Operating a Business

flag Bahrain Bahrain: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

With Limited Liability Company (WLL)
Number of partners: Minimum 2, maximum 50.
Capital (max/min): 20,000 BHD minimum
Shareholders and liability: Limited: partners are responsible for the company's debts and obligations to the extent of their participation in the capital.
A Single Person Company (SPC)
Number of partners: 1 person, from Bahrain or
Capital (max/min): 50,000 BHD minimum
Shareholders and liability: Unlimited; the owner is responsible for all of the company's debts and obligations with his entire personal property. 
Bahrain Shareholding Company (BSC)
Number of partners: Minimum 7 (public); ou 2 (closed)
Capital (max/min): 1.000,000 BHD minimum (public); or 250,000 BHD (closed)
Shareholders and liability: The partners are responsible for the company's debts and obligations to the extent of the value of their shares.
Commandite Company by Shares
Number of partners: Minimum 4
Capital (max/min): 20,000 BHD minimum
Shareholders and liability: Unlimited if the joint partners are jointly responsible for the company's obligations, to the extent of their personal wealth; or limited if the partners (share-holders)  are only liable for the company's obligations to the extent of their equity (shares) in the company's capital.
Partnership Company
Number of partners: Minimum 2
Capital (max/min): Not applicable
Shareholders and liability: Unlimited
The Competent Organisation
Ministry of Industry and Commerce (MIC), Bahrain Investors' Center (BIC).
 
Setting Up a Company Bahrain East Asia & Pacific
Procedures (number) 6.0 7.3
Time (days) 8.3 29.7

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Bahrain.

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The Active Population in Figures

201820192020
Labour Force 927,124981,6611,010,054

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 74.07%74.63%75.09%
Men activity rate 88.41%88.45%88.48%
Women activity rate 46.02%46.56%47.03%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
The legal worktime is 48 hours per week adn 8 hours per day (30 hrs per week and 6 hrs per day during Ramadan). Noone can work more than 6 consecutive hours without at least a 30-minute break.
Retirement Age
60 years and 10 years of contributions in the private sector; 60 years (men) or 55 years (women) and at least 10 years of constributions in the state sector. Only 15% of civil servants retire at 60, most of them do so earlier.
Working Contracts
The Labour Code distinguishes between two kinds of employment contracts: fixed-term contracts normally expire automatically at the end of the contract. If the parties to the contract continue to obey the conditions after the contract has expired, the law considers that the contract has been renewed by mutual agreement for an indeterminate period of time and with the same conditions as previously. Permanent contracts can be terminated by either party after a minimum notice of 30 days, in writing, otherwise a compensation is due.
Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
BHD 300 per month (source: ILO, 2011).
Average Wage
Gross average monthly wage of men: BHD 311 (source: ILO, 2010);
Gross average monthly wage of women: BHD 365 (source: ILO, 2010).
Social Contributions
Social Security Contributions Paid By Employers: 12% (3% for expats)
Social Security Contributions Paid By Employees: 7% (1% for expats)

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Social Partners

Social Dialogue and Involvement of Social Partners
Bahrainis have the right to set up independent unions, but workers must give a two weeks' notice before striking and strikes are prohibited in a number of economic sectors. Trade unions are not allowed in the public sector, but public sector workers may join unions in the private sector. Harassment of unionized workers is not uncommon, and although the law prohibits employers from dismissing an employee for union activities, in practice many violations have been reported. In the political and civil unrest of 2011, for example, thousands of Bahraini employees were dismissed from their jobs in the private and public sectors. Wrongfully dismissed workers have since been reinstated, following the recommendations of the Bahrain Independent Commission of Inquiry (BICI).
Unions
General Federation of Bahraini Trade Unions
Bahrain Free Labour Unions Federation
Batelco Trade Union
Unionisation Rate
Approximately 3% of workers are unionised and this number has been increasing since the new trade union legislation was passed in 2002.
Labour Regulation Bodies
Labour Market Regulatory Authority
Tamkeen (Labour Fund)

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Latest Update: April 2022