Employer of Record in Bahrain
Skuad’s Bahrain Employer of Records (EOR) solutions will assist your business to expand into Bahrain without the need for a physical entity. Skuad’s unified and fully automated human resource (HR) platform allows you to establish your local team and take care of their salaries and perks. Skuad has a network of global experts spanning more than 150 countries. Our unified employment platform enables seamless payroll management, hiring and onboarding of talent and ensures compliance with tax and employment laws. To learn more, book a demo with us.
Bahrain at a Glance
Population: 1,498,712 people (2024)
Currency: Bahraini dinar (BHD)
Capital city: Manama
Languages spoken: English and Arabic
Gross Domestic Product (GDP): USD 75 billion (2024)
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Employment in Bahrain
Bahraini labor laws apply to both overseas individuals and national citizens. There are several differences between them, which need to be carefully studied and analyzed. You also need to be aware of the local traditions and rules and regulations of Bahrain to establish your company in Bahrain.
This process might seem challenging, but taking the help of an EOR service can simplify it for you. Skuad’s local contacts are well informed and understand the implications of the Bahrain Employment Laws for both national and international citizens.
To learn more about Bahrain’s employment policies and ensure your expansion efforts fall within the legal requirements, book a demo with Skuad experts today.
Contractors vs. Full-time Employees
Employment laws provide for employees to be hired on a short- or fixed-term basis, on a contract. Bahraini employees can also be hired full-time in the long term.
- Full-time employees: These employees are hired on indefinite contracts. Their contracts do not expire. They get a fixed salary and employee benefits and often work on the same project for a considerable duration.
- Contractors: Part-time workers who are already experts in their field of work are hired for a limited duration. Hiring such workers is more expensive due to their specialized knowledge.
It is important to have a clear understanding of the type of positions of work that will best suit your business structure. It’s advisable to employ contractors for shorter, niche projects and leave the important day-to-day tasks that demand regular supervision to the full-time employees.
Whether your company requires contractors or full-time employees, Skuad’s EOR solution for Bahrain can take care of all your hiring needs. To know more, book a demo with Skuad experts.
Hiring in Bahrain
According to the Bahrain labor laws, every employer has to write a detailed employment contract in the Arabic language. The contract should contain detailed information about payroll and termination prerequisites, profits, and other benefits. Two copies should be created and signed, one each for the employer and employee.
Employers also have to register their employees in the Ministry of Labor and Social Affairs after hiring them in Bahrain and obtain the certificate of registration. Further, employees must be registered with the General Organization for Social Insurance (GOSI) and other benefits such as death or work-related injuries.
It is mandatory to express monetary details in BHD. Hiring workers depends on the nature of the work and you’ll need to get them recorded with the pension authority as soon as onboarding is completed.
Employers in Bahrain generally post job openings on employment websites to widen their reach. These include,
Skuad can help you hire the best workers with the help of our local contacts. For ensuring that your hiring process is compliant with the essential laws of Bahrain, speak to Skuad experts today.
Probation & Termination
Article 21 of the labor law of Bahrain states,
- The maximum duration of the probation time in Bahrain can be up to three months.
- However, it can be increased up to six months depending on the occupation.
- Details of the probation must be written in the employment contract.
- Both the employer and the employee can choose to cancel their contract at any point during the probation period by providing a one-day prior notice.
- An employer cannot hire the same employee on probation more than once.
Termination of Services
According to Bahraini labor laws, termination of the contract is feasible on the following conditions, among others.
- Failure to increase results and performance within the first 60 days of the probation period
- On the expiry of the contract
- Dismissal of the contract for a valid reason
- Death or severe injury
- Retirement (at the age of 60)
According to Article 13 of Bahraini law, an employer will have to provide the employee with an end-of-service certificate authenticating the employee’s presence at the organization. They are also entitled to indemnity depending on their period of service.
The notice period is usually 30 days. However, it can be longer than 30 days if specified in the employment contract. If the employer does not serve the notice on time, the employee is entitled to their wages for that period.
To ensure your expansion endeavors adhere to the laws regarding probation and termination in Bahrain, talk to Skuad experts and book a demo today.
EOR Solutions in Bahrain
An EOR service expedites the process of expansion of your business in Bahrain. You can hire Skuad to assist your business by ensuring the swift processing of employee payroll, contract agreements, tax processes, and work permits. Skuad can also present the perfect pool of employees required for your organization without hassle.
General Employer of Record Service Terms
Outsourcing Employment through an Employer of Record
Hiring employees from a new country is not an easy task. Some employers choose to set up an internal HR department to take care of payroll and compliance. However, this can be rather cumbersome.
To make hiring and employee management easier, you can choose to partner with an EOR service such as Skuad. Skuad has an integrated, high-tech HR platform and tremendous industry experience. We can offer tailor-made EOR solutions for all your expansion needs. To avail yourself of our services, speak to Skuad experts today.
