How to Open IT Company in Bahrain

How to Open IT Company in Bahrain
and Why

Khalid Khan

November 1

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How to Open IT Company in Bahrain and why

A lot of IT professionals provide services to their clients online. In their home countries these professionals pay taxes etc which brings you to this article that how to open IT company in Bahrain and why?

To understand this first you need to understand "why" is Bahrain one of the best places to set up your business. For that you can go through our article Company Formation in Bahrain.

Now coming to the questions how to set up a company is very easy. First choose the business activity that you want to choose related to the IT sector. Whether you will provide consulting services or software services or hardware, etc.

Later you need to decide the name for the company, the company's capital and other details like office location, etc.

The good news is that you can establish a company with the IT activities in a business center or incubator which can help you reduce the cost of operations if that is one of your motives.

Some of the basic things that you will need for opening an IT company just like others will be

Your identity documents like CPR/Passport, etc.
If you are working for a company in Bahrain, then NOC from employer.
Ekey (advance one) and its password or a power of attorney.
Minimum 3 suggested names for the company.
Company's capital.
Company's structure.
Authorized person director documents if they are other than the owner.

So initially you have to apply to Ministry of Industry, Commerce and Tourism ("MOICT") and they transfer the application to Nationality, Passport, Residence Affairs ("NPRA") in Bahrain who check whether you are having any criminal history, etc.

If you have a clean record, then most probably you will get the clearance to open an IT company in Bahrain.

Once it is done MOIC review the name, etc. to see the names you submitted are not same like existing one or infringes someone's registered trademark. They can also ask to fix spelling, submit clear passport copy if they need to. If all is okay, you get a Commercial Registration ("CR") without license.

CR without license means you have a name, registration number, etc. allotted to you but you need to take licenses to practice the business.

In the second stage we go for licensing and before that we need to submit the lease of the company. If you have signed a lease with incubator, you need to submit a form that is provided by the incubator which confirms your activity etc along with other details related to the business.

If everything is okay SME directorate will give you the approval and then MOIC will ask you to submit the memorandum of association and after its review by the MOICT, notarization is required. You can choose a private notary or public notary. The difference between them is the fee structure and prompt appointment. If you choose public notary, you might need to wait a while before getting an appointment but in case of private notary you can get an appointment same day or next day.

Post notarization you take the documents to the bank and open the corporate bank account and once account is opened you can submit the memorandum and capital deposit certificate is issued and you get the final CR with licenses.

Now you can sign contract, provide services, charge clients' money etc and enjoy your journey as an entrepreneur.