilat is the official activity and licensing route. | Bahrain National PortalOriginal source | 2026-10-28 |
| Permitted pre-licence work | Preparatory tasks only — The official CR guidance permits steps such as reserving the name, leasing premises and approaching banks or vendors before the activity licence; it does not permit the licensed activity itself. | Bahrain National PortalOriginal source | 2026-10-28 |
| Sijilat filing access | Advanced eKey or authorised representative — The national portal states that a Sijilat applicant needs an advanced eKey; otherwise filing must be made through a professional body or a person holding a notarised power of attorney and advanced eKey. | Bahrain National PortalOriginal source | 2026-10-28 |
| VAT | 10% standard rate — Zero-rated and exempt treatments remain transaction-specific under National Bureau for Revenue rules. | National Bureau for RevenueOriginal source | 2026-10-28 |
| DMTT | 15% for in-scope groups — Applies from financial years beginning on or after 1 January 2025 where consolidated group revenue reaches EUR 750 million in at least two of the four preceding financial years, subject to the statutory scope and exclusions. | National Bureau for RevenueOriginal source | 2026-10-28 |
| Overseas tender registration | Foreign corporate evidence accepted — The Tender Board FAQ allows an overseas company to support registration with an official document proving registration in its home country; this does not itself establish eligibility for a particular tender. | Bahrain Tender BoardOriginal source | 2026-10-28 |
| Local tender registration | Active licence required — A Bahrain CR shown as active without licence cannot be approved in the eTendering system; Tender Board registration and tender-specific qualification remain separate gates. | Bahrain Tender BoardOriginal source | 2026-10-28 |
Limits and what this does not prove: Activity and ownership eligibility CR and active licence External approvals VAT and DMTT scope LMRA and workforce plan Premises Banking and UBO records
Bahrain uses Sijilat as the integrated commercial-registration and licensing gateway. A commercial registration without licence can establish the legal record, but the business may operate only after all activity licences and external approvals are in place.
Last reviewed 2026-10-28 · 24 official sources
Bahrain
Choose the operating route
- Bahraini company registered and licensed through Sijilat.
- Branch of a foreign company where the activity and documents permit it.
- Regulated financial or fintech route through the Central Bank of Bahrain.
- Industrial, logistics or specialist-zone route tied to the relevant authority and facility.
Official source basis
Source checked 2026-10-28
Setup sequence
- 1Select the legal form, activity and ownership basis.
- 2Apply for the commercial registration through Sijilat.
- 3Secure the activity licence and all external regulator approvals.
- 4Complete municipality, premises, labour, immigration and social-insurance files.
- 5Register with the National Bureau for Revenue where VAT or DMTT obligations apply.
- 6Set up banking, accounting, beneficial-ownership and annual compliance processes.
Official source basis
Source checked 2026-10-28
Verified operating facts
Commercial registration
CR first, licence before operation
A CR without licence can establish the legal record and enable preparatory steps, but commercial activity begins only after the relevant licences and approvals are obtained.
Bahrain National PortalActivity catalogue
350+ activities
Activities have different ownership, premises and approving-authority requirements; Sijilat is the official activity and licensing route.
Bahrain National PortalPermitted pre-licence work
Preparatory tasks only
The official CR guidance permits steps such as reserving the name, leasing premises and approaching banks or vendors before the activity licence; it does not permit the licensed activity itself.
Bahrain National PortalSijilat filing access
Advanced eKey or authorised representative
The national portal states that a Sijilat applicant needs an advanced eKey; otherwise filing must be made through a professional body or a person holding a notarised power of attorney and advanced eKey.
Bahrain National PortalVAT
10% standard rate
Zero-rated and exempt treatments remain transaction-specific under National Bureau for Revenue rules.
National Bureau for RevenueDMTT
15% for in-scope groups
Applies from financial years beginning on or after 1 January 2025 where consolidated group revenue reaches EUR 750 million in at least two of the four preceding financial years, subject to the statutory scope and exclusions.
