{"id":20719,"date":"2020-02-11T12:32:00","date_gmt":"2020-02-11T07:02:00","guid":{"rendered":"https:\/\/golocalclassified.com\/article\/?p=20719"},"modified":"2021-01-31T15:16:11","modified_gmt":"2021-01-31T09:46:11","slug":"doing-business-in-bahrain-whats-to-know","status":"publish","type":"post","link":"https:\/\/golocalclassified.com\/article\/doing-business-in-bahrain-whats-to-know\/","title":{"rendered":"Doing business in Bahrain – what’s to know?"},"content":{"rendered":"

Over the past decade, the Kingdom of Bahrain has become the most important and financial center of the Gulf. It is the 10th\u00a0freest economy in the world and is 23rd\u00a0in the World Bank\u2019s 2020 Ease of Doing Business report. Plus, almost half of the population here are expatriates, which makes it a diverse and multicultural country. Knowing all this, it\u2019s no wonder you\u2019re considering doing business in Bahrain. However, before conducting business in Arab countries, it\u2019s important to understand their economy and cultural protocols. Your success largely depends on this, so buckle up and let\u2019s have a look at what you need to know.<\/p>\n

Know the business etiquette<\/h2>\n

The first step to understanding a different cultural environment is, of course, understanding their personal relationships. You won\u2019t get far if you don\u2019t learn how to behave during business meetings, especially if you plan to move your business<\/a> to Bahrain. The first thing to know is that business in Bahrain moves slowly, so don\u2019t rush the other party into making a decision. The personal relationship between business partners is the backbone of the Arab business culture. Yes, that includes small talk, so feel free to share your travel stories, personal anecdotes, and family talk. When meeting for the first time, a letter of introduction from a mutual acquaintance might help you start things off on the right foot. Don\u2019t expect to reach any major decision during the first or second meeting, as you must first earn their trust.<\/p>\n

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The second thing you need to pay attention to is business attire, which should be strictly formal. No matter how hot it is, a suit and tie are a must. Women should cover their arms and legs, as well as wear closed-toed shoes. Don\u2019t be surprised to see local businessmen wearing a so-called thobe, an ankle-length garment which is traditional clothes for every type of occasion.<\/p>\n

The tax system in Bahrain<\/h2>\n

Bahrain is a famous business and investment hub for many reason, and one of them is a favorable tax. Indeed, the generous taxation laws make up a business-friendly framework, as there are very few taxes to be aware of. First off, there is no income tax, which why is such a desirable country to seek work opportunities in. However, citizens are obliged to pay 7% of their income to the Social Insurance Organization (SIO) while ex-pats need to pay 1%. Business in Bahrain offers 0% on sales tax, value-added tax, and capital gains too. The only exception is if the company deals with the oil and gas sector since this industry is taxed at a rate of 46%. The same stands for profits from branch income when derived from activities in these two sectors, while other activities are not subject to corporate taxation.<\/p>\n

All in all, this virtually tax-free system can save you a substantial amount of money. Plus, if you decide to move, you can save some bucks on a reputable yet affordable moving company. They will easily prepare your items to be shipped to Bahrain from the USA<\/a> without you even lifting a finger.<\/p>\n

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Learn about the restrictions<\/h2>\n

But let\u2019s not jump the gun with the moving before you acquaint yourself with possible risks too. It\u2019s quite important to know that not all business activities are allowed in the Kingdom of Bahrain. Also, some of the business activities, like fishing, cinematic filming, cargo cleaning or press publication are allowed only for Bahraini and GCC nationals. Let\u2019s take a look at a list of prohibited business activities:<\/p>\n