Setting up a Business in

A step-by-step guide H.R.H. Prince H.M. King H.R.H. Prince Khalifa bin Salman Al Khalifa Hamad bin Isa Al Khalifa Salman bin Hamad Al Khalifa Prime Minister King of Bahrain Crown Prince Deputy Supreme Commander King Fahd Causeway main economicgatewaytotheGCCandMENARegions. investment climate,andanaspiringcosmopolitansociety, toconsolidateBahrain’s statusasa withastablepoliticalsystem,securecompetitiveness andfairness, economicenvironment, clear anddrivenbyapioneeringprivatesector,government embracingtheprinciplesofsustainability, economy builtonoilwealth,toaproductive, globallycompetitiveeconomy, shapedbythe The KingdomofBahrainaspires initsEconomicVision 2030totransformitselffrom an most costeffective andefficientincorporation to Bahrain,remove red tape,andprovide the companies andinvestors,facilitate theirrelocation and promotion policy, inorder towelcomeforeign within theframeworkofgovernment’s reform Bahrain Investors’Centre (BIC)wasestablished global market. productivity, andenhancecompetitivenessinthe value-added industriesandservices,ensure high All ofthesefactorsmakeBahrainattractiveto diversely experiencedlocalBahrainimanpower. enjoys awelleducated,highlyefficientand protection, equalityandsocialjustice,Bahrain and supervisoryframeworkwhichguarantees climate, free andfaircompetition, andthelegal state-of-the-art infrastructure, attractiveinvestment In additiontocomprehensiveservices, government equality andagoodstandard ofliving. social freedom guaranteeing citizensandresidents manpower, freedom ofworshipforallreligions, and the sponsorshiplawforforeign companiesand being theonlycountryinGCCtoabolish and real assets,freedom ofresidence andwork, freedom offullforeign ownershipofcorporate freedom -freedom ofmovementcapital, countries intheregion known foritseconomic The KingdomofBahrainisamongtheveryfew Minister ofIndustryand Commerce Dr. Hassan Fakhro Commerce Minister ofIndustryand Dr. HassanFakhro Minister’s Foreword putting thiscomprehensive guidetogether. Board whohaveexpendedvaluableefforts in Investors’ Centre, andEconomicDevelopment Ministry ofIndustryandCommerce, Bahrain acknowledge thehard workofthestaff ofthe wishing themsuccess.Iwouldalsoliketo like toextendawarmwelcomeourinvestors, In thenameofKingdomBahrain,Iwould incorporation ofcompaniesinBahrain. processes andstepsrequired forquickandeasy This Guidecontainsadetaileddescriptionofall on investinganddoingbusinessintheKingdom. a largenumberofreports, studiesandguides its incorporationprocedures, andhaspublished Bahrain alsoenforces absolute transparency in day. transparency, withinatimeperiodasshortone and legaladviceservices,withease and incorporationprocedures, obtaineconomic enable foreign investorsto completetheirlicensing under oneroof attheBIC ‘one-stop shop’,to in theincorporationprocess havecometogether procedure. Allministriesandotherentitiesinvolved

3 Foreword Map of Bahrain Investing in Bahrain

Business Environment p 7 An overview of some of the key characteristics of Bahrain’s business environment and the A resources available to commercial and industrial businesses operating in Bahrain.

Bahrain Investors’ Centre p 17 The “One-Stop-Shop” Bahrain Investors’ Centre (BIC) was established to facilitate the setting up of business in Bahrain through a seamless process.

Commercial Registration p 25 Commercial Registration (CR), issued by the Ministry of Industry & Commerce, is required to operate commercial business in Bahrain. Additional sector-specific licenses may also be required.

p 27 C1 Selection of Business Activity, Legal Structure and Company Name

p 35 C2 Completing the Application for Commercial Registration C Contents p 42 C3 Activity Licensing and Relevant Approvals

p 104 C4 Notarisation of Company Memorandum of Association

Issuance of Commercial Registration, Publication in the Official Gazette and C5 p 106 BCCI Registration of Relevant Activities

Post Registration Services p 113 This section describes additional services required to commence business operations in D Bahrain, such as hiring of foreign workers, applying for residency, and amendments to existing commercial registrations. Monitoring and Supervision p 127 Post-operational supervision to ensure businesses in Bahrain operate in accordance E with applicable laws and regulations, which are designed to protect the interests of the

businesses and customers alike. Investing in Bahrain Appendices and FAQs p 133 Frequently Asked Questions (FAQs) and an index of contact information of all F relevant public and private entities. 5 A “Bahrain is a primary option for investment. Its progressive outlook and economic freedom have earned it consistent high rankings by the Heritage Foundation, Fraser Institute and the Wall Street Journal”

666 6 A

SECTION A The Business Environment of Bahrain

Bahrain prides itself on being a premier investment location in the Middle East Region. Bahrain’s internationally acclaimed strong financial regulations, economic and political stability, strategic location and strong legal framework have transformed it into a high standard investment and commerce destination.

(This Section provides an overview of some of the most important characteristics of Bahrain’s business environment and the resources available for businesses operating in Bahrain).

Additional key features of the business legal Currency framework in Bahrain include: The Unit of Currency is the Bahraini Dinar (BD), • No restrictions on the repatriation or remittance equal to US $ 2.6596. of profits or capital.

• No restrictions on the import or export of local Business Hours and foreign currencies.

• No tax on income, capital gains, sales, estate, - Currency Regulation of the Financial Sector • Local Time: GMT + 3 hours interest, dividends or royalties. • Government Offices: 07:00-14:00 Sunday through Thursday. Closed Fridays and • Gulf Co-operation Council (GCC) Arbitration Saturdays. Centre, which settles commercial disputes involving GCC citizens on the condition that they A • Private Sector: Generally 08:00-13:00 and involve a minimum of BD 15,000. 15:00-1800 Sunday through Thursday. • The Kingdom of Bahrain permits 100% foreign • Banks: Generally 8:30 - 13:00 and 15:00-18:00 ownership of businesses in the most types of Sunday through Thursday. business activities.

Legal Framework Regulation of the Financial Sector Bahrain The commercial laws and legal system are under The strength of Bahrain’s financial sector rests constant review to ensure that they are consistent upon the regulatory regime imposed by the Central with international standards. Companies operating Bank of Bahrain (CBB). The CBB is responsible The Business in Bahrain are expected to follow the international for the licensing, supervision and regulation of the Environment of Environment accounting standards and are encouraged to financial sector in accordance with international pursue good corporate governance. Bahrain has standards. a zero-tolerance policy for money laundering and enforces best-practice international standards The CBB has introduced International Accounting of intellectual property, labour and environment Standards for locally incorporated banks and has protection. also increased the transparency of the financial

77 A

position of locally incorporated and publicly-quoted conditions are required depending on the rental banks by requiring them to publish their financial contract. statements on a quarterly basis. Commercial Rates* The CBB’s Compliance Unit is committed to ensuring that the financial sector acts in Office space (per square metre per month): compliance with CBB regulations on anti-money Diplomatic Area BD 6 - 10 laundering and countering the financing of terrorism (‘AML/CFT’). The Compliance Unit also acts to Area BD 8 - 13 combat the risk of financial crime more generally Central BD 6 - 9 within the financial sector - such as fraud attempts Bahrain Financial Harbour BD 9 - 13 on CBB licensees and their customers. Al Moayyed Tower BD 10 - 12

Business Ownership Retail space (per square metre per month): Average BD 16 100% foreign ownership of business is allowed. Sector-specific and/or company type restrictions BD 20 may apply. Please refer to Section C1 for details. Residential Rates* Land Ownership for Foreigners Monthly rent for one-bedroom house/apartment: Bahraini and GCC nationals are permitted to own BD 550 - 750 land in all areas of Bahrain. Central Manama BD 180 - 300

Foreign Land Ownership Monthly rent for two-bedroom house/apartment: Juffair BD 750 - 1,200 Non-nationals and foreign companies are permitted Central Manama BD 350 - 500 to own property and real estate in newly developed areas only, including: BD 650 - 1,200

Business Ownership - Industrial Land Seef Area BD 800 - 1,200 • Manama Area, such as Ahmad Al-Fateh District, Area, Bu Ghazal Area, Northern District Monthly rent for villas in high-end areas: of Manama including Diplomatic Area (areas of Busaytin BD 1,500 - 1,800 high-rise residential and commercial structure Saar BD 2,000 - 4,300 A with elevation of 10 storeys or higher). Municipality Fee 10% of rent (all types) • Seef District (elevations of 10, 5 and 3 storeys).

• Newly developed tourism areas such as Durrat Al Bahrain, and Al-Areen Desert Industrial Land Resort.

• Areas which fall within the sphere of the Bahrain

Bahrain The Kingdom of Bahrain’s Ministry of Industry & Financial Harbour (BFH), the Bandar Al Seef Commerce (MOIC) operates ten industrial areas Area and Reef Island. covering 2,288 hectares. The Ministry offers long- • Riffa Views and Bahrain Bay. term leaseholds spanning 25 years. Industrial areas The Business in general are provided with all necessary services Environment of Environment such as roads, electricity, sewage systems, water Property Rental and telecommunications. Projects established in the industrial areas receive customs duties Renting residential or commercial property is a exemption on the import of capital equipment and fairly straightforward process for both citizens and raw materials used in the production of the final foreigners, who can deal with the landlord directly goods, in addition to low electricity rates. or through a real estate agent. Proof of identity, two to three months deposit and other standard 88 8 8 8 A

• Eligibility: All Bahraini and GCC nationals, Oil and Gas foreign nationals and foreign companies. The National Oil and Gas Authority (NOGA) is the • Rent: BD 0.5 - 0.7 per square metre per month. governing body responsible for the allocation of oil Rates are reviewed every five years and may be and gas in Bahrain. Bahrain Petroleum Company increased by a ministerial resolution. Increases (BAPCO) is the main supplier and distributor. are capped at 30%. For industrial projects requiring gas, the Ministry i For more information, please contact: of Industry & Commerce liaises with NOGA to Bahrain International Investment Park authorise gas allocation, upon which BAPCO will Tel: +973 17 467 373 deliver the gas to the project site. Fax: +973 17 467 300 Email: [email protected] i For more information, please contact: Website: www.biip.com.bh National Oil and Gas Authority (NOGA) Tel: (+973) 17525511 Fax: (+973) 17293007 Infrastructure Telecommunications Services Electricity & Water The Telecommunications Regulatory Authority The Electricity and Water Authority is the official (TRA) regulates Bahrain’s telecommunications service provider for water and electricity utility market, ensuring that the interests of subscribers services for domestic, commercial and industrial and users are protected and promotes effective establishments. and fair competition.

Tariffs and Service Rates The TRA maintains a full list of authorised Electricity Rates telecommunication service providers. The list can be accessed at: www.tra.org.bh Domestic Residential Rate BD 0.003 per unit (first 3,000 units) Bahrain Telecommunications Company (Batelco) is currently the main provider of landline, mobile BD 0.009 (next 2,000 units) and internet services. BD 0.016 (each extra unit) i For information on services, branches and Non-Domestic Tariff Infrastructure business hours, please visit: www.batelco.com BD 0.016 per unit (for all units) Zain Bahrain is another major provider of mobile, Note: Electricity unit = 1 kilowatt hour (KWH) internet and other services. Water Rates A i For information on services, branches and Domestic Residential Rate business hours, please visit: www.bh.zain.com. BD 0.025 per unit (first 60 units) BD 0.080 (next 40 units) Postal Services Bahrain Post provides full postal services such as BD 0.200 (each extra unit) local and international mail as well as additional Non-Domestic Tariff services such as renewal of driving licenses, car Bahrain BD 0.300 per unit (first 450 units) registration, vehicle insurance, and renewal of commercial registrations. Post offices are located BD 0.400 (each extra unit) in numerous locations in Bahrain and business

Note: Water unit = 1 cubic metre (m3) hours vary depending on location. All the services The Business

(m3 = 220 imperial gallons = 1,000 litres) in detail, including procedures and documents of Environment required can be accessed at: i For more details and additional information on www.transportation.gov.bh. Express courier services and procedures, please contact: services are also available through private operators Electricity and Water Authority such as DHL, FEDEX, UPS, Aramex, and others. Subscriber Services Directorate Manama: (+973) 17576576 Muharraq: (+973) 17322787 Isa Town: (+973) 17680222 99 A

to Qatar, This flagship construction project of Connectivity what will be the longest bridge in the world, is considered a quantum leap in strengthening the Bahrain enjoys excellent air, land and maritime economic and urban development of the two GCC connections to the outside world. It boasts a states. Traffic across the bridge is expected to world-class international airport, well-designed exceed 5,000 vehicles daily in the first years after modern highways and a well-established seaport. opening, and could reach up to 12,000 vehicles In addition, Mina Salman, a new super port with daily by 2025. The project also includes rail lines to state of the art cargo handling facilities, was transport passengers and cargo between Bahrain, opened in 2009. Qatar and the rest of the Gulf Cooperation Council Bahrain International Airport states. Bahrain International Airport (BIA) is located on Seaports , four kilometres north of the • Mina Salman is the Kingdom’s major port. capital Manama, and within 15 minutes drive Opened in 1962, it is strategically located from the city centre. BIA serves as a regional midway down the Arabian Gulf, providing key hub for a significant number of international access to the region for global shipping and airlines, including cargo carriers and charter flight substantial storage services and facilities. The operators. The airport now handles more than 4.2 port includes 15 berths, including 2 container million passengers a year. The national carrier, Gulf ship berths. Its annual capacity is 2.5 million Air, operates more than 300 flights every week to tons. destinations worldwide. A second airline, Bahrain Air, operates low fare flights to and from Bahrain • Khalifa bin Salman Port at Hidd. Opened in International Airport, using a fleet of modern 2009, with an area of 900,000 square meters, aircraft. It is expected that the status of the airport with 23,600 square meters of warehouses. Its as the Gulf’s regional hub will be enhanced further annual capacity is 2.5 million tons. It includes by the continued expansion and upgrading of facilities for container, break-bulk handling, ro- facilities. ro, and passenger vessel handling.

In addition, BIA offers highly efficient air cargo i For further information and details, please visit facilities, with an annual capacity of 200,000 Bahrain’s Customs and Ports website at tons. Its 18,000 square metre Air Cargo Centre Connectivity www.bahraincustoms.gov.bh. provides a full range of cargo handling services, including trans-shipment arrangements, a state Bahrain Logistics Zone of the art customs clearance system, and special Located within a few minutes by road from Khalifa A storage arrangements. Break bulk facilities are bin Salman Port (KBSP) at Hidd, the Bahrain also available for consolidators and bonded Logistics Zone (BLZ) is the region’s first boutique warehousing for specialist companies. logistics area offering a high quality environment i For further information and details on flight to companies that meet its tenancy requirements. schedules, please visit the Bahrain International It focuses on enhancing the offering of KBSP Airport’s website at www.bahrainairport.com as a transit point for importers and exporters of items requiring duty-free logistical, intermodal and value-added options. BLZ allows 100% foreign

Bahrain King Fahd Causeway ownership, and provides services to international, The King Fahd Causeway, 27 kilometres in length, regional and local companies seeking to expand links Bahrain to Saudi Arabia. Major population their operations throughout the region. BLZ centres of the Eastern Province are within a 30-

The Business effectively contributes to consolidating Bahrain’s minute drive, with driving time to Riyadh and

Environment of Environment status as the main strategic centre of business and Kuwait averaging four hours. The Causeway development in the Middle East. serves as a major contributor to Bahrain’s status as a family retreat and business destination for Bahrain Investment Wharf surrounding regional markets. Bahrain Investment Wharf (BIW) is one of the Bahrain Qatar Friendship Bridge largest development projects in Bahrain, with a total cost of approximately US $ 2 billion, and the The Bahrain Qatar Friendship Bridge, also referred only privately-owned, operated and managed to as Bahrain Qatar Causeway, 40 kilometres in 1010 10 industrial park in the Kingdom. Covering an area of 10 10 length, currently under construction, links Bahrain A

1.7 million square metres in the new Hidd Industrial consulates of Bahrain in their respective countries Development Zone, this groundbreaking project of residence, or visas issued by the GDNPR in is a mixed-use industrial, business, logistics, Bahrain by invitation from a Bahraini company or information technology, commercial and residential citizen, or by a foreign resident of Bahrain. development estate. BIW offers investors pre- serviced plots, supported by state-of-the-art i For more information on types of visas, infrastructure and world class services. please visit www.evisa.gov.bh. For details on immigration regulations and residency, please BIW will develop business communities comprising refer to Section D of this Guide, or to the a number of specialist parks. The largest of these, General Directorate of Nationality, Passports is an industrial park, followed by a services park, and Residence website at www.gdnpr.gov.bh. a logistics and supply chain park, and lastly a business park and a residential park. The project Financing Options helps to expand Bahrain’s light and medium manufacturing industry in areas such as textiles, rubber and plastics products, light electronics, A wide range of credit and commercial loan fabricated metal products, electrical machinery, arrangements are available to local and paper, chemicals and furniture. BIW also international investors through the various Islamic incorporates a hotel, exhibition hall and conference and conventional banks and financial institutions facilities, as well as accommodation for tenant in Bahrain. Financing is also available through the companies’ middle management and associated Bahrain Development Bank and the Bahrain Stock labour forces. Exchange. Bahrain Development Bank Entry and Residence Visas The Bahrain Development Bank (BDB) provides a variety of financial services that are tailored to A visa is required for all persons wishing to enter meet the needs of small and medium enterprises Bahrain, with the exception of citizens of the Gulf in Bahrain and promote the development of small Co-operation Council (GCC), and foreign GCC and medium sized projects in both the industrial residents employed in certain professions. A visa and service sectors. This state-owned bank assists may be sponsored or non-sponsored. Bahrain also aspiring and existing investors to help initiate new offers instant e-Visas online for eligible visitors. A projects and businesses. It provides loans at highly - Entry and Residence Visas Financing Options residence permit is required for foreign investors or competitive interest rates, in addition to business employees to work in Bahrain. advisory/counseling services and training through the Entrepreneurship Development and Enterprise E-Visa Creation Programme. A Citizens of the following countries who wish to Foreign-owned companies are eligible for partial enter Bahrain for tourism or business can obtain financing, provided they meet certain criteria such a two-week visit visa online (e-Visa) at the access as providing training and employment to a number point in Bahrain: of Bahrainis. Andorra, Armenia, Australia, Austria, Azerbaijan, Services of the BDB include: Belarus, Belgium, Brunei, Canada, China, Denmark, Georgia, Germany, Greece, Hong Kong, • Short and long term composite loans for Bahrain Iceland, Ireland, Italy, Japan, Kazakhstan, Latvia, financing capital assets and core portion of Liechtenstein, Lithuania, Luxembourg, Malaysia, working capital.

Moldova, New Zealand, Norway, Portugal, Russian • Equity participation in start-ups as well as The Business

Federation, San Marino, Singapore, Spain, existing projects. of Environment Switzerland, Sweden, Tajikistan, Thailand, Turkey, • Working capital finance for raw materials for Turkmenistan, United Kingdom, Ukraine, United projects. States of America, Uzbekistan and Vatican City can obtain a two-week entry visa at the point of arrival • Leasing of equipment. without prearrangement or local sponsor. Their stay • Arranging export finance for goods may be extended for a further two weeks. Other manufactured in Bahrain. nationals are required to obtain entry visas from the 1111 A

• Islamic Finance-Murabahah (cost-plus financing) issued shares must be paid-up. facility. • The issued share market value must not be less • Business advisory and counseling services. than the paid-up percentage of the share par value. • Educational loans. • The volume of trading in company share must • Fisheries and agricultural loans. not be less than the minimum limit specified by i For more information, please contact Bahrain the Exchange. Development Bank: • The number of registered shareholders in the Tel: (+973) 17511111 Company’s records must not be less than 100. Fax: (+973) 17534005 Email: [email protected] • The rights and obligations of each class within Website: www.bdb-bh.com each listed issue must be equal. • The net value of the assets of the company The Bahrain Stock Exchange must be approximately 20% greater than its The Bahrain Stock Exchange (BSE) presents paid-up capital. investors with the opportunity to raise equity • The annual sales volume must not be less than financing, provided that listing conditions are met. BD 500,000. The Central Bank of Bahrain (CBB) regulates and supervises Bahrain’s capital markets with its • The company must have realized profits in the chief priority being to maintain a transparent, fair two consecutive years preceding the date of and orderly market by upholding and enforcing submission of the application. international standards and protecting the • The company must issue semi-annual financial investor, thereby protecting Bahrain’s integrity and statements. reputation as the region’s financial hub. • The company must publish annual financial The CBB regulates and supervises all reports and audited financial statements within applications for the listing of securities and any three months after the end of the company’s other instruments offered to the general public, fiscal year. approving applications on the fulfillment of • The ordinary general assembly (AGM) of the requirements and disclosures. company must convene at least once a year Economic Development Board within the three months following the end of the The CBB also enforces international disclosure company’s fiscal year. standards, in order to enhance the transparency of the marketplace, and supervises the stock • The company must maintain a transfer and exchange, the clearing, settlement, depository and registration office in the Kingdom of Bahrain. A custodial systems, brokerage firms and market • The company must comply with the listing makers. agreement.

Listing Requirements for Domestic Companies: • The company shall have a sound financial Compliance with the following rules is a position in terms of its assets, liquidity, balanced prerequisite for admission of Bahraini public stock financial structure and efficient performance. companies on the Exchange:

Bahrain • The company must publish its financial statements and results of operations in daily • The company must comply with the Commercial media prior to its shares being approved for Companies Law No. 21 for 2001 applicable to trading on the Bahrain Stock Exchange.

The Business stock companies. • Any other conditions as stipulated by the board Environment of Environment • The company shall have been in existence for from time to time. two Gregorian years, and shall provide two audited annual balance sheets. Listing Requirements for Foreign Companies:

• The paid-up capital of the company must not • The company must either be a public stock be less than BD 1,000,000 (One Million Bahraini company, duly listed on the stock exchange Dinar), or the equivalent in any other currency, in the country of incorporation, or a closed and the issued shares must not be less than company which has been established for at 1212 12 12 12 500,000 shares. At least 50% of the value of the least three years. A

• The company’s paid-up capital must not be less The Economic Development Board Vision than US $ 10,000,000. “To be the catalyst for change that will transform • The company must have realized net profits Bahrain into a preferred global business from its principal activities for the last three years destination.” preceding the listing application.

• There must not be any restrictions, whether The Economic Development Board Mission in the company’s articles of association or EDB’s mission is to grow and diversify Bahrain’s by the laws of the country of the company’s economy by developing an economic growth incorporation, on the freedom of transfer of strategy that supports the advancement of a share ownership between traders. modern and liberalised business environment, encourages inward investment and enables • The company’s financial position must be sound. Bahrain to compete in the global marketplace.

• The number of registered shareholders of the These efforts will also be the catalyst to elevate company must not be less than 100. national living standards by creating greater opportunities for Bahrainis. • The company shall issue an audited semi- annual balance sheet and an audited annual 1. Developing an economic growth strategy balance sheet. Working closely with partners from across the • The company shall assign a representative office public and private sector, the EDB is developing in the Kingdom of Bahrain to undertake the an economic strategy focused on the immediate, registration of shares, distribution of dividends, medium and long-term future. The strategy is issuance of financial reports, and other related central to ensuring that the Kingdom’s government issues. is in the best possible position to define the • The company shall comply with the BSE’s listing Kingdom’s future of economic reform. agreement. 2. Enhancing the business environment i For more information, please contact Bahrain The EDB is working to ensure that Bahrain’s Stock Exchange (BSE): economy is competitive and effective now and Tel: (+973) 17261260 into the future, creating the optimum business

Fax: (+973) 17256362 environment for Bahrain to attract investment from Economic Development Board Email: [email protected] abroad as well as encouraging the development of Website: www.bahrainstock.com Bahraini companies. Ongoing consultation with key public and private sector partners helps to identify Economic Development Board ways in which the business environment can be A enhanced, and encourage investment through improvements in specific sectors of real economic The Bahrain Economic Development Board importance. (EDB) is a dynamic public agency with an overall responsibility for formulating and overseeing the 3. Promoting investment economic development strategy of Bahrain and In order to attract leading global investors, the EDB for creating the right climate to attract direct is working to promote Bahrain’s many strengths investment into the Kingdom. Bahrain across the world. EDB’s inward investment strategy focuses on Delivering this Mission sectors in which Bahrain offers significant strengths, including financial services, downstream industries, The EDB is structured to deliver its objectives by The Business tourism, business services, logistics and ICT. focusing on four key areas of activity: of Environment

The EDB also helps companies interested in • Economic Strategy develops and syndicates investing in Bahrain by acting as the first point an economic growth strategy for the Kingdom of contact to the Kingdom, understanding the to create an environment that accurately reflects objectives of investors, providing them with the aspirations of the nation. information regarding the relevant procedures for • Public Sector Reform supports and monitors setting up a business, and helping them form a the implementation of key initiatives to improve 13 network of contacts in Bahrain. the economic and business environment – and 13 A

works with key stakeholders in the Government • Bahrain’s fast-growing economy attracts a to ensure effective implementation. higher proportion of foreign investment than any other Gulf State • Business Development seeks to stimulate growth in key value-creating sectors of Secure and stable environment

the economy, and seeks to attract inward • Most well established business hub in the Gulf investment into the Kingdom from leading with a strong track record regional and international organisations. • Respect for rule of law; protection of a tried • Global Marketing and Communications aims and tested legal and regulatory environment to ensure that all Bahrain stakeholders, both with a commitment to the highest international national and international, understand EDB’s standards vision for the future and the benefits of Bahrain as an investment destination. • Mature legal and administrative infrastructure

Bahrain Incentives Centrally located with excellent connectivity Bahrain is the ideal location to do business and • Strategically located in the heart of the Middle from which to target the wider markets across East – the Gateway to the Gulf – with the best the GCC as well as the greater Middle East market access to growing economies in the region. region The most attractive business environment for • Excellent transport infrastructure including companies looking to access the MENA region: the King Fahd causeway to Saudi Arabia and planned Friendship Causeway to Qatar • Most open and liberal economy in the Middle East, 16th in the world (Heritage Foundation • World-class telecommunications infrastructure Index of Economic Freedom 2009) • A hub for national carrier Gulf Air • Cost competitive and value orientated, with low • Simple visa policies cost of doing business

• Lowest tax jurisdiction in the Gulf, with no High quality of living at low cost corporate or personal income taxes • Regarded as the most socially liberal state in the Middle East, with a core culture of openness • Sustained low rate of inflation well below that of and freedom Economic Development Board other GCC economies • Welcoming and tolerant society that has long • Minimal red-tape and foreign ownership respected people of all cultures, ethnicities, restrictions; free movement of capital, profits or denominations and genders; many religious dividends communities present: Muslim, Christian, Jewish, A • 100% foreign ownership of business assets and Hindu real estate • Attractive liberal and multi-cultural living • Freely convertible currency pegged to the US environment with a friendly cosmopolitan Dollar lifestyle

• The most sustainable, productive, well- • Lower cost of living when compared to major educated and highly skilled workforce in the cities in the GCC

Bahrain GCC • Strong education and health reform agendas • Equal treatment of domestic and international companies What the EDB can do for you

The Business • Simple, fast and streamlined registration The Economic Development Board works

Environment of Environment process alongside partners in both the public and private sectors to ensure that the economic climate of • More than 65 bilateral agreements on trade Bahrain offers the best possible opportunity for investment and avoidance of double taxation business success. • Thriving businesses in the financial services and other areas including downstream industries, The EDB is the first point of contact for businesses business services, logistics and ICT considering investing in Bahrain. The EDB works with companies to offer support and assistance 1414 14 14 14 at every stage of the process, from the initial A assessment of market opportunities to registration world, EDB also has offices in Hong Kong, India, and set-up. The EDB also offers an ‘after-care’ Japan and the United Kingdom: service to ensure that companies can function to the best standards once they have established i Hong Kong their businesses in Bahrain, providing assistance Mr. Ivan Tam with advice on matters ranging from employment Tel: +85 2 3171 1199 to expansion plans. Fax: +85 2 2368 2399 Email: [email protected] Business Development Services Hong Kong SAR, The EDB Business development team provides 15/F Chevalier House, 45 Chatham Road a free facilitation service for companies planning Tsim Sha Tsui, Hong Kong to establish or expand business operations in i India Bahrain. Once a company has decided to invest Ms. Dharmi Magdani in Bahrain, a dedicated officer is assigned to offer Tel: +91 224 070 0300 assistance through a cost-effective and streamlined Fax: +91 224 070 0800 registration process. This support is tailored to the Email: [email protected] individual needs of each business to provide any 1071 Regus Trade Centre, Bandra Kurla necessary information and assistance from the Complex, Bandra (E), Mumbai 400 051 EDB and its international network. India Services include: i Japan Mr. Kazuo Imahira • Comprehensive information on potential Tel: +81 3 3584 8001 ext 52 investment opportunities in Bahrain, key Fax: +81 3 3584 8002 business sectors and the Bahraini economy Email: [email protected] • Tailored information and practical advice Residence Viscountess #520 1-11-36 on the process of setting up a business in Akasaka Minato-ku Bahrain – cross-ministerial teams to support the Tokyo 107 – 0052 investment process Japan • Introductions to relevant contacts among i United Kingdom Bahraini authorities, utility providers and Mr. Robert Edge professional service companies such as Tel: +44 7534 286116 Bahrain Chamber of Commerce & Industry lawyers, accountants, relocation specialists and Email: [email protected] recruitment companies 26 Carsons Drive • Arrange visit programmes with a customised Great Cornard schedule. Suffolk CO10 ONE A United Kingdom • Coordinate land selection and access to other resources. Bahrain Chamber of Commerce & Industry i For more information, please contact the EDB at: Tel: +973 17 589 969 Fax: +973 17 583 330 The Bahrain Chamber of Commerce & Industry

(BCCI), established in 1939, is the leading private Bahrain i For investment opportunities and queries, email sector representative in the region. us on [email protected] Membership is open to all businesses registered i For all other enquires, email us on with the Ministry of Industry and Commerce [email protected] (MOIC). The Business P.O. Box 11299 of Environment Manama, Kingdom of Bahrain Services provided by the BCCI include: Offices are on th7 , 8th, 12th, 13th and 16th floors of • Attestation of documents, certificates and Seef Tower, in the Seef District, Bahrain contracts.

