Commercial Registration
ExplainerSteps to set up a company in Bahrain from the start to the licence
Setting up a company in the Kingdom of Bahrain goes through nine stages: reviewing the activity and the nationality, security clearance, reserving the trade name, issuing the commercial registration without a licence, setting the address and registering the tenancy contract, obtaining the approvals of the competent authorities, notarising the incorporation contract, issuing the capital certificate, and finally issuing the licence and recording it on the registration certificate.
Stage one: reviewing the activity and the nationality
This is the step that sets the course of the whole procedure. Every commercial activity has nationalities permitted to own it, a legal form available to it, and authorities required for licensing in a set order. Reviewing these elements before applying prevents most of the delays that arise later.
Stage two: security clearance
Obtaining security approval for the owner of the company, or for the partners where there is more than one partner.
Stage three: reserving the trade name
Submitting the name and having it approved under the naming rules of the Ministry of Industry and Commerce.
Stage four: issuing the registration without a licence
The registration is issued with the name, the activity and the legal form, and the entity acquires its legal status. It is valid for one year, and it is renewed within the last fifteen days before the due date.
Stage five: the address and the tenancy contract
Registering the tenancy contract on the national eGovernment system, a step required before opening the municipality and electricity files. Which of the two files is opened depends on the party that bears the electricity and municipality charges under the tenancy contract.
Stage six: approvals from the authorities
The municipality, civil defence, health and others, according to the activity and in the order set for it. Departing from that order means the procedure has to be repeated.
Stage seven: notarising the incorporation contract
The incorporation contract between the partners is notarised before the competent authority, and it sets out the shares and the powers. It is a document required before the capital certificate can be obtained.
Stage eight: issuing the capital certificate
The capital sum specified in the incorporation contract is deposited, and a certificate proving the deposit is issued. It is a document required to complete the licensing.
Stage nine: issuing the licence
Once the approvals are complete, the activity licence is issued and recorded on the commercial registration certificate, and at that point the activity may actually be carried on.
What comes after the licence
| Step | Condition |
|---|---|
| Opening a Labour Market Regulatory Authority account | A complete registration and licence |
| Opening a Social Insurance Organisation file | An active and complete commercial registration |
| Applying for Tamkeen support | Registering the Bahraini employee with social insurance |
Common mistakes
- Choosing an activity that is not available to the nationality, which means the choice of activity has to be reconsidered, or a GCC partner brought into the company
- Choosing an address that does not meet the requirements of the activity, so licensing stalls after the registration has been issued
- Choosing an unsuitable legal form, where changing it later is a separate transaction with its own fees and timeframe
- Carrying on the activity before the licence is issued, which is a violation recorded against the registration