Getting Credit In Bahrain: A Guide To Building Your Score

If you're looking to get a Commercial Registration (CR) in Bahrain, you'll need to understand the process and requirements. CR is a business license that allows individuals or companies to conduct commercial activities in the country. The requirements depend on the investor's nationality, with certain restrictions on business activities for foreigners. To obtain a CR, you must submit an application to the Ministry of Industry, Commerce, and Tourism (MoICT), providing essential details such as your business name, legal structure, ownership information, registered address, and business activities. The new Sijilat system has streamlined the process, allowing you to obtain a CR in 18-26 working days.

Golden Residency Visa

The Golden Residency Visa is issued by the Kingdom of Bahrain to foreigners who meet specific criteria. The visa provides the right to work in Bahrain, unlimited entry and exit to the country, and residency for the applicant's close family members. Applicants will need to spend a minimum of 90 days each year in Bahrain.

Eligibility Criteria

• Retirees: Applicants must be retired individuals who are residents of Bahrain or any other country, earning a basic minimum pension income of BD 4,000. Alternatively, retired foreigners who have worked in the government or private sector for 15 or more years can qualify with an average retirement pension exceeding BD 2,000 over the last five years of residency.
• Property Owners: Applicants must own one or more properties in Bahrain, with a total value of at least BD 200,000 from the purchase date.
• Talented Individuals: Applicants must be designated as talented individuals by a government agency or counterpart. This includes academics, athletes, entrepreneurs, inventors, award-winning artists, authors, and their equivalents.
• Residents: Applicants must be employees working in Bahrain for at least five years, with an average salary exceeding BD 2,000 over the past five years. Existing residents must have resided in Bahrain for at least five years, earning a minimum average salary of BD 2,000 per month during this period.

Required Documents

• A clear copy of a valid passport (valid for more than 6 months) and its family information page.
• A clear copy of the ID card or equivalent identification document.
• A clear copy of the Certificate of Good Conduct.
• A clear copy of a valid health insurance certificate in Bahrain.
• A clear copy of the six-month bank statement.
• A clear copy of the previous residence permit (if applicable).
• A copy of a medical report indicating the applicant is free from contagious diseases (issued less than 3 months before the application date).
• For talented individuals: Proof of talent, such as a PhD certificate for academics, a patent document for inventors, or an award certificate for artists and authors.
• For property owners: A clear copy of the title deed proving the property's value.
• For residents: A clear copy of proof of basic salary, such as payslips or employment contracts.

Fees

The Golden Residency Visa has an application fee of 4 BD per person and a residency issuance fee of 300 BD per person. These fees are non-refundable.

Work Residence Permit

A Commercial Registration (CR) in Bahrain is a business license that allows an individual or company to practice a commercial activity in the country. There are more than 350 business activities that any foreigner can own without a local sponsor. However, business activities related to trade, import, and export require 51% Bahraini, Gulf, or American ownership. Most service and manufacturing-related businesses can be fully owned by foreign investors.

To obtain a CR in Bahrain, the following steps are typically required:

• Power of Attorney: The client grants power of attorney to a representative of a startup advisory service to register a business in Bahrain. This can be done at a public or private notary in Bahrain or in the individual's home country. If the home country is a Hague Apostille Member, an apostille stamp from the foreign office is also required.
• CR Name Reservation: Three proposed commercial names are submitted to the Ministry of Industry, Commerce, and Tourism (MOICT) to reserve the commercial and trade name of the CR.
• Address Registration: An office, shop, or workshop commercial address is required, along with proof of address, such as shop pictures, a tenancy agreement copy, and an electricity bill copy. If the CR is related to a specialized activity, approval from other licensing entities may also be necessary.
• Memorandum of Company: The memorandum of association/Articles of Association is drafted and submitted to the MOIC after the client's approval.
• Notarization: The draft memorandum is notarized by a private or public notary.
• Company Bank Account: The company's bank account must be opened, and the capital deposited.
• Final Approval by MOIC: The notarized memorandum and bank certificate are submitted to the MOIC for final approval. Once approved, the CR is registered.

