How to set up a branch of a foreign company in Bahrain

How to Set Up Branch of Foreign Company in Bahrain?

If you have a company and looking forward to expanding your business in the Middle East then the Kingdom of Bahrain is your best choice for the purpose. Repeatedly Bahrain has ranked as one of the best places for expats all over the world. 

The main requirements related to the setting up of the Foreign Branch in Bahrain are:

1. Check the business. First and foremost thing which should be checked is whether the activity practiced will be allowed for the Foreign Branch or not.

This is very important since there are certain business activities which are restricted for foreigners. Unlike Limited Liability Company and Single Person Company, a foreign branch can operate in Banking and Insurance Sector subject to the approval by the Central Bank of Bahrain.

2. List of documents. If the activity which is to be practiced by the Foreign Branch is not restricted then the second step will be to prepare all the documents which will be required for setting up the company in Bahrain.

Since it’s a branch of a foreign company the mother branch will assume all responsibility on behalf of the foreign branch. The key documents that will be required include a board resolution from the mother branch, commercial certificate of mother branch, memorandum of mother branch, letter of guarantee from mother branch, an audited financial statement of the mother branch, power of attorney in favour of the manager, memorandum of association etc.

Once you have done the above homework, then it gets very easy for the setup of a foreign branch in Bahrain. It is vital to note that the name of the foreign branch in Bahrain will remain the same as of the mother branch with the addition of Branch of Foreign Company added to it.

The steps for setting up a foreign branch in Bahrain

1. Submission of application to the Ministry of Industry, Commerce & Tourism

2. Post approval from the Ministry of Industry, Commerce & Tourism lease is to be signed

3. Application for obtaining a license is to be submitted along with the lease

4. Once the lease is accepted and finalized a memorandum of the company is to be signed before the notary

5. Bank account to be opened at any local bank in Bahrain.

6. Memorandum and bank certificate is deposited to the Ministry of Industry, Commerce & Tourism and final Commercial Registration certificate are issued and a foreign branch is ready to expand your business.

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