Khalid Khan Advisory

What is a company?

Unlock the Gateway to Trade: Discover How to Open a Trading Company in Bahrain!

Are you ready to tap into a vibrant market and take advantage of Bahrain's strategic location at the heart of the Gulf region? Our comprehensive guide provides you with a step-by-step roadmap to establish your trading company in Bahrain's thriving business landscape.

How to Start a Trading Company in Bahrain We have been receiving many inquiries lately regarding starting a trading company in Bahrain, so we decided to write a post addressing this topic in brief with relevant information.

Bahrain Launches Golden License to Attract Investors

Bahrain has taken a significant step towards incentivizing investments and boosting job creation through its fiscal and economic reforms by introducing a Golden License. This License offers streamlined services and benefits to foreign and local businesses with large-scale investment projects in Bahrain. The License targets companies with investment projects that will create more than 500 jobs in Bahrain or those with an investment value exceeding USD 50 million.

Companies that are eligible for the License will enjoy a variety of benefits, including prioritized allocation of land for investments, infrastructure services, and utilities, as well as streamlined access to government services such as business licensing and building permit approvals. Moreover, they will receive support from Bahrain’s Labour Fund, Tamkeen, and Bahrain Development Bank.

The introduction of the Golden License builds upon Bahrain's increasing investment attractiveness, as the country has recently achieved its highest Real GDP growth rate in almost a decade. The License aims to attract local and international companies to invest in Bahrain and create job opportunities, which are priorities of the Economic Recovery Plan, introduced in 2021.

Happy Independence Day 2023 To All Indians

Before incorporating in a foreign destination do due diligence related to the investment otherwise you might end up spending and get nothing.

Happy National Day to the beautiful, prosperous, peaceful, liberal and secular Bahrain.

In this post you will see two images. One is talking about losing money and the other increasing your profit margin. Correct?

Is there a connection between both? We believe yes. You might ask why? If your business is losing money on unnecessary expenses or overpaying for necessary ones, and you don’t know how to address this, then it makes it more difficult to turn your business into a profitable one.

If your business is either under-performing in terms of EBITDA and profits, or is losing money, then addressing the best ways to address unnecessary losses is the first step in turning it around.

Our consultants have over 25 years of experience leading companies in different industries as CEO, Director, Regional Operations, Country Head, , and Multi Unit GM. Let our experience help you turn around your business situation and effectively address the current market scenario which is full of challenges.

For more information, please reach out to us at [email protected].

May Diwali bring enough light to banish all the darkness from your life.

Documents Required For Setting Up WLL Company from an Individual

The requirements could be easily divided into two parts which are pre and post approval.

PRE APPROVAL DOCUMENTS
1. identification documents (Passport & CPR)
2. NOC from employer in case if client is working in Bahrain

POST APPROVAL
1. CR without license
2. Lease Agreement
3. Memorandum of Association
4. Bank Deposit Certificate
5. Ultimate Beneficial Owner Form
6. TIN ID or TAX ID if an individual is tax resident of another country as well.

For more information or any inquiry related to business setup in Bahrain, feel free to reach out to us at [email protected].

You might have read CR, CR certificate and Commercial Registration at many places but do you understand what is the meaning of this term?

A commercial registration certificate is a legal document issued to investors
upon registering their establishment with the Ministry of Industry, Commerce, and Tourism in Bahrain.
There are two types of commercial registration certificates issued:

1- Commercial Registration Certificate without license: This is issued before obtaining approvals/licenses, for practising the business activity or activities by an individual or corporate entity in the Kingdom of Bahrain.

2- Commercial Registration Certificate with License: This is issued after an individual or corporate entity has got the approvals/licenses for practising business activities in the Kingdom of Bahrain.



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Khalid Khan Advisory Services We help set business in Bahrain

Business Activities Allowed Only For Bahraini Nationals

A lot of investors are not aware of the fact that almost all the business activities are open to them for practising in Bahrain, except a few which are reserved only for Bahraini nationals.

