and financial management is an important part of the general compliance regulations applicable to companies in Bahrain
. Failure to keep up-to-date financial accounts or to submit the annual returns results in fines and penalties for the business and can have a negative impact on the business overall. In order to avoid these events, investors who are interested in company formation in Bahrain
can work with our team of accountants from the start.
Our accounting services in Bahrain include bookkeeping services, financial statements preparation, payroll services, accounting consultations, and many others. We adjust the services we provide based on the size and the particularities of our client companies and our team works to solve any queries and financial issues as easiest as possible.
Our accountant in Bahrain is at your disposal no matter the size of your company.
Understanding the accounting regulations in Bahrain
Like all Middle Eastern countries, Bahrain
has its own tax regulations that are grouped under the Income Tax Law No. 22 dating back to 1979. As a foreign investor when coming for the first time here, setting up a business is not complicated, and neither is respecting the tax legislation mainly because Bahrain imposes no income tax except for companies in the oil and gas sector which are liable to pay a corporate tax of 46% for each financial year.
However, one of the most recent changes in the legislation covers the introduction of the value added tax for which various requirements apply.
Our accountant in Bahrain can explain all the regulations associated with paying the value added tax in this country.
Our main accounting services in Bahrain are also presented in the infographic below:
Types of accounting services in Bahrain
Our accounting services
are designed to meet the needs of companies and our agents provide complete guidance for investors who need to understand the applicable accounting principles and the filing requirements. Below, we describe some of our most popular accounting services for companies in Bahrain
- Bookkeeping services: outsourcing bookkeeping is a common practice among small and medium companies that do not have the resources to handle these in a distinct internal department; our service include the reparation and the orderly maintenance of the company accounts. The process is also very useful in reflecting the true economic situation of the company at any given point.
- Financial statement preparation: we can help company owners in Bahrain complete and submit the annual financial statements; when needed, we can also provide the auditing services and we can guide you throughout this process when needed.
- Taxation consultancy and reporting: currently, Bahrain has a low tax regime, however, VAT does apply in certain cases and in Bahrain it is called the sales and services tax; our team of accountants is ready to help companies comply with the VAT reporting and filing requirements; we also provide complete accounting consultations as well as financial reporting advice.
- International taxation: our team is also ready to help any foreign investors in Bahrain who need more information on the applicable tax principles and how the double tax treaties, approximately forty of such agreements, can influence the manner in which their business is taxed when they derive income both from Bahrain and from another signatory state.
- Reporting: whenever needed and as requested by company owners, our team can provide a complete accounting report that will reflect the economic reality of the company in a visual and understandable manner; based on this presentation, investors will be able to make sound business choices.
By working with our team of accounting specialists in Bahrain, investors can make sure that they comply with the ongoing regulations according to the type of company. The tax year for companies is the same as the calendar year in most cases and a penalty of 1% of the tax liability applies for every 30 days in which the return remains outstanding.
Investors need to consider the compliance for a corporation as soon as they decide to set up a company in Bahrain
. Our agents can provide more information on the different requirements that apply according to the field in which the company activates, for example, the filing requirements for companies in the oil business.
Bookkeeping services in Bahrain
One of the main aspects to respect when it comes to accounting in Bahrain refers to bookkeeping, which implies the maintenance of various daily financial documents, such as invoices.
Bookkeeping is one of the essential parts when it comes to the accounting of a company in Bahrain, but also of a sole trader or professional who offers services as a self-employed individual and must account for the money they earn, even if they do not pay any taxes.
Our accountants in Bahrain
are at the service of local and foreign business owners who need reliable services in order to maintain proper accounting books, as required by the Company Law
We can offer personalized bookkeeping packages created to meet the needs of types and sizes businesses. We can provide monthly, quarterly, or yearly packages as required by company owners. Among the information our Bahrain bookkeepers can prepare on the company’s financial activity is:
- sales and purchase invoices;
- bank statements,
- expense notes,
- inventory lists.
If you need such services, our accountant in Bahrain is at your service with detailed information.
Financial statement preparations in Bahrain
Even if most companies are not subject to any taxes in Bahrain
, it does not mean that they are not required to prepare and file financial statements. An accounting particularity of this country, however, is that it has no local reporting standards which is why all papers need to be prepared and submitted in accordance with the International Financial Reporting Standards (IFRS).
This is also important for foreign companies with operations in Bahrain that can adapt to the rules applicable here easier.
Our accounting services in Bahrain cover the needs of all types of businesses, including small, medium and large-sized enterprises that need to comply with various requirements.
According to the rules on accounting in Bahrain
, domestic companies must also have their accounts audited before being made public. This requirement applies to both public and private companies
Among the documents to prepare are:
- the balance sheet;
- the profit and loss account;
- a report on the activity of the company and its financial standing.
The report must also contain recommendations on profit distributions.
Bahrain may be a simple country from a taxation point of view, as it has no tax residency regulations or corporate income taxes on the majority of business operations, however, there are also strict rules that need to be complied with and which are usually created to enable domestic enterprises to operate in other countries and present their financial standings in accordance with international standards and best accounting and auditing practices.
This is one of the main reasons we invite you to discuss with our accountant in Bahrain and choose the services you need for your business.
Specialized assistance for foreign investors
No matter if you have a subsidiary or a branch office in Bahrain, our accountant is at your service with dedicated services.
We can ensure an effective correlation between the taxes paid here (if any) and the requirements your company must meet in your country of origin and help you obtain protection under Bahrain’s double tax treaties.
Working with a team of accounting specialists in Bahrain
Our team can provide specialized accounting packaged according to the business field in which your company operates. Alternatively, we have prepared a set of these packages, from a starter and a basic set to a pro and a premium accounting package.
Accounting and financial advisory services can be of utmost importance to a business, especially when the investors interested in company formation in Bahrain are not accustomed to the local requirements and regulations.
Our team of accountants and agents who specialize in company registration in Bahrain
provide complete solutions to company owners and to those who are just starting a business. We work with a number of accounting systems and software, tailor our services, and packaged according to the needs of the company and more importantly its size. We offer accounting services and guidance to small and medium or large companies alike.
The main aspects related to taxation and accounting in Bahrain
Here is what you need to know about taxation and accounting in Bahrain:
- the financial year in Bahrain starts on January 1st and ends on December 31st;
- financial statements must be filed within 3 months from the end of the financial year;
- the value added tax has a rate of 5%;
- companies in the oil and gas sector must pay a tax of 46% on their net profits;
- there are no withholding taxes on dividends, interests, and royalties.
For complete information about the accounting services we offer, as well as for assistance when you set up a company in Bahrain
, please do not hesitate to contact us