EDB International Offices • Studies in various economic fields. In addition to the embassies and consulates that • Provision of information on legislation, economic data, and trade statistics. represent Bahrain’s economic interests around the 1515 A

• Participation in the settlement in commercial • Allows Bahraini telecommunications companies disputes. free access to the US telecommunications market. • Provision of a database on commercial and industrial businesses and foreign trade statistics. • Contributes to improving the standard of living of Bahrainis. • Provision of information on exhibitions in Bahrain or abroad. • Provides numerous opportunities for exchange of exports of goods between the two countries. • Promotion of national exports. • Provides significant opportunities for the • Promotion and marketing of the Kingdom of Bahrain and its business opportunities. growth of investment in the Bahraini healthcare sector through the introduction of state-of- • Provision of information and promotion of the-art medical technologies and systems, the investment opportunities to its members. qualitative improvement of trade and provision • Organization of various symposia, conferences of all types of healthcare services. and forums. • Contributes to the strengthening of the building • Contribution and participation in federations of and engineering sectors through increased chambers and joint chambers. cohesion and interaction with US companies.

• Participation in various government committees. • Contributes to the boosting of the Kingdom’s efforts aimed at the protection of the • Representation of businessmen in all events and environment, intellectual property, trademarks, for all purposes. digital products, and inventions. • Organization and supervision of the price Key benefits of the FTA to US investors include: reduction season in collaboration with stakeholders in the Kingdom. • Allows investment opportunities for US investors and companies in industry, services, technology • Support of national products. and electronic commerce, with full foreign i For more information, please contact BCCI: ownership of industrial projects.

Tel: (+973) 17229555 • Allows US companies to establish offices and Fax: (+973) 17224985 branches in Bahrain, through which to enter into Email: [email protected] the fast growing markets of the GCC Region. Trade Agreements Trade Website: www.bcci.bh • Exempts all US industrial and agricultural projects from custom duty, with the exception Trade Agreements of 80 products to be exempted over a 10-year transition period. A As a member of the World Trade Organization • Allows US telecommunications companies free (WTO) and Gulf Co-operation Council (GCC), access to the Bahraini telecommunications Bahrain is committed to offering a variety of market. incentives to investors keen on accessing both international and regional markets. • Liberalizes Bahrain Stock Exchange.

• Liberalizes Bahrain’s insurance market. Key benefits of the FTA to Bahrain’s citizens

Bahrain include: • Strengthens legal and procedural transparency, • Opens the US market, which is considered to and ensures full compliance with the protection be the largest world market, to the Kingdom of for intellectual property, and improved labor Bahrain, thus allowing the Kingdom to benefit and environmental regimes, in accordance The Business from extensive investment opportunities in a with international standards and World Trade Environment of Environment number of vital economic fields and activities. Organization conditions. • Allows all Bahraini products listed on the special Other Trade Agreements tariff schedules to enter into the US markets In addition, Bahrain has economic agreements with virtually duty-free. more than 60 countries including China, Singapore, • The United States allows instant duty-free entry UK, India, France and Egypt. of all of Bahrain’s current exports including i For more information, please visit Ministry of 16 16 industrial and agricultural consumer products. 16 16 16 Finance’s website at: www.mof.gov.bh B

Mina Salman

B Centre (BIC) Centre Bahrain Investors’

17 “The primary goal of the BIC is to simplify the process of commercial registration in Bahrain”

18 SECTION B Bahrain Investors’ Centre (BIC) B

The Bahrain Investors’ Centre (BIC) is a core element of the Ministry of Industry & Commerce (MOIC) strategic plan and vision. Under the visionary leadership of the Kingdom of Bahrain, the one-stop-shop, Bahrain Investors’ Centre, has been established to facilitate the setting up of business in Bahrain through a seamless process.

The BIC was established to facilitate the business bilingual employees, the centre provides the ideal start-up process, from the initial application work environment and an integrated approach for submission to the start of business operations. registering businesses. All investors can direct their applications to a single point of contact through the various delivery i The BIC is located in Seef Mall (Gate No. 6). channels provided at the BIC. Major government Business hours are: entities involved in the licensing and approval 7:30-14:00 hours, Sunday through Thursday. 7:30-15:00 hours (Call Centre only) process are either represented in the BIC or linked BIC Services to its Commercial Registration System (CRS). In Tel: (+973) 17562222 addition, private sector partners at the BIC provide Email: [email protected] vital services to investors, such as consultancy, finance, banking and telecommunications. BIC Services B The core objectives of the BIC are: Company Commercial Registration • To address investor queries, application and CR issuance via a single point of contact. The main service the BIC offers is company commercial registration. The process and steps • To facilitate all aspects of the commercial are described in detail in the next section of this registration process from issuance and renewal, guide. The commercial company registration must up to amendments. be renewed on a yearly basis from the date of its • To satisfy investor needs and improve rendered issuance. In addition, all types of amendments to services. existing commercial registrations can be done at Centre (BIC) Centre • To bring customers closer to the MOIC partners the BIC. and provide value added services. Commercial Agencies The centre is managed by professionals with a

A commercial agency is defined as representing a Bahrain Investors’ pro active, customer-friendly attitude that creates principal in the distribution of goods and products a unique experience for investors. Queries and or displaying them for sale or trading purposes for general information are addressed through an profit or commission or providing similar facilities. information desk manned by bilingual and trained Only Bahraini nationals may register commercial customer service representatives. With over 80 agencies. 19 BIC Layout

Front Office

Ministry of Justice Key Point Qays H. Zu’bi BCCI Batelco Notarisation Services

Economic Front Office Development Investor Information New application Board submission and Desk review Gulf Finance House

Bahrain Ministry of Development Interior Bank Custaoms Supreme Council for Women

Investor Administration Relations: Accounting • CR renewal Ministry of • Change of address Industry and • Queries Commerce

Industry Affairs Ahli United Bank Main Ministries and Entrance Agencies

Consulting Services

Training and Telecom Main Services Investment Entrance Opportunities Commercial Banks BIC Layout

Back Office

Directorate of Nationality, Passports and Ministry of Directorate of Residence Culture & Training and Crime, Detection Information Investment & Forensic • Publications & Opportunities Electricity & Press Science • Tourism Water Authority Industry Affairs

LMRA

Commerce Affairs

Ministry of Health Commerce Affairs

Other Municipalities Commerce Affairs

Manama Municipality Training and Training and Commerce Investment Affairs Investment Opportunities Opportunities

Administration A

The BIC offers many services relating to • Fax/email service of various forms and commercial agencies, such as agency registration, documents the caller may require. renewal, cancellation and amendments. All • Web page assistance, transfer of phone calls to enquiries regarding commercial agencies can be relevant officials, and message keeping. addressed to the BIC. • Feedback to customers on status of application. Fast Track Service • Interactive Voice Response Services after The BIC offers a unique Fast Track Service (FTS) working hours. B for premium investment projects in six clusters: i The call centre’s business hours are: information and communication technology, 7:30-15:00, Saturday through Thursday. healthcare, education and training, tourism, Tel: (+973) 17562222 financial services, and manufacturing. In order to qualify for FTS, a minimum capital of BD 1,000,000 is required for manufacturing projects and BD Public Sector Partners 250,000 for other projects. The BIC hosts seven government ministries The FTS assists investors from the time of involved in the commercial registration process. application till the CR is issued and further into Ministry representatives provide a wide range of post-CR services such as work permits and services, such as application assistance, advising, residence permits. The FTS assigns a dedicated answers to queries and licensing, where their account manager who handles all queries and respective ministries are concerned. concerns of the investor and liaises with all relevant public and private sector entities. Electricity & Water Authority The Electricity & Water Authority provides utility i For more details on any of the above services, electricity and water services for domestic, please visit the customer service desk at the commercial and industrial purposes in the BIC. Kingdom. The Authority offers services to Business hours: 7:30-14:00, Sunday through commercial businesses at the BIC, while industrial Thursday. investments are directed to the Authority for Tel: (+973) 17562222 assistance. Email: [email protected]

Public Sector Partners i The Electricity & Water Authority representative E-Services at the BIC may be reached at: The Ministry of Industry & Commerce offers a Tel: (+973) 17562250 variety of online services, including: Fax: (+973) 17581393

B • Online renewal of commercial registration. Ministry of Health • General enquiries regarding registration The Ministry of Health is the licensor for all procedures and requirements. healthcare establishments and pharmacies. In addition, the Ministry’s public Health Directorate • Business enquiry reports. is responsible for approving the premises • Application status review for all types of and setting the health conditions for certain companies. commercial establishments, such as food i To use the e-services, please visit the e-services industries, food-serving businesses, cosmetics section on the Ministry of Industry and and health products, manufacturing animal feed,

Centre (BIC) Centre Commerce’s website at www.moic.gov.bh. animal breeding facilities, etc. The Public Heath Directorate is represented at the BIC and liaises Call Centre between the investor and the Ministry in the The BIC also operates a dedicated call centre that approval process. Bahrain Investors’ handles queries about commercial registration and all services provided at the BIC in addition to the i The Ministry of Health representative at the BIC following services: may be reached at: Tel: (+973) 17562245 • Assistance regarding e-services including how Fax: (+973) 17581339 to renew the commercial registration online. 22 Ministry of Justice i The Municipalities’ representative at the BIC The Ministry of Justice is represented at the BIC may be reached at: through the Notarisation Office. The Public Notary Tel: (+973) 17562242 at the BIC notarises companies’ memoranda of Fax: (+973) 17581310 association/articles of association, and any other company documents. Private Sector Partners i The Notarisation Office’s representative at the BIC’s success is attributed to its unique partnership B BIC may be reached at: with several semi-government and private sector Tel: (+973) 17562260 organisations. Fax: (+973) 17581335 The following organisations maintain a presence Ministry of Culture and Information at the BIC and extend a wide range of services to The Ministry’s Tourism Affairs Directorate licenses investors: all tourism establishments such as hotels, furnished apartments, tourism restaurants, tourism transport Bahrain Chamber of Commerce & Industry services, and travel and tourism offices. The The representatives of the Bahrain Chamber of Directorate of Publications & Press licenses press, Commerce & Industry (BCCI) provide investors publication, and advertising businesses. Radio, with direct services, such as registration of new television and media production establishments members, issuance of membership cards, data are also licensed by the Ministry of Culture & on different sectors, in addition to other indirect Information. services such as legal consultancy related to contracts, settling commercial disputes, and i The Ministry of Culture and Information’s preparation of economic feasibility studies. representative at the BIC may be reached at: Tel: (+973) 17562252 / 17562253 i The BCCI representative at BIC may be Fax: (+973) 17581338 reached at: Tel: (+973) 17562256 Ministry of Interior Fax: (+973) 17581559 The Ministry of Interior is involved in approving and settling the operation conditions for certain Bahrain Telecommunications Company business activities, in addition to processing Bahrain Telecommunications Company (Batelco) Private Sector Partners applications for residency permits. Directorates provides a range of telecommunications and represented at the BIC are the Civil Defence eCommerce solutions varying from basic telephone Directorate; the Directorate of Nationality, services to the most advanced data and internet- Passports and Residence; and the General enabled services. B Directorate of Crime, Detection and Forensic Science. The presence of Batelco at BIC offers investors a range of integrated solutions through various i The Ministry of Interior’s representative at the value propositions that suit both small and medium BIC may be reached at: enterprises (SMEs) as well as large and strategic Tel: (+973) 17562224 companies. Fax: (+973) 17581323 i Batelco’s representative at BIC may be reached at: Ministry of Municipalities Affairs and Agriculture Tel: (+973) 17562263

The Ministry of Municipalities Affairs and Agriculture Fax: (+973) 17581373 (BIC) Centre is responsible for approving the location of Email: [email protected] business for any company establishing operations in Bahrain. The site approval guarantees that Key Point Consulting proper business activities are located in designated Key Point consultants provide investors with a Bahrain Investors’ areas in order to safeguard public health and variety of business advisory services in the field of safety. Four out of the five municipalities of the executive recruitment, legal formation, information Kingdom (Manama, Muharraq, Northern, and technology audits, corporate finance and other Central) are represented at the BIC. relevant professional services. 23 i The Key Point team at BIC may be reached at: i BDB’s representative at the BIC may be Tel: (+973) 17562265 reached at: Fax: (+973) 17581113 Tel: (+973) 17562205 Email: [email protected] Fax: (+973) 17580969 Website: www.bdb-bh.com Qays H. Zu’bi Attorneys & Legal Consultants Qays H. Zu’bi legal consultants provide investors Economic Development Board with legal advisory and related services and The Economic Development Board (EDB) works B assistance throughout the company-formation closely with government, the Bahrain Investors’ process. Centre and other authorities to help companies start up in Bahrain and ensure an optimum i Qays Zu’bi representatives at BIC may be business environment. A dedicated Investment reached at: Promotion Department at the EDB deals directly Tel: (+973) 17562268 with investors and offers various types of Fax: (+973) 17587080 assistance with their business needs. Email: [email protected] i For more information, please contact the EDB at: Ahli United Bank Tel: (+973) 17589999 Al-Ahli Bank at the BIC provides investors with a Fax: (+973) 17589900 wide range of banking products and services, such Email: [email protected] as corporate or commercial banking, trade finance, Business Hours: 08:00-17:00 treasury and retail banking services. Sunday through Wednesday Thursday: 08:00-14:00 i Ahli United Bank’s representative at the BIC may be reached at: Supreme Council for Women Tel: (+973) 17562266 The Supreme Council for Women facilitates the Fax: (+973) 17580752 commercial registration process for women Email: [email protected] investors by coordinating and liaising with the Ministry of Industry &Commerce, government Kuwait Finance House entities and professional bodies and providing Kuwait Finance House (KFH) provides Islamic women with information on potential business Private Sector Partners banking services with its spectrum of activities opportunities in the Kingdom of Bahrain. which includes consumer banking, real estate financing, lease financing, trade finance and i The Supreme Council for Women representative portfolio investing, all of which are conducted in at the BIC may be reached at: strict compliance with Islamic Shari’ah. Tel: (+973) 17664133 B Fax: (+973) 17664353 i KFH’s representative at the BIC may be Email: [email protected] reached at: Website: www.scw.gov.bh Tel: (+973) 17562292 Fax: (+973) 17581660 Website: www.kfh.bh

Bahrain Development Bank The Bahrain Development Bank (BDB) offers a wide range of financial and advisory/training Centre (BIC) Centre services to small and medium enterprises in the manufacturing and services sectors. The BDB caters for new businesses wishing to establish in

Bahrain Investors’ Bahrain, as well as existing businesses wishing to expand and upgrade.

24 SECTION C Commercial Registration A Step-by-Step Guide

Commercial Registration* (CR), issued by the Ministry of Industry & Commerce, is required to operate commercial businesses in Bahrain. Additional sector-specific licenses may be required.

Taking You Through The Process C

C1a Selection C1b Selection C1c Selection of of Business of Legal Company C1 Activity Structure Name

C2a Application for Commercial C2 Registration Taking You Through The Process Through You Taking

C3a Activity C3b Municipality Licensing and Site Approval C C3 Approval**

C4a Notarisation of Company C4 Documents A Step-by-Step Guide

C5c Issuance of C5b Publication C5a BCCI Commercial in Official Registration C5 Registration Gazette Commercial Registration Commercial

* Commercial registration is optional for private healthcare and educational institutions. 25 ** Required only for certain business activities. For details, please refer to the relevant section(s) of this guide. 25 Bahrain World Trade Center SECTION C1a Selection of

Bahrain World Trade Center Business Activity

The Kingdom of Bahrain welcomes and promotes investment in most business sectors without restriction. Certain business activities, however, are prohibited due to their adverse economic, social or environmental impact. Foreign investment and 100% foreign ownership is also permitted in general, with a limited number of business activities that are reserved by law for Bahraini and GCC citizens and companies only. Following is a list of prohibited or restricted business activities in the Kingdom of Bahrain. C

Business Activities Prohibited in Bahrain: • Foreign manpower supply

• Gambling • Commercial agencies

• Alcoholic drinks manufacturing • Small business activities

• Narcotics manufacturing i For a complete list of all small business • Weapons manufacturing activities, please refer to the Ministry of Industry

• Import of all types of waste and treatment, & Commerce website: www.moic.gov.bh storage and dumping of radioactive materials GCC natural persons and entities are permitted and toxic waste in Bahrain to perform all of the business activities and • Import, manufacturing and dealing of Asbestos professions in the Kingdom of Bahrain excluding Selection of Business Activity and its by-products (not including Asbestos the following activities and professions: removal)

• Import and industrial use of restricted chemicals • Hajj and Umra services • Manpower recruitment offices C1a • Pearl farming

• Cigarette Manufacturing • Commercial agencies

• Import of automatic cigarette vending machines • Real estate services, lease and re-lease and management of lands and buildings • Letter post (exclusive to Bahrain Post) The following social activities: Business Activities Allowed Only for Bahraini Citizens and Companies: 1. Disabled care centers 2. Disabled rehabilitation centers • Real estate services and rental and 3. Homes and clubs for rehabilitation of the elderly management of land and buildings (not 4. Community service centers including buying and selling of real property, 5. Any office or center providing social services, or management and development of private after clarification of its objectives and scope of A Step-by-Step Guide property) activity. • Press, publication and distribution house (daily, non-daily, and specialized newspapers and magazines)

• Printing press Registration Commercial

• Hajj and Umra services 27 A

Business Activities Allowed Only for Bahraini and • Medical Clinics and Centres: Licensing is GCC Citizens and Companies: confined to Bahraini or GCC citizens resident in

• Book-keeping and accounting services (not Bahrain with medical qualifications (excluding including auditing) hospitals).

C • Import, export and sale of racing car fuel • Pharmacies: a minimum of 50% of the company’s capital must be owned by a Bahraini • Cargo clearing pharmacist. • Fishing i For a list of restricted chemicals, please refer to Other Restrictions Order of the Minister of State for Municipalities and Environment Affairs No. 7 for 2002, • Trade (including sale, purchase, import and export): For companies, a minimum of 51% available online at: www.legalaffairs.gov.bh Bahraini ownership is required. For GCC companies and partners, a Bahraini partner is required.

• Travel and Tourism Offices: A Bahraini partner Selection of Business Activity is required.

C1a A Step-by-Step Guide Commercial Registration Commercial

28 SECTION C1b Selection of Legal Structure

The investor must select a legal structure for the proposed business entity. The Kingdom of Bahrain’s Commercial Companies Law (No. 21 for 2001) sets forth the rules and regulations governing permitted legal structures for companies, while the Commercial Registration Law (No. 1 for 1961) sets forth the rules and regulations governing individual establishments. Both laws are available in Arabic and English on the Ministry of Industry & Commerce’s website at www.moic.gov.bh. C

Bahraini Shareholding Company (B.S.C.) - Public subscribe therein by way of negotiable shares. A Public Shareholding Company consists of a Such shares may not be offered to the general number of partners (not less than seven) who public for subscription. subscribe therein by way of negotiable shares. Main features of this company type are: Partners shall be liable for the company’s debts and obligations only to the extent of the value of • Limited liability their shares. • Banking, insurance and investment activities are allowed Main features of this company type are: • Local operations are allowed

• Limited liability Selection of Legal Structure • Local office presence is required • Commercial, banking, insurance and investment activities are allowed • Minimum share capital required is BD 250,000 (a minimum of 50% of the capital must be • Local office presence is required paid initially at the time of incorporation; the 1b • Minimum share capital required is BD 1,000,000 remaining to paid within three years) C

• Minimum number of founding shareholders is • The nominal value of each share shall not be seven less than BD 0.100 and shall not exceed

• Minimum number of directors is five BD 100

• Annual submission of audited financial • The minimum number of shareholders required statements is required. is two • The minimum number of directors required is Foreign ownership: three GCC nationals and foreign investors are permitted to own company shares. • Annual submission of audited financial

statements is required. A Step-by-Step Guide In accordance with the Bahrain-US Free Trade Agreement (FTA), US investors are accorded Most Foreign Ownership: Favored Nation (MFN) treatment similar to GCC GCC nationals and foreign investors are permitted citizens, effective as of 1 January 2005. to own company shares.

Bahrain Shareholding Company (B.S.C.) - Closed In accordance with the Bahrain-US Free Trade Registration Commercial A Closed Shareholding Company consists of Agreement (FTA), US investors are accorded Most a number of persons - not less than two - who Favored Nation (MFN) treatment similar to GCC 29 citizens, effective as of 1 January 2005. 29 A

With Limited Liability Company (WLL) Main features of this company type are:

A limited liability Company is a company of • Unlimited liability which partners are responsible for the company • Banking, insurance and investment arrangement debts and liabilities only to the extent of their activities are not allowed C shareholding in the capital. If the number of partners falls below two. the company must • Business operations are allowed in the Kingdom introduce new shareholders within a period of 30 of Bahrain days, or by force of the law, be converted to a • Local office presence is required single person company, or proceed to dissolution. • Minimum share capital is not applicable A limited Liability Company cannot issue public shares or negotiable debentures. • The minimum number of partners required is 2

• The minimum number of directors required is 2 Main features of this company type are: • • Limited liability 100% foreign ownership is allowed

• Banking and insurance, and investment Simple Commandite arrangement activities are not allowed A Simple Commandite is a limited partnership Selection of Legal Structure company established by one or more partners, • Business operations are allowed in the Kingdom who are jointly liable to the extent of their entire of Bahrain personal wealth for the company’s obligations, • Local office presence is required and other partner or partners who have invested C1b • The minimum share capital required is BD capital in the company but are not involved in 20,000 management, referred to as “the limited partners”. No limited partner is held responsible for the • The minimum number of partners required is 2 company’s obligations save to the extent of his and the maximum is 50 share in the capital. • The minimum number of directors required is 2 Main features of this company type are: • 100% foreign ownership is allowed depending on the business activity • Limited liability - there are two categories of partners: limited partners or shareholders and • Annual submission of audited financial partners with unlimited liability (joint partners) statement is required • Banking, insurance and investment arrangement Partnership Company

A Step-by-Step Guide activities are not allowed A Partnership Company is a company without • Business operations are allowed in the Kingdom limited liability, formed between two persons or of Bahrain more under a specific name, and in which partners assume joint responsibility, to the extent of all their • Local office presence is required entire personal assets, for the partnership’s debts Commercial Registration Commercial • Minimum share capital is not applicable and liabilities. • The minimum number of partners required is 2 30 • The minimum number of directors required is 2 Single Person Company (S.P.C.)

• Share of Bahraini partners’ capital shall not be A Single Person Company is a company the less than 51% capital of which is fully owned by a single natural or corporate person. The proprietor of the capital of Commandite by Shares the company shall be liable only to the extent of the A Commandite Partnership by Shares is a capital allocated for the company. company established between two categories of partners, one of which is that of joint partners who Main features of this company type are: are jointly responsible, to the extent of their entire • Limited liability personal wealth for the company’s obligations, and the other is that of limited partners (shareholders) • Banking, insurance and investment arrangement who are not liable for the company’s obligations activities are not allowed except to the extent of their equity (shares) in the • Local operations are allowed capital. • Local office presence is required

Main features of this company type are: • The minimum share capital required is BD • Limited liability - there are two categories of 50,000 partners: limited partners or shareholders and • The minimum number of partners and partners with unlimited liability (joint partners) promoters required is 1 C • Banking, insurance and investment arrangement • The number of directors required is 1 activities are not allowed • An external auditor is required • Local operations are allowed • 100% foreign ownership is allowed • Local office presence is required • Annual submission of audited financial • The minimum share capital required is BD statement is required 20,000 Foreign Company Branch • The minimum number of founding partners A branch of a foreign company which is required is 4 incorporated and registered outside the Kingdom • The minimum number of directors required is 2 of Bahrain, may be established as an operational

office, a representative office, or a regional office. Selection of Legal Structure • An external auditor is required

• 100% foreign ownership is allowed C1b A Step-by-Step Guide Commercial Registration Commercial

31 A

Main features of this company type are: Individual Establishment

• The parent company shall bear all liability of its Only Bahraini citizens, citizens of the Gulf branch in Bahrain. Cooperation Council (GCC) countries (must be resident in Bahrain), and US citizens under the • Business operations are allowed only for an operational office Free Trade Agreement (FTA) may register an Individual Establishment in the Kingdom of Bahrain. • Representative and regional offices are An Individual Establishment is a natural non- only permitted to undertake marketing and incorporated entity and is owned by one individual promotion only. The owner is liable for all debts and liabilities • Banking, insurance and investment arrangement of the business to the extent of all of his/her activities are allowed (operational office only) personal assets. • Local office presence is required Main features of this company type are:

• Minimum share capital is not applicable • Unlimited liability

• Branch manager is required • Owner must be Bahraini, GCC national or US citizen under the Free Trade Agreement (FTA) • Local sponsor is required only for an operational office, with the exception of branches licensed not less than 18 years of age by Central Bank of Bahrain (CBB) C Holding Company The purpose of a holding company is to own shares in Bahraini or foreign joint stock companies and to own shares or stakes in Bahraini or foreign limited liability companies, or to participate in the establishment of such companies, and to manage them and provide loans thereto and to guarantee them before third parties. A holding company may take the form of a Closed or Public Shareholding Company, a Limited Liability Company, or a Single Person Company. Characteristics of a holding Selection of Legal Structure company will depend on its legal form. A Holding Company must own more than 50% of the shares of its subsidiaries. C1b A Step-by-Step Guide Commercial Registration Commercial

32 SECTION C1c Selection of Company Name

The Ministry of Industry & Commerce (MOIC) provides the following guidelines for the selection of a company name.