National Bureau for RevenueOverseas tender registration
Foreign corporate evidence accepted
The Tender Board FAQ allows an overseas company to support registration with an official document proving registration in its home country; this does not itself establish eligibility for a particular tender.
Bahrain Tender BoardLocal tender registration
Active licence required
A Bahrain CR shown as active without licence cannot be approved in the eTendering system; Tender Board registration and tender-specific qualification remain separate gates.
Bahrain Tender BoardEnglish professional edition
Evidence checked 2026-10-28
What the company must decide, file and maintain
Bahrain separates the commercial-registration record from permission to practise the activity. Sijilat can issue a commercial registration without a licence first; the activity may begin only after the required licence and approvals are complete, and commercial import requires its own OFOQ account, clearing-company authorisation and product-clearance controls.
Decision 01
Check the activity before choosing the company form
What to establish
Use Sijilat and the activity prerequisite catalogue to confirm ownership, legal form, manager, premises and regulator conditions.
Why it changes the outcome
Foreign ownership is activity-specific. A legal form that can be foreign owned does not make every activity available on the same terms.
MOIC business servicesDecision 02
Treat CR without licence as preparatory
What to establish
Use the initial commercial registration to complete the remaining approvals, but do not commence the activity until the licence is issued.
Why it changes the outcome
The official portal expressly distinguishes registration from the licensed right to operate.
Bahrain national portalDecision 03
Prepare foreign corporate evidence for certification
What to establish
Collect the parent-company records, constitutional documents, resolutions and authority evidence in the certification form required for foreign founders or branches.
Why it changes the outcome
MOIC guidance requires foreign corporate evidence to be certified through the competent authority, foreign affairs channel or Bahraini embassy, as applicable.
MOIC procedures guideDecision 04
Map UBO, AML and economic-substance controls
What to establish
Determine which ownership, beneficial-owner, AML and economic-substance obligations apply to the entity and activity.
Why it changes the outcome
These are continuing records, not one-off incorporation disclosures, and changes can create separate update and evidence duties.
MOIC business servicesDecision 05
Separate VAT, corporate tax and DMTT analysis
What to establish
Apply the current VAT framework and assess whether the entity falls within any corporate-tax or OECD Pillar Two/DMTT scope.
Why it changes the outcome
Bahrain does not have one uniform tax answer for every company; group size, activity and taxpayer status matter.
National Bureau for RevenueDecision 06
Build foreign hiring through LMRA
What to establish
Complete the employer and occupation-specific work-permit process before the employee works.
Why it changes the outcome
Immigration status, occupation and employer sponsorship must align; the employer bears the official permit obligations.
LMRA employer servicesDecision 07
Authorise the Customs clearing company through OFOQ2
What to establish
Ensure that the importing company has an OFOQ2 user account, then select an accredited Customs clearing company and define the authorisation period in the official electronic service.
Why it changes the outcome
Customs clearance requires a current electronic mandate in addition to the company and shipment records. The national portal lists one working day for a complete clearing-company authorisation request; it does not make this authorisation a substitute for product permits or the customs declaration.
Bahrain Customs clearing-company authorisationDecision 08
Screen regulated products before dispatch
What to establish
Check whether the goods require Testing and Metrology conformity evidence or another sector permit and prepare the OFOQ clearance pack before the shipment reaches Bahrain.
Why it changes the outcome
For regulated products, the clearing agent submits the request through OFOQ and the authority reviews the invoice, packing list and product-specific proof of conformity before market release.
Testing and Metrology clearanceDocument pack by filing stage
Activity and ownership design
- Sijilat activity selection
- Ownership eligibility check
- Legal form
- External regulator map
- Manager and premises requirements
Qualification: Use the live activity catalogue because ownership and approvals vary by activity.
Commercial registration
- Founder identity or certified corporate evidence
- Trade name
- Constitutional documents
- Board or shareholder resolutions
- Manager and authorised-signatory evidence
Qualification: Foreign documents must follow the certification route stated by MOIC and the country of origin.
Activity licence
- CR without licence
- Premises evidence
- Municipal and safety approvals
- Sector approval
- Professional or technical evidence
Qualification: Operations start only after the required activity licence and every listed external approval are granted.
