Why Bahrain is Among the Most Business Friendly CountriesThe Ease of Doing Business Index measured by the World Bank, ranked Bahrain at 65th position in 2015. The parameters on which the participant countries had been assessed ranged from business extent of disclosure index to strength of legal rights index, from the time taken to enforce a contract to the cost of business start-up procedures. Not only did the kingdom rank highly in terms of ease of establishing a business, it also came off as one of the most business friendly countries owing to its profit maximizing policies.
Top 3 Reasons for Expanding to Bahrain
Free Trade Agreement: The US-Bahrain FTA came into effect from January 11, 2006 and generated export and employment opportunities in many sectors including agriculture, financial services, telecommunications, audio-visual industry, healthcare, architecture, engineering etc. The agreement allowed for cent percent bilateral trade in industrial and consumer products without any tariffs. The agreement is overseen by the Join Commission chaired by both the US trade Representative and Bahrain's Ministry of Industry and Commerce.
Legal Freedom: There are no corporate taxes levied on businesses in Bahrain and the sole exception to the rule is for companies dealing in crude oil and petroleum. Moreover, there is personal income tax, no wealth tax on capital gain, no withholding tax and only a few indirect taxes such as a 10 per cent charge on rents. This couples with the fact that the country allows for free repatriation for capital, profits and dividends, makes chances of profitability very high.
Geographical Advantage: Bahrain is known as the heart of the Gulf and it is literally located at the center GCC region. Saudi Arabia is less than an hour's drive and being the hub of Gulf Air, allows for excellent connectivity across the entire region. Given that the region is question is estimated to be worth $ 2 trillion by 2020, it is definitely an advantage to have a presence at its center.