Some activities reserved only for Bahrainis are:

• Distribution of newspapers and magazines and promotional materials transport companies

• Publishing activities

• Brokerage in Real Estate

• Individual Lawyers (Legal Consultancy offices are allowed for foreign ownership)

• Recruiting Manpower Agencies

• Employment Offices

For more information or any inquiry related to business setup in Bahrain, feel free to reach out to us at [email protected].

Need help to recover your money?

Often people cannot recover their money because the debtor doesn't care to return the money, ignore the messages/requests, ignore calls, messages, etc.

They believe in forgetting and forgiveness and sometimes they give up on account of expensive cost associated with recovering the amount they are owed.

Our team of professionals can help you in recovering your money using expert negotiation techniques, along with the years of experience in handling such matters.

If you have any debt, be it related to employment, contract, nonpayment of dues etc we will take care of it.

To book a meeting, please contact [email protected] or +973-17261634.

Note: We reserve the sole right to accept or reject any debt based on our understanding of the probability of recovery.

Power of Attorney

A power of attorney (“POA) is a legal document created conferring power on the POA holder to undertake certain actions as authorized in the POA on behalf of the person issuing it.

It is kind of a written authority authorizing someone to act on behalf of another for or in connection with private affair, business affair or legal affairs.

If a power of attorney is issued for use outside the country where it was issued then it might need to be legalized or apostille as well based on the situation.

A power of attorney could be used to establish a company in Bahrain as well in case the parties are not present in Bahrain and they wish to authorize someone to act on their behalf.

For more details contact us at [email protected].

Are you looking to set up a business in Bahrain?

Want to know the costing, procedure, requirements, time frame, eligibility etc?

Contact us at [email protected] or +973-17261634.

Want to form a company in Bahrain?

Looking to setup a business in Bahrain?

https://khanconsultant.com/blog/company-formation-in-bahrain

Company Formation in Bahrain This article summarizes the steps to setting up a company in Bahrain.

Want to set up a business in Bahrain? We help you get the best solutions.

Feel free to contact us on:
📲 +973 17261634
📧 [email protected]
🌐 https://khanconsultant.com/

🇧🇭

Get the best professional business advice in Bahrain.

Feel free to contact us on:
📲 +973 17261634
📧 [email protected]
🌐 https://khanconsultant.com/

🇧🇭

How to start a business?

For more details reach out to us at [email protected].

Ultimate Beneficial Owner

In Bahrain, Article 1 of the, “Ministerial Order Number (83) of 2020 Regarding Criteria, Conditions and Rules Governing the Disclosure of Ultimate Beneficial Owner has defined UBO as, “the natural person(s) who ultimately owns or controls a registered person and/or the natural person(s) on whose behalf a transaction is being conducted. It also includes this person (s) who exercise ultimate effective control over a legal person or arrangement.”

Article 3 of the Ministerial Order Number (83) of 2020 has laid down certain criteria to identify the real, Ultimate Beneficial Owner:

1. Owning or controlling, directly or indirectly, 10% of capital voting rights. of Registered Person;

2. Where the Registered Person is a legal person owned by another legal person or legal arrangement, then the Ultimate Beneficial Owner is the natural person who is the ultimate owner of the ownership chain or who exercises effective control over it;

3. The ability to make or influence decisions in the Registered Person either directly or through other means such as personal communications or through participation in the financing of the project, family relations or through any kind of contract, arrangement, understanding, relationship or through a hierarchical entity (in the ownership chain of legal entities);

4. The natural person who contributes to financing the business of the Registered Person or its assets, or that transactions are made in its favour, even if these contributions are hidden;

5. Having direct or indirect control over the operations of the Registered Person through a management agreement, power of attorney or similar instrument;

6. Ultimate effective control through a series of ownerships or other means of control other than direct control of a Registered Person;

7. Natural persons who may exercise control through management positions within the Registered Person in such a way that affects the strategic decisions or influences the general direction of the Registered Person;

8. Any other conditions, criteria, and rules determined by the Minister, in accordance with international requirements and standards.

Add A New Partner To A Company

Restructuring a company could be in many ways. It could be in the form of raising capital, restructuring the operations, change of organization etc.

