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Bahrain, formally the Kingdom of Bahrain, is a Western Asian island nation. It is located in the Persian Gulf and consists of a small archipelago made up of 50 natural islands and 33 manmade islands, centered on Bahrain Island, which accounts for about 83 percent of the country's area. Bahrain is located between Qatar and Saudi Arabia's northeastern shore, which is linked through the King Fahd Causeway. According to the 2020 census, the country's population is 1,501,635, including 712,362 Bahrainis. Bahrain is the third-smallest country in Asia, after the Maldives and Singapore, with an area of 760 square kilometers (290 square miles). Manama is the capital and biggest city.
Bahrain is the ancient Dilmun civilization's birthplace. Since antiquity, it has been famous for its pearl fishery, which was considered the greatest in the world until the nineteenth century. During Muhammad's lifetime in 628 CE, Bahrain was one of the first places to be touched by Islam. Bahrain was governed by the Portuguese Empire from 1521 to 1602, when they were evicted by Shah Abbas I of the Safavid dynasty. Bahrain was seized from Nasr Al-Madhkur by the Bani Utbah tribe in 1783, and it has since been controlled by the Al Khalifa royal family, with Ahmed al Fateh as Bahrain's first hakim.
Bahrain became a protectorate of the United Kingdom in the late 1800s, after several treaties with the British. It proclaimed independence in 1971. Bahrain, once an emirate, established an Islamic constitutional monarchy in 2002. Protests sparked by the Arab Spring in the area erupted across the nation in 2011. Bahrain's governing Al Khalifa royal family has been accused of breaching the human rights of dissidents, political opposition leaders, and the country's majority Shia Muslim populace.
Bahrain established the Persian Gulf's first post-oil economy as a consequence of decades of investment in the banking and tourist industries; several of the world's major financial institutions have a presence in the country's capital. As a result, it ranks 42nd on the Human Development Index and is classified as a high-income economy by the World Bank. Bahrain belongs to the UN, the Non-Aligned Movement, the Arab League, the Organization of Islamic Cooperation, and the Gulf Cooperation Council.
An employee with at least one year of service is entitled to 30 paid days of regular leave, divided into 2.5 days per month.
There are eight public days and a total of fourteen days of leave in Bahrain.
Sick leave is granted to employees for a total of 55 days. The first 15 days are paid in full, the 16th to 35th days are paid in half, and the 36th to 55th days are unpaid.
Employees who are expecting a child are entitled to 75 days of maternity leave. The first 60 days was billed in full, with the final 15 days remaining unpaid.
When an infant is born, fathers are entitled to one day of paid leave.
In Bahrain, only mothers are entitled for maternity leave.
Employers must have reasonable grounds for terminating an employee and offer a notice period.
A contract can be terminated by either party by notifying the other party at least 30 days prior to the termination date. During the notice period, the labor contract remains in existence, and all contractual obligations must be met by the contract's parties. A payment in lieu of notice must be made in the absence of notice.
The probation period may last up to 3 months.
Severance pay is calculated based on the length of service. If the employee has worked for the company for three years, they are entitled to a severance payment equal to 15 days' salary for each year worked. If the employee has worked for the company for more than three years, they will receive the same severance pay as stated above for the first three years plus an additional 30 days' salary for each year thereafter.
The average workweek is 40 to 48 hours long, with eight hours of labor every day. During Ramadan, Muslim employees work six hours every day. The week runs from Sunday through Thursday.
Workers are not allowed to stay at work for more than 11 hours every day, including working hours and rest periods.
Employees are paid their regular salary plus at least 25% for each additional working hour worked during the day, and at least 50% for hours worked at night.
Private businesses are not required by law to pay a minimum wage. Those employed in the public sector must earn a minimum of 300 BHD (796 USD) per month. The median monthly salary is 1,534 BHD (4069 USD).
Employees receive a holiday bonus equal to 50% of their base monthly salary during the holiday season and a December bonus equal to 50% of base salary after one year of service.
Bahrain's healthcare system is a mix of state and private providers. Bahraini citizens have access to free or highly subsidized medical care. Foreign nationals have access to the same facilities and physicians, but must pay for treatment, therefore it is highly recommended that they get health insurance. Supplemental health insurance benefits are not often provided by employers, although they may be negotiated in certain circumstances.
Allowances for housing, transportation, and utilities are prevalent in Bahrain. We usually suggest discussing total pay with an employee in Bahrain that includes such allowances; otherwise, an employer will be negotiating numerous components when total compensation is ultimately what counts to both sides.
Legal entities in Bahrain are not required to pay a corporate tax.
Individuals in Bahrain are not required to pay an income tax.