Transparency and tax
- UBO register
- Accounting and tax records
- VAT analysis
- AML or economic-substance assessment
- DMTT group-scope assessment where relevant
Qualification: Requirements depend on the entity, activity and multinational-group profile.
Customs and product clearance
- Valid commercial registration for the OFOQ account
- Smart-card information for the authorised signatory and proposed users
- OFOQ2 clearing-company selection and authorisation period
- Commercial invoice
- Packing list where available
- Product-specific conformity evidence
- Sector import permit where applicable
Qualification: The OFOQ account and clearing-company authorisation are separate official controls. Regulated goods remain subject to the competent product authority and shipment-specific declaration evidence.
Employment
- Employer registration
- Employee passport and contract
- Occupation and qualification evidence
- Work-permit application
- Residence and medical records
Qualification: Use the current LMRA service and fee schedule; older published mechanisms require live rechecking.
Official source basis
Source checked 2026-10-28
Recheck the live authority service before filing, signing or paying.
Compliance calendar and operational triggers
| Trigger | Required action | Timing | Authority |
|---|---|---|---|
| CR without licence issued | Complete the activity licence and every listed external approval. | Before commencing the commercial activity | Bahrain national portal |
| Ownership or beneficial-owner information changes | Update the commercial and UBO records through the official process. | Within the current statutory filing period shown by MOIC/Sijilat | MOIC business services |
| Taxable supplies or imports create VAT obligations | Register, account and file under the current NBR VAT framework. | Apply the live NBR registration and filing calendar | National Bureau for Revenue |
| Group falls within DMTT scope | Complete registration, computation, return and evidence controls under the current implementing rules. | Apply the NBR DMTT calendar for the relevant fiscal year | National Bureau for Revenue |
| Company will import through a clearing agency | Confirm the OFOQ2 company account, select an accredited clearing company, set the authorisation period and verify that the electronic mandate is active. | Before the first clearance; the official service lists one working day for a complete request | Bahrain Customs clearing-company authorisation |
| Shipment contains a regulated product | Have the clearing agent lodge the OFOQ request and provide the invoice, packing list where available and the required conformity evidence. | Before release to the Bahrain market; the official online service lists one working day after complete evidence is received | Testing and Metrology clearance |
| Foreign employee selected | Obtain the correct LMRA work permit and connected residence evidence before work starts. | Before employment begins and again before renewal or transfer | LMRA employer services |
Detailed requirements by administrative gate
This guide is decision support, not legal, tax or immigration advice. Requirements can change and depend on the exact activity, ownership, customer and jurisdiction. Recheck the linked official service before filing or committing funds.
1Select the activity and establish the commercial registration
Create the legal record in Sijilat with the correct activity, ownership, legal form and approving authorities.
Bahrain Ministry of Industry and Commerce
+
Select the activity and establish the commercial registration
Create the legal record in Sijilat with the correct activity, ownership, legal form and approving authorities.
Bahrain Ministry of Industry and Commerce
Before you start
- Choose the activity and review its ownership, premises and approval conditions.
- Select legal form, shareholders, manager and beneficial owners.
- Prepare foreign-company authentication and powers where applicable.
Documents and requirements
- Trade name and activity selection.
- Identity or corporate records for partners and authorised persons.
- Articles, address and beneficial-ownership information.
- External regulator pre-approval when shown for the activity.
Actions
- Apply for the commercial registration in Sijilat.
- Complete articles and ownership records.
- Track every licence and external approval attached to the activity.
Expected output
Commercial registration, potentially issued before all licences. The business may operate only after the activity status is licensed.
Recheck before filing
“CR without licence” enables preparatory legal steps; it is not authority to conduct the activity.
2Activate the activity licence and premises approvals
Complete every activity, municipality and sector approval required to move from registration to lawful operation.
MOIC, municipality and the competent sector regulator
+
Activate the activity licence and premises approvals
Complete every activity, municipality and sector approval required to move from registration to lawful operation.
MOIC, municipality and the competent sector regulator
Before you start
- Review the Sijilat activity conditions and approving-authority list.