Guidelines for Selection of a Company Name • It shall be in conformity with the phrase

• The selected name shall not be registered in the indicating the legal form of the institution or name of third parties at the Ministry of Industry company, which bears the name C & Commerce • It shall not be composed, in whole or in part,

• It shall not imply any violation of public morals, of some expressions or names of political customs, traditions or religious beliefs connotations or that are related to the regime of any country, such as royalty or constitution • It shall not denote any activity contradicting the activity carried out by the business • The phrases: insurance, re-insurance, investment, bank and derivatives thereof may • It shall not be similar to famous brand names not be used unless a prior authorisation from • It shall not be similar to another commercial the concerned authority is obtained, provided name registered at the Ministry that the company’s activity is consistent with the company’s name • It shall not be a name that is already registered

at the Directorate of Industrial Property (except • Approval shall be obtained from official Selection of Company Name by special permission) authorities of the commercial name of businesses undertaking certain activities within the jurisdiction of such authorities C1c A Step-by-Step Guide Commercial Registration Commercial 33 3333 A

• A branch of a foreign company or a representative office must have a commercial name that is identical to the name of the original company, followed by the phrase “a branch of a C foreign company/representative office” An investor is required to propose four alternative company names, to be verified by the MOIC’s Investor Relations Division. Names that violate the guidelines above will be rejected. In the case that all four names are disqualified, the investor will be requested to submit new alternative names.

The BIC provides a commercial name corner that enables investors to check the availability of names and select commercial names from MOIC’s Commercial Registration System (CRS), or through

Selection of Company Name MOIC’s website: www.moic.gov.bh

C1b A Step-by-Step Guide Commercial Registration Commercial

34 SECTION C2a Application for Commercial Registration

An investor may apply for two types of commercial registration: company commercial registration (CCR), which is applicable to all company structures; and individual commercial registration (ICR), applicable to individual establishments (sole proprietorships). Commercial registration must be renewed on an annual basis from the date of its issuance.

• Copy of CPR card Application Procedures C • Copy of passport (for GCC citizens and US Commercial registration applications can be made nationals) at the Bahrain Investors’ Centre (for companies) • Proof that applicant is not employed (for GCC and at the Ministry of Industry & Commerce’s citizens and US nationals) Commercial Registration Directorate (for individual • Proof of residency in Bahrain such as copy of establishments). rental contract or electricity bill (for GCC citizens) i All application forms are available online at • If the applicant is employed, a no-objection www.moic.gov.bh certificate signed and stamped by the applicant’s employer/chief executive officer is

Required Documents required Application for Commercial Registration

• Copy of identity card (for US investors) Individual Commercial Registration (ICR) • Copy of passport (for US investors) • Individual registration application form • Commercial name registration application form C2a A Step-by-Step Guide Commercial Registration Commercial

3535 A

• Statement of account with a balance equal to • Financial Auditor’s report or evolution letter for the required minimum amount for the activities in-kind capital (if any). (for specific activities) • Feasibility Study. The Ministry of Industry and Commerce reserves C the right to request additional documents or Specific required documents concerning qualifications if necessary. “Individual” partners: • CPR copy for Bahraini partners and expatriates, Company Registration Requirements passport and visa pages copies for non- Bahrainis. Bahrain Shareholding Company (B.S.C) - Public • Original, stamped & signed no objection General requirements: letter from the current employer for Bahrainis • Company registration application form. employed in the private sector (signed by the owner of the Establishment or from the • Draft memorandum & articles of association. company’s authorized signatory). • External entities pre-approval (depending on the • Original bank reference and CV for non GCC activity). nationals. Application for Commercial Application for Commercial Registration • Capital deposit certificate (after preliminary • Original educational qualifications and approval). experience letter (depending on the activity). C2a A Step-by-Step Guide Commercial Registration Commercial

36 A

Specific required documents concerning • Financial Auditor’s report or evaluation letter for “Company” partners: in-kind capital (if any).

• Copy of commercial registration certificate. Specific required documents concerning • Copy of memorandum or Article of association “Individual” partners: and its amendments (if any) for foreign • CPR copy for Bahraini partners and expatriates, companies. passport and visa pages copies for non- • Latest audited financial report if the company is Bahrainis. at least one year old. • Original, stamped & signed no objection • Board of directors or general assembly letter from the current employer for Bahrainis resolution to be a shareholder in the company. employed in the private sector (signed by the owner of the Establishment or from the All documents concerning foreign companies have company’s authorized signatory). to be authenticated from one of the options below: • Original bank reference and CV for non GCC • The authorized party, the Ministry of Foreign nationals. affairs and the Embassy of Bahrain at the country of origin. • Original educational qualifications and experience letter (depending on the activity). • The authorized party, the Embassy of the concerned country in Kingdom of Bahrain, and Specific required documents concerning C the Bahraini Ministry of foreign Affairs. “Company” partners: Specific documents concerning the directors of • Copy of commercial registration certificate. the company: • Copy of Memorandum or Article of association

• CPR or passport copies for non-Bahraini and its amendments (if any) for foreign directors. companies. Notes: • Latest audited financial report if the company is at least one year old. • The Ministry of Industry & Commerce has the right to request any additional documents or • Board of directors or general assembly information at any time. resolution to be a shareholder in the company. Application for Commercial Application for Commercial Registration • Power of attorney for the registration agent. All documents concerning foreign companies have • A promoter who is also a partner, director, or to be authenticated from one of the options below: authorized signatory in another company with • The authorized party, the Ministry of Foreign similar activities is required to provide a no affairs and the Embassy of Bahrain at the objection letter from the partners of that other country of origin. C2a business. • The authorized party, the Embassy of the • The minimum number of promoters is seven concerned country in Kingdom of Bahrain, and and the minimum number of directors is five. the Bahraini Ministry of foreign Affairs. • Public sector employees are prohibited Specific documents concerning the directors of from becoming shareholders, directors, and the company: authorized signatory, according to the Civil • CPR or passport copies for non-Bahraini Service Law # (35) for the year (2006). directors. Bahrain Shareholding Company (B.S.C) - closed Notes:

General requirements: • The Ministry of Industry & Commerce has the A Step-by-Step Guide • Company registration application form. right to request any additional documents or information at any time. • Draft memorandum & articles of association. • Power of attorney for the registration agent. • External entities pre-approval (depending on the activity). • A promoter who is also a partner, director, or

authorized signatory in another company with Registration Commercial • Capital deposit certificate (after preliminary similar activities is required to provide a no approval). objection letter from the partners of that other 37 business. 37 A

• The minimum number of directors is three. • The authorized party, the Embassy of the concerned country in Kingdom of Bahrain, and • Public sector employees are prohibited from becoming shareholders, directors, and the Bahraini Ministry of foreign Affairs. authorized signatory, according to the Civil Specific documents concerning the directors of Service Law # (35) for the year (2006). the company:

• CPR or passport copies for non-Bahraini With Limited Liability Company directors. General requirements: Notes: • Company registration application form. • The Ministry of Industry & Commerce has the • Draft memorandum of association. right to request any additional documents or information at any time. • External entities pre-approval (depending on the activity). • Power of attorney for the registration agent.

• Capital deposit certificate (after preliminary • A promoter who is also a partner, director, or approval). authorized signatory in another company with similar activities is required to provide a no • Financial Auditor’s report or evolution letter for in-kind capital (if any). objection letter from the partners of that other C business. Specific required documents concerning • Public sector employees are prohibited “Individual” partners: from becoming shareholders, directors, and • CPR copy for Bahraini partners and expatriates, authorized signatory, according to the Civil passport and visa pages copies for non- Service Law # (35) for the year (2006). Bahrainis. Partnership • Original, stamped & signed no objection letter from the current employer for Bahrainis General required documents: employed in the private sector (signed by • Company registration application form. the owner of the Establishment or from the company’s authorized signatory). • Draft memorandum of association.

Application for Commercial Application for Commercial Registration • Original bank reference and CV for non GCC • External entities pre-approval (depending on the nationals. activity).

• Original educational qualifications and • Financial auditor’s report or evaluation letter for in-kind capital. C2a experience letter (depending on the activity). Specific required documents concerning Specific required documents concerning “Company” partners: “Individual” partners:

• Copy of commercial registration certificate. • CPR copy for Bahraini partners and expatriates, passport and visa pages copies for non- • Copy of memorandum or Article of association Bahrainis. and its amendments (if any) for foreign companies. • Original, stamped & signed no objection letter from the current employer for Bahrainis • Latest audited financial report if the company is employed in the private sector (signed by at least one year old. the owner of the Establishment or from the • Board of directors or general assembly company’s authorized signatory). resolution to be a shareholder in the company. A Step-by-Step Guide • Original bank reference and CV for non GCC All documents concerning foreign companies have nationals. to be authenticated from one of the options below: • Original educational qualifications and experience letter (depending on the activity). • The authorized party, the Ministry of Foreign affairs and the Embassy of Bahrain at the Commercial Registration Commercial country of origin.

38 Specific required documents concerning Specific required documents concerning “Company” partners: “Individual” partners:

• Copy of commercial registration certificate. • CPR copy for Bahraini partners and expatriates, passport and visa pages copies for non- • Copy of memorandum or Article of association and its amendments (if any) for foreign Bahrainis. companies. • Original, stamped & signed no objection letter from the current employer for Bahrainis • Latest audited financial report if the company is at least one year old. employed in the private sector (signed by the owner of the Establishment or from the • Board of directors or general assembly company’s authorized signatory). resolution to be a shareholder in the company. • Original bank reference and CV for non GCC All documents concerning foreign companies have nationals. to be authenticated from one of the options below: • Original educational qualifications and experience letter (depending on the activity). • The authorized party, the Ministry of Foreign affairs and the Embassy of Bahrain at the Specific required documents concerning country of origin. “Company” partners: • The authorized party, the Embassy of the • Copy of commercial registration certificate. C concerned country in the Kingdom of Bahrain, • Copy of memorandum or Article of association and the Bahraini Ministry of Foreign Affairs. and its amendments (if any) for foreign Specific documents concerning the company’s companies. directors: • Latest audited financial report if the company is • CPR or passport copy for non-Bahraini at least one year old. directors. • Board of directors or general assembly Notes: resolution to be a shareholder in the company. • The Ministry of Industry & Commerce has the All documents concerning foreign companies have right to request any additional documents or to be authenticated from one of the options below: information at any time. • The authorized party, the Ministry of Foreign Application for Commercial Registration • Power of attorney for the registration agent. affairs and the Embassy of Bahrain at the • A promoter who is also a partner, director, or country of origin. authorized signatory in another company with • The authorized party, the Embassy of the similar activities is required to provide a no concerned country in Kingdom of Bahrain, and C2a objection letter from the partners of that other the Bahraini Ministry of foreign Affairs. business. Specific documents concerning the directors of • Public sector employees are prohibited the company: from becoming shareholders, directors, and • CPR or passport copies for non-resident authorized signatory, according to the Civil directors. Service Law # (35) for the year (2006). Notes: Simple Commandite Company • The Ministry of Industry & Commerce has the General required documents: right to request any additional documents or information at any time. • Company registration application form. A Step-by-Step Guide • Power of attorney for the registration agent. • Draft memorandum of association. • A promoter who is also a partner, director, or • External Entities pre-approval (depending on the activity). authorized signatory in another company with similar activities is required to provide a no • Financial auditor’s report or evolution letter for objection letter from the partners of that other Commercial Registration Commercial in-kind capital. business. 3939 A

• The joint partners, authorized signatories, and All documents concerning foreign companies have directors must be Bahrainis only. to be authenticated from one of the options below:

• The Bahraini shares should not be less than • The authorized party, the Ministry of Foreign 51% of the company’s capital. affairs and the Embassy of Bahrain at the • Public sector employees are prohibited country of origin. from becoming shareholders, directors, and • The authorized party, the Embassy of the authorized signatory, according to the Civil concerned country in Kingdom of Bahrain, and Service Law # (35) for the year (2006). the Bahraini Ministry of foreign Affairs.

Single Person Company S.P.C. Specific documents concerning the directors of General requirements: the company: • CPR or passport copies for non-Bahraini • Company registration application form. directors. • Draft memorandum and articles of association. Notes: • External entities pre-approval (depending on the activity). • The Ministry of Industry & Commerce has the right to request any additional documents or • Capital deposit certificate (after preliminary information at any time. C approval). • Power of attorney for the registration agent. • Financial Auditor’s report or evolution letter for in-kind capital (if any). • A partner who is also a partner in another business with the same activity is required to • Appointment letter from an external auditors. provide a no objection letter from the partners of Specific required documents concerning that other business. “Individual” partners: • Public sector employees are prohibited • CPR copy for Bahraini partners and expatriates, from becoming shareholders, directors, and passport and visa pages copies for non- authorized signatory, according to the Civil Bahrainis. Service Law # (35) for the year (2006). • Original, stamped & signed no objection Branch of a Foreign Company Application for Commercial Application for Commercial Registration letter from the current employer for Bahrainis employed in the private sector (signed by General requirements:

the owner of the Establishment or from the • Company registration application form. company’s authorized signatory). 2a • External entities pre-approval (depending on the C • Original bank reference and CV for non GCC activity). nationals. • Sponsorship agreement signed with a Bahraini • Original educational qualifications and trader for operational branches (except experience letter (depending on the activity). representative office, regional office, and GCC companies). Specific required documents concerning “Company” partners: Specific required documents concerning the • Copy of commercial registration certificate. parent company:

• Copy of Memorandum or Article of association • Copy of commercial registration certificate.

and its amendments (if any) for non-Bahraini. • Copy of memorandum or Article of association

A Step-by-Step Guide • Latest audited financial report if the company is and its amendment (if any).

at least one year old. • Latest audited financial report if the company is • Board of directors or general assembly at least one year old.

resolution to be a shareholder in the company. • Board of directors’ resolution to establish the branch in the Kingdom of Bahrain. Commercial Registration Commercial • Guarantee letter from the parent company taking full responsibility of the Bahrain branch. 40 All documents concerning foreign companies have Specific documents concerning the branch to be authenticated from one of the options below: Manager or director:

• CPR or passport copies for non-resident. • The authorized party, the Ministry of Foreign affairs and the Embassy of Bahrain at the • Authenticated power of attorney. country of origin. Notes: • The authorized party, the Embassy of the • The Ministry of Industry & Commerce has the concerned country in Kingdom of Bahrain, and right to request any additional documents or the Bahraini Ministry of foreign Affairs. information at any time.

• Power of attorney for the registration agent.

For the following business types, the investor is required to submit copies of qualifications and/or proof of work experience:

Business Activity Required Qualifications and/or Experience Beauty and hair salons and Secondary school certificate health spas C Business advisory services Master’s degree in a related field or five years relevant experience Consultancy services Master’s degree in a related field or five years relevant experience Contractors (all types) Secondary school certificate Debt collection Bachelor’s degree in a related field or five years of relevant experience Goods inspection services Bachelor’s degree in a related field or five years of relevant experience Management and operation Bachelor’s degree in a related field or five years of relevant experience of exhibitions Social counseling and Bachelor’s degree in a related field or five years of relevant experience guidance Application for Commercial Application for Commercial Registration

Processing Time 1 to 3 working days C2a

BD Fees Registration fee is BD 30 A Step-by-Step Guide Commercial Registration Commercial

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SECTION C3a Activity Licensing and Approval: What’s Your Business?

Commercial registration (CR), issued by the Ministry of Industry & Commerce (MOIC), is sufficient to start most business activities in Bahrain. Some business activities, however, require a license or approval by one or more Government Authorities prior to obtaining the commercial registration. In such cases, the Ministry of Industry & Commerce may only grant a CR when the investor meets all licensing and approval requirements set forth by the relevant authorities. C

The table below lists business activities requiring a license or approval and the Government Authority from which a license is required and then refer to the page number stated in the table for detailed information.

Which licensing autority is relevant to your type of business?

Auditing and book-keeping/accounting services

• Ministry of Industry & Commerce (Company Affairs Directorate) page 68 Agriculture, animal farming and related activities

• Ministry of Municipalities & Agriculture (Agriculture Affairs) page 88 Activity Licensing and Approval Air transportation and related services

• Ministry of Transportation (Civil Aviation Affairs) page 89

• Public Commission for Protection of Marine Resources, Environment and Wildlife page 96 C3a • (Environment Assessment & Planning Directorate) only for aircraft maintenance page 98 • Ministry of Health (Public Health Directorate) only for catering page 61 Beauty and hair salons, barbershops, health spas, massage parlors and related services

• Ministry of Health (Public Health Directorate) page 61

• Ministry of Interior (General Directorate of Crime, Detection & Forensic Science) page 83 Car, motorcycle and all types of vehicle rental and related services

• Ministry of Interior (General Directorate of Traffic) page 79 Educational and higher educational institutions

• Ministry of Education, liaises with all applicable supplementary licensors page 56

A Step-by-Step Guide Electricity generation and distribution

• Electricity and Water Authority (Electricity Distribution Directorate) page 71 Engineering Services

• Committee for Organising Engineering Professional Practice page 53

Commercial Registration Commercial Financial Services: banking, insurance, investment businesses, and related services

• Central Bank of Bahrain (CBB) page 47 42 C

Fishing, mariculture and related activities

• Public Commission for Protection of Marine Resources, Environment and Wildlife (General page 94 Directorate of Marine Resources)

• Ministry of Health (Public Health Directorate) only for trade in fish and marine products page 61 Food services industries: restaurants, coffee shops, catering, food preparation and packaging, trade in foods and beverages

• Ministry of Health (Public Health Directorate) page 61

• Ministry of Interior (General Directorate of Civil Defence) page 81 Activity Licensing and Approval

• Ministry of Information (Tourism Affairs) page 76

• Ministry of Interior (General Directorate of Crime, Detection & Forensic Science) page 83 Healthcare Institutions: hospitals, clinics, medical centres, medical laboratories C3a • Ministry of Health (Licensor & Registration Office) page 64 Herbalists and spice traders

• Ministry of Health (Public Health Directorate) page 61 Import and trade of anti-theft and fire fighting systems

• Ministry of Interior (General Directorate of Civil Defence) page 81 Land transportation of goods and passengers, car rental and related services

• Ministry of Interior (General Directorate of Traffic) page 79

• Ministry of Information (Tourism Affairs) page 76 Manufacturing (all types) A Step-by-Step Guide • Ministry of Industry & Commerce (Industrial Projects Directorate) page 71

• Public Commission for Protection of Marine Resources, Environment and Wildlife page 98 (Environment Assessment & Planning Directorate)

• Ministry of Health (Pubic Health Directorate) only for manufacture of food and beverages page 61 Commercial Registration Commercial • Ministry of Interior (General Directorate of Civil Defence) page 81

• Ministry of Health (Pharmacy & Drug Control Directorate) only for manufacture of page 66 medicines, pharmaceuticals and health products 4343 A

C

Oil and gas industries and services

• National Oil and Gas Authority (NOGA) page 92

• Public Commission for Protection of Marine Resources, Environment and Wildlife page 98 (Environment Assessment & Planning Directorate) Pharmacies and trade in alternative medicine products, health foods, health products

• Activity Licensing and Approval Ministry of Health (Pharmacy & Drug Control Directorate) page 66 Printed & audiovisual media and media related activities

• Ministry of Information (Publications & Press Directorate) page 73

• Public Commission for Protection of Marine Resources, Environment & Wildlife page 96 C3a (Environment Control Directorate) only for Quran printing press • Ministry of Interior (General Directorate of Crime, Detection & Forensic Science) only for page 83 trade in printed materials, audio and audiovisual materials, computer software, electronic video games and related media items Real estate agents

• Ministry of Justice (Courts Directorate of Courts) page 85 Sea transportation of goods and passengers and goods, boat rental and related services

• Ministry of Interior (Coast Guard Directorate) page 84

• Ministry of Information (Tourism Affairs Directorate) only for tourist transportation and page 76 domestic sea cruises

A Step-by-Step Guide Sports instruction, management and operation of gymnasiums, sports halls, entertainment and recreational facilities

• General Organisation for Youth & Sports page 55

• Ministry of Health (Public Health Directorate) only for gymnasiums page 61

Commercial Registration Commercial • Ministry of Interior (General Directorate of Crime, Detection & Forensic Science) only for page 83 gymnasiums, halls for entertainments, game halls and recreational facilities, car racing 44 Telecommunications and related services • Telecommunications Regulatory Authority (TRA) page 99 Tourism services: hotels, resorts, inns, hotel apartments, tourism restaurants and management of tourism establishments

• Ministry of Culture and Information (Tourism Affairs) liaises with all other supplementary page 76 licensors except Ministry of Health

• Ministry of Interior (General Directorate of Crime, Detection & Forensic Science, General page 83 Directorate of Traffic, General Directorate of Civil Defence)

• Ministry of Health (Public Health Directorate) only for hotels, tourism inns, hotel page 61 apartments, tourism restaurants

• Survey and Land Registration Bureau (Planning Directorate) to check the zoning of the page 92 location Training institutions and centres

• Ministry of Labour (Training Affairs), liaises with all applicable supplementary licensors) page 80 Travel and tourism offices

• Ministry of Culture and Information (Tourism Affairs), liaises with applicable supplementary page 76 licensors except Ministry of Transportation

• Ministry of Transportation (Civil Aviation Affairs) only for travel offices page 89

• Ministry of Interior (General Directorate of Crime, Detection & Forensic Science) page 83 C Veterinary services and trade in veterinary medicines and tools

• Ministry of Municipalities Affairs and Agriculture (Agriculture Affairs) page 88 Other miscellaneous services industries Aluminium workshops Asbestos removal contractors Automobile garages Blacksmith, body shops, repair and fabrication workshops Carpentry workshops

Cleaning contractors and service utilising cleaning materials Activity Licensing and Approval Electrical workshops for repair of refrigerators, air conditioners and motors Film developing laboratories Goldsmith and silversmith workshops 3a Laundry and dry cleaning C Marble workshops Repair and maintenance workshops Services utilising paints and dyes Spray contractors Trade in all types of chemicals Treatment of waste and used oils Wood, lime and plaster sculpture

• Public Commission for Protection of Marine Resources, Environment & Wildlife page 96 (Environment Control Directorate) A Step-by-Step Guide

• Ministry of Interior (General Directorate of Crime, Detection & Forensic Science) only for page 83 trade in chemicals

• Ministry of Health (Public Health Directorate) only for trade in agricultural chemicals and page 61 pesticides Commercial Registration Commercial • Ministry of Municipalities and Agriculture (Agriculture Affairs) only for trade in agricultural page 88 chemicals and pesticides 4545 Directory of Licensing Authorities

This directory contains detailed information on the general regulations, application procedures, documents required, fees, and maximum processing time of all relevant Government Authorities. Use the table at the start of Section C3a to guide you to the Government Authority relevant to your line of business. Central Bank of Bahrain (CBB)

i General Conditions

All financial services businesses must be licensed by the Central Bank of Bahrain (CBB). In June 2006, the CBB introduced a new, integrated framework covering the whole financial sector.

The CBB’s licensing framework consists of six basic license types which are defined in terms of a range of regulated activities. Certain regulated activities may be undertaken only by specific license types; and to qualify for a specific license type, certain activities must be undertaken. Each basic license type is broken down further into sub-categories of license, based on the nature of activities undertaken, as follows:

Rulebook Basic license License sub- volume category categories Regulated activities

1 Conventional a) Conventional Deposit taking; providing credit; accepting Shari’a banks retail bank compliant deposits (subject to certain rules set by the CBB); managing profit sharing (restricted or unrestricted) Shari’a compliant investment accounts (subject to C certain rules set by the CBB); provision of Islamic finance services (subject to certain rules set by the CBB); carrying out one or more of the investment business activities listed under Volume 4 (dealing in financial instruments as principal etc); money exchange transactions and origination and management of payment transactions.

b) Conventional As activities listed under ‘conventional retail banks’ wholesale bank without any conditions or restrictions for non-resident individuals and firms which do not have an office in Bahrain, Bahrain Government, and other government entities, as well as financial institutions licensed by the Activity Licensing and Approval CBB. However, conventional wholesale banks may transact business with individuals resident in Bahrain and local firms in the Kingdom (subject to certain rules set by the CBB). C3a 2 Islamic banks a) Islamic retail Accepting Shari’a compliant deposits; managing money bank placements; managing profit sharing (restricted or unrestricted) Shari’a compliant investment accounts (subject to certain rules set by the CBB); provision of Islamic finance services (subject to certain rules set by the CBB); carrying out one or more of the investment business activities regulated by the CBB and limited only to Shari’a compliant securities, money exchange transactions and origination and management of payment transactions. A Step-by-Step Guide Commercial Registration Commercial

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b) Islamic As activities listed under ‘Islamic retail banks’ without wholesale bank any conditions or restrictions for non-resident individuals and firms which do not have an office in Bahrain, Bahrain Government, and other government entities, as well as financial institutions licensed by the CBB. However, Islamic wholesale banks may transact business with individuals resident in Bahrain and local firms in the Kingdom (subject to certain rules set by the CBB).

3 a) Insurance 1. Insurance and Carrying out and effecting of insurance and re-insurance, licensee re-insurance firms signing and implementing insurance, re-insurance, takaful and re-takaful contracts, insurance pools or funds, cooperative or mutual insurance, and other insurance entities.

2. Captive Conducing insurance activities for the assets of the insurance owner of this company only. companies C b) Insurance 1. Insurance Providing consulting insurance services, including actuaries and consultants management and evaluation of risks, valuation of assets brokers and liabilities of insurers and re-insurers, valuation of rights and obligations of the insurers and the insured, and providing arbitration in insurance disputes.

2. Insurance Specializing in insurance mathematics, provided they actuaries hold certification from an internationally accredited entity.

3. Loss adjusters Inspecting, assessing and studying causes of loss, and insurance contract coverage of such loss, and submission of proposals on improvement of precautionary measures and preservation of insured Activity Licensing and Approval assets.

4. Insurance Provisions of insurance management services for insurers managers and re-insurers.

C3a 5. Insurance Broking of insurance contracts as agents for the insured brokers with insurance companies, and provision of insurance and re-insurance consulting services.

6. Insurance Insurance entities in the form of insurance pools, entities insurance funds, cooperative, reciprocal or professional insurance societies, and other insurance entities.

