Fama Accounting Services, Office 2294, Building 574 Road 31 Block 611 Al Hamriya, Bahrain
Fama Accounting Services, Office 2294, Building 574 Road 31 Block 611 Al Hamriya, Bahrain
Running a business in Bahrain doesn’t just mean managing day-to-day operations—you also need to keep your financial records in line with national and international standards. Financial reporting is the language your business speaks to banks, auditors, investors, and regulatory authorities. And in Bahrain, this language is governed by International Financial Reporting Standards (IFRS) and overseen by government bodies like MOICT (Ministry of Industry, Commerce and Tourism) and NBR (National Bureau for Revenue).
For small business owners, accountants, and finance teams, understanding the financial reporting standards in Bahrain is more than just a compliance task—it’s a strategic necessity. Accurate financial reports build trust, improve decision-making, and help you avoid costly fines or business disruptions. This guide will walk you through Bahrain’s financial reporting landscape: who it applies to, which standards to follow, what documents are needed, and how to make sure your reporting process is smooth, compliant, and audit-ready.
In Bahrain’s increasingly competitive market, transparency isn’t just a best practice—it’s a requirement. Financial statements reveal:
How your business earns and spends money
Whether you’re profitable or bleeding cash
If you’re financially stable or heading toward risk
This level of visibility benefits not just your internal team but also:
Investors who want to see growth potential
Lenders assessing loan eligibility
Partners or buyers evaluating your financial health
Following recognized financial reporting standards ensures everyone sees the same accurate picture, making it easier to build trust and grow.
Let’s face it—every business in Bahrain eventually needs to show its books:
When applying for loans or financing
During external audits or internal reviews
While filing VAT returns or handling tax disputes
If your reports don’t meet regulatory or industry expectations, it could:
Delay your financing
Increase audit risk
Lead to tax issues with the NBR
Having standard-compliant, well-prepared financial statements avoids this pain. It also helps you move faster with decisions and approvals.
Financial non-compliance isn’t just risky—it’s expensive. Under Bahrain’s Commercial Companies Law, failure to maintain proper records or submit accurate reports can result in:
Monetary fines
Suspension of commercial registration
Issues renewing CR (Commercial Registration)
Complications with investor or shareholder agreements
Following proper reporting standards helps you steer clear of legal trouble and ensures long-term sustainability.
In Bahrain, financial reporting requirements are primarily governed by:
The Commercial Companies Law – which mandates proper bookkeeping and financial disclosures for all registered businesses.
MOICT (Ministry of Industry, Commerce and Tourism) – which enforces corporate reporting and filing obligations.
NBR (National Bureau for Revenue) – which oversees VAT-related financial records and submissions.
These bodies require that businesses maintain:
Organized, auditable financial records
Annual financial statements
Supporting documentation for taxes, expenses, and revenue
Depending on your company’s structure, industry, and size, your reporting frequency and depth may vary—but compliance is universal.
The Bahrain Chamber of Commerce and Industry (BCCI) also supports financial education and governance. While it does not mandate specific reporting rules, it promotes:
Financial transparency among businesses
Adoption of global standards like IFRS
Ethical accounting practices across sectors
In addition, specialized sectors such as banking, insurance, and NGOs may follow extra guidelines from the Central Bank of Bahrain (CBB) or relevant grant authorities.
Whether you’re a micro-business or a multinational, you’re expected to:
Keep proper records
Prepare financial statements
Follow reporting principles such as accrual accounting and standard formats
SMEs and startups may get leeway in format but not in accuracy. Even if you’re VAT-exempt, the NBR may review your records.
Non-profits, meanwhile, must maintain transparency for donors and regulators, especially when handling grants or donations.
Since Bahrain has no separate national GAAP, the kingdom fully adopts IFRS (International Financial Reporting Standards), issued by the International Accounting Standards Board (IASB).
This means businesses in Bahrain must:
Prepare financial statements as per IFRS
Recognize revenue, expenses, assets, and liabilities according to IFRS guidance
Include disclosures and notes explaining assumptions, policies, and risks
The purpose is to ensure consistency across industries and comparability across borders—especially for foreign investors and global businesses.
IFRS is mandatory for:
All registered commercial entities
VAT-registered businesses
Companies with external shareholders or investors
Audited companies (required to follow IFRS fully)
Even small businesses are expected to follow simplified IFRS formats—particularly IFRS for SMEs.
Exceptions are rare and mostly limited to government-related entities or businesses without any revenue activity.