- Confirm premises and zoning are accepted for the selected activity.
- Identify financial, industrial, health, education or professional regulation.
Documents and requirements
- Active commercial registration and authorised applicant.
- Lease, address and municipality evidence.
- Technical, professional, financial or sector evidence requested by each approving body.
- Inspection and fee requirements generated in the live application.
Actions
- Submit the activity-licence application and connected approvals.
- Complete inspections and rectify any conditions.
- Verify the Sijilat status shows the intended activity as licensed before trading.
Expected output
Active commercial licence and external approval set for the stated activity and premises.
Recheck before filing
Approvals are activity-specific; Central Bank and other regulated activities require their own rulebook route.
3Determine VAT and multinational tax obligations
Activate VAT and DMTT compliance where the entity or group falls within scope.
National Bureau for Revenue (NBR)
+
Determine VAT and multinational tax obligations
Activate VAT and DMTT compliance where the entity or group falls within scope.
National Bureau for Revenue (NBR)
Before you start
- Forecast taxable supplies and classify zero-rated or exempt transactions.
- Document group consolidated revenue and constituent entities for DMTT screening.
- Identify petroleum or other activity-specific tax treatment.
Documents and requirements
- Commercial registration, authorised person and financial information.
- Taxable supply, import and transaction records for VAT.
- Group and jurisdictional data for an in-scope multinational group.
- Evidence for any exemption or special treatment.
Actions
- Register for VAT when required and configure compliant invoices and records.
- Assess DMTT scope and register or report when the official EUR 750 million group test and statutory conditions are met.
- Maintain filing, payment and evidence controls.
Expected output
Applicable NBR registrations and a tax compliance calendar supported by transaction and group evidence.
Recheck before filing
The standard VAT rate is 10%. The 15% DMTT is not a general corporate tax on every Bahrain company.
4Register the employer and obtain work permits
Complete employer, expatriate work-permit, residence and social-insurance requirements.
Labour Market Regulatory Authority (LMRA) and connected authorities
+
Register the employer and obtain work permits
Complete employer, expatriate work-permit, residence and social-insurance requirements.
Labour Market Regulatory Authority (LMRA) and connected authorities
Before you start
- Confirm the company activity is licensed and the employer record can be activated.
- Plan roles against Bahrainisation and controlled-profession requirements.
- Distinguish investor or residence status from permission to work.
Documents and requirements
- Commercial registration, licence and authorised-signatory evidence.
- Employer establishment data and workforce plan.
- Employee passport, offer or contract, qualifications and profession approval.
- Medical, identity, residence and social-insurance evidence required by the live route.
Actions
- Open the employer account and submit the correct work-permit application.
- Complete connected residence and identity steps.
- Register relevant employees for social insurance and maintain renewals, mobility and cancellation records.
Expected output
An active employer record and valid worker-specific permissions.
Recheck before filing
Permit type, Bahrainisation, professional approval, mobility and fees must be verified in the live LMRA service.
Corporate tax, VAT and transaction controls
- The standard VAT rate is 10%, with zero-rated and exempt categories defined by the VAT framework.
- Bahrain applies a 15% domestic minimum top-up tax to constituent entities of multinational groups with consolidated annual revenue of at least EUR 750 million in at least two of the four preceding financial years, effective for financial years beginning on or after 1 January 2025.
- Corporate, petroleum, withholding, customs and treaty treatment depends on the exact activity and group; current advice is required before using a headline tax assumption.
- The official tax materials currently focus on VAT, the domestic minimum top-up tax and activity-specific regimes rather than a general payroll income-tax filing route for employees.
- Do not convert that observation into a universal tax-residency conclusion. Business ownership, cross-border income, social insurance and home-country obligations require separate analysis.
Official source basis
Source checked 2026-10-28
Investment, licensing and operating permissions
- A commercial registration without licence does not authorise the activity.
- Sijilat connects registration with the relevant approving authorities for the selected activity.
- Financial services, health, education, industrial and professional activities can require separate regulator approval.
- Use Sijilat to select the legal form, activity and ownership basis and to identify every external approval attached to the activity.