4 Investment a) Investment firm Dealing in securities as principal; dealing in securities as firms - Category 1 broker; managing assets; managing portfolios; provision of consulting for dealing in securities; provision of custodial services; arranging securities buying and selling

A Step-by-Step Guide transactions.

b) Investment firm Provision of any of the activities listed under Category (1) - Category 2 above, excluding dealing in securities as principal.

c) Investment firm Arranging securities buying and selling transactions; or Commercial Registration Commercial - Category 3 provision of securities consulting services.

48 5 Specialised a) financing firms All financing activities for personal, consumer, real estate, firms (conventional and or residential financing, or any other financing facilities Islamic) which are not in contradiction with the license.

b) Leasing firms Provision of leasing (ijara) services. (conventional and Islamic)

c) Money Selling and buying foreign currency, money transfer out exchange firms of Bahrain, buying and selling travelers cheques, dealing in precious metals within permitted limits, or any other financial activity which may be licensed by the CBB.

d) Representative Liaising with stakeholders, promoting parent company offices of foreign services and products for clients, on a wholesale basis, companies which in local and foreign markets, as well as providing the provide regulated parent company’s head office with information on services economic developments and investment opportunities. Also, providing information to any local entity aiming at developing its activities with countries where such banks C or insurance companies operate.

e) Ancillary Management of clearing houses, settlement of payments, services providers cheques, securities, and training in the financial field, for the financial as well as provision of services limited in nature to the sector financial services industry only.

f) Portfolio Provision of management services for mutual funds and management securities, including management of client affairs and services providers statement of account, valuation and pricing of portfolios, distribution of dividends, and other management services. Activity Licensing and Approval g) Special- Issue of bonds and sukuk. purpose company for issuance of bonds and sukuk C3a h) special purpose Creation of private retirement funds and savings funds. company for establishment of private retirement funds and savings funds

i) Trustee Management and investment of financial trusts in accordance with the trust deed (which is the contract between the creator of the trust and the trustee, based on which the financial trust is created). A Step-by-Step Guide 6 Capital a) Securities Management and operation of securities, metals and markets exchanges and precious metals exchanges. precious metal exchanges

b) Mutual funds Creation of mutual funds. Registration Commercial 4949 A

Licensing regulations vary according to the license • A duly completed Form 3 for the directors and category. Most CBB regulations are now contained top management of the company to be formed. in the CBB Rulebook, which at this time covers • A comprehensive business plan of the applicant, conventional bank licensees (Volume 1), Islamic addressing the following matters: bank licensees (Volume 2), insurance licensees (Volume 3) and investment business licensees −− Financial position and experience of the (Volume 4). applicant and major founding members. −− Reasons for license application, including i The complete contents of the Rulebook are the strategy and marketing objectives of the available on the CBB website at company to be formed. www.cbb.gov.bh. −− Types of proposed activities in Bahrain.

? Application Procedures −− Proposed board of directors, top management, and organizational structure of the company to be formed. The application process starts at the CBB’s Licensing and Policy Directorate. −− Assessment of potential risk the licensee may face, and the proposed corporate Incorporation of a financial institution in Bahrain governance framework to counter such risks starts with obtaining a license from CBB. The in the main activities of the enterprise. C license is granted in one single process, in addition to a commercial registration. Following is a brief −− A three-year budget, with a description of all explanation of the process: assumptions on which the budget is based, and satisfaction of capital requirements. The applicant submits a duly completed application • For companies incorporated in Bahrain or form to the CBB, accompanied by all relevant abroad, a copy of the current commercial information. registration or equivalent documentation is required. Preparing for the business activity If an applicant obtains a license, it may then work • A notarised copy of existing company’s Board on the practical steps of starting a business, such of Directors resolution to approve obtaining a as forming the company (if a Bahrain registered license from the CBB. Activity Licensing and Approval company is to be formed), and appointing suitable • In the case of applicants that are part of a executive staff who satisfy CBB’s requirements. regulated group, a letter of no-objection to the proposed license application from the applicant’s home supervisory authority, together C3a Required Documents with confirmation that the group is in good regulatory standing and is in compliance with Unless otherwise directed by the CBB, the applicable supervisory requirements, including following documents must be provided: those relating to capital adequacy and solvency requirements. • A duly completed Application Form 1 for the • In the case of overseas branch applicants, required license (for banking, insurance and a letter of no-objection to the proposed investment institutions, the application form is license application from the applicant’s home available in the Rulebook - Part B. For all other supervisor, together with confirmation that the license types, the form may be obtained online applicant is in good regulatory standing and from the “Other Licenses” section of CBB’s is in compliance with applicable supervisory website. requirements. Copies of the audited financial A Step-by-Step Guide • Letter signed by an authorised signatory of statements of the applicant’s head office for the applicant marked for the attention of the the three years immediately prior to the date of Director, Licensing and Policy Directorate. application.

• A duly completed Form 2 for approval of

Commercial Registration Commercial shareholders who will acquire 10% or more of the capital of the company to be formed. 50 • In the case of other applicants, copies of the II) Fees as provided in 1, 2 and 3 of (I) above, are audited financial statements of the applicant’s subject to the following: major shareholder and/or group (as directed by 1. The fee shall not be less than the minimum and the CBB), for the three years immediately prior not exceed the maximum as specified in the to the date of application. fee schedule. • Copy of the prospectus if the applicant intends 2. Net operating assets are calculated based on to raise capital through private placement. the gross operating expenses of the financial

• Copy of the draft memorandum and articles of institutions, minus donations, training fees, association of the company to be formed. previous registration fees, remuneration and incentives. • Letter of guarantee from the major shareholders confirming that they are prepared to provide III) CBB Fees for other services provided by the support to the company to be formed, if CBB are specified in the fee schedule. needed.

• In the case of branch licensing, a letter of guarantee shall be submitted by the head office of the branch to be formed, stating all the obligations of the proposed branch and providing proof of ability to honor such C guarantee.

• In the case of branch licensing, a copy of the parent company’s memorandum and articles of association shall be submitted.

Processing Time 60 working days as of submission of all documents satisfying all requirements.

BD Fees Activity Licensing and Approval

Fees System for Licenses and Services Provided by CBB C3a I) CBB fees for licenses granted to incorporate financial institutions and for services the CBB provides to banking and finance institutions, are as follows: 1. Non-refundable fee of BD 100 for any new license application.

2. An annual fee of 1% (one percent) of net operating expenses of retail banks.

3. An annual fee of 0.5% (half percent) of net

operating expenses of wholesale banks A Step-by-Step Guide incorporated in Bahrain.

4. An annual fee of 0.25% (quarter percent) of net operating expenses of licensed foreign banks and financial institutions. Commercial Registration Commercial

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Schedule of Annual Fees for Licenses and Services Provided by CBB Annual Fees for Licenses and Registration with the CBB

License cateogry Floor (BD) Cap (BD) Banks (retail) 30,000 240,000 Banks (wholesale) 13,000 100,000 Insurance companies 6,000 (fixed) 6,000 (fixed) Captive insurance companies 1,000 (fixed) 1,000 (fixed) Insurance brokers (individuals) 175 (fixed) 175 (fixed) Insurance brokers (corporate) 500 3,000 Insurance management 500 3,000 Insurance consulting 500 3,000 Investment companies - category 1 6,000 24,000 Investment companies - category 2 4,000 12,000 Investment companies - category 3 1,000 4,000 C Financing / leasing companies 6,000 24,000 Money changers 300 6,000 Representative offices 3,000 (fixed) 3,000 (fixed) Support service providers in the financial sector 500 (fixed) 500 (fixed) Creation of investment fund 2,000 (fixed) 2,000 (fixed) Provision of management support services 500 (fixed) 500 (fixed) Provision of securitisation or any other financial service through 1,000 (fixed) 1,000 (fixed) a special purpose company* Trust service providers 2,000 (fixed) 2,000 (fixed)

Activity Licensing and Approval Loss adjusters (individuals) 175 (fixed) 175 (fixed) Loss adjusters (corporate) 1,200 (fixed) 1,200 (fixed) Actuaries 25 (fixed) 25 (fixed) C3a *If securitisation or financial service requires the incorporation of more than one special purpose company, fees shall be collected for one special purpose company only.

Fees for other services provided by the CBB

Type of service Floor (BD) Cap (BD) Registered trust 10 (fixed) 10 (fixed) Viewing or obtaining an official copy of CBB documents or data 10 (fixed) 10 (fixed)

i Contact Information Licensing and Policy Directorate A Step-by-Step Guide Tel: (+973) 17547605 Fax: (+973) 17530228 Website: www.cbb.gov.bh Commercial Registration Commercial

52 Committee for Organising Engineering Professional Practice (COEPP)

i General Conditions

The Committee for Organising Engineering • To obtain a license to practice within six months Professional Practice (COEPP) licenses all before any work commences engineering offices in the Kingdom of Bahrain. The engineering license granted will permit the Engineering offices are classified into four applicant to practise engineering in the specific grades (A,B,C and D). For information regarding licensed field only. The founder of an engineering regulations and requirements to obtain each office must be a Bahraini licensed engineer. classification type, please contact the COEPP or refer to Ministerial Order 18 of 1983 (Works, A dedicated manager who is a qualified engineer Electricity and Water) available online in Arabic at is also required. Branches of foreign engineering www.legalaffairs.gov.bh offices are licensed on a case-by-case basis, provided they fulfill the following conditions: Licenses are valid for a year and must be renewed every year in January. Any delays in the renewal • To be a reputable international engineering firm request will double the standard fee. In the case • To have a dedicated manager who is a Bahraini that the license is not renewed for two months, the C licensed engineer COEPP can choose not to renew the license.

? Application Procedures

The application process can be initiated by Upon receiving the COEPP’s written approval, the submitting a commercial registration application investor can proceed to complete the commercial (See section C2). The Ministry of Industry & registration procedures. The investor will be Commerce will provide the investor with a letter contacted if additional information is needed. requesting the approval of the COEPP. Alternatively, the investor may contact the The investor should then approach the COEPP and COEPP directly prior to applying for commercial Activity Licensing and Approval provide all the necessary documents. registration.

Required Documents C3a

• Engineering office registration form (available at • Details of technical staff COEPP) • Portfolio of projects executed (for branches of • Copy of office space lease agreement foreign companies only)

• Details of available technical equipment

Processing Time Type Processing time All 21 working days A Step-by-Step Guide Commercial Registration Commercial

5353 A

BD Fees Type Category Registration fee Annual fee per or class per office (BD) discipline (BD) Bahraini engineering office A 190 95 B 130 65 C 70 35 GCC engineering office A 260 140 B 180 100 C 100 60 Consulting engineering branch office A 300 255 B 225 170 Company with an engineering department - 500 425

First issue First extension Second C (BD) (BD) extension (BD) Preliminary approval certificate (valid for three months) 50 100 200

i Contact Information Committee for Organising Engineering Professional Practice Tel: (+973) 17534747 Email: [email protected] Fax: (+973) 17536371 Activity Licensing and Approval

C3a A Step-by-Step Guide Commercial Registration Commercial

54 General Organisation for Youth and Sports

i General Conditions

The General Organisation for Youth and Sports The role of GOYS is confined to inspecting the (GOYS) licenses all types of businesses related to location of the prospective business and ensuring sports and recreation, such as sports instruction that it is suitable for the proposed sporting activity. and training, management and operation of Specific conditions for each type of sport may be sports halls. entertainment and recreational obtained by contacting GOYS directly. facilities, gymnasiums and organisation of sports tournaments.

? Application Procedures

The application process can be initiated by receiving GOYS’s written approval, the investor can submitting a commercial registration application proceed to complete the commercial registration (see Section C2). The Ministry of Industry & procedures. The investor will be contacted if Commerce will provide additional information is needed. C the investor with a letter requesting the approval of Alternatively, the investor may contact the GOYS. The investor should then approach GOYS GOYS directly prior to applying for commercial and provide the necessary documents. Upon registration.

Required Documents

• Copy of commercial registration application form

• Copy of CPR card (passport for non­-Bahrainis) Activity Licensing and Approval

• Description of the project and facilities

Processing Time C3a Type Processing time All 10 working days

BD Fees None

i Contact Information

Sports Affairs Directorate A Step-by-Step Guide Tel: (+973) 17810870 Fax: (+973) 17826803 Website: www.goys.gov.bh Commercial Registration Commercial

5555 A

Ministry of Education

i General Conditions

All private educational institutions must be training institution in pursuance of the standards licensed by the Ministry of Education. An investor and guarantees prescribed and laid down by may apply for a license to establish any of the the Ministry following: • Not to be a civil servant or an employee of • Private educational institutions (schools, public organisations or private institutions centres, institutes, kindergartens) If the applicant is a corporate entity, its • Private higher educational institutions representative must fulfill the previous conditions,

• Offices for educational services to those with the exception of (5), provided that the studying abroad source of finance for the private educational institution and ability to maintain such finance are The following are general conditions that all specified in the application. private educational licensees must fulfill: The Ministry of Education sets forth rules and regulations governing the operation of educational If the applicant is an individual, he must satisfy C institutions and carries out inspections to ensure the following criteria: compliance with the rules and regulations on a • To be at least 25 years of age yearly basis. • To be fully competent and of good conduct. No i For detailed information, please refer to the final judgment should have been passed against Ministry’s website at: www.education.gov.bh him in a felony or misdemeanour affecting his or contact the appropriate Directorate (listed honour, integrity or public morals, unless he has below). since been reinstated

• To have at least the General Secondary School Licenses are valid for three years and must be Certificate or its equivalent renewed thereafter.

• To be capable of financing the setting up and Activity Licensing and Approval Please note that commercial registration is optional continuation of the private educational or for educational institutions.

? C3a Application Procedures 1. The investor should submit a completed Directorate of Civil Defence and to the Ministry application form and supporting documents to of Municipalities Affairs & Agriculture. the appropriate Directorate at the Ministry of Education (see contact information). 4. The Ministry of Education will evaluate the prospective institution’s budget, curriculum, 2. The application will be submitted to the Joint teaching methods, and building specifications. Committee for licensing the establishment of private education and training institutions to get 5. The investor must pay the license fee (for three the initial approval. The committee meets once years) and provide a bank guarantee for the a month. specified amount.

A Step-by-Step Guide 3. After the initial approval is granted, the Ministry 6. Upon satisfaction of all obligatory conditions of Education will supply the investor with and requirements, a license is issued by the letters addressed to the General Directorate Ministry of Education. of Crime, Detection & Forensic Science, the 7. The investor may proceed to apply for General Directorate of Traffic, the General

Commercial Registration Commercial commercial registration (optional).

56 Required Documents Type Required Documents

Private education • Application form (available at MOE) institution • Copy of passport and both sides of CPR card for Bahrain nationals/residents (kindergarten, • Clearance from the General Directorate of Crime, Detection & Forensic Science school, centre, (letter of request will be sent by MOE) institute) • Copy of Secondary School Certificate and highest educational qualification of applicant • Letter from investor’s last employer, confirming termination of employment • Feasibility study and estimated budget of the project • Recent bank statements showing possession of amount budgeted for project • Two copies of proposed curriculum • Internal organisation of the establishment • Land ownership certificate or property leasing contract and building specifications, if property/building has been selected • Contract notarised by Ministry of Justice Pubic Notary, in case of partnership of more than one person C • Copy of commercial registration if the applicant is a commercial entity • Names, titles, and contact information of all proposed board members (not for kindergartens) • Bank guarantee for the specified amount

Private higher • Application form (available at the Directorate of Scholarships and Cultural Affairs) education • Goals and economic feasibility of project institution • Proposed name of the establishment • Name of owner of the establishment • Proposed colleges and departments

• Proposed qualifications and certifications to be granted Activity Licensing and Approval • Number of years and semesters of study • Academic system (academic year, semesters) • Evaluation tools • Admissions criteria C3a • Location of the establishment • Academic programmes / curricula • Any accreditation arrangements for academic programmes with accredited universities • Any affiliation with international accredited universities • Expected number of admitted students in the first year • Percentage of Bahrainisation in the establishment • Specifications of classrooms and facilities • Information on funding sources

• Other activities the establishment may undertake A Step-by-Stp Guide • Proposed organisational structure • Proposed number of academic and administrative staff • Proposed tuition and fees • Bank guarantee for the specified amount Commercial Registration Commercial

5757 A

Office for • Application form (available at the Directorate of Scholarships and Cultural Affairs) educational • Copy of passport and both sides of CPR card for Bahrain nationals/residents services to those • Clearance from the General Directorate of Crime, Detection & Forensic Science studying abroad (letter of request will be sent by MOE) • Letter from investor’s last employer, confirming termination of employment • Contract with affiliated university /academic institution • Contract with the organisation that will represent the establishment in dealing with universities / academic institutions abroad • Contract notarised by Ministry of Justice Public Notary, in case of partnership of more than one person • Proposed organisational structure • Commercial registration of company, if applicant is a corporate entity • CV of proposed director • Land ownership certificate or property leasing contract and building specifications, if property / building has been selected • Bank guarantee for the specified amount C Processing Time Type Processing time

• Kindergarten 60 working days

• Private school, centre, institute 60 working days

• Higher education institution 120 working days

• Office for educational services to those studying abroad 30 working days

BD Fees

Activity Licensing and Approval Type Fee (BD) Bank guarantee (BD)

• Kindergarten 30 300

• National private school 150 1,500 C3a • Foreign private school 210 1,500 • National educational institute 120 1,500

• Foreign educational institute 180 1,500

• Higher educational institution - 100,000

• Office for educational services to those studying abroad 30 3,000

* Fees cover a three-year period.

i Contact Information Directorate of Private Education Directorate of Scholarships A Step-by-Step Guide (for schools, centres and & Cultural Affairs (for higher Directorate of Kindergartens institutes) educational institutions) Tel: (+973) 17682015, 17873457 Tel: (+973) 17680061, 17873311 Tel: (+973) 17680090 Fax: (+973) 17680716 Fax: (+973) 17680162 Fax: (+973) 17680164 Commercial Registration Commercial Website: www.education.gov.bh

58 Electricity & Water Authority

i General Conditions

The Electricity Distribution Directorate (EDD) at the technician, wireman and linesman licenses in Electricity & Water Authority (EWA) is responsible individual categories. For information on grading for licensing of electricity wiring contractors of requirements and regulators, please contact EDD. grades from G1 to G4 also issues engineer,

? Application Procedures

For wiring electrical contracting: Commerce (MOIC) will provide the investor with a EDD requires that an establishment to be letter requesting EWA EDD’s approval. commercially registered first under a contracting The EDD grants preliminary approval (valid for activity, then proceed to apply for an electrical one year only), stating conditions for granting its wiring contracting license. final approval. Upon receipt of the preliminary C For electricity distribution: approval, the applicant can proceed to complete the commercial registration procedures. The final The application process can be initiated by approval by EWA will be granted upon fulfillment of submitting a commercial registration application all license grade conditions and requirements. (see Section C2). The Ministry of Industry and

Required Documents Type Required Documents

For new • An official letter requesting approval of Electrical Wiring Contractor electrical License, addressed to the Director - Electricity Distribution contractor Directorate Activity Licensing and Approval

license • Application of Electrical Wiring Contract License (available at EDD)

• Commercial registration (original and copy) • Expatriate visa(s) and passport(s) (original and copy) C3a • CPR cards and individual licenses for all individuals (original and copy)

• CPR card of owner (original and copy)

• Official stamp of the company

For individual Engineer: • Bachelor degree in Electrical Engineering from a reputed university license • Registration and membership card for foreign engineers issued by the Committee for Organising Engineering Professional Practice (COEPP)

• Hv authorization issued by EDD following training and successfully

passing interview to practice as G1 contractor A Step-by-Step Guide

• Appropriate experience Technician: • Diploma in Electrical Engineering from a reputed institute • Training at EDD and successfully passing EDD interview

• Appropriate experience Registration Commercia

Wireman: • Training at EDD and successfully passing EDD written test and interview 5959 A

Processing Time Type Processing time All 10 working days

BD Fees Type Fee (BD) Recurring Renewal of individual license 10 Every 2 years for Bahrainis Contracting license 50 With renewal of residence permit for non- Bahrainis, one time Renewal of G1 contracting license 30 Annually Renewal of G2 contracting license 30 Annually Renewal of G3 contracting license 30 Annually Renewal of G4 contracting license 30 Annually C Upgrade of license (higher grade) 20 One time

i Contact Information Electricity Distribution Directorate Tel: (+973) 17726501, 17726502 Fax: (+973) 17728466 Email: [email protected] Website: www.mew.gov.bh Activity Licensing and Approval

C3a A Step-by-Step Guide Commercial Registration Commercial

60 Ministry of Health - Public Health Directorate

i General Conditions

The Public Health Directorate at the Ministry of • Trade in all types of animals, livestock and birds Health sets and supervises the general health and animal feed and bird feed conditions relating to the specifications and • Animal shelter halls location of the place of business for the following business types: • Manufacture, mixing and bottling of cosmetic products, perfumes, and herbal products • Trade in food and beverages • Manufacture, mixing and bottling of soap and • Restaurants (all types) detergents, cleaning and polishing preparations • Hotels (all classifications) • Trade in cosmetics and beauty products and • Tourism apartments perfumes

• Coffee shops • Manufacture of animal feed

• Manufacture, packaging and preparation of • Recycling of metal and non-metal waste and catering products scrap C • Gymnasiums and sports halls, swimming pools The Directorate must inspect the premises before • Food storage an approval to commence business activities is • Barbershops, beauty and hair salons granted. Post-operational inspections may also be carried out to verify compliance with health • Herbalists and spice traders conditions and requirements. • Trade in agricultural pesticides i For detailed conditions and requirements • Management and operation of animal and specific to each activity type, please consult the poultry projects and farms Ministry of Health guidelines, which are available for download at www.health.gov.bh Activity Licensing and Approval ? Application Procedures

The application process can be initiated by The investor will be contacted if additional submitting a commercial registration application information is needed. C3a (see Section C2). The Ministry of Industry & Commerce will provide the investor with a letter In cases where the establishment is not yet requesting the approval of the Public Health built, a preliminary approval is supplied along Directorate. The investor should then approach with conditions necessary for final approval. The the Directorate or its representative in the investor can proceed to complete commercial Bahrain Investors’ Centre (BIC) and provide all registration procedures after obtaining the the necessary documents. Upon receiving the preliminary approval. Final approval is issued upon Directorate’s approval, the investor can proceed to inspection of the premises and ensuring that all complete the commercial registration procedures. conditions are met. A Step-by-Step Guide Commercial Registration Commercial

6161 A

Required Documents

• Copy of the commercial registration application form

• Copy of CPR card (passport for non-Bahrainis)

• Address card or other proof of address (e.g. land ownership certificate or rental agreement)

• Project/outlet drawings with measurements, signed by the applicant and specifying the activity type (for hotels, food and beverage serving establishments and beauty and hair salons)

Processing Time Type Processing time All 5 working days

BD Fees Type Fee (BD) C • Coffee shop (with sheesha) 63 • Coffee shop (without sheesha) 13

• Restaurant (first class) 125

• Restaurant (fast food) 63

• Food storage 125

• Fresh juice counters 13

• Gymnasium 20

• Health spa 13

• Hair and beauty salon using traditional method 13

Activity Licensing and Approval • Hair and beauty salon using modern technology 13

• Hall for entertainment games and recreational facilities 12

• Hotel (one star) 20 C3a • Hotel (two star) 63 • Hotel (three star) 63

• Hotel (four star) 125

• Hotel (five star) 375

• Hotel (unclassified) 250

• Export, import and general mercantile except heavy machinery, vehicles, weapons, 375 alcoholic drinks and activities that require approval of concerned government authorities

• Import, export and sale of food and beverages (specialised) 63

• Traditional bakery 138

• Manufacture of bakery products 138 A Step-by-Step Guide • Manufacture of cocoa, chocolate and sugar confectionery 138

• Manufacture of soft drinks; production of mineral waters 63

• Manufacture of sugar 13

• Manufacture of vegetable and animal oils and fats 38 Commercial Registration Commercial • Massage parlour 63 62 • Restaurants (other) 250 • Processing and preserving of fruit and vegetables 13

• Processing, production and preserving of meat and meat products 13

• Production and packaging of food and drinks (small) 13

• Sale of alcoholic beverages to non-Moslims 13

• Sale of food and beverages 13

• Tourism apartments 50

• Restaurant for tourism services 125

• Water distillation 250

• Catering (firms, organisations, individuals, ships, aircrafts) 13

• Drinking water distribution 13

• Import, export and sale of all types of birds/bird cages/supplies 13

• Sale of all types of birds/bird cages/supplies 63

• Cleaning slaughter remains 13

Public Health fees are payable at MOIC (individual estabishments) or BIC (companies) at time of issue of commercial registration and annually thereafter. C

i Contact Information Public Health Directorate (Main) Food Hygiene Section Tel: (+973) 17279264, 17263683 Fax: (+973) 17279253 Email: [email protected] Environment Health Section Activity Licensing and Approval Tel: (+973) 17279293 Fax: (+973) 17230922 Email: [email protected] Public Health Directorate (BIC) C3a Tel: (+973) 17562244 Fax: (+973) 17581339 Email: [email protected] Website: www.health.gov.bh A Step-by-Step Guide Commercial Registration Commercial

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Ministry of Health - Licensor and Registration Office

i General Conditions

All private healthcare establishments must be • Owner of a hospital may be a corporate entity licensed by the Ministry of Health. Applications (for which commercial registration is required) may be made for a license to establish any of the or a Bahraini physician with a minimum of five following: years relevant work experience

• Hospitals (general, specialised, dental) • Owner of a medical clinic must be a Bahraini

• Medical clinics (general. specialised, dental) national holding a qualification in one of the health professions with a minimum of three • Optics (making and mounting) years work experience in the specialty, or a • Physiotherapy centres GCC national who is resident in Bahrain and holds the same qualifications • Nutrition centres • Owner of a medical centre (optics, • Specialised centres physiotherapy, radiology, nutrition, nuclear • Radiology centres medicine, audiometry, medical and

C • Nuclear medicine centres prosthodontical laboratories) must be a Bahraini national holding professional qualifications in the • Audiometry and speech therapy relevant field. • Medical laboratories Licenses are issued for one year and must be • Dentistry (prosthodontical laboratories) renewed annually.

The following general conditions apply to i For detailed information on regulations and healthcare licenses: specific operational requirements, please visit • Non-health professionals may apply to establish the Ministry of Health website at: a hospital with no restrictions on nationality www.health.gov.bh.

