Doing Business with Bahrain

A comprehensive guide to doing business, exporting, investing, and manufacturing in Albania.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Bahrain Economic Development Board (EDB)

Tel: +973 17 58 99 99
Web: www.www.bahrainedb.com

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Bahrain Customs Affairs

Tel: +973 17 38 99 99
Email: customerservice@customs.gov.bh
Web: www.customs.gov.bh

National Chamber of Commerce

Afghanistan Chamber of Commerce and Industry (ACCI)

Tel: +973 17 38 00 00
Email: info@bahrainchamber.bh
Web: www.bahrainchamber.bh

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Bahrain Ministry of Finance & National Economy

Tel: +973 17 57 50 00
Email: info@mofne.gov.bh
Web: www.mofne.gov.bh

  • Type of Government: Constitutional monarchy
  • Population: Approximately 1.5 million
  • GDP: Around $40 billion USD
  • Corporate Tax Rate: 0% (except for oil companies)
  • Personal Income Tax Rate: 0%
  • Major Exports: Petroleum and petroleum products, aluminum, textiles
  • Major Imports: Machinery, chemicals, foodstuffs

Here’s a guide on how to export goods to Bahrain:

  1. Research Market Requirements

    • Understand Bahrain’s demand for your products and local market trends.
  2. Understand Export Regulations

    • Familiarize yourself with Bahraini import regulations, tariffs, and standards.
  3. Product Classification

    • Determine the correct Harmonized System (HS) code for your product.
  4. Prepare Documentation

    • Gather necessary documents: commercial invoice, packing list, certificate of origin, and bill of lading.
  5. Find a Local Partner

    • Identify a local distributor or agent to assist with logistics and regulations.
  6. Arrange Shipping and Logistics

    • Choose a reliable logistics provider and manage transportation and insurance.
  7. Customs Clearance

    • Ensure compliance with customs procedures and work with your local partner for smooth clearance.
  8. Secure Payment and Financing

    • Establish a secure payment method and consider export insurance or financing options.

Here’s a guide on how to import goods into Bahrain:

  1. Research Import Regulations

    • Understand Bahrain’s import laws and any restrictions on your products.
  2. Obtain Necessary Licenses

    • Determine if your products require specific import licenses or permits.
  3. Register for a Commercial Registration

    • Ensure your business is registered with the Ministry of Industry, Commerce, and Tourism.
  4. Classify Your Goods

    • Use the Harmonized System (HS) code to classify your goods correctly.
  5. Prepare Required Documentation

    • Gather necessary documents: commercial invoice, packing list, bill of lading, and certificate of origin.
  6. Find a Customs Broker

    • Hire a licensed customs broker to assist with documentation and regulations.
  7. Ensure Compliance with Standards

    • Meet Bahrain’s standards and labeling requirements for your products.
  8. Arrange Shipping and Logistics

    • Choose a reliable logistics provider and arrange for transportation and insurance.
  9. Customs Clearance

    • Work with your customs broker to ensure smooth customs clearance.
  10. Payment of Duties and Taxes

    • Calculate and pay any applicable import duties, VAT, and fees.

Key Contacts

Here’s a guide on how to incorporate a company in Bahrain:

  1. Choose a Business Structure

    • Decide on the type of entity (e.g., Limited Liability Company – LLC).
  2. Reserve a Company Name

    • Ensure the name is unique and complies with Bahraini naming rules.
  3. Prepare Founding Documents

    • Draft the Memorandum and Articles of Association.
  4. Apply for Commercial Registration

    • Submit the application to the Ministry of Industry, Commerce, and Tourism.
    • Cost: Approximately $100 to $400 USD, depending on the business type.
  5. Obtain Necessary Licenses

    • Apply for any industry-specific licenses or permits.
  6. Register for Taxes

    • Obtain a Tax Identification Number from the National Bureau for Revenue.
  7. Open a Bank Account

    • Open a corporate bank account in Bahrain.
  8. Comply with Regulatory Requirements

    • Ensure compliance with any additional regulations.

