Time to take your business to the next level
Many entrepreneurs choose to start up their operations as "individual establishments”, as this entails minimum compliance requirements within the local regulations (i.e. no requirements for auditing, bookkeeping, etc.). This however, comes with a cost.
Businesses under this legal form have unlimited liability towards their debtors, as opposed to a limited liability company. As of 2019, any entity with an annual threshold of BD 37,500 and above needs to implement value-added tax (VAT) on the supply of products and services. This requires accurate bookkeeping and reporting by businesses, regardless of their size. Additionally, Bahrain’s new bankruptcy law allows for asset-selling to better protect investors. This means entrepreneurs will have full liability for debts in case of law suits, which jeopardizes their personal assets.
Now it is a right time to move forward with your business, transforming it from an “individual establishment” to a caproate structure, where the latter option provides more stability, clarity and protection in case of bankruptcy.
Click here to download the brochure and learn how we can help you with this transition.
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