Activity Licensing and Approval ? Application Procedures

The investor can first approach the Licensor and conditions and requirements. The preliminary Registration Office in order to obtain the required approval allows for completion of commercial C3a license. Once the License application is approved, registration procedures and is valid for three the investor can apply for commercial registration months. (see Section C2). The license is granted once all the conditions and The Ministry of Industry & Commerce will provide requirements of the Licensor and Registration the investor with a letter requesting the approval of Office are met. the Licensor and Registration Office. The investor must then approach the Office to apply for a Please note that commercial registration is license. If the application is approved, a preliminary optional, except in the case of hospitals owned by approval will be supplied. along with all relevant corporate entities. A Step-by-Step Guide Commercial Registration Commercial

64 Required Documents

• Application form (Form No. 1: available at the Licensor and Registration Office and online at: www. moh.gov.bh/licensure.asp)

• Three passport size photos

• Educational and professional certificates, including copy of registration / License

• First page of passport

• Birth certificate

• Statutory evidence of any name change

• Health fitness certificate

• CPR card

• Any other documents requested by the Licensor and Registration Office

The following items should be sent directly to the office by the concerned authorities:

• Certification of professional education (Form No. 2) • Verification of registration / license (Form No. 3) C • Reference inquiries (Form No. 4)

• Any other documents requested by the Licensor and Registration Office

Processing Time Type Processing time Preliminary approval (valid for three months) 21 working days Final approval (license) 21 working days

BD Fees Activity Licensing and Approval Type Fee (BD) Hospital registration 500 Centre registration 300 C3a Clinic registration 100

i Contact Information Licensor and Registration Office Tel: (+973) 17279821 Fax: (+973) 17232614 Email: [email protected] Website: www.health.gov.bh A Step-by-Step Guide Commercial Registration Commercial

6565 A

Ministry of Health - Pharmacy and Drug Control Directorate

i General Conditions

The Pharmacy and Drug Control Directorate at the • The pharmacy must comply with the rules Ministry of Health licenses, regulates, and monitors and regulations set forth in the Pharmacy Law the following: (No.18 of 1997, articles 18 and 19). i The law is available in Arabic at • Pharmacies www.legalaffairs.gov.bh and at the Pharmacy • Trade in health foods and health products and Drug Control Directorate. • Trade in alternative medicine products A license is issued for a period of three years • Manufacture of pharmaceuticals and health and must be renewed thereafter. Applications for products renewal must be submitted one month prior to the license expiry date. The following general conditions apply to licensing of pharmacies in the Kingdom of Fees will be doubled in the case of un-excused Bahrain: delays exceeding two months. C • For individual establishments, the owner must be a Bahraini pharmacist no less than 21 years For other business activities licensed by the of age Directorate, no restrictions apply to the investor’s profession or nationality. Licenses are issued for • For companies, a minimum of 50% of the one year and must be renewed annually. Drugs company share must be owned by a Bahraini must be licensed and registered individually pharmacist to ensure compliance with international health • The distance between the proposed location regulations and standards. of the pharmacy and the closest licensed pharmacy must be no less than 250 metres i For information on drug registration guidelines, please consult the Ministry of Health’s website at: www.health.gov.bh. Activity Licensing and Approval ? Application Procedures 3a The application process can be initiated by then approach the Directorate and provide all C submitting a commercial registration application the necessary documents. Upon receiving the (see Section C2). The Ministry of Industry & Directorate’s written approval, the investor can Commerce will provide the investor with a letter proceed to complete the commercial registration requesting the approval of the Pharmacy and procedures. Drug Control Directorate. The investor should

Required Documents

• Application letter (must include name and address of applicant, contact information, address of the place of business, and proposed business name) A Step-by-Step Guide • Copy of CPR card

• Copy of commercial registration certificate (if applicant is an existing commercial entity)

• Copy of qualifications (only for pharmacies)

• Information on proposed location and building specifications (location must be inspected) Commercial Registration Commercial

66 Processing Time Type Processing time All 30 working days

BD Fees Type Bank guarantee (BD) Pharmacy (importer) 50 Pharmacy (non-importer) 25 Trade in health products and alternative medication and products 100 Sale of over-the-counter medicines 15

i Contact Information Pharmacy and Drug Control Directorate Tel: (+973) 17279207, 17279208 C Fax: (+973) 17259357 Email: [email protected] Website: www.health.gov.bh Activity Licensing and Approval

C3a A Step-by-Step Guide Commercial Registration Commercial

6767 A

Ministry of Industry & Commerce - Company Affairs Directorate

i General Conditions

The Company Affairs Directorate at the Ministry Auditing firms of Industry & Commerce (MOIC) licenses and An auditing firm may be registered as a registers auditors, auditing firms and accounting / Professional Partnership Company, a Branch of a book-keeping firms. Foreign Company or an Individual Establishment (sole proprietorship). The following are the required Auditor Registration conditions for auditing firms: In accordance with the Auditors Law (No. 26 of 1996), applicants wishing to register at the Auditors Professional Partnership Company

Registrar at the Ministry of Industry & Commerce • All partners must be registered auditors must satisfy the following conditions: and fulfill all the requirements of Auditor’s Registration • To be a Bahraini citizen, with the exception of members of internationally recognised • All partners must have been registered as accounting / auditing societies and holders of auditors and practiced auditing in a Licensed C internationally recognised qualifications. firm for a minimum of five years (with the exception of members of internationally • To be fully competent and of good conduct recognised accounting / auditing societies, and reputation, no final court judgment should holders of internationally recognised have been passed against him in a felony or qualifications, and those with auditing misdemeanour affecting his professional ethics, experience of 12 or more years inside or outside honour, integrity or public morals, unless he has of Bahrain since been reinstated Branch of a Foreign Company • To hold a bachelor’s degree in accounting or business administration with accounting • Applicant must be a registered auditor and fulfill specialisation from a university or high institute all the requirements of Auditor’s Registration recognised by the relevant authority or any • A local office must be established under the Activity Licensing and Approval equivalent certificate recognised by such responsibility of a partner who is a registered authority, for which the period of study must auditor at the Ministry of Industry & Commerce not be less than three years (with the exception and fulfill all the requirements of Auditor’s of members of internationally recognised Registration accounting / auditing societies and holders of 3a Individual Establishment C internationally recognised qualifications. • Applicant must be a registered auditor at the • To have a minimum of seven years experience Ministry of Industry & Commerce and fulfill all working in an audit firm inside or outside the requirements of Auditor’s Registration of Bahrain (with the exception of members of internationally recognised accounting / • Applicant must have been registered as an auditing societies and holders of internationally auditor and practiced auditing in a licensed firm recognised qualifications. for a minimum of five years (with the exception of members of internationally recognised • Not to be working in another profession or accounting / auditing societies, holders of engaged in any commercial activity other than internationally recognised qualifications, and auditing those with auditing experience of 12 or more

A Step-by-Step Guide The registration is valid for one year and must be years inside or outside of Bahrain) renewed on an annual basis upon payment of the A license is valid for one year and must be prescribed fee, unless there is any reason barring renewed on an annual basis upon payment of the such renewal. prescribed fee.

Commercial Registration Commercial Book-keeping and Accounting Firms Applicants wishing to establish book-keeping and 68 accounting services firms must satisfy the following conditions: • To be a citizen of Bahrain or one of the GCC • For companies, all partners must satisfy the countries aforementioned condition. A license is valid for one year and must be renewed on an annual • To hold a bachelor’s degree in accounting with a minimum of four years of accounting work basis upon payment of the prescribed fee. experience • Please note that book-keeping and accounting firms are not permitted to provide auditing • To be a member of the Bahrain Accountants Society services.

• Not to be working in another profession or engaged in any other commercial activity

? Application Procedures

The application process can be initiated by will contact the investor if additional information submitting a commercial registration application is needed. Upon receiving the Directorate’s (see Section C2). The application will be relayed to approval, the investor can proceed to complete the the Directorate of Company Affairs. The Directorate commercial registration procedures. C

Required Documents Type Required documents

Auditor • Auditor registration application form (available at BIC and MOIC) registration • Copy of CPR card and passport and auditing firms • One coloured passport-size photograph • Attested educational and professional qualifications certificates (original and copy)

• Auditing work experience certificate (original and copy) Activity Licensing and Approval • Curriculum vitae

Book- • Copy of CPR card and passport keeping/ • Professional qualifications certificates (original and copy) accounting 3a firms • Original accounting work experience certificate (original and copy) C • Proof of membership of the Bahrain Accountants Society

Processing Time Type Processing time All 5 working days

BD Fees Type Bank guarantee (BD) A Step-by-Step Guide Auditor registration (Bahraini) 25 Auditing firms (non-Bahraini) 100

* Fees must be paid annually. Commercial Registration Commercial

6969 A

i Contact Information Directorate of Company Affairs (Main) Tel: (+973) 17574744 Fax: (+973) 17532676 Directorate of Company Affairs (BIC) Tel: (+973) 17562227 Fax: (+973) 17581344

C Activity Licensing and Approval

C3a A Step-by-Step Guide Commercial Registration Commercial

70 Ministry of Industry & Commerce - Industrial Projects Directorate

i General Conditions

All types of industrial projects must be licensed by • Encouraging the export of national products the Industrial Projects Directorate. Apart from the Licenses are issued for a period of one year and prohibited industries listed in Section C1 of this must be renewed annually. An industrial licensee guide, the Industrial Projects Directorate does not must operate within one year of license issuance. place any restrictions on industrial licenses. If the licensee fails to do so, the expired license The Directorate issues industrial licenses according renewal must be approved by the Minister. All to the following standards: industrial establishments must be registered in the Industrial Registry at the Industrial Projects • Increasing added-value in conversion industries Directorate. • Providing job opportunities i For further details, please consult the Industry • Increasing the private sector’s contribution to Law, available for download in Arabic and industrial development English at www.moic.gov.bh. • Optimum use of energy resources, including oil, C gas, electricity and water

? Application Procedures

• The investor must approach the Industrial • The investor will be directed to the Industrial Projects Directorate or its representative at the Areas Directorate to apply for industrial land (if Bahrain Investors’ Centre (BIC), fill the industrial needed). license application, and provide all necessary • The investor will be supplied with a letter documents and any additional details requested requesting approval of applicable supplementary by the Directorate’s representative. licensors (e.g. Environment, Municipalities, • If the project requires large quantities of Public Health). Activity Licensing and Approval electricity or water, the Ministry of Industry & • Upon obtaining all applicable supplementary Commerce will liaise with The Electricity and approvals, the investor can complete the Water Authority to obtain authorisation. commercial registration procedures. • If the project requires any quantity of gas, the C3a • A final industrial license will be issued, along Ministry of Industry & Commerce will liaise with with commercial registration for the desired the National Oil and Gas Authority (NOGA) to manufacturing activity. obtain authorisation of gas allocation. • The establishment must be registered in the • If the application is approved, a preliminary Industrial Registry at the Industrial Projects license is issued. A preliminary license is valid for Directorate within two months of the start of three months, renewable for up to six months. operations. • Commercial registration can be issued to the investor on the condition that it is used only for management of the industrial project in the process of establishment (manufacturing activity not permitted at this stage). A Step-by-Step Guide Commercial Registration Commercial

7171 A

Required Documents

• Industrial license application form (available at the Directorate, BIC and online at www.moic.gov.bh)

• Copy of CPR card and passport

• Feasibility study (for large projects)

• Investors’ minutes of meeting

Processing Time Type Processing time Preliminary license 7 working days, provided all requirements are completed Final license 1 working day, provided all supplementary licenses are obtained

BD Fees None C

i Contact Information Directorate of Industrial Projects (Main) Tel: (+973) 17568045, 17568046 Fax: (+973) 17581537 Directorate of Industrial Projects (BIC) Tel: (+973) 17562247 Fax: (+973) 17581415 Bahrain International Investment Park Activity Licensing and Approval Tel: (+973) 17467373 Fax: (+973) 17467300 Email: [email protected] C3a Website: www.biip.com.bh A Step-by-Step Guide Commercial Registration Commercial

72 Ministry of Information - Publications and Press Directorate

i General Conditions

The Ministry of Information licenses all business −− Radio and television broadcasting activities related to printed and audiovisual media. The following license types are confined to The Publications and Press Directorate at the Bahraini nationals: Ministry coordinates the licensing and approval −− Newspapers, publications and distribution process for the following business categories: (daily, non-daily, and specialised newspapers and magazines)

• Newspapers and publications (distributed daily, −− Printing press non-daily and specialised newspapers and magazines) −− Artistic, television, radio, and theatre production and distribution • Publication and distribution of books −− Cinematographic studios • Printing press −− Management and operation of cinema • Press offices theatres and film distribution C • Radio and television broadcasting −− Cinema houses

• Artistic, television, radio and theatre production • The license cannot be sold, transferred or and distribution the nature of activity changed without prior • Cinematographic studios permission from the Ministry of Culture Information • Outdoor photography • The business owner or manager (if owner is not • Management and operation of cinema theatres managing the business) is accountable for the and film distribution management of the establishment and is liable • Cinema houses for any misconduct related to the business

• Advertising and publicity and related • The following conditions apply to the business

consultancy services manager or director in charge: Activity Licensing and Approval

• Public relations −− To be a permanent resident of Bahrain

• Organising events and conferences −− To be fully competent and of good conduct, and final court judgment should not have • Translation services been passed against him in a felony or C3a • Public opinion polling misdemeanour affecting his honour, integrity • Computer programming, design, and or public morals, unless he has since been consultancy and design of internet web pages reinstated

• Trade in all printed materials, audio and −− To be dedicated to his managerial position in audiovisual materials, computer software and the establishment

systems, electronic video games and related −− To be qualified academically or possess media items sufficient relevant practical work experience

• Intellectual property rights investments • Licensees must comply with the Press, Print The following general conditions apply to all and Publications Law (No.47 of 2002) and the licensees: Law Protecting Author’s Rights and Related A Step-by-Step Guide Rights (No. 22 of 2006) and the Kingdom of • The licensee must be registered as a company or individual establishment, with the exception Bahrain’s general order and moral standards of the following which can be registered only as • The Ministry reserves the right to cancel the a company: license if the business does not comply with all

the required regulations Registration Commercial −− Press, publication and distribution (daily, non-daily, and specialised newspapers and • The approval granted is valid for six months magazines) and is considered void if the investor does not 73 comply with supplied registration requirements 73 A

i Special Conditions

The following conditions apply to press, for Category 1 companies (public station), publication and distribution (daily, non-­daily BD 2,000,000 for Category 2 companies and specialised newspapers and magazines) (specialized station), and BD 1,000,000 for licensees: Category 3 companies (connection station).

• The establishment must take the form of a • The radio broadcasting company must have commercial company owned by a minimum of a minimum capital of BD 2,000,000 for five Bahraini individuals Category 1 companies (public station) and

• The company must submit financial records Category 3 companies (connection station), including accounts, sources of income, and BD 1,000,000 for Category 2 companies expenditure and supporting documents (specialized station).

• The company must employ an editor-­in-chief • A minimum of 10% of the paid-up capital must who is a qualified Bahraini national and who be deposited in the form of cash deposit or supervises all content directly bank guarantee to the Ministry of Information within three months of issuing the license. • The company must have a minimum capital C of BD 1,000,000 for a daily newspaper, BD • Foreign media companies may set up branches 250,000 for a non-daily­ newspaper and BD in Bahrain. 50,000 for a specialised newspaper A director shall be appointed to manage the

• A minimum of 10% of the paid-up capital must Company and oversee its operation. The be deposited in the form of cash deposit or manager shall satisfy the following conditions: bank guarantee to the Ministry of Information • A Bahraini citizen residing permanently in within three months of issuing the license Bahrain, at least 30 years old.

• The publication must show the name of the • University graduate with at least 5 years of licensed owner, editor-in-chief or editor-in- relevant experience. charge, supervising department and name of • To be fully competent and of good repute and printing press (if not owned by publication) conduct.

Activity Licensing and Approval The following conditions apply to audiovisual • Final court judgment should not have been broadcasting licensees: passed against the applicant in a felony or • The establishment must take the form of a misdemeanour affecting his honour, integrity commercial company (it is not permitted to own or public morals, unless he has since been C3a or establish more than one television station and reinstated. one radio station) i For more information please refer to • The television broadcasting company must www.moci.gov.bh or contact the Publications have a minimum capital of BD 4,000,000 and Press Directorate.

? Application Procedures

The application process can be initiated by system. The Directorate will contact the investor if submitting a commercial registration application additional information is needed. Upon receiving (see Section C2). The application will be relayed the Directorate’s approval, the investor can

A Step-by-Step Guide to the Directorate of Publications and Press via proceed to complete the commercial registration the Ministry of Industry & Commerce’s electronic procedures. Commercial Registration Commercial

74 Required Documents Type Required documents Newspapers, Application letter publications and distribution (daily, non- The company’s draft Memorandum of Association / Articles of Association daily and sepcialised All relevant details of the publication, including details of legal representative, newspapers and editor-in-chief, language and name of publication, and printing press magazines) Bank guarantee of no less than 10% of the paid-up capital Audiovisual licenses Application letter (radio and television stations) The company’s draft Memorandum of Association / Articles of Association All relevant details of establishment, including details of legal representatives and chief executive officer Other licenses Bank guarantee of no less than 10% of the paid-up capital C Processing Time Type Processing time Newspapers, publications and distribution (daily, non-daily and sepcialised 60 working days newspapers and magazines) Audiovisual licenses (radio and television stations) 60 working days Other licenses 3 working days

BD Fees Activity Licensing and Approval None

i Contact Information C3a Directorate of Publications and Press Tel: (+973) 17711010, 17711008, 17711023 Fax: (+973) 17717515 Website: www.moci.gov.bh A Step-by-Step Guide Commercial Registration Commercial

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Ministry of Information - Tourism Affairs

i General Conditions

The Directorate of Tourism Affairs is responsible area of 1500 square metres per 100 rooms for licensing the following business activities: • Three, two and one-star hotels must have a • Organisers of artistic concerts minimum area of 1000 square metres per 100

• Offices for organising tourism festivals rooms

• Offices for management and operation of The following conditions apply to hotel tourism and leisure projects apartments: • The location must be within a tourism or • Tourism investment and development companies commercial zone approved by Tourism Affairs • Property must be in a separate building and • Offices for tourism and consultancy consist of 15 apartments as a minimum • Hotels, inns, and tourism resorts The following conditions apply to tourism • Hotel apartments restaurants: C • Tourism restaurants • The location must be within a tourism zone

• Travel and tourism offices approved by Tourism Affairs • • Bringing foreign artists and bands Property must be in a separate building

• Tourist land transport The following conditions apply to tourism and travel offices: • Domestic sea cruises • The office location must be within a tourism or • Management of hotels, hotel apartments and commercial zone approved by Tourism Affairs tourism restaurants with minimum space area of 45 square metres

Applicants for all license types must satisfy the • Travel bureaus must be located on the ground following conditions: floor

Activity Licensing and Approval • To be fully competent and of good repute and • A minimum capital of BD 20,000 is required for conduct each activity (tourism or travel) • Final court judgment should not have been • The establishment must hire a qualified passed against the applicant in a felony or manager with not loss than three years relevant C3a misdemeanour affecting his honour, integrity experience, or five years relevant experience If or public morals, unless he has since been he/she does not possess a high qualification reinstated • The establishment must employ two tourist • To comply with conditions specified in the guides for outside and inside tours and travel Tourism Law, to implement its regulations, and arrangements, with not less than one year permit representatives of Tourism Affairs to enter relevant experience each the tourist establishment for monitoring and inspection The following conditions apply to establishments bringing foreign artists and foreign artistic bands • Certificate of experience in the same field to Bahrain: or copy of education qualification (hotel, • The office location must be within a tourism or apartment, resort, inn, restaurant and travel and

A Step-by-Step Guide commercial zone approved by Tourism Affairs tourism) • License application must be submitted at least The following conditions apply to hotels, inns two months prior to the arrival of the artist and and resorts: the occasion which necessitates the same • The location must be within a tourism or commercial zone (tourism zone for resorts) • Applications of foreign artists and band Commercial Registration Commercial approved by Tourism Affairs members must be referred to the General Directorate of Nationality, Passports & • Five and four star hotels must have a minimum 76 Residence to grant entry visas The following conditions apply to tourist sea and • Bank account statement showing the financial land transport: status

• The office location must be within a tourism or • Certificate of experience in the same field or commercial zone approved by Tourism Affairs copy of education qualifications • For sea transport, the applicant must show i For further information and details on operational proof of the availability of a suitable water regulations and classification of hotels and vessel, such as sailing boat, yacht or banoosh other establishments, please contact the (traditional Bahraini ship) representative of the Tourism Affairs Directorate

• For land transport, a minimum of three vehicles at the Bahrain Investors’ Centre. must be available For other licenses, the following is required:

• Office address should be located in a tourism / commercial zone approved by Tourism Affairs

? Application Procedures

For hotels, resorts, inns, hotel apartments and the establishment and issue its final license C tourism restaurants: accordingly.

• The investor should apply for commercial • The BIC then issues the CR for the desired registration application at the BIC (for both tourism activity. individual establishments and companies). • The investor must then obtain the official • The BIC will refer the application to all licensors, “Tourism Certificate” directly from Tourism Affairs including Tourism Affairs. The representative of prior to operation. the Tourism Affairs Directorate will co-ordinate For all other tourism activities: with all supplementary licensers and assist the investor in obtaining the necessary licenses. • The investor should apply for commercial registration application (see Section C2) at the • Upon obtaining all the supplementary licenses, BIC (for companies) or the Ministry of Industry & Activity Licensing and Approval the Tourism Affairs Directorate will issue a Commerce (for individual establishments). preliminary tourism license. The preliminary license is valid for one year, subject to renewal. • The application will be referred to all licensors, including Tourism Affairs. • A commercial registration (CR) will be issued to the investor on the condition that it is used only • Upon obtaining all the supplementary licenses C3a for management of the tourism project under and approvals, the commercial registration for establishment (tourism commercial activity is not the specified tourism activity will be issued. permitted at this stage). • The investor must then obtain the official • The investor must proceed to complete the “Tourism Certificate” directly from Tourism Affairs construction and preparation of the tourism prior to operation. establishment according to the conditions and specifications set by Tourism Affairs.

• Upon completion of the establishment, the investor must approach the representative of Tourism Affairs at the BIC to obtain a final tourism license. Tourism Affairs will inspect A Step-by-Step Guide Commercial Registration Commercial

7777 A

Required Documents Type Required documents

Hotels, resorts, bars, • Copy of CPR card and passport tourist apartments • Copy of the land’s title deed

• Written approval of the owner if the property is leased

• Location of the land / estate

• Bank account statement showing the financial status of the project

Tourism restaurants • Copy of CPR card and passport

• Copy of the land’s title deed

• Written approval of the owner if the property is leased

• Location of the land / estate

• Bank account statement showing the financial status of the project

Tourism and travel offices • Copy of CPR card and passport

C • Address of the office

• Details of the area of the property (minimum 45 square metres)

• Bank account statements (BD 20,000 required for each activity)

Tourism land and sea • Copy of CPR card and passport transport • Address of the office

• Proof of the availability of sea vessels (sea transport)

• or minimum three vehicles (land transport)

All other licensees • Copy of CPR card and passport

• Address of the office Activity Licensing and Approval

Processing Time 3a Type Processing time C All 5 working days

BD Fees The Ministry of Information charges 5% of net income on a quarterly basis (for hotels and tourism apartments only)

i Contact Information Tourism Affairs Directorate (Main) A Step-by-Step Guide Tel: (+973) 17211026 Fax: (+973) 17211717 Tourism Affairs Directorate (BIC) Tel: (+973) 17562253 Commercial Registration Commercial Fax: (+973) 17581338 Website: www.moci.gov.bh 78 Ministry of Interior - General Directorate Of Traffic

i General Conditions

The General Directorate of Traffic licenses all safety equipments as instructed by the business activities related to land transportation Directorate services. • To have a phone and keep a record of the An investor may apply for a license to undertake rented cars with registration and license any of the following: plate numbers and records of all names and nationalities of customers • Passenger land transport Applicants for tourist land transport must satisfy • Tourist Land transport the following conditions:

• Goods land transport • To provide a proper place of business in an • Car rental appropriate location

• Call taxi • To provide sufficient parking spaces for the transportation vehicles • Driving instruction )individuals only) • To commence operations within six months of C • Motorcycle rental obtaining commercial registration Licensing of all the aforementioned business • To register a minimum of three vehicles and activities is confined to Bahraini nationals only. maximum of 15 vehicles in good condition Applicants to register public transport vehicles and the company name must be written on all must satisfy the following conditions: vehicles

• To be a Bahraini national • The trips organised by the company must be contractual with individuals or establishments • To have a valid driver’s license held for at least in other countries (such as Umra and Hajj). five years Regular route trips to the Eastern Province of • To be at least 25 years of age Saudi Arabia are not allowed Activity Licensing and Approval • Not to have any previous criminal or traffic • To undertake the activity as licensed. Rental of a violation license is strictly prohibited

• Not to be a civil servant or hold any job in a The General Directorate of Traffic is a supporting public or private establishment licensor for businesses that require parking C3a Applicants for all types of vehicle rental must facilities. Those activities include hotels, resorts, satisfy the following conditions: tourism restaurants, schools or any other type of business referred by Municipalities and/or other • To have a proper place of business in an licensors. appropriate location with sufficient lighting and ventilation The application in these cases will be referred to

• To provide sufficient parking spaces for the General Directorate of Traffic for assessment, the rental cars adjacent to or in front of the and the investor will be required to provide establishment sufficient parking spaces as required.

• To provide basic car and tyre repair equipments

• To provide adequate fire extinguishers and A Step-by-Step Guide Commercial Registration Commercial

7979 A

? Application Procedures

The application process can be initiated by of Traffic. The investor should then approach submitting a commercial registration application the Directorate and provide all the necessary (see Section C2). The Ministry of Industry & documents. Upon receiving the Directorate’s Commerce will provide the investor with a letter written approval, the investor can proceed to requesting the approval of the General Directorate complete the commercial registration procedures.

Required Documents Type Required documents

Land transportation and • Application letter vehicle rental (all types) • Copy of CPR card

• Project description

Approvals related to • Application letter parking facilities C • Copy of CPR card • Project plan or map showing planned parking spaces

• Signature on agreement not to undertake any other activity in the same office

Processing Time Type Processing time All 3 working days

Activity Licensing and Approval BD Fees None 3a C i Contact Information General Directorate of Traffic Tel: (+973) 17872222 Fax: (+973) 17781410 Website: www.traffic.gov.bh A Step-by-Step Guide Commercial Registration Commercial

80 Ministry of Interior - General Directorate of Civil Defence

i General Conditions

The General Directorate of Civil Defence approves i For detailed building specifications by activity and supervises the location of business for certain types, please contact the General Directorate of commercial activities that may require specific fire Civil Defence or its representative at the Bahrain and safety regulations. The Directorate inspects the Investors’ Centre (BIC). business location, if applicable, and ensures that sufficient safety measures are in place.

? Application Procedures

The application process can be initiated by is supplied with relevant conditions and safety submitting a commercial registration application requirements. Otherwise, an inspection of the (see section C2). premises is required prior to issuing approval. If the establishment is not yet built, a preliminary C The application will be relayed to the General approval is supplied, pending construction and Directorate of Civil Defence via the Ministry inspection of premises thereafter. The investor will of Industry & Commerce’s electronic system. be contacted if additional information is needed. For small projects and projects established in Upon receiving the Directorate’s approval, the preapproved commercial buildings and commercial investor can proceed to complete the commercial malls, approval is issued instantly and the investor registration procedures.