It is important to note that the type of CR chosen depends on the owner's liability. There are several types of CRs available in Bahrain:

• Individual Establishment: Similar to a sole proprietorship, with the sole owner responsible for all liabilities. The business is not considered a separate entity from the owner and can only be owned by a Bahraini or GCC national.
• With Limited Liability (WLL): There are no restrictions on the number of partners or minimum capital. The shareholder's liability is limited to the extent of their investment, and the company is considered separate from the owner. This type of business can also be owned by other nationalities, depending on the business activity, and it allows investor visas (Residence Permits) for its shareholders.
• Bahraini Partnership Company: Similar to a general partnership, with at least two shareholders whose liabilities are unlimited. This type of company can be 100% foreign-owned, depending on business activities.
• Simple Commandite Company: Similar to a limited partnership, with one or more silent partners and managing partners. Silent partners have limited liability but cannot interfere in management decisions, while managing partners have full liability and can make management decisions.

Additionally, Bahrain offers a Virtual CR system called Sijili, which allows aspiring entrepreneurs to register their businesses without a physical address. To obtain a Virtual CR, individuals must be Bahraini, aged 21 or above (or provide a letter from their legal guardians if aged 18-21), and not be a government employee. The process involves obtaining an eKey from a Central Informatics Organization (CIO) and applying through the Sijilat portal.

Regarding residence permits for employees' dependents (spouse and children up to age 24), employers can submit a request for their issuance. The process involves submitting the necessary documents, such as passports, employment contracts, and medical examination reports for the dependents.

Self-Sponsorship Residence Permit

The self-sponsorship residence permit is available for retired foreigners, foreigners who own a residence in Bahrain, and foreign investors. The permit is valid for two, five, or ten years, in accordance with the relevant standards and regulations of the country.

Retired Foreigners

To be eligible for the self-sponsorship residence permit, retired foreigners must provide the following documents:

• Copy of Identity Card
• Certificate of Good Conduct
• Valid health insurance certificate issued by Bahrain
• Copy of lease agreement
• Certificate proving retirement after working in the government, private sector, or in one of the GCC countries for a minimum of 15 years
• Bank certificate proving a minimum fixed deposit of BD 5000 in Bahrain. Applicants must submit proof of the continued existence of the deposit every 6 months with a bank/financial institution licensed to operate in Bahrain
• Proof of a legitimate and stable source of income sufficient to support themselves and their dependents
• Copy of the applicant or authorized person’s Identity Card
• Certified copy of the title deed or mortgage agreement
• Copy of the previous residence permit (for new applications)

Foreigners Who Own a Residence in Bahrain

Foreigners who own a residence in Bahrain must provide the following documents:

• Copy of Identity Card
• Certificate of Good Conduct
• Certified copy of the title deed stating that the value of the property owned by the foreigner is a minimum of BD 50,000
• Valid health insurance certificate issued by Bahrain
• Bank certificate proving a minimum fixed deposit of BD 15,000 in Bahrain. Applicants must submit proof of the continued existence of the deposit every 6 months with a bank/financial institution licensed to operate in Bahrain
• Proof of a legitimate and stable source of income sufficient to support themselves and their dependents (minimum of BD 500)
• Copy of the applicant or authorized person’s Identity Card
• Certified copy of the title deed or mortgage agreement
• Copy of the previous residence permit (for new applications)

Foreign Investors

Foreign investors must provide the following documents:

