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Global Expansion Handbook

Bahrain

Gulf island state with a developed financial sector. Commercial registration is via the Ministry of Industry and Commerce's Sijilat system; VAT is administered by the National Bureau for Revenue.

Financial services
Basic profile
Updated 2026-11-12
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This country currently has a directory entry or basic profile only; a full handbook is planned.

01Overview

Region
Middle East
Capital
Manama
Currency
BHD
Languages
Arabic (official)
ISO code
BH / BHR

Jurisdictions

  • Bahrain — National level

China's direct investment

China's 2025 FDI flow
-0.17 USD 100m
End-2025 FDI stock
0.29 USD 100m
Flow rank
Outside top 20

Source：2025 Statistical Bulletin of China's Outward Foreign Direct Investment ↗ · Flow is for calendar 2025; stock is at end-2025. Flow rank is from Table 8 (top 20); other countries from Annex Tables 1–2 (originally USD 10k, converted to USD 100m; one decimal, two below 1). A negative flow means divestment exceeded new investment that year.

Macro indicators such as GDP and population will be added from the World Bank in the data release (P1).

02Market Entry

Foreign ownership

Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.

100% foreign ownership allowed for many commercial activities

Applies to
Some activities need a Bahraini partner or capital conditions; Decision 53 of 2024 sharply lowered the capital threshold for full foreign ownership
Jurisdiction
Bahrain
Source
MOFCOM
Local SubsidiaryIncorporate a separate legal entity in the target country Branch / Representative OfficeA local presence that is an extension of the parent Digital / Service BusinessSoftware, SaaS, AI and professional services abroad

03Business Formation

Registration authority

Primary authority for company or commercial registration.

Bahrain Investors Centre, Ministry of Industry and Commerce (via Sijilat)

Applies to
Ordinary companies
Jurisdiction
Bahrain
Source
MOFCOM Ministry of Industry and Commerce (Sijilat)

Common legal entity

The company form most commonly used by foreign investors for a local operating entity.

Limited liability company (WLL)

Applies to
Branches, representative offices and joint-stock companies are also possible
Jurisdiction
Bahrain
Source
MOFCOM

Foreign ownership

Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.

100% foreign ownership allowed for many commercial activities

Applies to
Some activities need a Bahraini partner or capital conditions; Decision 53 of 2024 sharply lowered the capital threshold for full foreign ownership
Jurisdiction
Bahrain
Source
MOFCOM

04Taxation

Indirect tax (VAT / GST / SST)

Standard rate and type of VAT, GST or sales & service tax.

VAT 10%

Applies to
Mandatory registration above the threshold
Jurisdiction
Bahrain
Effective
2022-01-01
Source
National Bureau for Revenue (NBR)

Tax authority

Authority responsible for corporate tax registration and filing.

National Bureau for Revenue (NBR)

Applies to
Ordinary companies
Jurisdiction
Bahrain
Source
National Bureau for Revenue (NBR)

Headline corporate income tax

Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.

No corporate income tax for most companies

Applies to
Oil and gas companies pay 46%; qualifying large multinationals face a 15% domestic minimum top-up tax from 2025
Jurisdiction
Bahrain
Source
State Taxation Administration National Bureau for Revenue (NBR)

Dividend withholding tax (non-residents)

General withholding on dividends paid to foreign shareholders, before treaty relief.

No withholding tax on dividends

Applies to
Profits can be repatriated freely
Jurisdiction
Bahrain
Source
MOFCOM

Tax treaty with China

Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.

In force

Applies to
Rates and conditions per the treaty text and STA publications
Jurisdiction
Bahrain
Source
State Taxation Administration (China)

05Banking & Payments

Exchange controls

Whether general exchange controls or cross-border fund rules apply.

No exchange controls

Applies to
Large transactions are recorded
Jurisdiction
Bahrain
Source
MOFCOM

Banking & financial regulator

Primary regulator for banking and foreign exchange.

Central Bank of Bahrain (CBB)

Applies to
Ordinary companies
Jurisdiction
Bahrain
Source
MOFCOM

06Employment

Foreign employee work permit

Main permit types needed for foreign employees to work legally.

Work visa / permit (Labour Market Regulatory Authority, LMRA)

Applies to
Applied for by the employer
Jurisdiction
Bahrain
Source
MOFCOM

Labour & work permit authority

Authority for labour rules and foreign employee work permits.

Labour Market Regulatory Authority (LMRA)

Applies to
Ordinary companies
Jurisdiction
Bahrain
Source
MOFCOM

Social security contributions

Main employer social security schemes for local and foreign employees.

SIO: pensions for nationals; expatriates mainly covered for work injury and unemployment

Applies to
Expatriates also receive end-of-service benefits under the Labour Law
Jurisdiction
Bahrain
Source
Social Insurance Organization

07Trade & Customs

Customs authority

Authority for import/export clearance and tariffs.

Bahrain Customs, applying the GCC common customs law

Applies to
Ordinary companies
Jurisdiction
Bahrain
Source
MOFCOM

Main free trade agreements

Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).

GCC customs union; Bahrain–US Free Trade Agreement

Applies to
Ordinary companies
Jurisdiction
Bahrain
Source
MOFCOM

08Investment & Manufacturing

Investment authority / agency

Body responsible for approving, registering or promoting foreign investment.

Ministry of Industry and Commerce; Bahrain Economic Development Board (promotion)

Applies to
Ordinary companies
Jurisdiction
Bahrain
Source
MOFCOM

09Digital & IP

IP office

Authority for trademark and patent filing and registration.

Ministry of Industry and Commerce – Directorate of Foreign Trade & Industrial Property

Applies to
Trademark rights are territorial; register locally or designate via the Madrid System (check WIPO membership)
Jurisdiction
Bahrain
Source
WIPO

Personal data protection law

Main law and regulator governing collection, use and cross-border transfer of personal data.

Personal Data Protection Law (Law No. 30 of 2018)

Applies to
Supervised by the Personal Data Protection Authority; includes cross-border transfer rules
Jurisdiction
Bahrain
Source
Personal Data Protection Authority

10Compliance & Risk

New York Convention party

Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.

Yes

Applies to
Foreign arbitral awards can be enforced under the Convention, subject to its limited refusal grounds
Jurisdiction
Bahrain
Source
UNCITRAL

Live risk monitoring

Geopolitical, conflict and trade-route risk events for Middle East, monitored by our sister site Global Risk Monitor.

View Middle East risk monitorHormuz / Red Sea shipping monitor

Global Risk Monitor · Geopolitical and trade-route risk monitoring

11Step-by-Step

  1. 1Decide model and jurisdiction
  2. 2Confirm licences
  3. 3Prepare documents
  4. 4Incorporate
  5. 5Register for tax
  6. 6Open bank account
  7. 7Obtain operating licences
  8. 8Start operations

Generic steps without times or fees; rely on the facts and official sources on this page.

12Official Resources

Chinese official resources

Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices

Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.

Local authorities