How to register a branch of your company in Bahrain (Complete process with easy steps)
Why Expand Your Business to Bahrain?
Bahrain stands out as one of the most business-friendly destinations in the GCC, offering 100% foreign ownership, zero corporate tax, and strategic access to Saudi Arabia and the wider Middle East.
For companies planning regional expansion, establishing a branch in Bahrain is a smart, cost-effective way to enter the market—without the need to set up a completely new entity.
This guide outlines eligibility, registration steps, and key benefits so you can achieve a smooth, hassle-free expansion.
Why Open a Branch in Bahrain?
Key Advantages for Foreign Companies
✅ 100% Foreign Ownership – Full control over your branch in most sectors, unlike restrictions in some GCC countries.
✅ Zero Corporate Tax – No corporate, personal income, or capital gains tax.
✅ Fast & Digital Setup – Register online through Sijilat, Bahrain’s commercial registration portal.
✅ GCC Market Access – Expand easily into Saudi Arabia, the UAE, and beyond.
✅ Lower Costs – Office rent, salaries, and operational expenses are significantly lower than in Dubai or Riyadh.
📌 Case Study: A European fintech chose Bahrain over Dubai for its branch due to lower operational costs and stronger fintech regulatory support.
💡 Key Takeaway: Registering a branch in Bahrain offers full ownership, tax-free operations, and a cost-efficient gateway to the GCC.
Eligibility: Who Can Register a Branch in Bahrain?
Eligible Companies
Foreign Companies – Any business legally registered outside Bahrain.
GCC Businesses – Firms from Saudi Arabia, UAE, Qatar, Kuwait, or Oman.
Multinationals – Global corporations seeking a GCC regional base.
Requirements:
Valid incorporation in another country with official company documents.
A local representative in Bahrain (director or legal consultant).
Operate in a sector open to foreign ownership.
💡 Key Takeaway: If your business is legally registered abroad and meets Bahrain’s documentation rules, you can open a branch.
Step-by-Step Guide to Registering a Branch in Bahrain
Step 1: Choose Your Branch Type
1️⃣ Branch with Commercial Activities
Can trade, sign contracts, and generate revenue.
VAT registration required (if applicable).
Needs a Bahraini national as the official representative.
2️⃣ Representative Office (RO)
For marketing, research, and networking only.
No direct sales or revenue generation.
No VAT registration required.
Step 2: Register via Sijilat
Visit www.sijilat.bh.
Log in with eKey credentials.
Select “Register a Branch Office” and upload documents.
Step 3: Prepare and Submit Documents
Parent company’s incorporation certificate, Memorandum of Association (MoA), and board resolution.
Bahraini representative’s CPR/passport copy.
Branch office lease agreement (if renting).
Parent company’s recent bank statement.
Step 4: Pay Fees & Obtain CR
Fees: BHD 200 – 500 (based on business activity).
Receive your Commercial Registration (CR) digitally upon approval.
Step 5: Apply for Additional Licenses (If Needed)
Some sectors require regulatory approval:
Fintech / Banking – Central Bank of Bahrain (CBB)
Healthcare – National Health Regulatory Authority (NHRA)
Legal Services – Ministry of Justice
📌 Example: A UK-based legal consultancy required Ministry of Justice approval before registering.
💡 Key Takeaway: Ensure all sector-specific licenses are secured for a smooth launch.
Costs involved in registering a branch in Bahrain
Breakdown of setup & registration fees
| Cost Item | Estimated Cost (BHD) |
| Commercial Registration (CR) Fee | BHD 200 – 500 |
| Office Rental (Per Month) | BHD 200 – 800 (varies by location) |
| Regulatory Approvals (If Needed) | BHD 100 – 500 |
| Legal & Notary Fees (If Using a Consultant) | BHD 500 – 1,500 |
📌 Key Insights
✅ Lower Setup Costs – Branch registration fees are significantly lower than forming a new company.
✅ Flexible Office Options – In some cases, a virtual address can be used instead of renting physical office space.
✅ Industry-Specific Fees – Certain sectors may have higher regulatory or licensing costs.
