Free Trade Zones in the Kingdom of Bahrain


The Free Trade Zones in the Kingdom of Bahrain offer a competitive edge with purpose-built infrastructure, specialized facilities, separate rules & regulations, exclusive connectivity to ports and other major industrial areas through multi-modal transport systems.

  • 100 percent foreign ownership is allowed for most of the businesses
  • No duties for companies serving the free zone including import & export
  • Free zone companies can avail electricity rebates for the first five years of operation
  • 100 percent land rebates in the government industrial areas for the first three years
  • Local services are permitted for a Bahraini foreign-owned company outside of free zone
  • Zero percent corporate tax
  • Strategic location in the Middle East with Low operating costs
  • Excellent connectivity to Saudi Arabia and other GCC countries
  • Exemption from Import and export duties
  • Access to Bahrain’s double taxation treaties
  • A liberalized economy with a strong presence in the Middle East
  • Streamlined business policies
  • Foreign investment and ownership permitted
Limitations of an FTZ Company  
  • The Bahrain Free Zone companies must confine their operations and business activity within that zone (i.e., the entity cannot engage with Bahraini customers and Bahrain unless otherwise having a local sponsor)
  • The free zone company must show proof of funds according to the type of business activity
  • The companies registering in the free zone must start/launch their business projects within one year from the date of incorporation
  • The company licenses are renewable annually after the free zone laws are complied with including submitting annual audited financial statements to the authorities
  • The company must rent office space within its free zone
  • Companies must submit all the verified financial documents of the company to MOICT annually

Types of Business Entities in Bahrain FTZ  

While starting your business in Bahrain’s Free Trade Zones specific legal company structures are advantageous for operating the foreign company within the zone as the structure can avail several benefits and allows flexibility in running the company. Some of the best available company structures for FTZ’s in Bahrain are:


Bahrain Shareholding Company (B.S.C) – Public   Bahrain Shareholding Company (B.S.C) – Closed   With Limited Liability Company (W.L.L)   Single Person Company (S.P.C)   Individual Establishment and Foreign Company Branch