Bahrain's Well-Making Guide: Steps To Success

Making a will in Bahrain is a straightforward process, but it's important to be aware of the applicable inheritance laws, especially for expats. In Bahrain, inheritance laws differ for Muslims and non-Muslims. For non-Muslim expats, the inheritance law of their home country is applied, unless the laws of their home country state that the law of the property's location should be followed, in which case, Islamic Shariah law will govern any property owned in Bahrain. On the other hand, for Muslim expats, inheritance issues are governed by Islamic Shariah law, the same as for Bahraini nationals.

It is always advisable to have a will in Bahrain, especially if you own property, to ensure that your wishes are carried out. While it's not mandatory, having a will can provide peace of mind and help avoid potential disputes. Additionally, it's worth noting that Bahrain offers a residency program through real estate investment, where foreigners can gain residency by investing in property. This option may be worth considering for those looking to establish a longer-term presence in the country.

Inheritance laws for expats

Bahrain is a top choice for expats due to its multicultural society, friendly people, and high quality of life. The country has a rapidly growing economy, making it an attractive destination for those seeking new job opportunities. Additionally, its diverse expat community fosters an inclusive and welcoming environment.

For Non-Muslim Expats

For non-Muslim expats, the inheritance law of their country of citizenship will be applied. However, if the laws of your home country state that the law of the property's location applies, then Islamic Shariah law will govern any property you own in Bahrain.

For Muslim Expats

For Muslim expats, Islamic Shariah law governs all matters related to inheritance. The Bahraini courts will treat Muslim expats the same as Bahraini nationals, applying their laws regardless of your country of citizenship.

Regardless of religious affiliation, it is advisable for anyone owning property in Bahrain to have a will. This ensures that the provisions of your will are applied by the Bahraini courts. While it is not a requirement, having a will in place is highly recommended to ensure your wishes are respected.

Sale and Purchase Agreement Clauses

In Bahrain, property owners can transfer ownership through gifting, inheritance, or selling. However, it is crucial to include a provision in the Sale and Purchase Agreement stating whether the property developer's consent is needed for such transfers. Many owners overlook this clause, which can give the developer an advantage and potentially lead to problems when selling or transferring the property.

In summary, expats in Bahrain should be aware of the applicable inheritance laws, particularly the distinction between non-Muslim and Muslim expats. Having a will in place is essential to ensure your wishes are carried out, and understanding the Sale and Purchase Agreement clauses can prevent future complications.

Property investment

Bahrain is an attractive prospect for investors, with its business-friendly environment, 100% foreign ownership, and a streamlined registration process. The country's stable economy, government support, clear regulations, and tax benefits make it an ideal location for those looking to expand their business in the Middle East.

When it comes to property investment, there are a few key things to keep in mind. Firstly, Bahrain offers a range of business structures, including the widely chosen With Limited Liability (WLL) company, which is similar to a Limited Liability Company (LLC) in other countries. This structure provides limited liability for owners, with their liability restricted to their investment in the company. It also allows for 100% foreign ownership, making it a popular choice for international investors.

When considering property investment in Bahrain, it is essential to understand the country's real estate market and the specific regulations surrounding property ownership. Here are some key points to consider:

• Market Trends: Research the current market trends in Bahrain, including property prices, demand, and potential growth areas. This will help you identify lucrative investment opportunities.
• Legal Requirements: Familiarize yourself with the legal requirements for property investment in Bahrain, including any restrictions on foreign ownership, minimum capital requirements, and the need for permits or licenses.
• Location: Consider the location of the property carefully. Look for areas with high demand, good infrastructure, and potential for growth. Research local amenities, transportation links, and any future development plans that could impact property values.
• Financing: Determine your financing options and the associated costs. Understand the requirements for obtaining a mortgage or loan in Bahrain, and compare interest rates and terms from different financial institutions.
• Rental Market: If you plan to rent out the property, research the rental market in Bahrain, including demand, rental yields, and any regulations surrounding landlord-tenant relationships.
• Property Management: Consider how you will manage the property, especially if you are investing from abroad. You may need to engage a local property management company to handle maintenance, rentals, and any other day-to-day tasks.

By carefully considering these factors and understanding the specific processes and regulations in Bahrain, you can make informed decisions about property investment in the country. It is always recommended to seek professional advice from a local consultant or specialist to ensure compliance with all legal and regulatory requirements.