💡 Key Takeaway: Plan your budget to include setup fees, office arrangements, and any sector-specific approvals before registering your branch. Alvion Key Advisory helps you evaluate these costs upfront to avoid surprises.
🏦 Opening a Bank Account for Your Bahrain Branch
A local business bank account is essential for conducting transactions, processing payroll, and registering for VAT (if applicable).
Alvion Key Advisory assists you through every step, from bank selection to account activation.
Steps to Open an Account:
Choose a Bank – Top business banks include Bank of Bahrain & Kuwait (BBK), Ahli United Bank, and National Bank of Bahrain (NBB).
Submit Required Documents – CR certificate, parent company’s financial statements, passport copies of authorized signatories.
Activate Online Banking – Enable international payments and multi-currency accounts if needed.
📌 Example: A German SaaS company, guided by Alvion Key Advisory, secured a multi-currency business account in just 10 days.
💡 Key Takeaway: Setting up a Bahrain bank account is straightforward with the right guidance—Alvion Key Advisory ensures smooth, fast, and compliant processing.
📊 Tax Obligations for Bahrain Branches
Bahrain’s tax system is highly business-friendly, but branches must meet certain compliance requirements.
Alvion Key Advisory helps you navigate these rules efficiently.
✅ Zero Corporate Tax – Full profit repatriation with no corporate tax liability.
✅ VAT Registration (If Applicable) – Required if annual revenue exceeds BHD 37,500; VAT rate is 10%.
✅ Social Insurance Contributions – Applicable if you hire employees, payable to the Social Insurance Organization (SIO).
📌 Example: A UK consultancy, supported by Alvion Key Advisory, exceeded the VAT threshold but continued operations smoothly with zero corporate tax.
💡 Key Takeaway: While Bahrain offers tax-free profits, you must meet VAT and employment-related compliance requirements—Alvion Key Advisory ensures you never miss a deadline.
👥 Hiring Employees for Your Bahrain Branch
Recruiting in Bahrain can be cost-effective, especially with government support programs.
Alvion Key Advisory manages the hiring and visa process from start to finish.
✅ Work Visa & LMRA Registration – Processed through the Labour Market Regulatory Authority (LMRA) in 2–4 weeks.
✅ Bahrainization Requirements – Certain sectors must meet minimum Bahraini workforce quotas.
✅ Salary & Cost Advantages – Lower wages and operational costs than Dubai or Riyadh, plus Tamkeen subsidies for Bahraini hires.
📌 Example: A fintech startup, with Alvion Key Advisory’s assistance, secured Tamkeen support covering up to 70% of a Bahraini employee’s first-year salary.
💡 Key Takeaway: With expert guidance, you can access skilled talent and government incentives—Alvion Key Advisory makes it happen.
🛡 Compliance & Post-Registration Responsibilities
After registering, your branch must remain fully compliant with Bahrain’s laws to avoid penalties.
Alvion Key Advisory provides ongoing compliance management so you can focus on growth.
✅ Annual CR Renewal – Done online via Sijilat.bh.
✅ Financial Reporting & Audits – Required for large companies.
✅ License Renewals – Maintain sector-specific permits (e.g., fintech, healthcare).
✅ Bank Account Compliance – Provide periodic updates to meet banking regulations.
📌 Example: A consulting firm avoided costly delays by using Alvion Key Advisory’s renewal reminders and compliance checks.
💡 Key Takeaway: Staying compliant is easy when you have Alvion Key Advisory as your ongoing partner.
🚀 Final Thoughts: Why Choose Bahrain – and Alvion Key Advisory
Bahrain offers one of the most attractive expansion environments in the GCC:
✅ Zero corporate tax & 100% profit repatriation
✅ Full foreign ownership
✅ Strategic access to Saudi Arabia & the GCC
✅ Lower operational costs
✅ Streamlined online registration
Alvion Key Advisory is your trusted partner in every step—from initial planning and branch registration to banking, hiring, and ongoing compliance.
📞 Start your Bahrain expansion today with Alvion Key Advisory and unlock new opportunities across the GCC.