Required Documents Type Required documents

All applicants • Copy of commercial registration application Activity Licensing and Approval • Copy of CPR card (passport for non-Bahrainis)

New building projects • Copy of commercial registration application • Copy of CPR card (passport for non-Bahrainis) C3a • Copy of ownership certificate

• Copy of land survey certificate

• Initial prints of engineering drawings

• Copy of industrial model (factories)

Import and trade of anti- • Copy of commercial registration application theft and fire fighting • Copy of CPR card (passport for non-Bahrainis) equipments • List of equipments and international certificates

Bakeries • No objection letter from the landlord

• Copy of leasing agreement stating “Bakery activity” A Step-by-Step Guide Commercial Registration Commercial

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Processing Time Type Processing time All 3 working days

BD Fees Type Fee (BD) Bakeries 10 All others 20

i Contact Information General Directorate of Civil Defence (Main) Tel: (+973) 17239342 Fax: (+973) 17254075 C Website: www.civildefence.gov.bh General Directorate of Civil Defence (BIC) Tel: (+973) 17562248, 17562249 Fax: (+973) 17581323 Activity Licensing and Approval

C3a A Step-by-Step Guide Commercial Registration Commercial

82 Ministry of Interior - General Directorate of Crime, Detection & Forensic Science

i General Conditions

General Directorate of Crime, Detection & Forensic • Checking the content and quantities of Science provides a supporting role in business chemicals in the Directorate’s laboratory (for licensing through the following: trade in chemicals) • Conducting background checks of investors The Directorate is also responsible for licensing wishing to undertake specific business activities private security services for buildings and (see Section C3) in order to ensure integrity and establishments. Such licenses are issued on suitability of the prospective investor a case-by-case basis upon evaluation of the

• Checking the location of business for suitability application by the Assistant Undersecretary. (mainly for tourism establishments, coffee For detailed information, please contact the shops, and sport facilities) Directorate.

? Application Procedures C The application process can be initiated by Commerce’s electronic system. The investor will submitting a commercial registration application be contacted if additional information is needed. (see Section C2). The application will be relayed Upon receiving the Directorate’s approval, the to the General Directorate of Crime, Detection investor can proceed to complete the commercial & Forensic Science via the Ministry of Industry & registration procedures.

Required Documents

• Copy of commercial registration application

• Copy of CPR card Activity Licensing and Approval • Investor must sign a form of consent, guaranteeing to abide by Bahrain law and general moral standards (only for trade in audio and audiovisual materials)

Processing Time C3a Type Processing time All 3 working days

BD Fees None

i Contact Information

General Directorate of Crime, Detection & Forensic Science (Licenses and Certificates Section) A Step-by-Step Guide Tel: (+973) 17712409 Fax: (+973) 17717217 Commercial Registration Commercial

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Ministry of Interior - Coast Guard Directorate

i General Conditions

The Coast Guard Directorate licenses and Licensees must fulfill the following conditions:

supervises the following business activities: • The vessel must be registered with the Coast • Organising cruise liner trips to and from Bahrain Guard Directorate

• Organising tourist Local sea cruises • The vessel must be insured

• Hiring yachts, boats and jet skis • The vessel captain must carry a valid permit from the Coast Guard Directorate Commercial registration is required for the aforementioned activities and a license from • For hiring yachts, boats and jet skies, the place the Coast Guard Directorate is required prior to of the activity must be away from channels and commercial registration. The license is valid for one industrial areas year and must be renewed thereafter. i For further information and operational regulations, please contact the Directorate. C ? Application Procedures

The application process can be initiated by Directorate. The investor should then approach the submitting a commercial registration application Directorate prior to applying for a license. Upon (see Section C2). The investor will be supplied with obtaining the license, the investor may proceed to a letter requesting a license from the Coast Guard complete the commercial registration process.

Required Documents

• Application letter • Registration of vessel with the Coast Guard

Activity Licensing and Approval • Copy of CPR card • Proof of insurance

• Vessel survey certificate • Vessel captain’s permit (obtained from the Coast Guard)

C3a Processing Time Type Processing time All 3 working days

BD Fees Type Fee (BD) Fee (BD) Organising cruise liner trips to and Organising local tourist sea trips from Bahrain • Less than 50 passengers 25 • Crew certificate from Coast Guard 10 A Step-by-Step Guide • Above 50 passengers 50 • Sailing permit from Coast Guard 50

i Contact Information Commercial Registration Commercial Coast Guard Directorate Tel: (+973) 17712409 84 Fax: (+973) 17717217 Ministry of Justice - Directorate of Courts

i General Conditions

The Courts Directorate at the Ministry of Justice • Final court judgment should not have been licenses real estate brokers. Real estate brokerage passed against him in a felony or misdemeanour is defined as the intermediation and negotiation of affecting his honour, integrity or public morals, contracts to buy or sell real estate (built and non- unless he has since been reinstated built). Agents who act as intermediaries only in the • To be literate leasing of property do not need a broker’s license. A bank guarantee for the amount of BD 300 in An applicant for a real estate brokerage license favour of the Ministry of Justice and Islamic Affairs must satisfy the following conditions: is required. A license is issued for a period of one • To be a Bahraini citizen residing in Bahrain year and must be renewed annually thereafter.

• To be no less than 21 years of age A real estate broker must present a summary of activities carried out throughout the previous year • To be fully competent and of good repute and at time of renewal. conduct C ? Application Procedures

The applicant should first approach the General The applicant should then proceed to apply for Registrar at the Courts Directorate to apply for a commercial registration (Section C2). Alternatively, real estate broker’s license. If the application is the applicant may contact the Ministry of Industry approved, the General Registrar will issue a Real & Commerce or the Bahrain Investors’ Centre (BIC) Estate Broker’s Card upon payment of the fee. to apply for a license.

Required Documents Activity Licensing and Approval • Application letter addressed to the Minister of Justice

• Copy of CPR card

• Two passport size photographs of the applicant

• Bank guarantee for the specified amount C3a

Processing Time Type Processing time All 15 working days

BD Fees Type Fee (BD) Renewal fee (BD) Bank guarantee (BD)

Real estate broker 5 5 300 A Step-by-Step Guide

i Contact Information Directoate of Courts (General Registrar) Commercial Registration Commercial Tel: (+973) 17522252, 17522242 Fax: (+973) 17532542 85 Website: www.moj.gov.bh 85 A

Ministry of Labour - Directorate of Training Institutes Affairs

i General Conditions

The Directorate of Training Institutes Affairs at the training institution in pursuance of the standards Ministry of Labour (MOL) licenses the following: and guarantees prescribed and laid down by • Professional and technical training centres and the Ministry institutes Not to be a civil servant or an employee of public • Management and business training centres and organisations or private institutions institutes For a corporate entity • Training co-ordination offices • If the applicant is a corporate entity, its • Training and consultancy co-ordination offices representative must fulfill the previous The following are general conditions that all conditions, with the exception of (8), provided applicants for a private vocational institute license that the source of finance for the private must fulfill: educational institution and ability to maintain such finance are specified in the application For an individual person: Licenses are valid for three years and must be C • To be no less then 25 years of age renewed thereafter. The Ministry of Labour sets forth rules and regulations governing the operation • To be fully competent and of good conduct of training institutes and centers and carries out • Final court judgment should not have been inspections to ensure compliance with the rules passed against him in a felony or misdemeanour and regulations. affecting his honour, integrity or public morals, unless he has since been reinstated i For detailed information, please consult the Private Educational and Training Institutions Law • To have at least the General Secondary School (No. 25 of 1998), available in Arabic at www. Certificate or its equivalent legalaffairs.gov.bh, or contact the Directorate of • To be capable of financing the setting up and Training Institute Affairs. continuation of the private educational or Activity Licensing and Approval ? Application Procedures

• The investor should submit a completed printed requesting issue of commercial registration. C3a application form and supporting documents A copy of the commercial registration shall to the Directorate of Private Education at the be submitted to the Directorate of Training Ministry of Education. Institutes Affairs.

• The application will be submitted to the Joint • The investor shall submit a bank certificate as Committee for Licensing the Establishment of evidence of ability to meet minimum financial Private Education and Training Institutions to get requirements of the project; BD 30,000 for a the initial approval. The Committee meets once training centre, or BD 15,000 for a training co- a month. ordination office.

• After the initial approval is granted, the • The investor must pay the license fee for three Directorate of Training Institutes Affairs will years, and a bank guarantee in the required supply the investor with a letter addressed to amount.

A Step-by-Step Guide the General Directorate of Crime, Detection • Upon satisfaction of all required conditions and & Forensic Science (for establishments and requirements, a license is issued by the Ministry companies), the Directorate General of Traffic, of Labour and the investor is supplied with a the Directorate General of Civil Defence, and the copy of Legislative Decree No. 25 of 1998 with Municipality (for institutes and training centres respect to Private Educational and Training Commercial Registration Commercial only). Institutions. • The Directorate will also supply the investor with 86 a letter to the Ministry of Industry & Commerce Required Documents

• Application form (available at MOL)

• Copy of passport and both sides of CPR card (for Bahrain nationals / residents)

• Copies of academic qualifications

• Letter from investor’s last employer, confirming termination of employment

• Feasibility study and proposed budget for the project

• Copy of curriculum vitae

• Proposed internal organisational structure of the establishment

• Names, titles, and contact information of all proposed board members

• Copy of commercial registration if the applicant is a corporate entity

Processing Time Type Processing time C All 60 working days

BD Fees Private Training Institutions Fee (BD) Bank guarantee (BD) Training co-ordination office 60 100 Training and consultancy co-ordination office 90 100 Professional and technical centres and institutes 150 100 Managment and business training centres and institutes 120 100

* Fees cover the three year period. Activity Licensing and Approval

i Contact Information Directorate of Training Institutes Affairs C3a Tel: (+973) 17873930 Fax: (+973) 17682700 A Step-by-Step Guide Commercial Registration Commercial

8787 A

Ministry of Municipalities Affairs and Agriculture - Agriculture Affairs

i General Conditions

The Ministry of Municipalities Affairs and Agriculture • Trade in all types of animals, livestock, birds, (Agriculture Affairs) licenses all business activities animal feed and bird feed relating to agriculture and animal farming. There The Plant Wealth Directorate, which licenses the are three directorates that supervise agricultural following: activities in the Kingdom of Bahrain: • Trade in plants, agricultural inputs, saplings and The Animal Wealth Directorate, which licenses related supplies the following: The Water Resources Directorate, which licenses • Veterinary services the following:

• Trade in veterinary medicines and tools • Drilling of artesian wells

• Management and operation of animal and • Rental of swimming pools poultry projects and farms C ? Application Procedures

The application process can be initiated by the Directorate and provide all the necessary submitting a commercial registration application documents. Upon receiving the Directorate’s (see Section C2). The Ministry of Industry & written approval, the investor can proceed to Commerce will provide the investor with a letter complete the commercial registration procedures. requesting the approval of the appropriate The investor will be contacted if additional directorate in the Ministry of Municipalities Affairs information is needed. and Agriculture. The investor should then approach Activity Licensing and Approval Required Documents

• Application letter specifying the project description and applicant’s contact details. C3a Processing Time Type Processing time All 15 working days

BD Fees None

i Contact Information A Step-by-Step Guide Animal Wealth Directorate Plant Wealth Directorate Water Resources Directorate Tel: (+973) 17691256 Tel: (+973) 17691251 Tel: (+973) 17696777 Fax: (+973) 17694673 Fax: (+973) 17695734 Fax: (+973) 17697276

Commercial Registration Commercial Email: [email protected] Website: www.mun.gov.bh 88 Ministry of Transportation - Civil Aviation Affairs

i General Conditions

All air transport and related activities must be Airlines general sales agents must satisfy the licensed by the Ministry of Transportation’s Civil following conditions:

Aviation Affairs (CAA). • The airline company must be registered in a country which adheres to the Convention An investor may apply for a license for any of the for the Unification of Certain Rules relating to following: International Carriage by Air (Montreal 1999) and • Airlines operating out of Bahrain to the Convention on International Civil Aviation • Airlines general sales agents (Chicago 1944)

• Maintenance of aircrafts • Any agreement between the airline and the agent must be signed in accordance with IATA • Air and ground services for aircrafts rules and regulations • Aircraft buying, selling and leasing • Any agreement between an airline agent and • Trade in aircraft spare parts travel agents shall be subject to IATA rules and regulations in relation to sales and distribution C • Aircraft catering agreements • Duty free Cargo regulated agents must satisfy the following • Commercial activity inside the airport conditions:

• Travel offices • To have a minimum capital of BD 15,000

• Cargo agents • To have a qualified manager with sufficient The Ministry evaluates applications and bases relevant work experience, and final court its decisions in accordance with the regulations judgment should not have been passed against and requirements set forth in the Convention on him in a felony or misdemeanour affecting his International Civil Aviation (Chicago 1944), the Civil honour, integrity or public morals, unless he has since been reinstated

Aviation Law (No. 6 of 1995) and the Kingdom of Activity Licensing and Approval Bahrain’s Civil Aviation technical regulations relating • Employees at the establishment must be to civil aviation safety and security. qualified to operate air cargo

Airlines operating in Bahrain must fulfill the • Vehicles used for transport of shipments must following conditions: be safe, secure and suitable for the type of C3a packages transported • To be registered in a country that adheres to the Convention for the Unification of Certain Rules • Offices must be suitable for customer service relating to International Carriage by Air (Montreal and comply with safety regulations

1999) and to the Convention on International • An electronic system for exchange of shipping Civil Aviation (Chicago 1944). Its aviation documents must be available and meet certificate must be valid and registered in its international standards home country • A technical and administrative manual must • To show visible signs of its nationality and be drafted to include all details of equipment, registration machinery, and workforce. Civil Aviation Affairs • To be equipped with all required equipment and must be notified of any changes A Step-by-Step Guide machinery i For further details and for information regarding • Pilots must be qualified and possess valid regulations and safety requirements, please licenses of home country contact Civil Aviation Affairs at the Ministry of Transportation. • All aircrafts, crew, passengers, and cargo must

be fully insured Registration Commercial 8989 A

? Application Procedures

The application process can be initiated by receiving Civil Aviation Affair’s written approval, the submitting a commercial registration application investor can proceed to complete the commercial (see Section C2). The Ministry of Industry & registration procedures. The investor will be Commerce will provide the investor with a letter contacted if additional information is needed. The requesting the approval of Civil Aviation Affairs. The investor may contact Civil Aviation Affairs before investor should then approach Civil Aviation Affairs proceeding with the commercial registration and provide all the necessary documents. Upon application.

Required Documents Type Required documents

• Travel offices

• Airlines’ general sales agents

C • Cargo agents Application form (available at MOT)

• Commercial activity inside the airport

• Import, export and sale of aircraft spare parts

• Airlines operating in Bahrain

• Maintenance of aircrafts

• Aircraft refueling Application form (available at MOT) • Air and ground services for aircrafts Feasibility study • Aircraft catering

• Buying, selling, and leasing of aircrafts Activity Licensing and Approval • Duty free

3a Processing Time C Type Processing time

• Travel offices 3 working days

• Airlines’ general sales agents, cargo agents, commercial activity inside the airport, import, export and sale of aircraft spare parts, airlines operating in Bahrain, maintenance of aircrafts, aircraft refueling

• Air and ground services for aircrafts, aircraft catering, buying, selling, and leasing 60 working days of aircrafts, duty free A Step-by-Step Guide Commercial Registration Commercial

90 BD Fees Type Fee (BD) Bank guarantee (BD) Travel office 200 50 Airline general sales agent 100 50 Cargo regulated agent 100 50 Approval of an organisation (airline) 3000 2000 Approval of line maintenance for a small organisation (airline/aviation 1000 500 company) Air Operator’s Certificate (AOC) 2000 Study/review of business plan 1000 Issue or extension of a provisional AOC or Operating Certificate 1000 Assessment of financial statement, initial and annual 1000 Assessment of an operator and issue, or variation (e.g. adding of a 2000 new aircraft) of an AOC Assessment of aircraft charter, lease or sublease 1000 C

i Contact Information Undersecretary for Civil Aviation Affairs Tel: (+973) 17329008, 17321100 Fax: (+973) 17329066 Assistant Undersecretary for Civil Aviation Services Tel: (+973) 17321011, 17321112 Fax: (+973) 17329114 Activity Licensing and Approval Assistant Undersecretary for Airport Services Tel: (+973) 17321997 Fax: (+973) 17324096 Website: www.caa.gov.bh C3a A Step-by-Step Guide Commercial Registration Commercial

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National Oil and Gas Authority

i General Conditions

• All oil and gas businesses and industries • Gas cylinder distribution must be licensed by the National Oil and Gas • Import, export and / or sale of racing car fuel Authority (NOGA). Only Bahrainis are permitted the following An investor may apply for a license to establish activities:

any of the following: • Oil products supplies (filling stations) • Oil exploration • Gas bottling and distribution • Drilling oil and gas wells and technical services • Cooker re-filling and repairing for oil fields • Gas cylinder distribution • Import. export and / or sale and marketing of oil products and petrochemicals Only Bahraini and GCC nationals are permitted • Oil products supplies (filling stations) the following: • Import, export and / or sale of racing car fuel C • Gas bottling and distribution i For details on licensing regulations and specific • Cooker re-filling and repairing operation requirements please contact NOGA.

? Application Procedures

The application process can be initiated by written approval, the investor can proceed to submitting a commercial registration application complete the commercial registration procedures. (see Section C2). The Ministry of Industry & The investor will be contacted if additional Commerce will provide the investor with a letter information is needed. Alternatively, the investor requesting the approval of NOGA. The investor may contact NOGA directly prior to applying for Activity Licensing and Approval should then approach NOGA and provide all the commercial registration. necessary documents. Upon receiving NOGA’s

C3a Required Documents • Application form (available at NOGA)

• Copy of passport and CPR card

• Letter specifying time period needed to establish the project

• Land ownership certificate, in the case of application for gas station

• Any other necessary information that may be requested A Step-by-Step Guide Commercial Registration Commercial

92 Processing Time Type Processing time

• Oil exploration 15 working days

• Drilling oil and gas wells / technical services for oil fields 10 working days

• Import, export and marketing of oil products and petrochemicals 5 working days

• Oil products supplies (filling stations) 30 working days

• Gas bottling and distribution 5 working days

• Cooker refilling and repairing 5 working days

• Gas cylinder distribution 5 working days

• Import, export and/or sale of racing car fuel 5 working days

BD Fees Type Fee (BD) Renewal fee (BD) • Oil exploration 12000 500 C • Drilling oil and gas wells / technical services for oil fields 12000 500

• Import, export and marketing of oil products and 12000 500 petrochemicals

• Oil products supplies (filling stations) 2000 100

• Gas bottling and distribution 2000 100

• Cooker refilling and repairing 100 100

• Gas cylinder distribution 100 100

• Import, export and/or sale fuel 100 100 Activity Licensing and Approval

i Contact Information Oil and Gas Directorate Tel: (+973) 17525511 C3a Fax: (+973) 19293007 A Step-by-Step Guide Commercial Registration Commercial

9393 A

Public Commission for Protection of Marine Resources, Environment and Wildlife - General Directorate of Marine Resources

i General Conditions

The General Directorate for the Protection Applicants for all license types must satisfy the of Marine Resources licenses the following following conditions:

business activities: • Not to be a government employee • Fishing • Not to have any other business registered under • Import, export and / or sale of fish and marine his / her name products Applicants for a fishing license must satisfy the • Import, export and / or sale of ornamental fish following conditions: and aquarium accessories • To be a citizen of Bahrain or any of the GCC • Extraction of sand from the sea countries

• Fish and prawn mariculture and fish farm culture • To own or Lease a seaworthy vessel suitable for C facilities the fishing activity

• Organising fishing tournaments and water • A license is issued for a period of one year and sports must be renewed annually. • Any other investments in marine resources i For queries on operational regulations, please contact the Directorate or refer to Law No. 20 of 2002, available in Arabic at www.legalaffairs.gov.bh.

? Application Procedures Activity Licensing and Approval Application Procedures approach the Directorate and provide all the The application process can be initiated by necessary documents. Upon receiving the submitting a commercial registration application Directorate’s written approval, the investor can (see Section C2). The Ministry of Industry & proceed to complete the commercial registration C3a Commerce will provide the investor with a letter procedures. The investor will be contacted if requesting the approval of the General Directorate additional information is needed. of Marine Resources. The investor should then

Required Documents License type Required documents

Mariculture of fish • Application letter

• Copy of CPR card (passport for non-Bahrainis)

• Business plan or feasibility study A Step-by-Step Guide Extraction and transport of sand • Application letter from the sea • Copy of CPR card (passport for non-Bahrainis)

• Details of proposed work

Import, export and/or sale of fish • Application letter Commercial Registration Commercial

• Copy of CPR card (passport for non-Bahrainis) 94 Fishing • Application letter

• Copy of CPR card (passport for non-Bahrainis)

• Completed application form no. /fMEG-01 (available at the Directorate) for barrier traps (hadhrah)

• Completed form no. MRD/MEG-02 (available at the Directorate) for barrier traps (hadhrah)

• Copy of vessel registration certificate

• Copy of vessel rental contract, if vessel is rented

• Loan application form, if applicable

Import, export and/or sale of • Application letter ornamental fish and marine • Copy of CPR card (passport for non-Bahrainis) products

Processing Time Type Processing time C • Mariculture activities, fish and prawn culture and fish farm culture facilities 15 working days

• Extraction and transport of sand from the sea 30 working days

• Import, export and/or sale of fish and marine products 10 working days

• Fishing 10 working days

BD Fees Type Fee (BD) Fishing Shrimp / fish +40 ft boat: 50 Activity Licensing and Approval -40 ft boat: 20 Small boat: 10 Barrier trap: Government owned: 26 3a Privately owned: 1 C

Renewal fees are the same as license fees and must be paid annually. Activities not listed do not incur fees.

i Contact Information General Directorate for Marine Resources Tel: (+973) 17815880 Fax: (+973) 17728459 Website: www.pmew.gov.bh A Step-by-Step Guide Commercial Registration Commercial

9595 A

Public Commission for Protection of Marine Resources, Environment and Wildlife - Environment Control Directorate

i General Conditions

The Commission for Environmental Control and • Ventilation Planning is responsible for licensing service • Chemicals and radioactive sources business activities that may adversely affect the environment. • Waste Management For detailed regulations and specifications, please Environmental licenses are issued for one year and consult the Commission’s Orders Nos.3, 4 and must be renewed annually. 5 of 2005) and Order No.1 of 2001, available in To prevent environmental harm, the Commission Arabic at www.legalaffairs.gov.bh. or contact the has placed detailed conditions and regulations Environment Control Directorate. regarding the following: There are other business activities that do • Building specifications: location, height. floor not require pre-approval by the Environment C and ceiling materials and specifications Control Directorate but are subject to specific • Noise and vibration levels environmental conditions and regulations and may be subject to inspection and follow-up. At time • Lighting of commercial registration, the investor will be • Heat effects supplied with those conditions and guidelines.

? Application Procedures

The application process can be initiated by the Directorate and provide all the necessary submitting a commercial registration application documents. Upon receiving the Directorate’s (see Section C2). The Ministry of Industry & written approval, the investor can proceed to Activity Licensing and Approval Commerce will provide the investor with a letter complete the commercial registration procedures. requesting the approval of the Environment Control The investor will be contacted if additional Directorate. The investor should then approach information is needed. C3a Required Documents Application forms (available at the Directorate)

Processing Time Type Processing time All 5 working days A Step-by-Step Guide Commercial Registration Commercial

96 BD Fees Type Fee (BD)

• Import of chemicals 50

−− (used in universities, labs and treatment centres) 35

• Trade and use of radioactive materials in manufacturing 50

• Printing 25

• Gold moulding 25

• Metal workshops 20

• Cutting and collecting aluminium 20

• Film developing 19

• Carpentry workshops 16

• Tanning workshops 15

• Blacksmith and metal welding workshops 14 • Repair of ships and marine engines 12 C • Women’s hair salons 12

• Dry cleaners 10

• Automated carwash 10

• Auto workshops 7

• Repair of electronic equipment 5

• Repair of refrigerators and air conditioners 5

• Repair of motorcycles 5

Fees must be paid annually; the Commission reserves the right to change the fee levels. Activity Licensing and Approval

i Contact Information Environment Control Directorate Tel: (+973) 17875111, 17875175 C3a Website: www.pmew.gov.bh A Step-by-Step Guide Commercial Registration Commercial

9797 A

Public Commission for Protection of Marine Resources, Environment and Wildlife - Environmental Assessment and Planning Directorate

i General Conditions

The Directorate of Assessment and Planning is and emissions. For manufacturing activities, responsible for granting approval of manufacturing the Directorate may only accept applicants that and related activities that may adversely affect the possess a preliminary industrial license, granted by environment. the Directorate of Industrial Projects at the Ministry of Industry & Commerce. The Directorate assesses the environmental impact of industrial activities and ensures that i For specific requirements and regulations please factories comply with applicable environmental contact the Directorate. standards regarding processes, materials, waste

? Application Procedures C The application process can be initiated by should then approach the Directorate and provide submitting a commercial registration application all the necessary documents. Upon receiving the (see Section C2). The Ministry of Industry & Directorate’s written approval, the investor can Commerce will provide the investor with a letter proceed to complete the commercial registration requesting the approval of the Environment procedures. The investor will be contacted if Planning and Assessment Directorate. The investor additional information is needed.

Required Document Application forms Activity Licensing and Approval

Processing Time Type Processing time C3a • Projects that do not need full environment impact assessment 7 working days • Projects that need an environment impact assessment 60 working days

BD Fees Type Fee (BD) Registration fee 8 Full environment impact assessment (if required) 2000

The Commission reserves the right to change the fee levels. A Step-by-Step Guide i Contact Information Environmental Assessment and Planning Directorate Tel: (+973) 17875111, 17874154

Commercial Registration Commercial Website: www.pmew.gov.bh

98 Telecommunications Regulatory Authority

i General Conditions

Any person / entity operating a public • Frequency license telecommunications network, any • Temporary WiFi frequency license telecommunications network using a telecommunications frequency or providing a In addition, the following business activities telecommunications service in the Kingdom must require the approval of the TRA: obtain a license for that purpose in accordance • Supply and management of telecommunications with the provisions of telecommunications law. network equipment - not imported

An investor may apply for any of the following • Supply and management of telecommunications license types: network equipment - imported

• Mobile telecommunications services (when and • Supply and management of telecommunications as it is made available) terminal equipment - not imported

• National fixed services license (NFL) • Supply and management of telecommunications terminal equipment – imported C • International telecommunications facilities license (IFL) • Installation and maintenance of communication towers • International telecommunications services license (ISL) • Trade in communication service-provision systems to monitor vehicles via satellite • Paging service license • Telephone cabins services for local and • Public access mobile radio service license international telecommunications (PAMR) • Import, export and sale of aeration services for • VSAT services license aviation purposes • Internet service provider license (ISP) i For information and guidelines on license

• Value added services license (VAS) requirements and criteria, please refer to Activity Licensing and Approval www.tra.org.bh • Internet exchange license

? Application Procedures C3a The investor can first approach the TRA prior to by the Ministry of Industry & Commerce upon applying for commercial registration in order to receiving the TRA’s approval letter. obtain the required telecommunications license. Once the license is approved, investor then applies Alternatively, the investor may contact the Ministry for commercial registration (see Section C2). The of Industry & Commerce or the Bahrain Investors’ investor must then approach the TRA for approval Centre (BIC) directly prior to applying for a license of that activity. A commercial registration is granted at the TRA.

Required Documents A Step-by-Step Guide

• Application form for the appropriate license type and supporting documents as requested in the application.

• All application forms are available at www.tra.org.bh or by e-mail to [email protected] Commercial Registration Commercial

9999 A

Processing Time Type Processing time All 5 working days

BD Fees Type Fee (BD) Renewal fee (BD)

• Mobile telecommunications license This license may be made available after the TRA concludes its consultation with regards to the third mobile licensee.

