Bahrain Restaurant Setup: A Comprehensive Guide

Bahrain's restaurant industry is growing, along with a rising demand for dining out. With a thriving economy and a business-friendly environment, it's a great place to invest in the restaurant business. If you're interested in setting up a restaurant in Bahrain, there are a few steps you need to take. First, you'll need to prepare the required documents and choose a unique and interesting name for your restaurant. You'll also need to decide on the owners, shareholders, and directors, as well as choose a business structure. Once you have the initial approvals, you can start setting up by opening a bank account, leasing office space, and hiring employees. Finally, you'll receive your final licenses and regulatory approvals before officially launching your restaurant.

Choosing a business structure

• Company with Limited Liability (WLL): This is a common structure for businesses operating in Bahrain. It provides limited liability protection for owners, meaning their personal assets are generally protected if the company faces financial difficulties. The WLL structure is suitable for small and medium-sized enterprises and offers a balanced mix of flexibility and legal protection.
• Foreign Branch: This structure is typically chosen by international companies looking to establish a presence in Bahrain. It allows foreign companies to operate as a branch of their parent company, rather than a separate legal entity. The foreign branch structure may be preferable for companies seeking to maintain greater control over their operations in Bahrain, although it may also result in different tax treatments and regulatory requirements.

When deciding on a business structure, it is essential to consider your specific circumstances, such as the size and nature of your restaurant business, the level of liability protection sought, and any plans for future growth or expansion. It is always advisable to seek professional advice from experts in Bahraini business law to ensure you make an informed decision that complies with the country's legal and regulatory framework.

Finding the right name

Choosing a name for your restaurant is one of the most important steps in setting up your business in Bahrain. The name needs to be unique and interesting, and it should also reflect the concept and atmosphere of your restaurant. Here are a few tips to help you find the right name:

• Brainstorm ideas: Start by brainstorming a list of potential names that reflect the theme, cuisine, or atmosphere of your restaurant. Consider the type of food you will be serving, the ambiance you want to create, and the impression you want to leave on your customers.
• Keep it memorable: Choose a name that is easy to remember and pronounce. A catchy and memorable name will help your restaurant stand out and create a lasting impression.
• Be creative: Your restaurant name should be unique and creative. Avoid generic or overused names that may be confusing or forgettable. Think of something that will spark curiosity and intrigue potential customers.
• Consider your brand: The name of your restaurant should align with your brand identity and values. Consider the type of experience you want to offer your customers and choose a name that reflects that. For example, if you want to create a fun and casual dining experience, choose a name that is lighthearted and playful.
• Research and feedback: Once you have a few potential names, research them online to make sure they are not already in use by another business, especially in the restaurant industry. You can also ask for feedback from friends, family, and potential customers to get their impression of the names and see if they find them appealing.
• Arabic and English versions: Keep in mind that you will need both an English and an Arabic version of your restaurant's name for approval in Bahrain. Choose names that translate well and sound appealing in both languages.

Remember, the name of your restaurant will be one of the first things customers hear about your business, so it should create a positive and lasting impression. Take your time and choose a name that truly represents your restaurant's concept and brand.

Selecting owners, shareholders and directors

When selecting owners, shareholders, and directors for your restaurant in Bahrain, there are a few things to keep in mind. Firstly, it's important to choose individuals who share similar goals and values for your business. These individuals will be the foundation of your restaurant, so finding people with a passion for the industry and a strong work ethic is key.

Secondly, depending on the type of company structure you choose, there will be requirements for the minimum number of directors and shareholders. For example, a limited liability company in Bahrain must have at least one director, while joint-stock companies require a minimum of three. Up to 50 members can have a shareholding in a limited liability company, and foreigners are also allowed ownership. On the other hand, joint-stock companies can offer shares to the public but require a minimum of seven shareholders.

Additionally, you will need to decide on the shareholding pattern and assign shareholders their respective designations. This will involve determining the amount of capital each shareholder will contribute and their level of involvement in the company's decision-making. It's important to note that Bahrain has a minimum capital requirement for company registration, which varies depending on the type of company. For example, the minimum capital required to register a limited liability company is BD 20,000 (USD 53,036.32), while the capital requirement for joint-stock companies is BD 250,000 (approximately USD 662,954).

Finally, when selecting owners, shareholders, and directors, it's essential to consider the eligibility requirements for working in Bahrain. British citizens and nationals of the Gulf Cooperation Council (GCC) member states do not need a visa to work in the country. However, citizens of other countries must apply for a work visa or a short-stay business visa, depending on the nature and duration of their work.

By carefully considering these factors and choosing individuals who align with your restaurant's vision and values, you will be well on your way to establishing a strong foundation for your business venture in Bahrain.

Leasing office space

When considering renting an office in Bahrain, location is key. The Diplomatic Area is a great choice for financial services companies, while Seef Area is ideal for businesses in the tourism and leisure industry. Additionally, the capital, Manama, remains the hub of all commercial activity in Bahrain, offering a range of options for office spaces, including open spaces, single or two-storey buildings, and even whole buildings. Other popular areas in the capital governorate include Seef, Manama City, and Sanabis, which are known for heavy business traffic.

It is important to consider your budget when choosing an office space, as prices can vary depending on the location and specifications. For example, a spacious office for rent in Salmabad, Central Governorate, offers a reduced price for a semi-fitted office. On the other hand, a luxury office in Sanabis, Manama, in the Capital Governorate, comes with splendid amenities but at a higher cost.

When renting an office space in Bahrain, it is advisable to consult a lawyer to ensure that all necessary paperwork is in order and that the process is carried out in accordance with Bahraini law for commercial rentals.

Hiring Bahraini employees

To hire employees in Bahrain, you will first need to obtain initial approvals and a Commercial Registration Certificate. This involves choosing a unique and interesting name for your company, selecting owners, shareholders, and directors who share your business goals, and deciding on a business structure. The structure you choose will impact registration requirements, insurance, and terms and conditions. Options include a Company with Limited Liability (WLL) or Foreign Branch.

Once you have received the necessary approvals and certificates, you can begin the process of hiring Bahraini employees. It is important to note that you cannot hire foreign employees until you have completed the final step of receiving your license and regulatory approvals.

Frequently asked questions