Some businesses mistakenly try to follow:
U.S. GAAP (used in North America)
Cash-basis accounting (common in informal settings)
Regional adaptations used in other GCC countries
But in Bahrain, such alternatives may result in:
Rejected audit reports
Delays in financing or regulatory processes
Tax and compliance mismatches
Using IFRS ensures you align with Bahrain’s legal and financial systems without friction or penalties.
If you’ve registered your business with the MOICT, you are required to:
Maintain proper financial books
Prepare year-end financial statements
Store records for up to 5 years
This includes:
WLL (With Limited Liability) companies
BSC (Bahrain Shareholding Companies)
Partnerships and joint ventures
Failure to do so may:
Delay CR renewals
Lead to business suspension
Attract tax scrutiny
Any business registered with the NBR for VAT must:
Track and report financial transactions
Submit quarterly VAT returns
Maintain a General Ledger aligned with VAT entries
This requires clean, consistent financial statements, or your returns may be flagged for audit or rejection.
If you operate an NGO, charity, or society, you must:
Follow financial reporting rules for transparency
Prepare annual reports for donors or sponsors
Be ready for Ministry of Social Development audits
NGOs handling international funding may also be required to report in IFRS formats or donor-specified templates, with additional compliance layers.
This document outlines:
Revenues earned in a period
Expenses incurred
Operating profit
Net income after taxes
In Bahrain, this statement is crucial for:
Determining tax exposure
Understanding profitability
Budgeting and forecasting
Your balance sheet shows what the business owns and owes at a specific date. It includes:
Assets (cash, inventory, equipment)
Liabilities (loans, payables)
Equity (owner’s capital)
This gives insight into your financial strength and debt exposure.
Bahraini banks and investors pay close attention to cash flow statements, which break down:
Operating activities
Investing activities
Financing activities
It helps them understand where cash is coming from and where it’s going—critical for liquidity and loan evaluation.
IFRS requires businesses to disclose the assumptions, accounting policies, risks, and contingencies related to their numbers.
This section is often overlooked but vital. It builds transparency and explains unusual figures—reducing the chance of misinterpretation during audits or funding rounds.
Minimize risks and maximize growth with our comprehensive accounting solutions in Bahrain.
Below is an overview of our general pricing packages for our suite of services in Bahrain. Costs vary depending on factors such as the services we offer.
Read some reviews and success stories from our loyal customers who achieved their goals and how our expert solutions have made a lasting impact on their growth, compliance, and financial clarity. Your success is our greatest achievement!
Client
I am so happy to have chosen this company! Right from the start it was a very easy decision, I knew I am in the right hands. They contacted me with every update they had and always kept me up to date with all the information and steps that we will proceed next.
Client
Highly recommend for anyone looking to establish a company in Bahrain! Waqas Akram and his team made the entire process smooth and stress-free. They were incredibly knowledgeable, responsive, and handled every detail with professionalism.
Client
The team was highly professional, efficient, and knowledgeable. They ensured that all paperwork and procedures were handled smoothly, saving us both time and effort. I highly recommend their services to anyone looking out there.
Client
Abdullah and the team have been great in assisting me with related tasks. In challenging timeframes they've supported me to ensure our company operations can start in Bahrain without any issues. Thank you. I will recommed their services.
Client
I was extremely impressed with their services. Their expertise made everything smooth and hassle-free. I highly recommend Setup in Bahrain for anyone looking for their business here. Their professionalism and commitment to customer satisfaction are top-notch.
With years of experience and a highly qualified team, we bring unmatched expertise and in-depth knowledge of Bahrain’s financial landscape to every service we provide.
Choosing the right audit partner is not just a compliance decision — it’s a strategic one. Our firm is trusted by businesses across Bahrain because we deliver more than just reports; we deliver value. We combine deep local knowledge, international audit practices, and a commitment to personalized service. With each engagement, we focus on clarity, accuracy, and strategic insight, helping you turn regulatory obligations into business advantages.
We’re based in Bahrain, with a team that understands the intricacies of the local regulatory landscape, including NBR, MOIC, and CBB requirements. At the same time, we follow international standards such as IFRS and ISA, making our reports credible not only in Bahrain but across international markets. Whether you’re a startup, family business, or a multinational branch, we speak your language — both culturally and financially.
One of the main reasons businesses engage in external audits in Bahrain is for Commercial Registration (CR) renewal and loan or investment applications. Our reports are formatted and signed according to MOIC standards and accepted by banks and government entities. We ensure your financials are presentable, defendable, and submission-ready — saving you time, money, and back-and-forth headaches.
