A Guide To Commercial Registration Application In Bahrain

how to apply for commercial registration in bahrain

If you're looking to start a business in Bahrain, you'll need to obtain a Commercial Registration (CR) certificate. This is a legal requirement for anyone wanting to conduct commercial activity in the country. The CR is issued by the Ministry of Industry, Commerce, and Tourism and includes information such as the establishment date, commercial name, legal representative's name, and registration expiry date. To obtain a CR, there are several steps you need to follow, including deciding on a business structure, obtaining an electronic key and power of attorney, reserving a business name, and preparing the necessary documents. The cost and time it takes to register a business in Bahrain vary depending on the type of business and other factors.

Characteristics Values
Commercial Registration in Bahrain The process of registering a business or commercial property under the name of an individual or a legal entity with the Ministry of Industry, Commerce, and Tourism (MoICT)
Who needs to register? Anyone who wants to conduct any commercial activity in Bahrain, including foreign businesses
Documents required A copy of the company's Articles of Association, a copy of the company's Memorandum of Association, a copy of the company's commercial registration application, and proof of payment of the commercial registration fee
Cost BHD 1,000 to BHD 5,000 on average, depending on the type of business and other factors such as legal fees and office space rental
Time 8 days on average; can be longer depending on the type of business and required licenses/approvals
Steps to obtain Commercial Registration 1. Decide the business structure
2. Obtain Electronic Key
3. Obtain Power of Attorney
4. Reserve the business name
5. Get business address approval
6. Prepare the Memorandum of Association
7. Open a business bank account
8. Apply for business registration
9. Acquire business licenses
Commercial Registration certificate (CR) A legal document issued to investors upon registering their establishment, including information such as the CR number, establishment date, legal representative's name, legal form, commercial name, registration expiry date, and business license
CR Types 1. Commercial Registration certificate without license
2. Commercial Registration certificate with license
3. Virtual Commercial Registration (Sijili) for small individual enterprises and entrepreneurs

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Decide the business structure

Deciding on a business structure is the first step in obtaining a Commercial Registration in Bahrain. There are several types of business structures to choose from, each with its own set of requirements and restrictions. Here is an overview of the different types of business structures available in Bahrain:

Individual Establishment

Similar to a Sole Proprietorship, an Individual Establishment is owned and operated by a single individual who is solely responsible for all liabilities of the business. The business is not considered a separate entity from the owner. This type of business can only be owned by a Bahraini or GCC national.

With Limited Liability (WLL)

In this structure, there is no restriction on the number of partners or minimum capital. The liability of each shareholder is limited to the extent of their investment, and the company is considered a separate entity from the owner. The amount, type, and currency of capital are declared publicly, along with the percentage of ownership of each shareholder. This type of business can be owned by various nationalities, depending on the business activity. It also allows for investor visas (Residence Permits) for its shareholders.

Bahraini Partnership Company

A Bahraini Partnership Company is similar to a general partnership, requiring a minimum of two shareholders with unlimited liability. This type of company must declare its representatives and can be 100% foreign-owned, depending on the business activities.

Simple Commandite Company

The Simple Commandite Company is akin to a Limited Partnership, consisting of 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. This type of partnership can also be foreign-owned, depending on the business activities.

When deciding on a business structure, it is important to consider factors such as the nationality of the investors, the required level of liability protection, and the desired level of ownership. Each business structure has its own advantages and disadvantages, and the right structure for your business will depend on your specific needs and requirements.

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Obtain an Electronic Key

To obtain an Electronic Key (also known as an eKey) in Bahrain, you must first register your establishment. This can be done online or in person.

Online Process

  • Visit the following link to register your establishment: Register Your Establishment.
  • Fill out all the required fields and upload the necessary documents.
  • Submit your registration and pay the admin fees.
  • Your registration application will be verified within 2 working days.
  • Once your application is approved, you will be able to log in to the Expat Management System (EMS) using your Advanced eKey.

In-Person Process

  • Visit the Client Services Front Desk Counters at the Labour Market Regulatory Authority (LMRA) by booking an appointment for commercial services via the LMRA’s Appointment Management System.
  • Fill out the Establishment Registration Form and submit the required documents.
  • An LMRA employee will collect the admin fees from the commercial registration owner or their representative.
  • Once the admin fee payment is completed, you will be able to log in to the Expat Management System (EMS) using your Advanced eKey.
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Provide required documents

To obtain a commercial registration in Bahrain, you will need to provide the following documents:

  • A copy of the company's Articles of Association
  • A copy of the company's Memorandum of Association
  • A copy of the company's commercial registration application
  • Proof of payment of the commercial registration fee
  • Trade name and legal entity
  • Name, address, nationality, ID or passport number
  • The capital and commercial address of the establishment (if present)
  • The legal representative's name, nationality, address, and ID or passport number (if applicable)

If you are not a Bahraini national, you will need to provide additional documentation, such as a copy of your passport and proof of residence.

It is important to note that the specific requirements and documents needed may vary depending on the type of business and other factors. The "Sijilat" portal is a useful online resource that can provide more tailored information on the requirements for different business activities.

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Register online or in-person

To apply for commercial registration in Bahrain, you can either register online or in person.

Online Registration:

The "SIJILAT" portal is a single virtual platform that allows you to obtain commercial registrations and business licenses without visiting any government services physically. To begin using Sijilat and apply for a CR, you must have an advanced eKey. If you don't have an advanced eKey, you will need to apply through a professional body or a person with a notarized power of attorney who has an advanced eKey.

Once you have your advanced eKey, you can visit the Sijilat portal and fill out the required fields. This includes providing information such as the applicant's name, nationality, communication address, national ID or passport number, legal form of the entity, authorized signatories, commercial name, type of activity desired, establishment's capital, and commercial address.

After submitting the registration, you will receive a notification and be directed to the payment page for the admin fees. Your registration application will then be verified within 2 working days.

In-Person Registration:

If you prefer to register in person, you can visit the Client Services Front Desk Counters at the Labour Market Regulatory Authority (LMRA) by booking an appointment through their Appointment Management System.

During your appointment, you will need to fill out the Establishment Registration Form and submit the required documents. The LMRA employee will then collect the admin fees, and once the payment is completed, you will be able to log in to the Expat Management System (EMS) using your Advanced eKey.

It's important to note that the personal presence of the owner of the commercial registration or establishment is required to complete the registration process. Alternatively, an authorized person with a power of attorney can represent them.

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Receive approval

Once you have submitted your application for commercial registration, you will need to wait for it to be approved. The time taken for approval depends on the type of business and the required licences and approvals. On average, it takes eight days to get set up in Bahrain, but there are several factors that can affect this duration. For example, companies providing financial services need to obtain a licence from the Central Bank of Bahrain, which will take 60 days.

If all the documents submitted are in order, commercial registration by the Ministry of Industry and Commerce will be successfully completed within one to two weeks. Using the fast-track method, the time period is reduced to 18-25 working days.

Once approved, you will be notified and your CR is registered.

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