Key Contacts

Here’s a guide on how to set up a manufacturing plant in Bahrain:

  1. Conduct a Feasibility Study

    • Analyze market demand, costs, and location benefits.
  2. Choose a Business Structure

    • Decide on the type of business entity (e.g., Limited Liability Company).
  3. Register the Company

    • Follow the incorporation steps with the Ministry of Industry, Commerce, and Tourism.
  4. Select a Location

    • Choose a strategic location considering logistics, resources, and workforce availability.
  5. Acquire Land and Permits

    • Purchase or lease land in an industrial zone and obtain necessary construction and environmental permits.
  6. Design and Build the Facility

    • Hire architects and contractors to design and construct the plant.
  7. Install Machinery and Equipment

    • Purchase and set up manufacturing equipment.
  8. Hire and Train Employees

    • Recruit skilled labor and provide necessary training.
  9. Ensure Compliance with Regulations

    • Adhere to safety, environmental, and labor regulations.
  10. Register with Relevant Authorities

    • Obtain operational licenses and register with local and national authorities.

Key Contacts

Here’s a guide on how to register a trademark in Bahrain:

  1. Conduct a Trademark Search

    • Use the Bahrain Intellectual Property Office database to ensure your trademark is unique.
  2. Prepare Your Application

    • Gather details about your trademark: logo, name, and class of goods/services.
  3. Submit Your Application

    • File your application with the Bahrain Intellectual Property Office.
    • Cost: Approximately $270 USD per class.
  4. Examination Process

    • The office examines the application for compliance and potential conflicts.
  5. Publication and Opposition

    • If approved, your trademark is published for opposition in the official gazette.
  6. Opposition Period

    • Wait for a period (usually 60 days) for any oppositions. If opposed, legal proceedings may follow.
  7. Registration and Issuance

    • If no opposition or once resolved, the trademark is registered, and you receive a certificate.
  8. Renewal

    • Trademarks are valid for 10 years and can be renewed indefinitely.

Key Contacts

  • Bahrain Intellectual Property Office

Here’s a guide on resolving commercial disputes in Bahrain:

  1. Negotiation

    • Attempt to resolve the dispute through direct negotiation between the parties.
  2. Mediation

    • Engage a mediator to facilitate discussions and reach a voluntary agreement. This is often quicker and less costly than court proceedings.
  3. Arbitration

    • If agreed upon, use arbitration for a binding resolution. Check if your contract includes an arbitration clause. Costs vary depending on the arbitrator and complexity.
  4. File a Lawsuit

    • If other methods fail, file a lawsuit in the appropriate court. The Bahrain Chamber for Dispute Resolution (BCDR) handles many commercial cases.
  5. Court Proceedings

    • Present evidence and arguments before the court. This process can be lengthy and costly, with legal fees depending on the case complexity.
  6. Judgment

    • The court issues a judgment which can be enforced legally.
  7. Appeal

    • If necessary, appeal the decision to a higher court.

Costs

  • Mediation and Arbitration Fees: Vary based on the mediator/arbitrator and complexity.
  • Legal Fees: Depend on the lawyer and duration of the case.
  • Court Fees: Typically a filing fee based on the claim amount.

Key Contacts

  • Bahrain Chamber for Dispute Resolution
  • Bahrain Ministry of Justice, Islamic Affairs and Endowments

Here’s an overview of key factors related to doing business in Bahrain:

Social Factors

  • Language: Arabic is the official language, but English is widely used in business.
  • Business Culture: Emphasizes relationship-building and trust. Meetings often start with informal conversations.

Cultural Factors

  • Work Ethic: Punctuality and professionalism are highly valued.
  • Communication Style: Respectful and formal, with an emphasis on politeness and hierarchy.

Political Factors

  • Government Structure: Constitutional monarchy with a stable political environment.
  • Economic Focus: Diversification efforts, focusing on finance, manufacturing, and tourism.

Economic Factors

  • Foreign Exchange: The Bahraini Dinar (BHD) is pegged to the US Dollar.
  • Inflation: Generally low, but economic conditions can vary.

Legal and Regulatory Environment

  • Rule of Law: Strong legal framework with effective contract enforcement and property rights.
  • Intellectual Property: Comprehensive protection for patents, trademarks, and copyrights.

Infrastructure and Market Access

  • Infrastructure: Well-developed with modern ports, airports, and road networks.
  • Trade Agreements: Part of several regional and international agreements, enhancing market access.

Relevant URLs

Our Members Include Leading Organizations in Bahrain

Ask our Experts on Doing Business in/with Bahrain

If you’re looking to do business or invest in Bahrain, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.