How to Choose the Right Business Activity for Your Business License in Bahrain

Introduction

Choosing the right kind of business activity to acquire a business license in Bahrain is essential to start a business in Bahrain, making your dream a reality. Choosing Bahrain to start a business can give entrepreneurs a competitive advantage because of its strategic location, tax benefits and business-friendly regulations. Allowing new businesses to structure up in Bahrain helps to create new entrepreneurs, thereby contributing to Bahrain’s national growth. Setting up a business in Bahrain involves getting permits and licenses from different government authorities, making the process complex and daunting. However with assistance from an expert service provider, the individual can remain in peace of mind. Through this article, you will learn about different business activities  or business setups in Bahrain, the various business licenses involved, and the procedures involved in setting up a business in Bahrain, and  business license service provided by Helpline Group in Bahrain.

Different Business Activities in Bahrain

The first thing that will come to an individual’s mind when thinking of starting a business will be about the activities in which she/ he can invest. A business activity is the nature of goods or services a company will provide. Different business activities involve approvals and licenses from different government authorities. Choosing the suitable activity to get the maximum competitive advantages and tax benefits is always essential. An individual can conduct business in various sectors in Bahrain, including

• Agriculture, animal production, and fishing
• Mining and quarrying
• Manufacturing
• Electricity, gas, steam and air conditioning supply
• Water supply; sewerage, waste management and remediation activities
• Construction
• Sale/ Trading activities; repair of motor vehicles and motorcycles
• Transportation and storage
• Accommodation and food service activities
• Information and communication
• Financial and insurance activities
• Real estate activities
• Professional, Scientific and Technical activities
• Administrative and Support service activities
• Education
• Human health and social work activities
• Arts, entertainment, Sports and Recreation
• Personal service activities; Repair Activities

Business Registration Activities only Limited to Bahraini Nationalities

Note that all kinds of businesses cannot be established by any individual. There are categories of businesses that are only limited to Bahraini citizens. This includes:

• Public Transportation
• Distribution of newspapers and magazines and promotional materials to transport companies
• Mobile Food Service Activities
• Publishing activities
• Brokerage in Real Estate
• Individual Lawyers (Legal Consultancy offices are allowed for foreign ownership)
• Recruiting Manpower Agencies
• Employment Offices

Banned Business Activities in Bahrain

Business Activities that are banned in the Kingdom of Bahrain include:

1. In the manufacturing sector,

• Production of alcoholic beverages
• Production of Narcotics
• Manufacturing of Weapons
• Production of Cigarettes/ Cigars

2. In importation,

• Import of all types of waste, treatment, storage and disposal of radioactive materials and toxic waste in Bahrain
• Import, manufacture and trade of asbestos and its products (not including asbestos removal contractors)
• Import and use of banned chemicals

3.Other activities,

• Gambling
• Cultivation of pearls
• Cigarette Vending machines
• Letter post/Mail (exclusive to Bahrain Post)

Business License

A business requires adequate licenses and approvals from different government authorities to start functioning. The requirements to obtain a business license depend on your desired business activity. The document requirements will vary from business to business. After getting approval for your business licenses, you will receive the Commercial Registration Certificate mentioning the activities you are licensed to practice in Bahrain.

Commercial Registration

A Commercial Registration (CR) certificate is crucial for investors to register their establishments with the Ministry of Industry and Commerce (MOIC) in the Kingdom of Bahrain. CR certificates can be Commercial Registration certificates without a license, Commercial Registration certificates with the license, and Virtual Commercial Registration (Sijili), aimed at simplifying procedures for small individual enterprises and entrepreneurs. To license and register businesses, an electronic platform was launched by the government of the Kingdom of Bahrain called “SIJILAT”.

Types of Commercial Registration

Selecting the relevant Commercial Registration for your business is a prerequisite for registering your venture. Different types of Commercial Registrations are the following: 

• • Bahrain Shareholding Company (closed): A private company offering shares to the general public on the stock market exchanges and having a minimum share capital of not less than BD 2,50,000.
  • Bahrain Shareholding Company (Public): A public company offering shares to the general public on the stock market exchanges and having a minimum share capital of not less than BD 1 million.
  • Branch of a foreign Company: A company incorporated and registered outside the Kingdom of Bahrain that established branches for its operations or offices in the Kingdom under the Companies Law.
  • Commandite By Shares Company: A company that consists of two classes of partners, one of which is the class of joint partners who are jointly liable in all their funds for the obligation of the company and the other class is the limited partners (shareholders) who are not liable for the obligations of the company except by the amount of their shares in the share capital.
• • Investment Limited Partnerships: A limited partnership (LP) is a business entity that requires at least one general partner and one or more limited partners. The general partner has unlimited financial liability, while other partners have liability up to the size of their investment.
• • Non-Profit Company: A non-profit company is a company that does not primarily aim to make a profit, and the profits are used to achieve the purposes for which it was established. The company may not distribute any profits directly or indirectly to its partners.
• • Partnership Company: A company that consists of two persons or more under a certain name, and the partners shall be jointly liable to the extent of all their funds for the obligation of the company.
• • Simple Commandite Company: A simple commandite concluded between one or more partners responsible and jointly liable for the company’s obligations in all of their money, and one or more partners who are owners of funds in it but are outside the management and are called sleeping partners. Each of them shall not be liable for the company’s obligations except to the extent of his share in the capital.
• • With Limited Liability Company: A company where the shareholders are only liable to the extent of their shares in the capital.
• • Individual Establishment (Traditional): Also known as a sole proprietorship, it is the facility owned by one person, a commercial activity institution, and the owner of the institution bears all financial institutions.
• • Individual Establishment (Virtual): Sijili is an electronic platform for commercial registration for Bahraini nationals to practice certain business activities without registering an office address.

Start a business in Bahrain with the Assistance from the Helpline Group

Helpline Group is a pioneer in company formation and business license service in Bahrain. With 25+ years of service in company formation, accompanied by a team of professionals providing assistance in setting up new businesses and business license service in Bahrain for clients, it is a no-brainer task for Helpline Group. We excel in:

• Providing expert guidance and consultation
• Document preparation and submission to different government authorities.
• Liaison between authorities and clients
• Ensuring legal compliance
• Properly does the follow-ups with the status of applications for approvals and licenses. 
• Helps gain peace of mind for clients by handling all the complexities of company formation on behalf of clients.
• Providing great support and services after company formations.

Conclusion

Choosing the assistance of an expert agent like Helpline Group will help you make your dream fruitful. Contact the Helpline group for more information about Company Formation and business license service in Bahrain. Our dedicated professionals will make the process easy for you without any hassles.