If you’re based in London and looking to expand into the Middle East, starting a business in Bahrain is one of the smartest moves you can make. With its investor-friendly ecosystem, 100% foreign ownership options, tax benefits, and fast setup processes, Bahrain offers UK entrepreneurs a perfect gateway to the Gulf Cooperation Council (GCC) market.

This guide is written specifically for London-based entrepreneurs, British expats, and UK investors who want to start or expand a business in Bahrain without needing to relocate full-time.

Let’s walk through the step-by-step process to help you launch your business in Bahrain—remotely and legally—from London.

Why Bahrain is a Smart Choice for London Entrepreneurs

Bahrain offers London-based entrepreneurs a unique mix of business freedom, zero corporate tax, and access to the wider GCC market. With 100% foreign ownership and fast online registration, it’s the ideal base for expanding into the Middle East—without the high costs or restrictions found in other Gulf nations.

Strategic Location in the Gulf Region

Bahrain is centrally located in the Gulf, offering direct access to markets in Saudi Arabia, UAE, Qatar, and the rest of the GCC. It’s often used as a regional hub by global companies due to its location and free trade agreements.

Business-Friendly Policies

• 100% foreign ownership in most sectors (including IT, trading, consultancy, etc.)
  
• No corporate income tax (except for oil/gas companies)
  
• 0% personal income tax
  
• Fully online business registration via the Sijilat portal
  
• Open banking and fintech ecosystem regulated by the Central Bank of Bahrain (CBB)
  

Cultural and Language Advantage

English is widely spoken in Bahrain’s government and business circles. The regulatory system is also based on common law principles, making it easier for UK-based entrepreneurs to navigate.

Legal Entities in Bahrain for UK Citizens and Expats

When starting a business in Bahrain from London, choosing the right legal structure is essential. Here are the main business types that allow foreign ownership:

With Commercial Registration (CR)

Single Person Company (SPC)

• Owned by one individual (100% foreign ownership allowed)
  
• Suitable for freelancers, consultants, or sole founders
  

With Limited Liability Company (WLL)

• Minimum 2 shareholders required
  
• 100% foreign ownership in most permitted sectors
  
• Ideal for startups, tech companies, service providers
  

Branch of Foreign Company

• For registered UK companies expanding to Bahrain
  
• Must be licensed and approved by the Ministry of Industry and Commerce (MOIC)
  

Bahrain Free Zone Company

• Set up in Bahrain’s specialized zones (e.g., BIIP, BLZ, Bahrain Logistics Zone)
  
• Benefits: customs exemptions, 100% ownership, simplified labor hiring
  

Required Government Entities Involved

To start a business in Bahrain from London, you’ll need to work with key government bodies that handle registration, licensing, visas, and compliance. These include the Ministry of Industry and Commerce, LMRA, and the Economic Development Board—each playing a vital role in getting your business legally established.

Ministry of Industry and Commerce (MOIC)

Handles commercial registration, licensing, and trade name approvals.

Bahrain Economic Development Board (EDB)

Supports foreign investors and provides market entry guidance.

Labour Market Regulatory Authority (LMRA)

Issues work permits and manages employment for expats and investors.

National Bureau for Revenue (NBR)

Handles VAT registration if your annual turnover exceeds BHD 37,500.

Sijilat Portal

Bahrain’s official business setup platform for all commercial activities and approvals.

How to Start a Business in Bahrain from London – Step-by-Step Guide

Starting a business in Bahrain from London is easier than you might think. With digital portals and remote access, you can complete the entire setup without leaving the UK. This step-by-step guide will walk you through the process—from choosing your activity to getting licensed and operational.

Step 1 – Define Your Business Activity

Select your core business activity from the MOIC-approved list. Popular options for UK entrepreneurs include:

• Management consulting
  
• E-commerce
  
• Fintech services
  
• Digital marketing
  
• Trading and distribution
  
• Event and hospitality services
  

Each activity has a unique code in the Sijilat system.

Step 2 – Choose Your Legal Structure

Based on your ownership model, capital, and number of partners, select between:

• SPC (one-person company)
  
• WLL (LLC with 2+ shareholders)
  
• Branch of UK company
  

Step 3 – Reserve Trade Name and Apply on Sijilat

Log on to sijilat.bh and:

• Reserve your trade name
  
• Submit shareholder details
  
• Choose business activity
  
• Upload passport copies and proof of address (London utility bill or tenancy agreement)
  

Step 4 – Obtain Required Approvals

Depending on your business type, you may need:

• Municipality clearance
  
• Civil Defense approval (for physical offices)
  
• Sector-specific clearance (e.g., health license, fintech sandbox, etc.)
  

Most approvals can be obtained online or through an authorized agent.

Step 5 – Open a Bahrain Bank Account Remotely

Several banks in Bahrain allow remote corporate account openings for UK citizens:

• Bank of Bahrain and Kuwait (BBK)
  
• Ahli United Bank
  
• Al Salam Bank
  
• Gulf International Bank (GIB)
  

You’ll need:

• Commercial registration (CR)
  
• Business plan
  
• Passport and CPR (if applicable)
  

Step 6 – Apply for CR (Commercial Registration)

After approvals, MOIC issues the official license for your business.

You will receive:

• CR certificate
  
• VAT registration (if applicable)
  
• CBB registration (if in financial services)
  

Documents Required from London-based Investors

If you’re a London-based investor planning to start a business in Bahrain, you’ll need a few key documents. These include your passport, proof of address, and a basic business plan. UK company owners should also prepare incorporation papers and get them notarized and attested for legal use in Bahrain.

