Opening a Bahrain branch of an Indian company
Should my Indian private limited open a branch in Bahrain or a new subsidiary?
The situation
A branch is part of the foreign company and registers on Sijilat as a foreign branch. A subsidiary is a separate Bahrain company, usually a WLL or SPC.
The law
- Commercial Companies Law, Decree-Law No. 21 of 2001: Sets company forms (WLL, SPC, BSC), management, accounts, dissolution and liquidation
- Commercial Registration Law, Decree-Law No. 27 of 2015 (amended by Decree-Law 52 of 2018 and Law 9 of 2022): Every commercial activity needs a CR issued through Sijilat; a CR is deleted if required licences are not obtained within one year
What it means for you
A branch exposes the Indian parent directly to Bahrain liabilities and must still file audited accounts with MOIC. A subsidiary ring fences liability and is easier for local contracts and visas. Under India's rules your Indian company also needs to follow overseas investment reporting, which is separate. Tax wise Bahrain has no general CIT today, but the DMTT may apply if your group is large.
What to do
- Decide whether liability ring fencing matters.
- Check the activity on Sijilat for branch eligibility.
- Collect legalised parent documents.
- File and plan audited accounts from year one.
We can do this for youSet up a Bahrain WLL or single person company through Sijilat (MOIC): BHD 900