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KPMG Bahrain’s guide for individual establishments

KPMG Bahrain’s guide for individual establishments

Time to take your business to the next level

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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.
 

© 2020 KPMG Fakhro, a Bahrain partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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