Business registration

The process of registering a business in Bahrain involves several steps, and it's important to ensure that you meet all the necessary requirements and regulations. Here's a detailed guide to help you through the process:

• Obtain Security Clearance: Before initiating the business registration process, it's essential to obtain security clearance from the Ministry of Interior. This step involves a background check to ensure your eligibility and address any potential security concerns. Submit copies of passports and other identification documents for all company owners and directors to the Ministry of Interior. The processing time for security clearance may vary, so be sure to factor this into your overall timeline for setting up your business.
• Register Your Business Name: Choose three unique and relevant names for your business. Submit these proposed names to the Ministry of Industry and Commerce (MOICT) for availability checks and approval. Ensure that the chosen name complies with Bahrain's naming conventions and does not infringe on any existing trademarks. Consider conducting a separate trademark search to avoid potential conflicts in the future.
• Secure an Office Address: You will need to establish a registered office address in Bahrain. This can be a physical office space, a workspace in a shared office environment, or even a virtual office address. Ensure that the chosen address complies with municipal regulations and has the necessary approvals from the relevant authorities. Virtual office providers often assist their clients in obtaining the required approvals. When selecting an office address, consider factors such as cost, scalability, and the professional image you want to project.
• Draft and Notarise Legal Documents: This step involves creating a Memorandum of Association (MOA), which is a crucial document outlining your company's structure, including details such as the company name, objectives, share capital, and management structure. Once drafted, the MOA needs to be notarised by the Ministry of Justice. The MOA serves as a foundational document for your company, so it's important to ensure it accurately reflects your business goals and complies with all regulations. Consider consulting a business formation specialist to guide you through this process. Additionally, the Ministry of Justice may require you to submit additional documents along with the MOA for notarisation.
• Open a Corporate Bank Account: Deposit the minimum required capital for your chosen business structure into a newly opened corporate bank account. The amount of minimum capital required may vary depending on the specific business structure you have selected, so be sure to research this in advance. Once the bank verifies your deposit, you will receive a capital deposit certificate, which is a crucial document for finalising your company registration. Opening a corporate bank account may involve additional documentation and may require in-person visits to the bank.
• Submit Your Application: After completing the above steps, you are now ready to submit your application for business registration. Submit your application, along with all the necessary documents, to the Ministry of Industry, Commerce, and Tourism (MOICT). The required documents may include details such as capital, passport copies, shareholding patterns, and the type of company you are establishing.
• Obtain Commercial Registration (CR) and License: If your application is approved, you will be granted a Commercial Registration (CR) without a license. At this stage, you will need to make a payment to obtain the CR without a license. Once you have the CR, proceed to obtain the necessary license(s) as per the requirements of your specific business activity. The MOICT may request additional documents or ask you to rectify any mistakes in your application.
• Finalise Memorandum and Submit: The Memorandum of Association of a WLL company in Bahrain is a key document that outlines the terms and conditions of the partnership. It is the constitution of your company, so it's essential to engage an experienced and professional service provider to draft this document accurately. Once the memorandum is finalised and accepted, it must be signed by a notary and a notarised copy submitted online to the relevant authorities.
• Lease Agreement and Bank Deposit Certificate: Submit the lease agreement for your registered office address. Ensure that the lease is signed with a trusted party to avoid any delays in setting up your company. Additionally, provide the bank deposit certificate obtained from the bank where the company opens its corporate account. Submit this certificate online to the MOICT.
• Additional Considerations: Depending on your specific industry and business activities, you may need to obtain additional licenses from relevant government authorities. Register your company for tax purposes with the appropriate Bahraini tax authorities. It's also important to maintain ongoing compliance by filing annual reports and renewing licenses as required.

While the business registration process in Bahrain is generally straightforward, it's always recommended to consult a specialist in business formation to ensure a smooth and efficient experience. They can guide you through each step, answer any specific questions, and help you meet all the necessary legal and regulatory requirements.

Online money-making

The internet has opened up a lot of business opportunities in Bahrain, with almost everyone now having access. However, it is important to remember that the internet doesn't give instant money and that there is no quick way to earn a decent living online.

