Short answer: There is no single fixed cost to set up a company in Bahrain. The cost depends mainly on the number and type of business activities, the legal form (sole establishment or company, and the company type), the premises, any activity-specific approvals and the number of visas needed. The minimum capital requirement for a WLL was abolished by Decree-Law No. 28 of 2020, although some activities still require a set capital.
What drives the cost?
Activity: fees vary with the number of activities registered on the CR and their type, and some activities need approval from a sector regulator or a set capital, which adds cost and time.
Legal form: sole proprietorship, a WLL (one or more shareholders), or a branch of a foreign company. Government fees differ between a sole establishment and a company, and between company types.
Premises: as a rule, an office or premises suited to the activity. The exception is the virtual CR "Sijili", regulated by Order No. (51) of 2024: an individual establishment for Bahrainis only, practising specified activities without a business address. It cannot bring in foreign workers or deal in products such as food, pharmaceuticals and tobacco.
Ownership: the shareholders' nationality affects which activities are open and the ownership percentages allowed (see our guide for Saudi and GCC nationals).
Visas and work permits: LMRA fees for each foreign employee and for the investor.
Documents: translation and attestation of foreign shareholders' or parent-company documents, and notarisation of the memorandum.
Annual costs: CR renewal, accounting and audit, and VAT registration (10%) once turnover reaches the mandatory threshold of BHD 37,500 over the last 12 months.
Where is the company registered, and how long does it take?
Registration is online through Sijilat, the Ministry of Industry and Commerce portal, which shows the government fees for each activity when you apply. Issuing the CR usually takes one week to one month, unless the activity needs special approvals.
How to avoid unexpected costs
The most common cost drivers are choosing the wrong activity, or a memorandum that does not govern the shareholders' relationship and has to be amended later. Checking the activity and permitted ownership before filing saves time and money.
Frequently asked questions
Is there a minimum capital? There has been no general minimum capital for a WLL since 2020, but some activities require a set capital.
What tax applies to the company? VAT currently applies in Bahrain at 10%, and registration is required once turnover reaches the mandatory threshold of BHD 37,500 over the last 12 months. Build it into your pricing from the start.
Do I need an office to set up the company? You can register yourself, but forming the company through an office registered with the Ministry of Industry and Commerce shortens the process and avoids mistakes in choosing the activity and legal form. With a law firm you also get a memorandum that governs shareholder rights, exit and liquidation, which is what protects you if a dispute arises.
Why Clinic Law?
Clinic Law is a specialist company formation office registered with the Ministry of Industry and Commerce. We handle the whole process for you through Sijilat: choosing the activity and legal form, reserving the trade name, drafting and notarising the memorandum, and following up until the CR is issued. See our company formation services.
Get in touch: send us your intended activity and the shareholders' nationalities on WhatsApp at +973 17004114, and we will set out the requirements before you start. Our fees depend on what each matter requires and are set only after a full review.
Last updated: 5 November 2026. This article is general information about Bahrain law and is not legal advice.