• Paging service license 5,000 1% gross annual turnover

• VSAT license 5,000 1% gross annual turnover

• Public communication service license 5.000 1% gross annual turnover

• Portable radio communications license 20,000 1% gross annual turnover

• International communications service 10,000 1% gross annual turnover C license

• National fixed services license 35,000 1% gross annual turnover

• Internet service provide license 1,000 1% gross annual turnover

• Value-added services license 1,000 1% gross annual turnover

The TRA also grants frequency licenses for the use of frequency spectrum below 3,000 GHz. The availability, initial fee and renewal fee for these licenses depend upon the frequencies, bandwidth and use to which the frequencies will be put by an applicant and any policies set by the TRA. For more information, please contract the TRA.

i Contact Information Activity Licensing and Approval Telecommunications Regulatory Authority Tel: (+973) 17520000 Fax: (+973) 17532125 C3a Email: [email protected] Website: www.tra.org.bh A Step-by-Step Guide Commercial Registration Commercial

100 SECTION C3b Municipality Site Approval

A business address is required to establish all types of business. Municipality approval of the business location (site) is required for all types of business activities. Municipalities verify that the proposed location / zone are appropriate for the proposed business activity. Site approval is issued automatically for pre-approved commercial areas, such as commercial malls and commercial buildings.

C i General Conditions

For any activity, the following requirements are • The shop / premises surface level should be usually checked by the Municipality: similar to the road level for shop / premises that The size of the building must be sufficient for require car entrance or equipment the activity (based on the municipal inspector’s • Shop / premises are not allowed to be open judgment) directly onto highways

• Businesses may not carry out activity outside Industrial: the boundaries of the shop / premises • To be located in an appropriate area (industrial establishments cannot be opened in a

• It is prohibited to display or store any items Municipality Site Approval or equipment outside the shop / premises commercial or services area) boundary without prior approval from the • To be fenced in accordance with the regulation Municipality of the Technical Service Directorate • Provide garbage containers based on the size • To adhere to applicable environment regulations C3b and quantity of the garbage disposed in terms of storage of dangerous and toxic waste Specific Conditions by Business Type: • To provide emergency exits • To have parking space in front of the building for at least two cars • To provide car parks for organisation vehicles, if needed • Not to carry out the licensed activity outside the boundary of the shop / premises • To install large gates in order to prevent storage outside factory premises • To adhere to the working hours provided by the Municipality for shop / premises near residential • To adhere to rules and regulations of areas (usually between 7:30 am to 12:30 pm Environment Affairs

and 2:30 pm to 7:00 pm) A Step-by-Step Guide ? Application Procedures

The application for commercial registration is • For commercial areas, such as commercial

relayed electronically by the Ministry of Industry & malls and approved commercial buildings, Registration Commercial Commerce to the Ministry of Municipalities Affairs municipality site approval is granted instantly at and Agriculture. the BIC. 101101 A

• For other areas, an inspector from the queries. The investor is notified of the approval concerned Municipality is assigned to verify the decision within a maximum of 15 working days location. Representatives of Municipalities at the (in case of rejection, an detailed explanation BIC are responsible for collecting applications letter is sent to the investor). Application status and supporting documents, processing and can be checked online at www.mun.gov.bh. approving applications, and addressing all

Required Documents

• Company application registration form

• Copy of applicant’s CPR card (passport for non-Bahrainis)

• Two copies of property deed or rental agreement

• If application is for relocation from one area to another, certificate of relocation by previous Municipality

• Copy of electricity bill or electricity account number for new premises

• Copy of sale agreement, if CR is purchased from another person

• Copy of power of attorney, if required C

Processing Time Type Processing time All 15 working days

BD Fees Type Fee (BD) Application 2

Municipality Site Approval Approval of all types of activities 10

Set-up of Electricity Account Upon receiving site approval, the investor is referred to the Electricity and Water Authority’s representative C3b at the BIC, in order to set-up electricity in the name of the establishment.

A guarantor must be present; otherwise an investor pays an insurance deposit of BD 100 to the Electricity and Water Authority. An amount of BD 3,000 is charged for hotels. Industrial establishments are referred to the main offices of the Electricity and Water Authority for assistance.

i Contact Information Ministry of Municipalities Ministry of Municipalities Electricty & Water Electricty & Water Affairs and Agriculture (Main) Affairs and Agriculture (BIC) Authority (Main) Authority (BIC) Tel: (+973) 17501501 Tel: (+973) 17562242 Tel: (+973) 17576567 Tel: (+973) 17562250

A Step-by-Step Guide www.mun.gov.bh Fax: (+973) 17581310 Fax: (+973) 17223283 Fax: (+973) 17581393 www.mew.gov.bh Commercial Registration Commercial

102 Bahrain Financial Harbour SECTION C4a Notarization of Company Documents

The next step after obtaining any necessary license or approval is to notarise the company’s documentation. Notarisation is carried out at the Ministry of Justice and Islamic Affairs’ Public Notary at the Bahrain Investors’ Centre (BIC). All legal structure documentation should be issued in Arabic or in Arabic and English. A minimum of three copies is required. BD Notarisation Services and Fees by Company Type Fees for first two Fees for each Company type copies (BD) additional copy (BD)

• Bahrain Shareholding Company (B.S.C.) Public or 200 2 Closed

• With Limited Liability Company (W.L.L.) 25 2

• Partnership Company 25 2

• Simple Commandite Company 25 2

• Commandite by Shares Company 25 2

• Single Person Company (SP.C.)

−− Articles of Association 25 2

−− Declaration 5 2.5

BD Other Services and Fees of the Public Notary C Fees for first two Fees for each Company type copies (BD) additional copy (BD) Legalised power of attorney to run a company (notarise) 5 2 Power of attorney to form a company (legalise) 3 1.5 Amend a contract of all types of companies 5 2.5 Authenticated disclaimer on commercial shop (legalise) 3 1.5 i The representatives of the Public Notary at BIC may be contacted at: Tel: (+973) 17562260; Fax: (+973) 17581335

Authentication of Foreign Company Documents Notarization of Company Documents Any foreign company documents, such as the memorandum or articles of association, foreign power of attorney or authorisation, foreign minutes of meetings, or board of directors’ resolution, must be authenticated by the Ministry of Foreign Affairs or the Embassy of the Kingdom of Bahrain at the company’s home country. The Ministry of Industry & Commerce co-ordinates the authentication process. C4a A Step-by-Step Guide Commercial Registration Commercial

105105 SECTION C5a Issuance of Commercial Registration

Commercial Registration (CR) is issued by the Ministry of Industry & Commerce. Issuance of Commercial Registration When all requirements and conditions stipulated in the previous section are met, a Commercial Registration (CR) is issued by the Ministry of Industry & Commerce. Commercial Registrations must be renewed on an annual basis.

Renewal of Commercial Registration Commercial registrations can be renewed online www.moic.gov.bh, through the MOIC hotline +973 17574700, through the BIC Call Centre +973 17562222, (or through postal offices throughout the Kingdom), or in person.

BD Fee Type Fee (BD) Registration fee 30 Annual renewal fee 30

C Issuance of Commercial Issuance of Commercial Registration

C5a A Step-by-Step Guide Commercial Registration Commercial

107107 SECTION C5b Publication in the Official Gazette

All new registrations require publication in the Official Gazette. ? Application Procedures

At the time of issuing the commercial registration, i For more information, please contact the the Ministry of Industry & Commerce provides the Directorate of Publications and Press: investor with a letter of request addressed to the Tel: +973 17871768 Ministry of Information to publish the name of the Fax: +973 17681493 new company / establishment and its activities in or its representatives at the BIC at: the Official Gazette (published every Thursday). For Tel: +973 17562252, 17562253 company registration (CR), the application and fee Fax: +973 17581338 payment can be done through the representative of Website: www.moci.gov.bh the Publications and Press Directorate at the BIC.

Required Documents

• Letter of request, supplied by the Ministry of Industry & Commerce.

BD Fees C Type Fee (BD) Per page 30 Publication in the Gazette Official

C5b A Step-by-Step Guide Commercial Registration Commercial

109109 SECTION C5c Bahrain Chamber of Commerce & Industry (BCCI) Registration

Registration at the Bahrain Chamber of Commerce & Industry is required for certain business types.

5c C ? Registration

Registration at the BCCI is required for business • Banking entities (individual or corporate) operating in the • Insurance following sectors only: • Freight and Cargo • Import and export

• Construction

? Registration Procedures

• Businesses may register for membership at the BIC or by contacting the BCCI directly

• Registration with the Chamber of Commerce & Industry must be renewed annually at the time of CR renewal C Required Documents

• Membership application form (available at BCCI and BIC)

• Copy of commercial registration

• Copy of passport

• Copy of CPR card

• Copy of notarised Memorandum of Association and / or Articles of Association

• Copy of power of attorney and letters indicating the authorized signatories (if applicable)

• Copy of power of attorney, if required Bahrain Chamber of Commerce & Bahrain Chamber of Commerce Industry (BCCI) Registration

BD Fees Type Fee (BD) Annual membership fee 20 C5c i For more information please contact BCCI at: Tel: +973 17229555 Business hours 7:30 - 13:30 Sun – Thurs; or contact the BCCI representative in the BIC: Tel: +973 17 562 256 Fax: +973 17581 559 www.bcci.bh A Step-by-Step Guide Commercial Registration Commercial

111111 Prince Khalifa bin Salman Bridge SECTION D Labor Market Regulation Authority (LMRA) Post Registration Services

This section covers additional transactions and services that an investor may require in order to commence business operations in Bahrain.

Work Permits Bahrainisation requirements apply to companies In order to hire any foreign employee, an investor that hire ten or more expatriates. There is is required to obtain a work permit and residence currently no written legislation setting numerical permit for each expatriate employee. Work permits Bahrainisation requirements, and the investor for expatriate employees are issued by the Labor must therefore enquire at the Ministry regarding Market Regulation Authority (LMRA) and may Bahrainisation rules by sector. be subject to a number of restrictions set by the Ministry.

? Application Procedures D Work Permits Work The investor may apply for expatriate work representatives at the BIC may only issue work permits either through the LMRA or the LMRA’s permits for up to five employees (must be representative at the Bahrain Investors’ Centre. management staff and engineers). Please note, however, that the Ministry’s D

Required Documents

• Work permit application form (available at the LMRA and BIC)

• Copy of the commercial registration certificate

• Copy of the investor’s CPR card, or passport only in the case of foreign investors who do not hold a CPR card yet Services

• Copy of the last electricity bill of the establishment, or a certificate / letter of guarantee that an electricity connection at the commercial establishment has been set up, and the fees have been paid

• For all foreign companies / individuals, the application must be submitted through a Bahraini individual who must present a copy of the undertaking by an authorised signatory, and a copy of the CPR card

• Additional documents applicable only to applications made directly to the LMRA: Post Registration

−− Photographs of the establishment from the inside and the outside −− Proof of a current bank account −− Proof of social insurance (for second time applicants) −− Explanation of why expatriate employees are needed (which can come in the form of contracts, agreements, proof of transactions, etc) 113 BD Fees Type Fee (BD) Work permit 100 Renewal or work permit 150

Validity

• Two years

No-Objection Certificate (NOC) A work visa (NOC), issued by the General Directorate of Nationality, Passports & Residence, is required by foreign investors and employees in order for them to enter the Kingdom of Bahrain and obtain a residence permit. The NOC must be in the possession of the foreign investor and employee at the time of entry into the country.

Immediate family members of foreign investors and employees must also obtain a family visa (NOC) in order to visit the country or obtain a residence permit. The NOC must be authenticated at the Directorate or at the Embassy of Bahrain in the applicant’s home country or at the entry point in Bahrain.

Required Documents

• Application form (available at the Directorate and BIC)

• Registration application form (for foreign investors)

• Copy of passport (for foreign investor)

• Copy of work permit (foreign employee)

D • Additional documents required if an investor or employee is applying for a family visa (NOC) for

No-Objection Certificate (NOC) immediate family members:

−− Copies of passports of family members

−− Social certificate from GOSI (for expatriate employee)

−− Letter from employer stating employee’s job title, names of family members wishing to enter D Bahrain, and salary (for expatriate employees)

BD Fees Type Fee (BD)

• NOC for foreign investor 20

Services • NOC for foreign employee 20

• NOC for family member 32

• Authentication (endorsement in passport) 5 Post Registration Validity

• Three months (holder must enter the country within three months of issuance)

• A residency permit must be obtained within one month of entry

114 i For more information please contact the 3. Original CPR or passport shall be presented, General Directorate of Nationality, Passports & and a copy of the CPR or passport shall be Residence at: submitted. Tel: +973 17399777 4. Original commercial registration issued by or the Directorate’s representatives at the BIC at: Ministry of Industry & Commerce and a copy Tel: (+973) 17562224, 17562230 thereof shall be submitted. The company’s Fax: (+973) 17581442 articles of association (if applicable) shall LMRA is the central government entity charged be presented, and a copy thereof shall be with issue of work permits for foreign workers submitted. employed in Bahrain (including residence permits for their immediate family members: wife and Please provide the following documents when children). registering: Work permits issued by LMRA allow expatriates to 1. Latest electricity bill (showing the company’s work in the Kingdom, obain a residence permit and address as it appears in the commercial other official documents, such as the CPR. registration). 2. Complete the company registration application Prior to applying for work permit, the employer form (available at Customer Services and on shall register his establishment with the LMRA, LMRA’s website), and a letter of authorisation one time only. To register small establishments, by the owner of the company to authorise the the employer or his designate (as evidenced by a person(s) in charge (up to five individuals per notarised power of attorney) shall visit the LMRA in company may be authorised). The authorised person. persons will be registered in the LMRA’s system Registering Private Sector Establishments to enable them to act on behalf of the owner. The registration process is instant and free. It 3. Copy of owner’s CPR or passport. is required one time only. Upon completion of 4. Copy of CPR or passport of each authorised registration, the officer in charge or authorized individual. designate do not need to return the LMRA in 5. Copy of valid commercial registration. person for LMRA processing. D

Authority of authorised representatives of public Registering Private Sector Establishments The LMRA provides an integrated electronic or private sector entities may be as follows: system for all of its processes (such as issue of • Authority to input data and submit applications new work permit, renewal or cancellation of work only. permit, transfer of employment, payment of fees, printing of work permits, etc). All transactions may • Authority to pay bills and print work permits D be processed online through the LMRA’s website. only. • Authority to input data, submit applications, pay LMRA Registration Steps bills, print and cancel work permits. 1. The owner of the establishment or his i All information related to LMRA processes, work authorised designate shall visit the LMRA office permits and fees are available online at LMRA’s at Seef District in person for registration. website www.lmra.bh. Please use this website

2. The registration application form shall be as a main source of information. Services completed and signed. Post Registration

115 BD Current Work Permit Fees Type Fees (BD) Validity Renewal Fees (BD) Issue Time

• Work permit BD 200 24 months BD 200 for another 24 months 10 working days

• Temporary work BD 200 6 months BD 200 for 6 months (Temporary 10 working permit permits are renewable one time only) days

• Family (wife and BD 90 24 months BD 90 for another 24 months 10 working children only) days residence permit

Note: • Owner is required to pay BD 10 per foreign worker per month.

• Fees are subject to change. Changes shall be notified to registered companies and announced in local newspapers.

• Renewal is instant.

• Time required to complete any process depends on documents required and the status of the employee and employer. All non-employment related visas (such as visit visas, event and exhibition attendance visas, business visas, retirement visas, etc) are issued by Bahraini embassies abroad, or by the Ministry of Interior’s Directorate General of Nationality, Passports and Residence.

i For more information, please visit: evisa.gov.bh

Residence Permit A residence permit is required for foreign investors and employees and their family members wishing to reside in the Kingdom of Bahrain. D Residence Permit ? Application Procedures

Applications can be made to the General Directorate of Nationality, Passports & Residence or to its D representative at the BIC.

Required Documents

• Application form (available at the Directorate and BIC)

• Registration application form (foreign investor)

• Copy of commercial registration Services • Original passport and copy of CPR card

• One recent passport-size photograph

• Medical examination report notarised by the Ministry of Health (for foreign employees)

• Sponsor’s card or sponsor’s commercial registration (for foreign employees) Post Registration • CPR of the head of the family and copy of passport showing residence permit (for family members)

116 BD Fees Type Fee (BD)

• Residence permit 22

• Renewal of residence permit 22

• Family residence permit 52

• Renewal of family residence permit 62

Validity

• Two years (and according to passport validity) i For more information please contact the General Directorate of Nationality, Passports & Residence at: Tel: +973 17399777 or the Directorate’s representatives at the BIC at: Tel: (+973) 17562236, 17562230 Fax: (+973) 17581442 i For more information on post work permit processes such as obtaining the CPR and the health check, please contact the Central Population Registry at: Tel: (+973) 17535151 And the Ministry of Health at: Tel: (+973) 17288888 Website: www.health.gov.bh

Social Insurance All foreign and local staff are required to be registered with the General Organisation for Social Insurance (GOSI). GOSI contributions are as follows:

• For Bahraini employees: employer pays 12% of basic salary and recurring constant allowances, D employee pays 6% of basic salary and constant allowances Social Insurance

• For expatriate employees: employer pays 3% of basic salary and recurring constant allowance. i For more information, please contact the Insurance Contribution & Statistics Directorate at GOSI at: Tel: (+973) 17532222, Website: www.gosi.org.bh D CR Amendments and Related Services Following is a list of amendments and modifications to the commercial registration that can be carried out at the Bahrain Investors’ Centre (for companies) and the Ministry of Industry & Commerce’s Commercial Registration Directorate (for individuals establishments). i All application forms are available online at www.moic.gov.bh. Services Post Registration

117 Guide for Approval Process for Company or Company Branch Change of Company Name

Company type Required Documents Share holding Company - 1. Application letter signed by authorised signatory. Public / Closed 2. Completion and signing of company name form. 3. Extraordinary general assembly minutes of meeting. 4. Draft amendment of company’s memorandum and articles of association.* 5. Latest audited financial statement (if the company is more than one year old). With Limited Liability 1. Application letter signed by authorised signatory. Company (W.L.L) 2. Completion and signing of company name form. 3. General assembly minutes of meeting. 4. Draft amendment of company’s memorandum of association.* 5. Latest audited financial statement (if the company is more than one year old). Partnership and Simple 1. Application letter signed by authorised signatory. Commandite 2. Completion and signing of company name form. 3. General assembly minutes of meeting. 4. Draft amendment of company’s memorandum of association.* 5. Latest audited financial statement (if the company is more than one D year old). Approval Process Approval Single Person Company 1. Application letter signed by authorised signatory. (S.P.C.) 2. Completion and signing of company name form. 3. Draft amendment of company’s declaration and articles of D association.* 4. Latest audited financial statement (if the company is more than one year old). Commandite by Shares 1. Application letter signed by authorised signatory. 2. Completion and signing of company name form. 3. General assembly minutes of meeting.

Services 4. Draft amendment of company’s memorandum of association.* 5. Latest audited financial statement (if the company is more than one year old).

*Not required for change of branch name. Post Registration

118 Approval of Change of Company Activity/Purpose (A) Addition of an activity which is not homogeneous with company activities/branch with different activities

Company type Required Documents Share holding Company - 1. Application letter signed by authorised signatory. Public / Closed 2. Extraordinary general assembly minutes of meeting. 3. Draft amendment of company’s memorandum and articles of association. 4. Latest audited financial statement (if the company is more than one year old). 5. Approval of departments concerned (for activities required prior approval). With Limited Liability 1. Application letter signed by authorised signatory. Company (W.L.L) 2. General assembly minutes of meeting. 3. Draft amendment of company’s memorandum of association. 4. Latest audited financial statement (if the company is more than one year old). 5. Approval of departments concerned (for activities required prior approval). Partnership and Simple 1. Application letter signed by authorised signatory. Commandite 2. Shareholders’ resolution. 3. Draft amendment of company’s memorandum of association. D

4. Approval of departments concerned (for activities required prior Process Approval approval). Single Person Company 1. Application letter signed by authorised signatory. (S.P.C.) 2. Draft amendment of company’s memorandum and articles of association. D 3. Latest audited financial statement (if the company is more than one year old). 4. Approval of departments concerned (for activities required prior approval). Commandite by Shares 1. Application letter signed by authorised signatory.

2. Extraordinary general assembly minutes of meeting. Services 3. Draft amendment of company’s memorandum and articles of association. 4. Approval of departments concerned (for activities required prior approval). Post Registration 5. Latest audited financial statement (if the company is more than one year old).

Minutes of meeting (resolution) of the shareholders shall be sufficient to approve the required amendment, when adding an activity that is homogeneous with the activities of the company (1) as provided in the memorandum of association, or (2) related to core and major activities of the company. 119 Approval of Change of Company Activity/Purpose (B) Removal of a Company Activity

Company type Required Documents Public Share holding Company / Closed 1. Application letter signed by authorised signatory. Shareholding Company/ With Limited Liability 2. Latest audited financial statement (if the company Company/ Single Person Company / Partnership is more than one year old), with the exception of and Simple Commandite / Commandite by partnerships and simple commandites. Shares

Approval of Change of Company Activity/Purpose (C) Separation of a Company Activity

Company type Required Documents Public Share holding Company / Closed 1. Application letter signed by authorised signatory. Shareholding Company/ With Limited 2. Board of directors resolution Liability Company/ Single Person Company 3. Latest audited financial statement (if the company / Partnership and Simple Commandite / is more than one year old), with the exception of Commandite by Shares partnerships and simple commandites.

Approval of Change of Company’s Term of Incorporation or Fiscal Year Company type Required Documents Share holding 1. Application letter signed by authorised signatory. Company - Public / 2. Extraordinary general assembly minutes of meeting. D Closed Approval Process Approval 3. Draft amendment of company’s memorandum and articles of association. 4. Latest audited financial statement (if the company is more than one year old). With Limited Liability 1. Application letter signed by authorised signatory. Company (W.L.L) 2. General assembly minutes of meeting. D 3. Draft amendment of company’s memorandum of association. 4. Latest audited financial statement (if the company is more than one year old). Partnership and 1. Application letter signed by authorised signatory. Simple Commandite 2. Shareholders’ resolution. 3. Draft amendment of company’s memorandum of association. Single Person 1. Application letter signed by authorised signatory. Services Company (S.P.C.) 2. Draft amendment of company’s memorandum and articles of association. 3. Latest audited financial statement (if the company is more than one year old). Commandite by 1. Application letter signed by authorised signatory. Shares 2. Extraordinary general assembly minutes of meeting. Post Registration 3. Draft amendment of company’s memorandum and articles of association. 4. Latest audited financial statement (if the company is more than one year old).

Note: Extension (renewal) of a company’s term of incorporation may not require an amendment of its memorandum/articles of association, if the term of incorporation is (1) unspecified in either the memorandum or the articles, or (2) specified with a provision for automatic extension (renewal) for a similar term(s) unless a shareholder notifies the other shareholders of his/her intention not to extend/ 120 renew. Approval of Merger or Cancellation of Branches Company type Required Documents Public Share holding Company / Closed 1. Application letter signed by authorised signatory. Shareholding Company/ With Limited Liability 2. Board of directors resolution Company/ Single Person Company / Partnership 3. Latest audited financial statement (if the company and Simple Commandite / Commandite by is more than one year old), with the exception of Shares partnerships and simple commandites.

Approval of Change or Appointment of Company Directors Company type Required Documents Share holding Company - 1. Application letter signed by authorised signatory. Public / Closed 2. Extraordinary general assembly minutes of meeting (founding assembly) as the case may be. 3. Latest audited financial statement (if the company is more than one year old). 4. Copy of new director’s CPR, or copy of passport if non-resident. With Limited Liability 1. Application letter signed by authorised signatory. Company (W.L.L) 2. General assembly minutes of meeting. 3. Latest audited financial statement (if the company is more than one year old). 4. Copy of new director’s CPR, or copy of passport if non-resident. Partnership and 1. Application letter signed by authorised signatory. Simple Commandite / 2. Appointment resolution signed by all joint partners, or appointment Commandite by Shares / resolution by the SPC’s owner. Single Person Company D

3. Latest audited financial statement (if the company is more than one year Process Approval (S.P.C.) old), with the exception of partnerships and simple commandites. 4. Copy of new director’s CPR, or copy of passport if non-resident. Note: Memorandum of association shall be amended if the director to be removed is named in the memorandum of association, unless D otherwise stipulated in the memorandum; with the exception of the shareholding company (public/closed).

Approval of Change or Appointment of Company Authorised Signatories Company type Required Documents

Public Share holding Company / 1. Application letter signed by authorised signatory. Services Closed Shareholding Company/ 2. General assembly/founding assembly minutes of meeting With Limited Liability Company/ 3. Copy of new director’s CPR, or copy of passport if non- Single Person Company resident. / Partnership and Simple

Commandite / Commandite by 4. Latest audited financial statement (if the company is more than Post Registration Shares one year old), with the exception of parterships and simple commandites.

121 Approval of Change of Company Capital (A) Capital Increase

Company type Required Documents Share holding Company - 1. Application letter signed by authorised signatory. Public / Closed 2. Extraordinary general assembly minutes of meeting when increasing authorized capital, and/or ordinary general assembly minutes of meeting when increasing issued and paid-up share capital. 3. Draft amendment of company’s memorandum of association (and articles of association for SPCs). 4. Latest audited financial statement (if the company is more than one year old). With Limited Liability 1. Application letter signed by authorised signatory. Company (W.L.L) / Single 2. General assembly minutes of meeting. Person Company (S.P.C.) 3. Latest audited financial statement (if the company is more than one year old). 4. Copy of new director’s CPR, or copy of passport if non-resident. Partnership and Simple 1. Application letter signed by authorised signatory. Commandite 2. Shareholders’ resolution. 3. Draft amendment of memorandum of association.

Approval of Change of Company Capital (B) Capital Decrease

Company type Required Documents D With Limited Liability 1. Application letter signed by authorised signatory. Approval Process Approval Company (W.L.L) / Single 2. General assembly minutes of meeting, or SPC owner’s resolution. Person Company (S.P.C.) 3. Draft amendment of memorandum of association (and articles of association for SPCs). 4. Latest audited financial statement (if the company is more than one D year old). 5. BD 20,000 for company with limited liability. Partnership and Simple 1. Application letter signed by authorised signatory. Commandite 2. Shareholders’ resolution. 3. Draft amendment of memorandum of association.

Note: Services Minimum issued and paid-up share capital of the company shall be as follows: 1. BD 1,000,000 for public shareholding company. 2. BD 250,000 for closed shareholding company. 3. BD 20,000 for commandite by shares. 4. BD 50,000 for single person company. Post Registration

122 Approval of Change of Shareholders Company type Required Documents Public Share holding 1. Application letter signed by authorised signatory. Company / Closed 2. Extraordinary general assembly minutes of meeting. Shareholding 3. Draft assignment declaration or limitation of succession in the event of death. Company/ With Limited Liability 4. Draft amendment of memorandum and articles of association. Company/ Single 5. Board of directors’ resolution approving the assignment (issued by the assignor Person Company if a natural person). / Partnership and 6. Approvals of departments concerned (for activities requiring prior approval). Simple Commandite 7. Latest audited financial statement (if the company is more than one year old). / Commandite by Shares (a) Copy of CPR of Bahraini and resident expatriate shareholders, or copy of passport with visas page if the shareholder is non-Bahraini. (b) Original bank certificate and curriculum vitae if the shareholder is a foreigner/non-GCC national. 8. If the assignee is a corporate entity: (a) Latest audited financial statement (if the company is more than one year old). (b) Copy of company’s memorandum of association. (c) Board of directors’/general assembly resolution (as the case may be) to approve transfer of the assigned share.