Your audit is conducted by highly qualified, licensed professionals with certifications such as CPA, ACCA, CIA, CMA, and relevant MOIC registration. This isn’t just about ticking boxes — it ensures your audit is legally valid, technically sound, and professionally defensible. Every report is reviewed through a quality assurance process before delivery.
We understand that time is often of the essence, especially when audits are required for CR renewal or funding rounds. Our audit teams are efficiently structured, with clear timelines, digital collaboration tools, and a client dashboard for real-time progress updates. Fast delivery does not mean shortcuts — we maintain audit integrity at every stage while honoring your deadlines.
Our audit services span across dozens of industries in Bahrain — from logistics and healthcare to fintech, hospitality, education, and real estate. We bring industry-specific knowledge to every engagement, understanding the nuances of each sector’s operational and regulatory challenges. This ensures our audit approach is relevant, tailored, and impactful for your business.
We don’t just audit and walk away. Post-audit, we provide hands-on support for any rectifications needed, help you submit to relevant authorities, and guide you on how to improve controls, accounting systems, and VAT compliance. Our end-to-end audit service ensures that you’re not left in the dark once the report is delivered.
Auditing involves handling sensitive financial and operational data. We are committed to total confidentiality, and our systems are secured through encrypted document storage, limited-access file sharing, and strict non-disclosure protocols. You can be confident that your information is safe with us.
We believe in clear, upfront pricing without hidden charges. Whether you’re a startup needing your first audit or a complex group with multiple subsidiaries, we offer fair rates and customized packages that align with your needs and budget. Value-driven service is part of our audit philosophy.
Many of our audit clients stay with us for years — not just for audits, but for ongoing accounting, VAT, advisory, and compliance services. We build long-term relationships based on trust, responsiveness, and results. As your business grows, we scale with you — helping you stay compliant, confident, and ready for every financial milestone.
Our external audit process is designed to be seamless, structured, and stress-free for your business. From the first consultation to the final signed report, we follow a transparent and proven methodology that ensures accuracy, accountability, and complete compliance.
We begin with a discovery session, where we understand your business structure, financial year, operational complexity, and industry-specific audit requirements. Based on this, we build a customized audit plan outlining timelines, required documents, and reporting goals.
Our audit team then conducts fieldwork and testing — either remotely or on-site — by analyzing your financial records, general ledger, VAT returns, and compliance documentation. We use advanced tools to cross-verify transactions, evaluate internal controls, and flag inconsistencies.
Before finalization, we present a draft report to your management team for discussion and clarification. Once all revisions are incorporated, we issue your official signed audit report, ready for submission to banks, investors, the MOIC, or CBB.
Throughout the process, you’ll have access to a dedicated audit coordinator and real-time status updates. We ensure you feel informed, prepared, and supported — every step of the way.
Over the years, we’ve earned the trust of businesses in Bahrain by consistently delivering audits that are precise, punctual, and practical.
✅ Reputation for integrity: Our firm operates with full independence, which means our reports carry weight with banks, investors, and regulators.
✅ Client-first approach: We’re known for being approachable, responsive, and easy to work with. Our clients value our professional communication and fast turnaround.
✅ Bahrain regulatory expertise: From MOIC filing formats to NBR expectations, our auditors are fully versed in local frameworks.
✅ Proven track record: We’ve successfully completed audits for hundreds of companies — including startups, family-owned enterprises, and international branches.
✅ Comprehensive support: From audit readiness checks to post-report implementation, we stand by our clients beyond just report delivery.
Our focus is not just on issuing a report — it’s on protecting your business, strengthening your credibility, and ensuring you’re always a step ahead.
Compliance is not optional — it’s foundational. In Bahrain’s evolving regulatory environment, staying compliant with financial laws is essential for license renewals, bank relationships, investor confidence, and public trust.
We ensure that your business meets all key regulatory obligations, including:
Commercial Registration (CR) renewal audits mandated by the Ministry of Industry and Commerce
Bahrain VAT compliance audits and alignment with NBR documentation requirements
Central Bank of Bahrain (CBB) audit guidelines for financial institutions and licensed entities
Adherence to IFRS and IAS audit standards, accepted locally and internationally
Proper documentation for intercompany transactions, foreign investments, and capital structures
Audit trail support for anti-money laundering (AML) and due diligence
With us as your audit partner, you don’t just meet the minimum — you gain peace of mind that your business is operating within the full scope of Bahrain’s legal and financial framework.
Minimize risks and maximize growth with our comprehensive accounting solutions in Bahrain.
With a reputation for precision, and excellence, we are here to support your business growth while ensuring compliance with Bahrain’s financial and regulatory standards.
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Accounting, VAT, & Audit Services by famabh