Why Start an E-Commerce Business in Bahrain?

Bahrain is emerging as one of the most business-friendly e-commerce markets in the GCC. With 100% foreign ownership, advanced ICT infrastructure, simplified regulations, and no corporate or personal income tax, the Kingdom is attracting entrepreneurs and global investors. The government’s push for digital transformation under Bahrain Vision 2030 makes this the right time to start an e-commerce company in Bahrain.

1. What Is an E-Commerce License in Bahrain?

To legally run an online business in Bahrain, you need an E-Commerce License issued by the Ministry of Industry, Commerce and Tourism (MOICT).

The license allows you to:

  1. Operate an online store or digital platform.
  2. Sell goods and services through websites, apps, or social media.
  3. Access payment gateway integration with Bahraini banks and fintech providers.

2. Foreign Ownership Rules in Bahrain

Unlike many GCC countries, Bahrain allows 100% foreign ownership in most sectors, including e-commerce. This means you do not need a local sponsor, making Bahrain one of the easiest entry points for international entrepreneurs.

3. E-Commerce Licensing Process in Bahrain

Here’s how to obtain an e-commerce license:

  1. Choose Business Structure – Most entrepreneurs register as a With Limited Liability Company (WLL).
  2. Reserve Trade Name with MOICT.
  3. Apply via Sijilat Portal – The national business registration system.
  4. Submit Documents – Passport copy, Articles of Association, business plan, etc.
  5. Obtain CR (Commercial Registration) from MOICT.

Activate Payment Gateways through local banks/fintech

4. Warehousing & Logistics in Bahrain

  • Own Warehouse – Offers full control but requires higher investment.
  • Third-Party Logistics (3PL) – Many startups partner with 3PL providers for fulfillment, warehousing, and last-mile delivery.

5. Consumer Protection & Data Compliance

E-commerce companies in Bahrain must comply with:

  • Consumer Protection Law – Covers refunds, returns, and transparent pricing.
  • Personal Data Protection Law (PDPL) – Bahrain’s GDPR-equivalent for data security and privacy.

6. Taxation & Fees

  • No Corporate or Personal Income Tax in Bahrain.
  • No Withholding Tax on online sales.
  • VAT Registration: Mandatory if annual revenue exceeds BHD 37,500. Businesses must register with the National Bureau for Revenue (NBR).

7. Benefits of Setting Up E-Commerce in Bahrain

  • 100% foreign ownership with no local sponsor required.
  • Zero corporate and personal income tax.
  • Low operating costs compared to other GCC countries.
  • Gateway to Saudi Arabia and wider GCC market.
  • Advanced fintech ecosystem with payment gateways like BenefitPay.
  • Supportive regulatory environment aligned with Bahrain Vision 2030.

8. Product Approval & Registration in Bahrain

Most general consumer products (fashion, home goods, books, stationery) do not require pre-approval. However, certain regulated items do:

Product Category

Authority

Requirements

Food & Beverages

NHRA / MOICT

Import permit, labeling approval

Cosmetics & Skincare

NHRA

Product registration, Certificate of Free Sale

Medical Devices

NHRA

Medical product approval

Pharmaceuticals

NHRA

Strict pre-market approval

Chemicals

MOICT

Safety clearance

9. E-Commerce in Bahrain: Common Questions Answered

How do I start an e-commerce company in Bahrain?
Register through the Sijilat Portal, get your Commercial Registration (CR) from MOICT, and apply for an e-commerce license.
Can foreigners own an e-commerce business in Bahrain?
Yes, Bahrain allows 100% foreign ownership in e-commerce without a local sponsor.
Do I need VAT registration in Bahrain?
Yes, if annual revenue exceeds BHD 37,500, VAT registration with the NBR is mandatory.
Is warehousing required in Bahrain for e-commerce?
Not always. Many companies start with 3PL providers to manage storage and delivery.
Do e-commerce products require government approval?
Only regulated goods like food, cosmetics, and medical products require prior approval

10. Quick Setup Checklist

  • Reserve trade name and choose legal structure.
  • Apply for CR and e-commerce license via Sijilat.
  • Activate payment gateway.
  • Register for VAT (if applicable).
  • Ensure compliance with Consumer & Data Protection laws.
  • Set up logistics (own warehouse or 3PL).
  • Launch online platform (website, app, or marketplace).

Conclusion

Bahrain provides one of the most open and cost-effective environments in the GCC for launching an e-commerce business. With zero income tax, full foreign ownership, and access to regional markets, it’s a perfect hub for digital entrepreneurs.

At MajuBiz, we help you set up your e-commerce company in Bahrain, from licensing and compliance to logistics and VAT registration — making your launch seamless and successful.

Book a Consultation with MajuBiz.