Note: 1. The commandite by shares company shall be dissolved if a joint partner withdraws. Liquidation procedures shall be followed before shares are transferred to the buyer, unless otherwise provided in the company’s articles of association. 2. For partnerships and simple commandites, a court ruling shall be obtained to approve the shareholder’s assignment, if the company’s term of incorporation is specified. 3. The number of shareholders in a limited liability company shall not decrease below two, otherwise the company type will change to D a single person company (SPC) or sole proprietorship. Approval Process Approval 4. For partnerships and simple commandites, liquidation procedures shall be followed in the event of assignment, death, or judgment lien, or declaration of bankruptcy of a shareholder, unless otherwise provided in the company’s articles of association. 5. Liquidation procedures shall be followed for single person companies in the event of: (a) Death of owner and distribution of company shares to more than one heir. (b) Termination of the corporate entity owner of the SPC. D Approval of Termination of Company Company type Required Documents Public Share holding 1. Application letter signed by authorised signatory. Company / Closed 2. If liquidation is voluntary: Shareholding Company/ With

(a) Extraordinary general assembly minutes of meeting. Services Limited Liability Company/ Single Person Company (b) Resolution signed by all shareholders to liquidate the company / Partnership and Simple and appoint a liquidator. Commandite / Commandite 3. If liquidation is involuntary: by Shares (a) Court ruling to liquidate the company and appoint a liquidator. 4. Latest audited financial statement (if the company is more than Post Registration one year old), for all companies except partnerships and simple commandites. 5. Legal/court appointed liquidator’s report on completion of liquidation.

123123 Approval of Lien/Modification of Lien/Discharge of Lien Company type Required Documents Public Share holding Company / Closed 1. Applicant’s letter. Shareholding Company/ With Limited 2. In the event of lien: Liability Company/ Single Person Company (a) Notarised lien contract. / Partnership and Simple Commandite / Commandite by Shares 3. In the event of discharge of lien: (a) Notarised lien contract, or (b) Court judgment. 4. In the event of modification of lien: (a) Notarised lien contract amendment.

Approval of Attachment Lien/Discharge of Lien Company type Required Documents Public Share holding Company / Closed 1. Applicant’s letter. Shareholding Company/ With Limited 2. Court judgment to place or discharge attachment lien. Liability Company/ Single Person Company (a) Notarised lien contract amendment. / Partnership and Simple Commandite / Commandite by Shares

Approval of Bankruptcy Declaration or Reinstatement Company type Required Documents Public Share holding Company / Closed 1. Applicant’s letter. Shareholding Company/ With Limited 2. Court judgment on bankruptcy declaration or D Liability Company/ Single Person Company reinstatement. Approval Process Approval / Partnership and Simple Commandite / Commandite by Shares D Approval of Receivership or Discharge of Receivership Company type Required Documents Public Share holding Company / Closed 1. Applicant’s letter. Shareholding Company/ With Limited 2. Court judgment to place the company under Liability Company/ Single Person Company receivership, or to discharge receivership. / Partnership and Simple Commandite / Commandite by Shares Services Approval of Change of Business Address Company type Required Documents Public Share holding Company / Closed 1. Application letter signed by authorised signatory.

Post Registration Shareholding Company/ With Limited Liability Company/ Single Person Company 2. Copy of lease contract. / Partnership and Simple Commandite / Commandite by Shares

124 Approval to Convert Sole Proprietorship to Company Company type Required Documents Public Share holding 1. Application letter signed by authorised signatory. Company / Closed 2. Limitation of succession in the event of owner’s death. Shareholding Company/ With 3. Draft memorandum/articles of association. Limited Liability Company/ Single Person Company 4. Firm’s audited financial statements or valuation certificate issued by an expert or auditor, if the capital of the company is in-kind. 5. Copies of new shareholders’ CPRs or passports, if non-residents. 6. Original bank certificate and curriculum vitae if the shareholder is a foreigner/non-GCC national. Partnership and Simple 1. Application letter signed by authorised signatory. Commandite / Commandite 2. Limitation of succession in the event of owner’s death. by Shares 3. Draft memorandum of association. 4. Copies of new shareholders’ CPRs or passports, if non-residents. 5. Original bank certificate and curriculum vitae if the shareholder is a foreigner/non-GCC national.

Approval to Convert Company to Sole Proprietorship Company type Required Documents Public Share holding 1. Application letter signed by applicant. Company / Closed 2. Shareholders’ meeting minutes. Shareholding Company/ 3. Latest audited financial statement (if the company is more than Commandite by Shares/With one year old) for all types of companies, except partnerships and Limited Liability Company/ commandites. Partnership and Simple D Commandite 4. Copy of owner’s CPR, if he/she is not a shareholder. Process Approval D Services Post Registration

125 “The Kingdom of Bahrain’s legitimacy as an international business and finance centre is founded on its strong legal and regulatory regime, which ensures that businesses operating in Bahrain are legitimate and conduct their business in accordance with a robust set of rules and regulations” SECTION E Monitoring and Supervision

The Ministry of Industry & Commerce is responsible for protecting the interests of investors, shareholders, creditors and the general public, by ensuring that businesses comply with the requirements set forth in the Commercial Companies Law, The commercial Register Law, and the Anti-money Laundering Law. All the aforementioned laws and regulations are available on the Ministry’s website at www.moic.gov.bh.

The following company types are required by law to submit annual audited financial statements to the Ministry of Industry & Commerce:

Type Due Date Bahrain Share holding Company (B.S.C.) - Public Within three months of the end of the company’s fiscal year Bahrain Share holding Company (B.S.C.) - Closed Within three months of the end of the company’s fiscal year With Limited Liability Company (W.L.L) Within six months of the end of the company’s fiscal year Single Person Company (S.P.C.) Within six months of the end of the company’s fiscal year Audited Financial Statements

The Ministry conducts on-site inspections and regular checks to ensure that businesses comply with the terms and conditions set forth in their commercial registration and conduct business only as licensed. In addition, the Ministry is responsible for monitoring and supervising the finances of registered non-financial businesses (which include real estate companies, commodity related companies, etc). Inspection may be E initiated as part of a routine monitoring plan or for any of the following reasons:

• Request of a shareholders / partner who owns 25% and more of the company

• Request of H.E. the Minister of Industry & Commerce

• Complaint by one of the company’s client EE

• Identification of a suspicious transaction

• Failure to deliver financial reports

• Failure to renew commercial registration for two years Supervision

• Failure to comply with anti-money laundering regulations Monitoring and In addition, other Licensing authorities (Section C3) are responsible for monitoring their licensed business activities and conducting regular inspections to ensure compliance with licensing regulations and conditions.

127127 Anti-Money Laundering Basic Facts How is Money Laundered? The Ministry of Industry & Commerce is committed There are three stages to money laundering, as to ensuring that businesses operating in Bahrain follows:

are legitimate and conduct their business in • Placement: The physical disposal of cash accordance with a set of rules and regulations that proceeds of criminal activity in the financial protect the companies, their shareholders and system, i.e. making cash payments into a bank their clients from the activities of unscrupulous account or buying an insurance policy operators. • Layering: Moving funds around to create a The Ministry has issued a number of anti-money trail of complex transactions which authorities laundering circulars, as well as a number of will have difficulty in following its source, i.e. brochures to assist businesses to understand accommodation bills or payment of credit card their obligations under the Anti-Money Laundering debts

Law (Decree No. 4 of 2001) and the Ministerial • Integration: The final stage in which the money Order (No. 23 of 2002), and to generally spread launderer will take the money back into the awareness of the methods that money launderers legitimate economy i.e. by buying assets or use, and ways to prevent being unwittingly involved consultancy fees in a newly formed company in such criminal activities. What are suspicious transactions? This section is intended to assist business to Ministerial Order No. 23 of 2002 with Respect to understand their obligations under the anti-money the Prevention and Prohibition of the Laundering laundering regulations, as well as to provide some of Money, defines suspicious transactions as: “ .. examples of the types of schemes which are any transaction or group of transactions, especially known to exist internationally, so as to help prevent that relate to money transfers, about which doubts businesses from becoming unwitting elements in arise with the registered person concerning their criminal transactions. link to money laundering through their unusual size, What is Money Laundering? repetition, nature, conditions and circumstances surrounding them, their unusual pattern that Money laundering is defined as the process by does not involve a clear economic objective or which criminals attempt to conceal the true origin an obvious legal purpose, if the activities of the and ownership of the proceeds of their criminal persons involved in the transaction(s) do not

Anti-Money Laundering Anti-Money Basic Facts activities. If undertaken successfully, it also allows conform with their normal activities, if the domicile the perpetrator(s) to maintain control of those of such persons is situated in countries that do proceeds and, ultimately, provides a legitimate no adequately apply measures for prohibition and cover for their source of income. E combating of money laundering”.

E Supervision Monitoring and

128128 128 Examples of common indicators (general) • Customer insists that a transaction be done

• Customer is known to be involved in, or quickly indicates his involvement in criminal activities • Customer attempts to develop a close

• The customer does not want correspondence relationship with staff sent to its home address • Customer uses different names and addresses

• Customer has accounts with several banks in • Customer attempts to bribe or offer unusual a particular jurisdiction for no obvious reason, favours to provide services which are suspicious or has recently established relationships with or unusual different financial institutions Know Your Customer (KYC) • Customer uses same address but frequently The importance of knowing your customer changes the names involved A sound KYC policy is crucial for your business, • Customer is accompanied by others and not only to meet the legal requirements under the watched money laundering legislation, but also in terms • Customer shows uncommon interest in your of identifying business risk. To be effective a internal systems, controls and policies KYC policy must include proactive monitoring of customers’ accounts. It is not sufficient to know • Customer appears to have only a vague your customer when he commences business with knowledge of the amount of the transaction you, you have to maintain active monitoring of the • Customer goes to unnecessary lengths to justify relationship. the transaction Legal Requirements • Customer presents information / details which are confusing The Ministerial Order No. 23 of 2002 with Respect to the Prevention and Prohibition of the • Customer is secretive, nervous or reluctant to Laundering of Money, requires that all registered meet in person persons, before establishing business relations • The transaction is suspicious but the customer or conduction transactions, shall establish the seems to be blind to the fact that he might be identities of their customers, representatives and involved in money laundering beneficiaries from the transaction by using all the reasonable methods and adopt all the possible • Customer provides a telephone contact which Laundering Anti-Money Basic Facts precautions to ascertain the validity of documents either does not exist or has been disconnected or details concerning their identities. Such data • Customer is involved in an activity unusual for shall be kept in their registers for reference, that customer or business whenever necessary. E

EE Supervision Monitoring and

129 129129 The Ministerial Order goes on to define the Identity In its 1995/1996 report, the FATF identified drug details that must be established and kept in the trafficking and financial crime as being the most records of customers, who are natural persons, as: frequent source of illegal proceeds reported by respondents to their annual survey, with the • Customer’s full name primary source being drug trafficking. • Date of birth Other sources of illegal funds may include: • Nationality • Terrorism • Full details of the identity card or passport • Major thefts • CPR card number (if any) • Fraud • Occupation • Robbery • Usual residence address • Forgery and counterfeiting • Employer’s name and address • Blackmail and extortion. etc In the case of a corporate client, the details The Kingdom of Bahrain’s Anti-Money Laundering required to be maintained are: Regulations • Customer’s full name Under the Money Laundering Low, a money • Legal status laundering offence includes: • Registration number and place • Conducting a transaction with crime proceeds • Objects • Concealing crime proceeds • Address of the head office and branches (if any) • Receiving / transferring crime proceeds • Names of board members • Possession of crime proceeds • Legal representative of the corporate person • Tampering with evidence and his ID • Knowing of and providing facilities In addition, the Memorandum and Articles of Association and the Power of Attorney must also Furthermore, it is not necessary that a person should be convicted of the underlying criminal

Anti-Money Laundering Anti-Money Basic Facts be verified. activity to be guilty of a money laundering offence. Commercial establishments are required to keep A person can be charged separately both with for a period of five years after the relationship the offence of money laundering, and also with has ended a copy of the evidence of identity underlying criminal activity from which the money E of each client and keep a transaction record of laundering offence was committed. any new or unrelated transaction for a period of five years after the termination of the transaction The law also extends the reach of prosecution to so recorded. Senior officers of every registered every person who at the time of the offence acted person should have knowledge of the international in an official capacity in a corporate body, if such E rules and guidelines in relation to the combating action was committed intentionally or where gross of money laundering, and in particular to the 40 negligence is shown. recommendations of the Financial Action Task Force (FATF), which also emphasizes the above- In addition the law also details offences which are mentioned requirements. ‘related to money laundering’, including, Supervision • Failure to disclose information Main Sources of Illegal Funds: • Failure to comply with official orders Monitoring and The FATF annual Money Laundering Typologies Report is a good source of information on new • Prejudicial disclosure of information trends, and can be a useful, though not exclusive, guide to the schemes which businesses need to be aware of in order to avoid being unwittingly used as part of a criminal structure. 130130 130 Punishments

• Any person committing, attempting or participating in a money laundering offence shall be liable to imprisonment for a period not exceeding seven years and a fine not exceeding BD 1,000,000

• In cases where the offence of money laundering is committed by a corporate body and notwithstanding the liability of any natural person, the corporate body shall be liable to the punishment of a fine prescribed in this law, in addition to confiscation of the property which is the subject matter of the offence

• Any person who commits any of the offences related to money laundering shall be liable to imprisonment for a period not exceeding two years and / or a fine not exceeding BD 50,000

• Any person who contravenes the anti-­money laundering regulations shall be liable to imprisonment for a period not exceeding three months and / or a fine not exceeding BD 20,000 i For detailed information, please refer to the Ministry’s anti-money laundering publications, available at www.moic.gov.bh. i For guidelines relating to financial institution and anti-money laundering in the Bahrain Stock Exchange, please refer to the Central Bank of Bahrain (CBB)’s website at www.cbb.gov.bh. Anti-Money Laundering Anti-Money Basic Facts E

EE Supervision Monitoring and

131 131131

SECTION F Appendices and FAQs

Frequently asked questions (FAQs) and index of contact information of all relevant public and private entities.

Frequently Asked Questions

Q1. What does an investor need to start a business in Bahrain? A1. Setting up a business in Bahrain requires:

• A commercial registration (CR), issued by the Ministry of Industry & Commerce

• If applicable, license and / or approval from relevant government authorities. For details please refer to Section C3

• To hire expatriate workers, work permits and residency permits are required. Please refer to Section D. Asked Frequently Questions Q2. Can an investor establish any type of business within Bahrain? A2. Yes, there are no restrictions on business activities, except for those prohibited by law. Furthermore, certain business activities are restricted to Bahrainis and GCC nationals. Please refer to Section C1 for details. F

Q3. What are the channels through which an investor can apply for commercial registration? A3. There are a several options available:

• Apply at the Bahrain Investors’ Centre (BLC) located in Seef Mall

• Apply at the Ministry of Industry & Commerce website: www.moic.gov.bh/English/eServices

• Employ a professional services firm to act on his / her behalf in applying for the commercial and FAQs registration. Appendices Q4. What are the commercial registration fees? A4. There is a flat commercial registration fee of BD 20. Certain business activities, however, may require the payment of a licensing fee. For further details please refer to section C3.

Q5. Are there any recurring costs? A5. There are no recurring costs except the CR annual renewal fee of BD 30. If the business activity requires a license from a government entity then an extra cost may be incurred if license renewal is F required. Please refer to Section C3 for details. Bahrain levies no income or corporate taxes. 133133 Q6. Can I have more then one CR registered under the same address? A6. Yes, if the activities are homogeneous.

Q7. When does the commercial registration application expire once activated? A7. The CR application is valid for three months from date of submission.

Q8. Can I have more then one activity under one commercial registration? A8: Yes, if the activities are homogeneous.

Q9. How often do I have to renew the commercial registration? A9. The CR must be renewed annually.

Q10. What is the difference between an ICR and a CCR? A10. Individual commercial registration (ICR) is applicable to an individual establishment, which is a non- incorporated entity and is owned by one individual. Only citizens of Bahrain and GCC countries are permitted to own ICRs. The owner is liable for all debts and liabilities of the business to the extent of his / her personal assets.

Company commercial registration (CRR) is granted for companies of any permissible legal structure and foreign investors may own up to 100% of the company for most company types. For rules and documents required to apply for each, please refer to Sections C1 and C2.

Q11. What are the key advantages of the Bahrain Investors’ Centre (BIC)? A11. The BIC is a single point of contact guiding the investor thorough the CR process. The Centre facilitates the entire process of setting up a business, starting from application to commercial registration, to obtaining of operating licenses and approvals, through to the registration of the business. Many other valuable services are also provided at the BIC through the various private sector entities represented. These include legal advice, professional consultancy, loan assistance, IT support, telecommunications, and banking. An investor will find that all his / her business needs are met through one point of contact.

Frequently Asked Frequently Questions Q12. Who can help me at the Bahrain Investors’ Centre (BIC)? A12. All BIC staff are trained to address investor enquiries in a customer-­focused manner. F The BIC main call centre can be reached at: Tel: (+973) 17562222

Please also refer to the index of contacts following this section. and FAQs Appendices

F

134134 134 Ministry of Industry & Commerce (MOIC) Contact Information

HE. The Minister of Industry & Director, Industrial Property Ministry of Interior Commerce Tel: (+973)17574833 (General Directorate of Civil Tel: (+973) 17568001/002/003 Fax: (+973)17536479 Defence) Fax : (+973) 17581403 Email: [email protected] Tel: (+973)17562248 Fax: (+973)17581323 Undersecretary of Commerce Director, Electronic Commerce & Tel: (+973) 17574848 Technical Support Ministry of Interior Fax: (+973) 17534547 Tel: (+973)17574747 (General Directorate of Crime, Fax: (+973)17919824 Detection & Forensic Science) Undersecretary of Industry Tel: (+973)17562249 Tel: (+973) 17568008 Fax: (+973)17581323 Fax: (+973) 17581408 Bahrain Investors’ Centre

Ministry of Interior Assistant Undersecretary, Domestic Chief, Bahrain Investors’ Centre (General Directorate of Nationality, Trade Tel: (+973)17562200 Passports & Residence) Tel: (+973) 175574856 Fax: (+973)17580751 Fax: (+973)17533086 Tel: (+973)17562230 Head of Registration & Contracts Fax: (+973)17 581442 Assistant Undersecretary, Foreign Tel: (+973)17562227 Ministry of Culture & Information Trade Fax: (+973)17581696 Tel: (+973)17574944 (Publications Directorate) Fax: (+973)17532271 Head of Licensing & Declaration Tel: (+973)17562252 Tel: (+973)17562258 Fax: (+973)17581338 Assistant Undersecretary, Fax: (+973)17919819 Standardisation & Consumer Ministry of Culture & Information Protection Head of E-services (Tourism Directorate) Tel: (+973)17574799 Tel: (+973)117562212 Tel: (+973)17562253 Fax: (+973)17532181 Fax: (+973)117580752 Fax: (+973)17581338

Assistant Undersecretary, Industrial Head of Investors’ Relations Ministry of Municipalities Affairs & Management Tel: (+973)17562219 Agriculture Contact Information Tel: (+973)17568040 Fax: (+973)17580752 Tel: (+973)17562241 Fax: (+973)17581537 Fax: (+973)17581310 BIC Call Centre Acting Assistant Undersecretary, Tel: (+973)17562222 Labour Market Regulatory Authority Industrial Development F Email: [email protected] (LMRA) Tel: (+973)17568031 Tel: (+973)17562255, 17388900, Fax: (+973)17581501 17506055 Representatives at BIC Fax: (+973)17581355, 17552681 Director, Companies Affairs (Public Sector) Website: www.lmra.bh Tel: (+973)17574771 Fax: (+973)17532676 Electricity & Water Authority Ministry of Justice Tel: (+973)17562250 (Public Notary) Director, Commercial Registration Fax: (+973)17581393

Tel: (+973)17562260 and FAQs Tel: (+973)17574760 Fax: (+973)17581335

Fax: (+973)17531194 Ministry of Health Appendices (Public Health Directorate) Ministry of Interior Director, Industrial Projects Tel: (+973)17562244 (Customs Affairs) Tel: (+973)17568045 Fax: (+973)17581339 Tel: (+973)17562213 Fax: (+973)17581537 Email: [email protected] Email: [email protected] Fax: (+973)17580752 Ministry of Industry & Commerce Director, Bahrain International Investment Park (Industrial Projects Directorate) F Tel: (+973)17467373 Tel: (+973)17562247 Fax: (+973)17467300 Fax: (+973)17581415 135135 General Organisation for Social Ministry of Interior Representatives at BIC Insurance P.O. Box 13, Manama (Private Sector) Insurance Contribution & Statistics Directorate General Directorate of Civil Defence Al Ahli United Bank P.O. Box 5319, Manama Tel: (+973)17239334 Tel: (+973)17562262 Tel: (+973)17532222 Fax: (+973)17254075 Fax: (+973)17564780 Fax: 97317536546 Website: www.gosi.org.bh General Directorate of Crime, Bahrain Development Bank Detection & Forensic Science Tel: (+973)17562205 Ministry of Education Tel: (+973)17712409 Fax: (+973)17580969 Directorate of Private Education Fax: (+973)17717217 Tel: (+973)17873457, 17682015 Batelco General Directorate of Traffic Fax: (+973)17680716 Tel: (+973)17562263 P.O. Box 43, Manama Tel: (+973)17572222 Fax: (+973)17311373 Fax: (+973)17254666 Directorate of Kindergartens Kuwait Finance House General Directorate of Nationality, Tel: (+973)17873311, 17680061 Tel: (+973)17562292 Passports & Residence Fax: (+973)17680162 Fax: (+973)17581660 Tel: (+973)17535111 Directorate of Scholarships & Fax: (+973)17531593 Key Point Consulting Cultural Affairs Website: www.gdnpr.gov.bh Tel: (+973)17562265 Tel: (+973)17680090 Fax: (+973)17581113 Ministry of Justice Fax: (+973)17680164 P.O. Box 450, Manama Qays H. Zu’bi Website: www.education.gov.bh Directorate of Courts Tel: (+973)17562268 Ministry of Health Fax: (+973)17587080 Tel: (+973)17522252 Public Health Directorate Fax: (+973)17532542 Supreme Council for Women Tel: (+973)17250313, 17288888 General Registrar Tel: (+973)17664133 Fax: (+973)17276301 Tel: (+973)17522242 Fax: (+973)17664353 P.O. Box 12, Manama Email: [email protected] Public Notary (Main) Tel: (+973)17522358, 17522356 Pharmacy and Drug Control External Contacts Contact Information Directorate Electricty & Water Authority

Bahrain Chamber of Commerce & Tel: (+973)17279207 Electricity Distribution Directorate Fax: (+973)17259357 Industry Tel: (+973)17626502, 17726501 Tel: (+973)17229555 Licensure & Registration Office Fax: (+973)17728466 F Fax: (+973)17224985 Tel: (+973)17279821 P.O. Box 2, Manama P.O. Box 248, Manama Fax: (+973)17232614 Ministry of Labour Email: [email protected] Email: [email protected] Website: www.bcci.bh Website: www.health.gov.bh Labour Directorate Tel: (+973)17873777 Central Bank of Bahrain (CBB) Ministry of Culture & Information Fax: (+973)17686954 Tel: (+973)17547605 Box 253, Manama P.O. Box 32333 Fax: (+973)17530228 P.O. Box 27, Manama Tourism Affairs Directorate Directorate of Training Institutes Affairs

and FAQs Website: www.cbb.gov.bh Tel: (+973)17201227 Tel: (+973)17873930

Appendices Fax: (+973)17210969 Economic Development Board Fax: (+973)17682700 Tel: (+973)17589999 Publications & Press Directorate Ministry of Municipalities Affairs & Fax: (+973)17589900 Tel: (+973)17711010, 17711008, Agriculture P.O. Box 11299, Manama 17711023 Website: www.bahrainedb.com Municipalities Affairs Fax: (+973)17717515 Tel: (+973)17501501 P.O. Box 53, Manama Publications & Press Directorate F (Isa Town) Tel: (+973)17871768 Fax: (+973)17 681493 136136 136 Website: www.moci.gov.bh Municipalities Public Commission for the Protection The Bahrain Young Entrepreneurs of Marine Resources, Environment Society Manama Municipality & Wildlife Tel: (+973)17531111 Directorate of Technical Services P.O. Box 28690, Manama Fax: (+973)17532112 Directorate of Environmental Tel: (+973)17228898 Society of Bahraini Businessmen Fax: (+973)17211802 Assessment & Planning Tel: (+973)17874154 Tel: (+973)17229009, 17530077 Muharraq Municipality Fax: (+973)17211155 Environment Control Directorate Directorate of Technical Services Tel: (+973)17875175 Society of Small and Medium Tel: (+973)17322188 Businesses Fax: (+973)17336367 General Directorate for Protection Tel: (+973)17586881 of Marine Resources Fax: (+973)17536883 Northern Municipality Tel: (+973)17815880 Directorate of Technical Services Fax: (+973)17728459 Tel: (+973)17333183 Fax: (+973)17699966 Telecommunication Regulatory Authority Central Area Municipality P.O. Box 10353, Manama Directorate of Technical Services Licensing Directorate Tel: (+973)17872911 Tel: (+973)1720000 Fax: (+973)17781996 Fax: (+973)17532125 Southern Area Municipality Email: [email protected] Directorate of Technical Services Ministry of Transportation Tel: (+973)17778242 P.O. Box 10325, Manama Fax: (+973)17763686 Website: www.mun.gov.bh Civil Aviation Affairs Tel: (+973)17329008, 17321100 Agriculture Affairs Fax: (+973) 17339066 Animal Wealth Directorate Postal Affairs Tel: (+973)17691256 Fax: (+973)17694673 Tel: (+973)17354073, 17523429 Contact Information Email: [email protected] Fax: (+973)17533455 Website: www.transportation.gov.bh Plant Wealth Directorate Tel: (+973)17691208, Ext: 208 Ministry of Works Fax: (+973)17695734 P. a. Box 5, Manama F Water Resources Directorate Committee for Organising Tel: (+973)17696777 Engineering Professional Practice Fax: (+973)17697276 Tel: (+973)17534747 Fax: (+973)17536371 National Oil & Gas Authority Email: [email protected] Oil & Gas Directorate Tel: (+973)17525511 Business Societies Fax: (+973)17293007 American Chamber of Commerce P.O. Box 1435, Manama Tel: (+973)17580516 and FAQs

Fax: (+973)17580035 Appendices General Organisation for Youth & Sports (GOYS) Bahrain Chamber of Commerce & Sports Affairs Directorate Industry Tel: (+973)17810870 Tel: (+973)17229555 Fax: (+973)17826803 Fax: (+973)17224985 P.O. Box 5498, Manama Website: www.goys.gov.bh Bahrain Women’s Business Society F Tel: (+973)17721188 Fax: (+973)17721116 137137 We’d Love to Hear Your Thoughts...

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Please submit to Bahrain Investors’ Centre (BIC) ... Thank you for your cooperation.. This Guide is prepared by MOIC’s Domestic Trade Team and Bahrain Economic Development Board. Setting up a Business in Bahrain A step-by-step guide Second Edition 2010 This guide is intended to introduce customers and potential investors This guide is intended to introduce system in Bahrain, and to complement to the commercial registration the Bahrain Investors’ Centre” the many services provided by “