- A commercial registration without licence establishes a record but does not authorise the business to operate.
- Complete municipality, premises and regulator approvals before activating the licensed activity.
- Financial services and other regulated activities follow the competent regulator in addition to Sijilat.
- Confirm beneficial-owner, VAT, DMTT, banking and annual compliance obligations before trading.
Official source basis
Source checked 2026-10-28
Employment and work-permit controls
- The entity must complete Labour Market Regulatory Authority and social-insurance requirements.
- Bahrainisation and profession-specific requirements should be modelled before hiring.
- Investor, manager and employee residence permissions remain role and entity specific.
- Use the Labour Market Regulatory Authority for employer registration, work permits and the current foreign-worker process.
- The employing entity, licensed activity, workforce plan and profession determine the applicable permit route.
- Residence and identity steps remain connected to, but legally distinct from, permission to work.
- Check Bahrainisation and profession restrictions before hiring or budgeting.
- Confirm renewal, mobility, cancellation and departure obligations in the current LMRA and immigration services.
Official source basis
Source checked 2026-10-28
Customs and tenders
From incorporation to executable trade
The company route is incomplete until import, product and buyer qualification are tested against the actual transaction.
Customs and product-entry controls
Bahrain customs and product entry require a valid importer route, customs declaration, classification, documents and any regulated-product approvals. Bahrain establishment does not remove Saudi border requirements for onward sales across the causeway.
- Define Bahrain consumption, free-zone/industrial use or re-export flow.
- Confirm importer registration and customs access.
- Classify goods and check duty, VAT, restriction and origin treatment.
- Obtain product and sector approvals before import.
- Model any Bahrain-to-Saudi movement as a separate compliance and landed-cost case.
Official source basis
Source checked 2026-10-28
Recheck the live authority service before filing, signing or paying.
Public procurement and supplier qualification
Bahrain Tender Board provides a central e-tendering route and permits overseas company registration with the required official documents. Regulated financial, energy and industrial buyers can add their own qualification gates.
- Register the correct company or branch in the Tender Board system.
- Maintain active commercial and licence records where required.
- Check tender documents for purchasing-authority, bond and submission requirements.
- Complete CBB, Bapco or other sector qualification independently when relevant.
- Track award, acceptance, invoice and payment evidence.
Official source basis
Source checked 2026-10-10
Recheck the live authority service before filing, signing or paying.
Legal safeguards
Legal safeguards before commercial commitment
These are decision controls, not legal conclusions. The applicable rule changes with the entity, activity, data, right, contract, forum and regulated perimeter.
Personal data and digital operations
Map each dataset, processing role, purpose, storage location, transfer and sector overlay before collecting or moving personal data. Confirm the exact notice, consent, security, breach and permit duties with the competent authority.
Official source basis
Source checked 2026-10-10
Recheck the live authority service before filing, signing or paying.
Intellectual property and disclosure
Search and protect the relevant trademark, patent, design, copyright or confidential information before launch or disclosure. Verify applicant eligibility, local-representation rules, classes, fees and enforcement route in the live official service.
Official source basis
Source checked 2026-10-10
Recheck the live authority service before filing, signing or paying.
Contracts, forum and dispute resolution
Before signature, obtain qualified local advice on governing law, jurisdiction, arbitration wording, language, notices, evidence, interim measures and award or judgment enforcement. A generic foreign template is not a country-specific conclusion.
Official source basis
Source checked 2026-10-10
Recheck the live authority service before filing, signing or paying.
Beneficial ownership and corporate records
Identify the natural persons who ultimately own or control the entity. Keep company, ownership, management and beneficial-owner records current, and map annual confirmations, licence renewals, accounts, audit and change notifications to the exact entity and registrar.
Official source basis
Source checked 2026-10-10
Recheck the live authority service before filing, signing or paying.
Competition and transaction control
Before signing or closing an acquisition, joint venture, exclusive arrangement or other control-changing transaction, test the current competition-law perimeter, filing trigger, competent authority, standstill rule and review timetable. Screen pricing, distribution, exclusivity and information-sharing arrangements separately.