• Copy of Identity Card
• Certificate of Good Conduct
• Copy of lease agreement
• Certified copy of the company’s articles of association and Commercial Registration, certifying that the applicant is a partner/owner of an industrial, commercial, tourism, medical, educational, training, or other company. Applicant’s share must amount to a minimum of BD 100,000
• Valid health insurance certificate issued by Bahrain
• Bank certificate proving a minimum fixed deposit of BD 15,000 in Bahrain. Applicants must submit proof of the continued existence of the deposit every 6 months with a bank/financial institution licensed to operate in Bahrain
• Proof of a legitimate and stable source of income sufficient to support themselves and their dependents (minimum of BD 500)
• Copy of the applicant’s Identity Card
• Certified copy of the title deed or mortgage agreement
• Copy of the previous residence permit (for new applications)
• Copy of the applicant’s share certificate

Fees

The fees for the self-sponsorship residence permit are as follows:

• Application Fees: 4 BD
• Release Fee (2 years): 200 BD
• Release Fee (5 years): 400 BD
• Release Fee (10 years): 600 BD
• Visa transfer fee: 250 BD

Family Residence Permit

In Bahrain, employers can apply for a Family Residence Permit for their employees' dependants, including their spouse and children up to the age of 24. This is also known as a Dependants Residency Permit.

To apply for a Family Residence Permit, the following conditions must be met:

• The enrollee must not have a valid work permit.
• The enrollee must be the spouse or child of the employee.
• The enrollee must be under the age of 24 (for children).
• The employee must earn a monthly net income of at least BD 400.
• The worker's nationality must be among those authorised to be recruited from abroad.
• The applicant must be registered in the system as an authorised or responsible person with the authority on the respective CR or Unit.
• All required documents must be in JPEG format.

The required documents for a Family Residence Permit application include:

• A copy of the enrollee's birth certificate in Arabic or English. If translated, it must be certified by the country of origin's embassy in Bahrain and the Bahraini Ministry of Foreign Affairs.
• A copy of the spouse's passport.
• A copy of the employee's identity card, if available.
• A copy of the dependent's passport, which must be valid for at least 6 months but ideally 2 years before applying.
• A copy of the marriage certificate in Arabic or English, certified by the employee's country's Ministry of Foreign Affairs and the Bahraini embassy in the employee's country.
• A copy of the no-objection letter from the dependent's father/mother, or a copy of the divorce certificate and a statement proving custody, or a copy of the death certificate if applicable. This letter or certificate should be certified by the Ministry of Foreign Affairs and the Kingdom's Embassy in the native country.
• A copy of the electricity bill for the last 2 months, or a print-out from the electricity and water authority if the bill has not yet been issued. If the electricity bill is not in the applicant's name, a lease contract must be uploaded.

Student Residence Permit

A Student Residence Permit is a type of Bahrain Residence Permit that allows individuals to legally reside in Bahrain for the purpose of pursuing their studies at a college or university in the country. This permit is applicable for both enrolment in a Bahraini educational institution as well as enrolment in an educational institution outside of Bahrain. The validity of the permit is contingent upon the duration of the academic programme, ranging from one to five years.

To obtain a Student Residence Permit, applicants must fulfil the general requirements for residence permit applications in Bahrain. These include:

• A passport with validity exceeding six months
• A health insurance certificate valid in Bahrain
• Bank statements for the last six months
• A certificate of good conduct, which is mandatory for new applicants

In addition to these, specific requirements related to student status, such as proof of enrolment or acceptance into an educational institution, may also be necessary.

The application process for a Student Residence Permit can be initiated by visiting the official NPRA service request website and following the steps outlined for residence permit applications. The cost of obtaining a residence permit in Bahrain is dependent on the type and duration of the permit. However, standard fees include a non-refundable application fee of BHD 90 and residency issuing fees ranging from BHD 50 to BHD 59.

It is important to note that the Student Residence Permit is distinct from the Virtual Commercial Registration (CR) in Bahrain, which is a business license that enables individuals or companies to engage in commercial activities within the country. The Virtual CR is specifically designed for aspiring Bahraini entrepreneurs and has different eligibility criteria and application procedures.

Frequently asked questions