Bahrain flag Bahrain: Business Environment

Accounting and accounting rules in Bahrain

Accounting Rules

Tax Year
From January 1 to December 31, unless otherwise specified in the company's articles of incorporation.
Accounting Standards
There is no local GAAP in Bahrain. All companies must prepare their financial statements according to the international accounting standards (IFRS). Small and medium enterprises can use the IFRS for SMEs standard (a simplified version of the normal IFRS standards).
Accounting Regulation Bodies
Company Affairs Directorate, Ministry of Industry and Commerce
Accounting Reports
The Bahrain Commercial Companies Law requires each registered entity to produce a balance sheet, a profit-and-loss account and the director's report for each financial year.
Publication Requirements
Article 286 of the Bahrain Commercial Companies Law of 2001 requires all companies incorporated in Bahrain to maintain proper books of accounts and prepare - for each financial year and within at least three months from the end thereof - the company’s balance sheet, profit and loss account, and a report on the company’s activities and financial position, together with their recommendations as regards profit distribution.
The report, the balance sheet, the profit and loss account, and the other reports shall reflect the company’s true financial position.

All branches of foreign companies, limited liability companies and corporations must submit annual audited financial statements by the Directorate of Commerce and Company Affairs of the Ministry of Commerce, as well as articles and/or articles of association. Depending on the company's business, financial statements may be subject to other regulatory agencies such as the Bahrain Monetary Agency (BMA) and the Bahrain Stock Exchange (banks and listed companies).

Professional Accountancy Bodies
BAA , Bahrain Accountant Association
BCICAI , Bahrain Chapter of the Institute of Chartered Accountants of India
Certification and Auditing
All public and private joint-stock companies, limited liability companies and "exempt companies" must be audited annually. Auditors appointed at the annual meeting of shareholders must be registered with the Ministry of Commerce.
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Latest Update: November 2022