Blogging

Creating a blog can be a great way to make money online. You will need to invest a little money in a domain name and website hosting, but you don't need any programming skills—you can create and write content using WordPress, a content management system that doesn't require any coding knowledge. Once you have a website and are getting traffic, you can apply to Google AdSense and earn money by placing ads on your blog.

YouTube

YouTube is another potentially lucrative platform. You can earn money by uploading your own unique videos and enabling monetization. If your video goes viral, you can make a good amount of money. However, you will need some video-making and editing skills.

Affiliate Marketing

Affiliate marketing involves promoting advertisers' products through your website, YouTube channel, or social media accounts. You will need to sign up with affiliate marketing companies like Amazon and get affiliate links to place on your site. There are different types of affiliate programs, including Pay Per Click (PPC), Pay Per Lead (PPL), and Pay Per Sale (PPS). With PPC, you earn money when someone clicks on your link; with PPL, you get paid when someone registers or submits their email; and with PPS, you only get paid when someone buys the product.

Freelancing

Freelancing is a great way to offer your services to clients worldwide without needing to invest any money upfront. There are many freelancing platforms, such as Upwork, Fiverr, and Freelancer, that connect you with clients and handle payments and advertising. You can find freelance work in various skills, including software development, content writing, data entry, sales and marketing, and accounting.

Buy and Sell Domain Names

Domain names can increase in value over time, so buying and selling them can be a profitable venture. You can buy domains for $10 to $20 and sell them at a higher rate, depending on the domain name. You can sell domains on platforms like Flippa, which allow you to put your domain up for auction and accept bids.

Online Surveys

Participating in online surveys can be an easy way to make some extra money. Websites like Triaba offer the opportunity to earn between $0.25 to $4.50 for each survey completed.

Online Teaching/Coaching

If you have expertise in a particular area, you can consider online teaching or coaching. Platforms like Skillshare, Udemy, and LinkedIn Learning connect teachers with students looking for courses.

Dropshipping

Dropshipping involves creating a website store where customers can purchase third-party products. This business model can be lucrative for entrepreneurs, and you can get started using platforms like Shopify, BigCommerce, or Wix.

Virtual Recruiter

With many companies hiring, you can work as a virtual recruiter, matching employers' vacancies with job seekers. You can find such positions on websites like Upwork, Indeed, and LinkedIn.

Online Digital Marketing

If you have experience in digital marketing, including SEO, email marketing, or social media marketing, you can find remote jobs assisting companies in maintaining their online presence. Job platforms like Upwork, Fiverr, and LinkedIn are great places to start your search.

Remember, while these opportunities can provide a good income, they require time and effort to build a sustainable online business.

Foreign direct investment

The Bahraini government has implemented a generally liberal approach to FDI, allowing foreign business ownership in more than 95% of all economic activities. This open policy eliminates the need for foreign companies to resort to local partners in most cases. Additionally, there are no limitations on the repatriation of capital, profits, or dividends, except for companies in the oil and gas sector, which are taxed at a rate of 46% on profits.

The Central Bank of Bahrain (CBB) plays a crucial role in regulating the financial sector, supervising capital markets, and combatting financial crime and money laundering. The CBB oversees funds traded in the Bahraini market through FDI or other means. The country's financial services sector has witnessed unprecedented investment, surpassing the oil and gas industry to become the leading economic contributor, accounting for 17.5% of real GDP.

Bahrain's advantages in attracting FDI include a largely English-speaking, educated, and skilled population, a strategic location in the northern Gulf with easy access to Saudi Arabia and other Gulf markets, and a solid reputation for regulating financial services. Additionally, the country offers the lowest corporate and personal taxes in the Gulf and has excellent logistical infrastructure.

However, there are also potential factors that may hinder foreign investment. These include political and civil upheaval, regional instability, official travel bans, difficulties in obtaining work permits and residence visas for expatriate employees, and a rigid labour market due to the "Bahrainization" policy, which requires employers to hire a minimum percentage of Bahrainis.

The government has taken measures to promote FDI, such as forming the Supreme Council for privatization and creating the Bahrain Mumtalakat Holding Company to manage public investment. Additionally, the Bahrain Investors Center (BIC) provides a "one-stop shop" for all business services, licensing, and registration needs. Bahrain is committed to maintaining a favourable investment climate and continuously monitors the market to improve policies, promote the country as an investment hub, and suggest new laws to support FDI.

Frequently asked questions