Types of Visas in Bahrain
Talk to us and get more information and guidance related to types of visas and work visa requirements in Bahrain. Skuad can handle all your visa requirements and ensure the expansion process is not delayed.
In Bahrain, all foreigners will need working visas and permits to legally work inside the country. The applications must be sent to the LMRA before the employee arrives in Bahrain.
Skuad has regional contacts who are willing to sponsor global employees for work permits and visas. Skuad’s EOR solution in Bahrain manages all the requirements and takes care of all the employment-related details. Clients will also be able to check on their employee’s performance on Skuad’s unified, tech-enabled HR platform.
The following documents are required to get a work permit in Bahrain.
- A verified visa application form
- A letter of employment from the company in Bahrain
- A sponsorship letter
- A copy of the passport
- A passport-size photo of the employee
- Payment bill of BHD 100 to any of the recognized institutions
- Cleared medical certificate from any authorized health center
- A copy of the employment contract with the worker’s name, date of birth, and nationality details
Other important details to know about work permits in Bahrain are tabulated below.
To know more about work permits in Bahrain and how Skuad can secure them for you, speak to our experts today and kick-start your expansion.
Payroll & Taxes in Bahrain
Things You Must Know to Set Up Payroll in Bahrain
In Bahrain, it is crucial to understand the rules to facilitate salary and taxation transactions. The first thing you must decide is whether you want to take help from an EOR service to manage payroll in Bahrain. For taxes, you must follow the Bahraini laws for income tax, withholding tax, sales tax, and social security costs. You can choose from two options.
- You can find and establish a local team, that is, a capable HR department, to manage taxations and salaries in Bahrain.
- You take the help of an EOR service such as Skuad to help make the flow of things easier and ensure that your expansion happens as per the local laws.
To manage payroll and taxes while expanding in Bahrain, it is prudent to partner with an EOR service. Skuad’s Bahrain EOR solution can take care of all HR-related tasks for you while ensuring compliance with the local laws, including those covering payroll and taxation. To learn more, get in touch with Skuad experts.
Incorporation: How to Set Up a Subsidiary in Bahrain
You need to know and understand the structure and the location of where you want to set up your subsidiary in Bahrain. There are three general forms of limited liability companies (LLCs) in Bahrain.
- With Limited Liability (WLL) and Bahrain Shareholding Company (BRC), where the parent company has restrictions on the branch being set up
- Single Person Company (SPC), where the organization is owned by a single person
In Bahrain, different areas have different laws, regulations, and cultural differences, so it is essential to keep these factors in mind before deciding on the location of the subsidiary. Employers are also required to have a minimum paid capital of BHD 2,600 before they can incorporate.
Steps for Setting Up a Subsidiary in Bahrain
- Getting an Electronic Key
You have to register online at the official government site of Bahrain for an electronic key.
You will be able to register your company in Bahrain through the online gateway system more commonly known as SILIJAT once your application is passed.
You will have to decide what type of license you want, depending on the nature of the business. You will also have to decide the structure of your business pursuit.
- Verified Documents
You will have to send your documents online for verification by the Ministry of Industry, Commerce, and Tourism and pay BHD 10 for the process.
- Notification and Operation
Once your documents have been verified, you’ll be given notice and an e-certificate. You will be able to start operating your business in Bahrain and your company will be established once your application is passed.
If you want to open up your subsidiary in Bahrain, it is prudent to take the help of an EOR service to handle the intricacies of the procedure. Skuad’s EOR in Bahrain can help you streamline the process of incorporation of your company branch with the assistance of our global experts. Get in touch today to learn more.
Professional Employer Organization (PEO)
A professional employer organization (PEO) assists an enterprise to make the best decisions in HR to make its foundation more efficient and stronger. They can also run the salary process and tax payment and assist you with potential candidates for recruitment.
The main difference between a PEO and an EOR service is that PEOs do not act as legal employers. They can only operate indirectly; therefore, you will be held liable for any administrative and legal issues. Further, With an EOR service, you need not register your company in the country. The same is not true for a PEO, which can only operate in a country where you already have an entity.
Skuad provides EOR services to cater to all your expansion needs. Our Bahrain EOR solution is tailor-made to save you time and resources, and act in full compliance with the local laws. Book a demo here to learn more about Skuad’s Bahrain EOR solutions.
Conclusion: What Gives Skuad’s Bahrain Solutions an Edge?
It can be time-consuming and expensive to establish a physical entity in Bahrain. With Skuad, you can expedite your expansion plans. We will help minimize the complexity and cost of doing business in Bahrain.
We can take care of all HR tasks for you, including recruitment, hiring, onboarding, payroll, taxation, probation, termination, visa,and work permits without any need to set up a subsidiary. All our operations are conducted on our high-tech, unified HR platform with the help of our highly skilled industry experts who ensure compliance with the local laws every step of the way.
Partner with Skaud experts today to advance your expansion endeavors in Bahrain. Book a demo with us to know more.