Official source basis
Source checked 2026-10-10
Recheck the live authority service before filing, signing or paying.
Official business gateways
Bahrain EDB setup support
Official investor-support journey and contact route for establishing a business in Bahrain.
Bahrain Economic Development Board
Sijilat
Official commercial registration, activity and licence gateway.
Bahrain Ministry of Industry and Commerce
Labour Market Regulatory Authority
Official employer and work-permit gateway.
LMRA
Bahrain Investor Center
Official investor assistance and establishment route.
Bahrain Ministry of Industry and Commerce
Pre-commitment verification checklist
- Activity and ownership eligibility
- CR and active licence
- External approvals
- VAT and DMTT scope
- LMRA and workforce plan
- Premises
- Banking and UBO records
Official source register
Business Licensing System
Bahrain Ministry of Industry and Commerce
Official Sijilat functions and licensing gateway.
Commercial registration gateway
Government of Bahrain
Official distinction between CR without licence and licensed operation.
VAT FAQ
NBR
Official VAT starting point.
DMTT FAQ
NBR
Official DMTT scope and effective date.
Central Bank rulebook
Central Bank of Bahrain
Official financial-services regulatory perimeter.
Supplier registration FAQ
Bahrain Tender Board
Official supplier registration, tender access and document guidance.
Regulatory Sandbox application
Central Bank of Bahrain
Official applicant, governance, financial-standing, authorisation and test evidence; sandbox admission is not a production licence.
Bahrain EDB setup support
Bahrain Economic Development Board
Official investor-support journey and contact route for establishing a business in Bahrain.
Sijilat business licensing
Ministry of Industry and Commerce
Commercial registration, activity licensing and connected authority approvals.
Labour Market Regulatory Authority
LMRA
Official employer and work-permit gateway.
Bahrain Investor Center
Bahrain Ministry of Industry and Commerce
Official investor assistance and establishment route.
MOIC business services
Ministry of Industry and Commerce
Sijilat, activity prerequisites, UBO, AML and economic-substance services.
Companies procedures guide
Ministry of Industry and Commerce
Legal-form selection, foreign-company evidence, commercial registration and approval requirements.
Employer services
Labour Market Regulatory Authority
Employer and expatriate employee services; live requirements depend on the employing entity and worker.
Tax portal
National Bureau for Revenue
Official VAT, excise and domestic minimum top-up tax legislation, guidance and registration services.
OFOQ company-account registration
Bahrain Customs Affairs
Official OFOQ account route, including the valid-CR and authorised-signatory or user evidence stated by the service.
OFOQ2 clearing-company authorisation
Customs Affairs
Official OFOQ2 route for an importing company to select an accredited clearing company and define the authorisation period; the OFOQ account, product controls and shipment declaration remain separate requirements.
Regulated-product Customs clearance
Bahrain Ministry of Industry and Commerce
Official OFOQ route, shipment evidence and conformity review for products regulated by Testing and Metrology.
Personal Data Protection Law
Legislation and Legal Opinion Commission
Official text of Law No. 30 of 2018 on personal-data protection; permissions, transfers and sector overlays require processing-specific review.
Industrial-property services and guidance
Ministry of Industry and Commerce
Official guidance for trademarks, patents, industrial designs, applications, authorised representation and infringement complaints.
Judicial and court legislation register
Legislation and Legal Opinion Commission
Official legislation register covering the courts and the Bahrain International Commercial Court; the appropriate forum depends on the parties and contract.
Ultimate Beneficial Owner — Ministerial Order 83/2020
Ministry of Industry and Commerce
Official beneficial-owner criteria, electronic disclosure data and update duties for registered persons; the Sijilat record must reflect the natural persons who ultimately own or control the entity.
Law No. 31 of 2018 on Competition
Legislation and Legal Opinion Commission
Official competition statute covering restrictive arrangements, abuse of dominance and economic concentration; parties must test current control, exemption and approval rules before implementing a transaction.
Customs Affairs
Kingdom of Bahrain
Official customs services, tariff and trader route.