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Employ Candidates Compliantly in Bahrain

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  1. Overview: Bahrain
  2. Expand without a company set up
  3. Global PEO and payroll
  4. Global HR Compliance
  5. Work permit for hiring expats via PEO
  6. Contractor vs. employee: which is better?
  7. Global Payroll Calculator
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Global Employer of Record in Bahrain

What Is a Global Employer of Record?

A Global Employer of Record (Global EOR) is a third-party organisation that shoulders the legal and administrative responsibilities of hiring, employing, and managing staff on behalf of a client company. Unlike a standard Employer of Record, a Global EOR can operate across multiple countries, offering a unified solution for managing international employees.

This international talent engagement model is especially advantageous for companies expanding into new markets. Typically, such expansion would require establishing a local legal entity, a time-consuming process laden with bureaucratic hurdles. Global EOR circumvents this necessity. It allows companies to deploy staff in multiple jurisdictions without navigating the complexities of local employment laws, tax structures, and compliance norms. This streamlined approach eliminates the daunting upfront investment and operational costs of establishing a foreign subsidiary or business unit.

The flexibility of a Global EOR model makes it ideal for market testing and agile operations. Companies can quickly enter and exit markets, scaling their workforce up or down based on real-time needs and market conditions. Not only does this minimise risk, but it also preserves the company’s existing tax structure and corporate governance framework. The result is a more efficient, compliant, and strategic approach to international business expansion.

Global Employment Solution in Bahrain

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting

Offboarding

Talent skilled in highly specialised areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment

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Spotlight on Bahrain

Bahrain is a country with a strong economy and a number of investment opportunities. The government is committed to promoting economic growth and creating jobs. Bahrain is a good place to do business, and there are a number of opportunities for foreign investors.

  • Location: Western Asia, situated on the Persian Gulf, between Qatar and the northeastern coast of Saudi Arabia.
  • Capital: Manama
  • Population: 1.6 million (2023)
  • Labor force: 850,000 (2023)
  • Official language: Arabic
  • Currency: Bahraini dinar (BHD)
  • Key industries: Oil and natural gas, aluminum, finance, construction, and tourism.
  • Main trading partners: United Arab Emirates, Saudi Arabia, China, and the United States.
  • Export commodities: Refined petroleum, aluminum and plating, crude petroleum, iron ore, and gold.
  • Import commodities: Cars, iron ore, jewellery, gold, and gas turbines.
  • Minimum statutory wage: Bahrain does not have a statutory minimum wage for the private sector.
  • 13th salary: Bahrain does not require employers to pay 13th salaries.

Economic Outlook

According to the World Bank, the Bahraini economy is expected to grow by 3.5% in 2023. This is a slowdown from the 4.9% growth rate recorded in 2022, but it is still higher than the average growth rate for the Middle East and North Africa region.

The slowdown in growth is due to a number of factors, including the global economic slowdown, the war in Ukraine, and rising inflation. However, the Bahraini economy is supported by a number of factors, such as a young and growing population, a diversified economy, and a strategic location.

Investment Opportunities

Bahrain is a country with a number of investment opportunities, including:

  • Oil and gas: Bahrain is a major oil and gas producer, and there are opportunities for investment in exploration, production, and refining.
  • Aluminium: Bahrain is a major aluminium producer, and investment opportunities exist in smelting and downstream processing.
  • Finance: Bahrain is a financial hub, and there are opportunities for investment in banking, insurance, and asset management.
  • Construction: Bahrain is investing heavily in infrastructure development, and there are opportunities for investment in construction and engineering.
  • Tourism: Bahrain is a popular tourist destination, and there are opportunities for investment in hotels, resorts, and other tourism infrastructure.

Unlock the Bahrain Market with Express Global Employment’s Employer of Record Services

Express Global Employment offers an all-encompassing Global Employer of Record (EOR) service in Bahrain, facilitating seamless market entry for your business. Our portfolio of global employment solutions includes legal recruitment of top-tier local talent, competitive compensation packages, and an array of benefits designed to secure long-term employee loyalty.

Express Global Employment’s EOR services cater to employers and service providers representing international clients in Bahrain. We provide comprehensive support tailored to your global employment demands, such as:

  • Expertise in onboarding and retaining global talent.
  • Support for rapid market entry without incurring legal and HR compliance risks.
  • Local assistance to our international clients and their expatriate employees.

Entrust us with your full employment lifecycle—hiring, onboarding, compensation, and termination—all while ensuring adherence to Bahrain’s tax and legal regulations.

How a Global Employer of Record Can Help Address Risks in Bahrain

When expanding your business to Bahrain, there are several risks to consider, including permanent establishment risk, employee misclassification risk, under-taxation risk, HR compliance risk, immigration compliance risk, intellectual property rights risk, and vendor management & vetting risk. A Global Employer of Record can help address these risks in the following ways:

Global Employment Risk How a Global EOR Can Help
Permanent Establishment Risk A Global EOR can help mitigate the risk of creating a permanent establishment in Bahrain, which can trigger additional tax obligations and regulatory requirements.
Employee Misclassification Risk A Global EOR can ensure that your employees are properly classified under Bahrain’s law, helping avoid costly penalties and legal disputes.
Under-taxation Risk A Global EOR can help ensure you pay the correct taxes in Bahrain, helping avoid penalties and legal disputes.
HR Compliance Risk A Global EOR can ensure that your HR practices comply with the laws in Bahrain, including employment contracts, benefits, and termination procedures.
Immigration Compliance Risk A Global EOR can ensure that your employees have the necessary work permits and visas to work legally in Bahrain.
Intellectual Property Rights Risk A Global EOR can help protect your intellectual property rights in Bahrain, including registering trademarks and patents.
Vendor Management & Vetting Risk A Global EOR can help vet and manage vendors, ensuring they comply with local laws and regulations in Bahrain.

Streamlined Legal and Payroll Solutions for Your Bahrain Workforce with Express Global Employment

Our Global Employment Solutions in Bahrain are purpose-built to enable international businesses to legally onboard and compensate their local and expatriate teams. Beyond simply onboarding Bahraini nationals, we also handle the intricacies of work permits and business visa sponsorship for your expatriate staff through our EOR services. This ensures that all necessary legal permissions are in place before employment commences.

Choosing Express Global Employment assures that you are in full compliance with Bahraini hiring and employment regulations, as well as in over 190 countries where we offer our expert services.

Express Global Employment is committed to forging client relationships rooted in trust, professionalism, and long-term partnership. Our ultimate aim is to empower your business to operate efficiently in the global landscape, minimizing risks and breaking down barriers to your expansion.

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