For Individuals:

• Passport copy
  
• Recent utility bill or bank statement (as address proof)
  
• Personal photograph
  
• Business activity plan
  

For UK Companies:

• Certificate of incorporation
  
• Memorandum and Articles of Association
  
• Board resolution approving Bahrain expansion
  
• Details of local representative (optional)
  

All documents must be notarized and attested by:

1. UK Foreign and Commonwealth Office
   
2. Bahrain Embassy in London
   

Investor Residency Visa for UK Citizens

Once your CR is approved, you can apply for the Investor Residency Visa.

Issued By: Labour Market Regulatory Authority (LMRA)

Requirements:

• Valid CR
  
• Passport
  
• Health insurance
  
• Background check
  

The visa allows you to:

• Live and work in Bahrain
  
• Sponsor your spouse and children
  
• Open local bank accounts
  
• Travel across GCC
  

Can You Start a Business in Bahrain Without Moving from London?

Yes, Bahrain allows remote business registration and 100% foreign ownership for most businesses.

You can:

• Register your company online
  
• Use virtual office or coworking spaces (e.g., Bahrain Bay, Seef District)
  
• Hire a local PRO or business consultant to handle documentation
  

No need to be physically present unless your business requires a regulatory interview or physical inspection.

Bahrain Free Zones for UK Businesses

Bahrain International Investment Park (BIIP) – Hidd

• Ideal for industrial and manufacturing businesses
  
• No customs duties
  
• 100% foreign ownership
  

Bahrain Logistics Zone (BLZ) – Al Hidd

• Perfect for supply chain, import/export, warehousing
  
• Close to Khalifa bin Salman Port
  

Bahrain Fintech Bay – Manama

• Hub for startups, banking tech, and innovation companies
  
• Regulatory support from Central Bank of Bahrain
  

Free zone businesses enjoy:

• Long-term leases
  
• Tax exemptions
  
• Fast-track licensing

Tax Benefits for UK Entrepreneurs in Bahrain

• No income tax
  
• No withholding tax
  
• No capital gains tax
  
• 5% VAT only on applicable goods/services
  

This makes Bahrain a great option for tax planning, holding companies, or regional headquarters for UK businesses.

Popular Business Ideas in Bahrain for London Citizens

• UK-branded cafes and eateries
  
• Education and training consultancies
  
• Sustainable product import/export
  
• E-commerce fulfillment centers
  
• Luxury goods and designer fashion retail
  
• Wellness and fitness studios
  

If you already run a business in London, you can expand as a branch or franchise in Bahrain.

Cost to Start a Business in Bahrain from London

Item	Estimated Cost (GBP)
Company Registration	£300–£600
Legal Attestation	£200–£500
Office Space (Virtual)	£50–£100/month
Bank Account Setup	Varies
Residency Visa	£300–£400/year
Optional Consultant Fees	£500–£2,000 (if using a local agent)

Costs are generally lower than UAE, Qatar, or Saudi Arabia, making it attractive for startups and SMEs.

Benefits of Starting a Business in Bahrain for UK Entrepreneurs

• No need for a local partner or sponsor
  
• Free repatriation of profits
  
• Full legal ownership and control
  
• Access to skilled bilingual workforce
  
• Close ties with UK through trade agreements
  

Bahrain also has a double taxation avoidance agreement with the UK, protecting you from being taxed in both jurisdictions.

Challenges and How to Overcome Them

Starting a business abroad can come with a few hurdles—like document translation, legal approvals, or remote banking. The good news? These challenges are manageable with the right support. Working with a trusted local consultant in Bahrain can help simplify the process and ensure everything runs smoothly from London.

Language and Legal Translation

• All documents must be translated into Arabic
  
• Solution: Hire a certified legal translator in Bahrain
  

Visa Documentation

• Some processes require health tests or approvals
  
• Solution: Coordinate through your local PRO or embassy
  

Banking and Financial Transparency

• Banks may require extensive due diligence
  
• Solution: Provide clear source of funds and business plans

Conclusion

Starting a business in Bahrain from London is a streamlined process thanks to Bahrain’s progressive regulations, full foreign ownership, and tech-driven platforms. Whether you’re a startup founder, investor, or expanding an existing brand, Bahrain offers a strategic, low-tax, and welcoming business environment.

With support from the Bahrain Economic Development Board, Sijilat portal, and LMRA, London-based entrepreneurs can confidently launch and grow their businesses from the UK.

FAQs

Can I start a business in Bahrain without living there?

Yes, Bahrain allows foreign investors, including UK citizens, to register and operate businesses remotely. You can apply online via the Sijilat portal, use a virtual office, and assign a local representative to handle formalities on your behalf.

Do UK citizens need a local partner to start a business in Bahrain?

No, Bahrain allows 100% foreign ownership in most sectors such as consultancy, IT, trading, and services. UK entrepreneurs can fully own their businesses without requiring a Bahraini sponsor or partner.

How much does it cost to start a business in Bahrain from London?

The average cost ranges between £1,000 to £3,000, including commercial registration, legal documentation, office rental, and investor visa. Costs vary depending on your business activity and if you use a local consultant.

What is the fastest way to register a business in Bahrain from the UK?

The fastest method is through the Sijilat online portal, where you can submit your trade name, legal documents, and apply for CR approval. Using a licensed Bahrain-based business consultant can help speed up the process.

Can I open a Bahrain business bank account from London?

Yes, several Bahraini banks offer remote business bank account opening for foreign investors. Required documents include your commercial registration (CR), shareholder passports, and business plan.

What are the best business ideas in Bahrain for UK entrepreneurs?

Popular ideas include consultancy services, e-commerce, education and training, digital marketing, and import/export businesses. Bahrain’s growing economy and tax benefits make it ideal for SMEs and startups.

Is Bahrain tax-free for foreign business owners?

Bahrain offers zero personal income tax and no corporate tax in most industries. Only a 5% VAT applies to certain goods and services if your annual turnover exceeds BHD 37,500.