One of this could be in the form of adding a new partner to the company. Compare to other processes this is more complex because this restructuring has to be done in compliance with the existing memorandum of association and the new partner must get the security approval from immigration as well to be a part of a legal entity unless he is not required to obtain such approval.

Few things that must be required to look into while adding a partner are:
1. Is the partner legally and mentally competent?
2. Is the partner suitable for the current activity of the business?
3. What powers the new partner will exercise?
4. Approval of other partners of company has no objection to adding this partner.

The above mentioned are few of the requirements and list is not exhaustive.

By adding a new partner the company could raise capital and restructure the shareholding pattern.

If you are going to restructure your company by adding a new partner contact us at [email protected].

Wishing you all a blessed and happy eid.

Alvida Ramadan 2022.

A lot of our clients hear from us things that other firms won’t tell them.

Recently one of the client contacted us and for registration of a travel agency in .

We told him all the requirements including the capital requirement and the work experience related requirement as well and advised him that he doesn’t possess the expertise required for practicing this activity so he should find another activity or not to go ahead with this.

The client didn’t like our opinion and said there are others who told him this could be done without any requirement of experience and went ahead with the other firm for the same activity.

He paid a good amount of money and in the end he could not establish the company because of his failure to meet the requirements set by the authorities. He lost the service charge and some other amount paid as government fee as well and later came to us and accepted we were right and the other firm was wrong.

The reason most of us are not successful in our endeavors is we do not like to listen the truth but like to listen to those who tell us what we want to hear.

At you will hear the truth from us because we believe in having clients for lifetime not for a one time job.

If you are planning to start a business in Bahrain 🇧🇭 then contact us at [email protected] or by WhatsApp and direct call at +973-17261634.

There are some bosses and managers who blame there staff or subordinates for everything.

Well isn’t it the easiest thing to do? This happened because of you. This happened because you did this. This happened because you didn’t tell me in advance. There are thousands of excuses.

However, let us tell you one more fact i.e no one like people who make excuses. It takes a lot of courage to admit or accept one’s own mistakes and easy to deflect the blames on others.

If you have suffered losses in your business, if you have been cheated, if you have been duped or conned, if you have lost cases etc then instead of blaming someone else introspect why this happened.

Alternatively, if you feel you lack the judgmental capacity to determine where the fault lies then take professional help of consultants like us who can tell you where lies the problem.

To book a meeting contact us at [email protected] or +973-17261634.

Many people sign documents which they don’t understand or without take consultation from the person who can explain what’s written on the paper.

If you have to review any such business document which is beyond your understanding then always seek professional help because a small amount used for document review can save you from a future liability.

Why it’s important to do business in writing?

One of the reason quoted by people over Russia's attack on Ukraine is the allegation that NATO has promised Soviet Union that they will never expand to the East of Germany but they broke that promise and expanded.

NATO is saying no such promise was ever made and if made then where is the document showing this?

We don’t know what was promised or not promised but for sure we no if they were carful and have documented all the commitments then this situation could have been avoided to a greater extent.

Taking cue from the example given above here are the reasons due to which all business deals must be done in writing.

Why your charges are more?

We got a RFQ for setting up a WLL company in Bahrain today from someone inside Bahrain. The activity was General Trade. We shared our proposal and got the response that our charges are very high compared to the charges paid by him for setting another company.

We politely replied that sorry you had this experience but our charges are reasonable and based on our experience and quality of service, they are lower than others. Also, we mentioned we cannot compete with the price given by your previous agent/clearance guy, so we cannot provide our services to you.

People compare services providers but never ask why Apple iPhone is more expensive than Motorola or Nokia, etc. One of the reason is that Apple has certain features and qualities which you will not find with others. We believe you must provide the best services, at affordable rates, but should not go below a certain level and lose self respect.

In the picture, we just got documents from an international client who is establishing a company in Bahrain through us. Before submitting the application, we reviewed every page of these documents because we understand how important it is to go through each page and we know most people won’t bother to do that.

Our team comprises lawyers, management consultants and finance professionals. Do you think people charging you pennies will care to go through every minute detail for you?

If the answer is no, then please stop comparing prices and learn to appreciate the value of quality and experience.

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