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Bahrain offers a variety of business structures for foreign and local entrepreneurs looking to set up a company in the Kingdom. Understanding the eligible business structures is crucial for making an informed decision on the most suitable option for your business.
1. Limited Liability Company (LLC): The most common business structure, an LLC in Bahrain requires at least one Bahraini shareholder and allows for up to 50 shareholders. It’s ideal for companies seeking to operate within the local market while benefiting from a flexible management structure.
2. Branch Office: Foreign companies can establish a branch office in Bahrain to operate without creating a new legal entity. This structure allows businesses to directly represent their parent company, but it must conduct activities within the scope of the parent company’s operations.
3. Foreign Company (GCC & International): Companies from GCC countries or other foreign markets can establish fully owned entities in Bahrain, particularly in Free Zones. These businesses enjoy 100% foreign ownership and tax exemptions, making it an attractive option for international businesses.
4. Single Person Company (SPC): This structure allows an individual entrepreneur to establish a company with full ownership, providing complete control over operations while benefiting from limited liability.
Each business structure has its unique benefits and regulations, so choosing the right one before company registration in Bahrain with the help of professional advice can ensure smooth registration and operation in Bahrain.
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