Importance of the Bank Statement in the Company Formation Procedure in Bahrain
Khalid Khan
February 1
Many people who want to opt for company formation in the Kingdom of Bahrain are not aware that a bank statement can give them sleepless nights.
The reason I am mentioning this is that recently one of my clients had to remove his wife as a partner and add someone else since his wife couldn't furnish the bank statement to the bank and due to which they refused to open the bank account for the company. Then, we had to change the partners, and revisit the whole process and then finally the company was formed.
Normally, most people have bank statements, but even today there are many people who don't keep their money in the bank. Recently I asked a guy to give me his account details to transfer money to his account, and he replied I can take cash only since I don't have a bank account which surprised me.
I hope you are not one of them and if you are, then better open a bank account ASAP. Nowadays the process is much simpler and the whole process could be finished online as well.
If you have started a business in Bahrain, then you must well know that the last step in the company formation in Bahrain is opening a bank account. I cannot say which bank has what policy related to the clients, but as I came to know from some clients they have to change the partner in the company or change the company structure since their partner doesn't have a bank account.
A similar incident happened a long time back when one client hired our services for company formation in the Kingdom of Bahrain and the company was a With Limited Liability Company ("WLL") and it was between the client and his father. Here, the client wanted to start a company and give a certain portion of sharing to his father, to use his skills and also to get him an investor visa and live legally. But when he went to open the bank account the bank refused to open since the client's father couldn't furnish the bank statements.
I am not sure these incidents happened to anyone else or not, but whatever I have explained above are not fictional in nature and are very true. In short, if you are planning to form a company in the Kingdom of Bahrain or hire services of someone for the company formation in the Kingdom of Bahrain and you or your partner doesn't have a bank statement, then it's time to open a bank account for you or your partner now so that at a later stage you don't have to change the company's structure or add another partner with a bank statement.
The bank might ask for a 3 months statement or 6 months statement depending on the bank and if you are an expat and have an account outside Bahrain, then it has to be certified by the issuing bank and if the language of the letter is not English or Arabic, then you might need to translate it too.
The reason I am mentioning this is that recently one of my clients had to remove his wife as a partner and add someone else since his wife couldn't furnish the bank statement to the bank and due to which they refused to open the bank account for the company. Then, we had to change the partners, and revisit the whole process and then finally the company was formed.
Normally, most people have bank statements, but even today there are many people who don't keep their money in the bank. Recently I asked a guy to give me his account details to transfer money to his account, and he replied I can take cash only since I don't have a bank account which surprised me.
I hope you are not one of them and if you are, then better open a bank account ASAP. Nowadays the process is much simpler and the whole process could be finished online as well.
If you have started a business in Bahrain, then you must well know that the last step in the company formation in Bahrain is opening a bank account. I cannot say which bank has what policy related to the clients, but as I came to know from some clients they have to change the partner in the company or change the company structure since their partner doesn't have a bank account.
A similar incident happened a long time back when one client hired our services for company formation in the Kingdom of Bahrain and the company was a With Limited Liability Company ("WLL") and it was between the client and his father. Here, the client wanted to start a company and give a certain portion of sharing to his father, to use his skills and also to get him an investor visa and live legally. But when he went to open the bank account the bank refused to open since the client's father couldn't furnish the bank statements.
I am not sure these incidents happened to anyone else or not, but whatever I have explained above are not fictional in nature and are very true. In short, if you are planning to form a company in the Kingdom of Bahrain or hire services of someone for the company formation in the Kingdom of Bahrain and you or your partner doesn't have a bank statement, then it's time to open a bank account for you or your partner now so that at a later stage you don't have to change the company's structure or add another partner with a bank statement.
The bank might ask for a 3 months statement or 6 months statement depending on the bank and if you are an expat and have an account outside Bahrain, then it has to be certified by the issuing bank and if the language of the letter is not English or Arabic, then you might need to translate it too.
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