Step-by-Step Guide to Business Setup in Bahrain for UAE Entrepreneurs

Dt Consultancy
Jul 1
3 min read

Bahrain has become an attractive destination for entrepreneurs from the UAE looking to expand their business footprint in the Gulf region. With liberal foreign ownership laws, a favorable tax regime, and a strategic location, Bahrain offers an ideal business environment for startups, SMEs, and large corporations alike.

If you are a UAE-based entrepreneur planning to establish a business in Bahrain, this step-by-step guide will walk you through the essentials of the business setup process, ensuring you stay compliant with Bahrain’s regulations while leveraging its strategic advantages.

Why Bahrain? Key Benefits for UAE Entrepreneurs

100% Foreign Ownership: Unlike many other countries in the GCC, Bahrain allows full foreign ownership in most business sectors without the need for a local partner.
Business-Friendly Tax Environment: There is no personal income tax, no capital gains tax, and no withholding tax. Corporate tax applies only to the oil and gas sector. Value-Added Tax (VAT) is set at a competitive 10%.
Ease of Doing Business: The government has streamlined company registration and licensing through digital platforms, making the setup process efficient.
Proximity to the UAE: Bahrain’s strategic location enables UAE entrepreneurs to expand operations within the GCC, benefiting from free trade agreements and robust logistics infrastructure.

Incorporating a Company in Bahrain: A Guide for UAE Entrepreneurs

1. Choose Your Business Activity

When setting up a business in Bahrain, it’s essential to select a business activity that aligns with Bahrain’s ISIC classification system, managed by the Ministry of Industry and Commerce (MOIC). Specific sectors such as healthcare, education, or finance may require extra regulatory approvals, so it's important to check the requirements for your industry.

2. Reserve Your Company Name

To reserve your company name, submit at least three preferred options (in English & Arabic) through Bahrain’s Sijilat portal. Ensure that the names comply with local regulations and do not conflict with existing trademarks or business names.

3. Prepare Initial Documents for Registration

To start the business registration process, UAE entrepreneurs need to provide the following documentation:

Passport Copies: For all shareholders and directors.
Power of Attorney: This is not necessary if you are utilizing a licensed service provider like Dhiya & Thomas Management Consultancy.
Personal Information: Full names, nationalities, and identification details (e.g., passport or national ID) for all stakeholders, including shareholders, directors, and authorized signatories.
Company Information: The proposed company name, legal structure, business activity, capital structure, ownership percentages, and the fiscal year-end.
Business Contact Details: The official address, telephone number, and email address of your company and key personnel.

4. Additional Requirements & Tailored Support

Starting a business in Bahrain can be complex, especially for UAE entrepreneurs looking to expand their operations. We provide comprehensive support, including expert advice on local regulations, setting up business addresses, visa applications, and ensuring compliance with Bahrain’s legal framework.

Our team is available to assist you every step of the way, ensuring a smooth, efficient, and legally compliant company setup process.

How Dhiya & Thomas Management Consultancy Supports UAE Entrepreneurs

Dhiya & Thomas Management Consultancy specializes in helping UAE entrepreneurs expand their businesses into Bahrain. Our services include:

Full-service company registration and incorporation
Assistance with obtaining regulatory approvals (MOIC, NHRA, LMRA, NBR, etc.)
Coordination of office leases and company address setup
Visa and immigration support
VAT registration and ongoing compliance services
Opening of business bank accounts
Continuous business advisory and operational support

Whether you’re looking to expand your UAE-based company or start a new venture in Bahrain, Dhiya & Thomas Management Consultancy ensures your business setup is smooth, cost-effective, and fully compliant with local regulations.

Why Bahrain Is an Ideal Destination for UAE Entrepreneurs

Bahrain offers a favorable business environment for UAE entrepreneurs looking to expand into the Gulf region. The country is known for its ease of doing business, competitive costs, and attractive regulatory framework.

With Bahrain's status as an open and accessible market, there’s no better time for UAE entrepreneurs to establish a base in the Gulf. As an ISO-certified service provider approved by Bahrain’s Ministry of Industry and Commerce, Dhiya & Thomas Management Consultancy is your trusted partner for hassle-free company incorporation.