Running a successful business in Bahrain involves more than just offering the right products, services and approach. All the background work is essential too, and that’s where PRIME can make a real difference.
We will take care of all the necessary financial and accounting work, leaving you free to concentrate on your core business. We also know exactly what the government, banks, and tax offices require when it comes to the right paperwork, and will make sure yours is compliant.
Bookkeeping and accounting
Our role is to make sure that your records are accurate, compliant and easy to understand. Every client has different needs, and we will set up customised bookkeeping services tailored to your requirements. For example, you may need financial information updated monthly in order to run your business, or you may prefer just to see a yearly P&L and balance sheet.
Everything you need to keep your business running smoothly and in good financial health you can entrust to us. That includes basic bookkeeping, bill paying and other paperwork, all the way through to the preparation of audited financial statements and annual submission of the same to the Ministry of Industry, Commerce and Tourism.
We can handle both payroll processing and payroll accounting, ensuring your local and international staff are paid promptly, securely and efficiently. At the same time, we’ll ensure you’re compliant in areas such as tax and social insurance contributions, calculation and payment.
PRIME will also maintain personal records and benefits for each employee. For any employment terminations, we’ll calculate and advise you on the employee’s end of service benefits.
Reasons for choosing PRIME for payroll processing services include:
- Compliance with local labour requirements enabling you to focus on your business Our experienced payroll team understands the ever-changing requirements of local labour and tax legislation, and will accurately calculate social insurance contributions, allowances, bonuses and other factors, leaving you free to concentrate on your core business.
- Better employee service Employee remuneration concerns can be challenging, particularly for small companies who lack a full human resource team. Having an experienced payroll provider like PRIME means that employee questions about payroll calculations can be answered, and we can provide expert guidance and information on the latest regulations.
- Saving money For many start-ups and SMEs, it is much more cost-effective to use the services of a payroll provider than hiring a full-time HR team and providing them with payroll tools, hardware, and software.
Banking and tax
Not every Bahrain-registered company needs to have a bank account. We can advise on whether your company is exempt, which will likely depend on its structure.
To obtain your commercial registration licence you need to obtain an account confirmation letter from a Bahrain bank. We will also advise on the minimum capital required for opening a corporate account PRIME can assist you with choosing the right bank, and completing the setup of your account. The process for opening the account (based on the bank’s approval) takes four to five working days.
In addition, we can assist with obtaining tax certificates, bank statements and bank confirmation letters.
Valued Added Tax (VAT) was introduced in Bahrain in January 2019. The standard rate of VAT is 5%, with certain goods and services subject to VAT at 0% while certain supplies are exempt.
Not every Bahrain-registered company needs to file for VAT. Some companies are exempt, including those whose annual revenue is below a certain level. PRIME can advise on whether your company needs to register for VAT.
If a company is not exempt from VAT and fails to register, the government considers this to be tax evasion and can impose a heavy fine or even imprisonment.
PRIME is committed to helping its clients comply with VAT requirements. To that end we have partnered with a leading accountancy firm in Bahrain to assist our clients complete the VAT registration for their company and thereafter ensuring that correct VAT submissions and accurate filing of returns are completed.
We can also help you interpret the regulations, including who and what is exempt from VAT, and the proper recording of input, output and reverse charge mechanism.
That way, you’ll have the peace of mind of knowing everything is taken care of, and that you’re not paying any more tax than necessary.
Audited financial reports
Through our affiliated auditors, we can assist your company with preparing its audited financial report and submitting final reports to the Ministry of Industry, Commerce and Tourism. You simply send us the trial balance and we will complete the report. If you do not have the trial balance, we can assist with preparing it.
In addition to payroll services, we can process your regular payments. For example:
- Electricity and Water Authority (EWA) – each company will be charged a municipal fee equivalent to 10% of the monthly rent; these bills are sent via EWA.
- Employee apartment rental – often companies provide staff accommodation and rental property for other purposes. PRIME can help you manage the renewal of your company or private property agreement, settling payments such as monthly rent, EWA bills, internet and telephone bills.
- Vendors – we can assist with settling bills and invoices to local or international vendors.
- SIO and LMRA –PRIME can pay your company’s bills on your behalf each month to make sure that your account is up to date with these two authorities.
- Mobile and internet – we can assist with the paying of monthly bills.
PRIME FINANCIAL AND ACCOUNTING SERVICES
Get more details of the financial services support we can offer now.