The standard rate for the value-added tax (VAT) or goods and sales tax (GST) in Bahrain is set at 12 percent.
The charge for a Visit eVisa in Bahrain is BD 25, which is almost USD 66. The Visit eVisa has a processing charge of BD 4 (about USD 11). The visit visa cost will be repaid if an eVisa application is not granted, however the processing fee will not be refunded.
You can remain in Bahrain for one month with the Visit eVisa. A two-week extension can be acquired by visiting the NPRA in Bahrain. (Some nations are allowed to remain longer.) Multiple entries are possible with the Visit eVisa. From the previous list of 38 nations, eVisa eligibility has now been expanded to 116.
If you do not satisfy the requirements for a Visit eVisa or if you do not have a passport, you may be eligible for a visa on arrival, a sponsored visa, or an eVisa through a Bahraini embassy.
You must satisfy the following conditions in order to apply for a Visa:
1. You're probably not in Bahrain. (Those who are already in the Kingdom are unable to apply for visas.)
2. You must have a passport (not any other sort of travel document) that is valid for at least 6 months from the date of your arrival in Bahrain.
3. To depart Bahrain, you must have a confirmed onward travel ticket.
4. You must be able to support yourself (and any dependents you bring) throughout your visit.
5. Your entry must not jeopardize Bahrain's national security or wellbeing.
6. A Visit eVisa must be used within 30 days after approval. (After this period, your eVisa will expire, and you will need to reapply and pay a new cost.)
7. Before you may apply for another visa, you must have utilized your current one or it must have expired. (For a passport, more than one visa cannot be given at the same time.)
An application's approval does not happen right away. It will take about 3-5 working days to process your application. When a decision has been reached, we will notify you through email.
You can print a copy of the permission to take with you when you travel once your application has been granted, but it is not required. When you arrive in Bahrain, the passport officer who meets you will have access to your electronic visa.
You should not apply for an eVisa if you want to go to Bahrain with dependents who are listed on your passport. If you qualify for an eVisa, you should instead travel to Bahrain and get a visa on arrival. This visa will cover all of your dependents at no additional cost.
An employment contract must be in writing and must include the essential parameters of the job, such as pay, working hours, workplace location, duties, bonuses, and different consents for probation, yearly leave, other forms of leave, notice, overtime, and dismissals.
An employment contract may be fixed-term or permanent, and the employer can cancel the contract by giving notice or by the completion of the specified project.
Employers may require that an employee submit a Certificate of Good Conduct issued by the Criminal Investigation Directorate.
There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.
Bahraini Dinar (BHD)
Before you begin the process of establishing a Bahrain subsidiary, you must consider many criteria, including the location of your subsidiary and the kind of organization you want to incorporate as. Certain locations may have their own rules and regulations, as well as cultural aspects that make expansion difficult. To ensure that you make the proper option, you should do research on the ideal physical site for your business from the outset of the Bahrain subsidiary creation process.
In Bahrain, you may pick from nine distinct forms of business entities, including a Bahraini shareholding company (B.S.C), a closed shareholding company (B.S.C), a partnership company, a foreign company branch, a limited liability company (LLC), a basic commandite, and more. An LLC is the most popular subsidiary structure, since it protects both the subsidiary and the parent business from liability.
The procedure for establishing a Bahrain subsidiary varies depending on the kind of entity chosen, however the following procedures are common:
1. Choosing a business name that is both accessible and does not contradict public policy
2. Applying for registration by submitting completed business paperwork and forms
3. Receiving a business registration certificate to complete the registration
4. Establishing a bank account
5. Obtaining the required office space
6. Employing people to work for your firm
You may register your firm at the Bahrain Investors' Center, which takes one to two working days on average. Every year, you must renew your company's registration. You may require a license or other clearance depending on your business activity.
Certain sectors are restricted under Bahrain subsidiary laws, while others are protected for investment by Bahraini people. Gambling, as well as the import and industrial use of banned substances, are both illegal activities. Printing presses, accounting services, the selling of race car gasoline, and other sectors and occupations are all protected.
You must also make payments to Bahraini workers and officials using an in-country bank account. Hours and days of operation vary every bank branch, however they are normally open Saturday through Wednesday or Sunday through Thursday. If it is not already part of the Bahrain subsidiary creation procedure, you must open bank accounts before beginning payroll.
To form an LLC, you will need the following documents:
1. A minimum paid-up capital of $2,660 is required.
2. There are two directors.
3. Any two stockholders may be of any nationality.
4. One manager who resides in Bahrain.
Furthermore, depending on their industry, LLCs may be subject to Bahraini local shareholding joint venture rules. Companies must also comply with specific tax requirements, such as filing annual tax filings and presenting audited financial accounts.