Pure holding companies under Bahrain ES
Our Bahrain company only holds shares in subsidiaries. What do we need for ES?
The situation
Holding company business is a relevant activity under Bahrain's ES rules.
The law
- Economic substance rules: Ministerial Order No. 106 of 2018 and CBB Directive OG/499/2018: Entities carrying on relevant activities must show core income generating activity and management in Bahrain and lodge an ES return
What it means for you
Pure equity holding companies usually face a reduced test focused on adequate people and premises to hold and manage the shares and on complying with company law filings. Keep board minutes and records showing management in Bahrain.
What to do
- Confirm the company only holds equity.
- Document people and premises used.
- Keep company law filings current.
- File the return.
Confirm the reduced test wording in the guidance notes.
We can do this for youEconomic substance assessment and annual ES return: BHD 400