About


01
Bahrain imposes no exchange control restrictions on repatriation of capital, profits and dividends, enabling full financial transferability of capital, profits and dividends. Bahrain currently levies no taxes on personal or corporate income. There is no capital gains tax, no withholding tax and no value-added tax (VAT). The Bahraini Dinar (BHD), which is fully convertible, is pegged to the US dollar at BHD1 = USD2.65.
02
Forming a company in Bahrain offers excellent access to the GCC states, especially Saudi Arabia, which is the largest market in the region. Bahrain has an expanding treaty network that includes over 30 double tax agreements with key partners in Asia, Europe and the Americas, as well as the Middle East and Africa. This is supplemented by bilateral investment treaties with countries including India, Italy and the US, and Free Trade Agreements with trading partners such as the US and Singapore.
03
Bahrain offers a range of vehicles through which to do business – the choice will be governed by the nature and size of the business, as well as the requirements of the investors. All types of Bahraini company give the shareholders or the directors an Investor’s Residence Visa.
04
The most common vehicle in Bahrain is the With Limited Liability Company (WLL). Investors who set up a company in Bahrain can take 100% foreign ownership, regardless of whether the company is a WLL, a partnership, a branch or a representative office. Exceptions to 100% foreign ownership are companies that engage in reserved business activities and public shareholding companies in which foreign investors are restricted to a maximum 49% stake.
05
Bahrain is home to three special economic zones. The Bahrain Logistics Zone was established in 2008 next to Khalifa bin Salman port, the island’s main harbour, and focuses on third-party logistics, storage and distribution. Bahrain International Airport offers cargo facilities, offices and retail space; the foreign trade zone has no customs duties. Bahrain International Investment Park (BIIP) offers 100% foreign ownership of companies, duty-free access to GCC markets, exemption from 5% import duties on both raw materials and equipment and 100% repatriation of capital.
06
Sovereign Bahrain can also assist with the following countries – Kuwait, Qatar, Saudi Arabia, Oman, Jordan, the Lebanon, Iraq and Libya.

Trademark and Intellectual Property Services


The intellectual property (IP) associated with a business name or system can be one of its most valuable assets – but only if it is properly protected. Any business that wishes to establish a national or international identity should take steps to protect the use of its name, logo or other IP, such as patent rights, formulae/processes, designs, trademarks, franchises, licence agreements, “know-how” and copyrights. Given the importance of IP to modern businesses, Sovereign has established an intellectual property division that specialises in registration, monitoring, advice and proactive assistance.

The intellectual property (IP) associated with a business name or system can be one of its most valuable assets – but only if it is properly protected. Any business that wishes to establish a national or international identity should take steps to protect the use of its name, logo or other IP, such as patent rights, formulae/processes, designs, trademarks, franchises, licence agreements, “know-how” and copyrights. Given the importance of IP to modern businesses, Sovereign has established an intellectual property division that specialises in registration, monitoring, advice and proactive assistance.

Income from IP rights may be derived by way of royalties. As with other sources of income, the tax planning of IP should focus on maximising the after-tax profits. To ensure that arrangements made to receive royalties are effectively constructed, it is necessary to analyse how various countries treat the payments of royalties, whether tax is withheld on such payments and how the income receipts and expenditures are treated.

Why Bahrain?


  • 100% foreign ownership permitted
  • 0% corporate tax
  • 0% income tax for individuals
  • 100% repatriation of capital and profits permitted
  • Modern efficient communications and infrastructure
  • Abundant and inexpensive energy
  • Excellent support services from local authorities
  • Foreigners are permitted to hold freehold property
  • Geographical location is ideal for cross border business

Time
The Time Zone is GMT + 3

Hours of work
The working week is Sunday to Thursday inclusive

Useful Links
Central Bank of Bahrain – www.cbb.gov.bh

Bahrain Economic Development Board – www.bahrainedb.com

Nationality, Passports and Residence Affairs (NPRA) – www.npra.gov.bh

Get in Touch

Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.