Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the CBB decision, including banking and payment rails.
Get a payment license in Bahrain.
The Gulf's first open-banking regime and its most affordable serious licence: the Central Bank of Bahrain licenses PSPs at BD 250,000 core capital - and open-banking providers from BD 25,000. One regulator, one rulebook, zero corporate tax for most companies.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
Bahrain in brief
The single-rulebook regulator that priced fintech honestly.
Bahrain runs its entire financial centre through one institution - the Central Bank of Bahrain - and one rulebook. Payment service providers licence under Volume 5 as ancillary service providers: BD 250,000 in core capital for a PSP or card processor, a BD 50,000 bank guarantee from a local retail bank, direct technical access to the national EFTS switch around the clock, and PCI-DSS certification kept current. The open-banking tier is where the pricing turns unusual: an account information service provider needs BD 25,000 and a payment initiation provider BD 30,000 - numbers a seed-stage company can actually raise. Prepaid issuers carry their own line: a BD 100,000 guarantee and wallet caps of BD 2,500 per individual and BD 10,000 per company.
Bahrain mandated bank-side open banking before anyone else in the Gulf, which is why the AISP/PISP tiers exist at all - the rails the licence plugs into are live, not planned. Tax stays out of the way: no corporate income tax for most companies, with the 15% domestic minimum top-up reaching only groups above the €750 million revenue line, 10% VAT, and no tax on salaries. The honest trade-off is market size - 1.5 million people - so Bahrain works best as the Gulf's regulatory home base with corridors outward, and Saudi Arabia fifteen minutes across the causeway. We build the CBB file end to end from our Gulf desk in Dubai.
CBB licenses PSPs under Rulebook Volume 5: BD 250,000 core capital, BD 50,000 retail-bank guarantee, direct 24/7 EFTS access, PCI-DSS. Open banking enters at BD 25,000 (AISP) and BD 30,000 (PISP).
First Gulf regulator to mandate open banking; 0% corporate tax below the €750M large-MNE line. We run the file from our Gulf desk.
The two routes
The full PSP licence - or the open-banking entry.
One rulebook, two price points: the PSP/card-processing licence for money-touching models, and the AISP/PISP tier for open-banking products that never hold funds. We fix the route first, then build once.
Full PSP for money-touching models - AISP/PISP for open banking.
01 - PAYMENT SERVICE PROVIDER
PSP · card processing
The full licence under Volume 5: processing, acquiring-side services and prepaid programmes - BD 250,000 core capital, a BD 50,000 retail-bank guarantee, EFTS connectivity and PCI-DSS discipline.
The full licence under Volume 5: processing, acquiring-side services and prepaid programmes - BD 250,000 core capital, a BD 50,000 retail-bank guarantee, EFTS connectivity and PCI-DSS discipline.
- ✓Payment processing and card services
- ✓BD 250,000 core capital
- ✓Bank guarantee BD 50,000
- ✓Prepaid: BD 100k guarantee · wallet caps
- ✓Direct EFTS access - 24/7/365
- ✓PCI-DSS certification maintained
02 - OPEN BANKING
AISP BD 25k · PISP BD 30kThe AISP / PISP tier
Account information at BD 25,000 core capital, payment initiation at BD 30,000 - the Gulf's cheapest regulated entry, on open-banking rails the CBB switched on first in the region.
AISP BD 25k, PISP BD 30k: no float, lighter file, live bank APIs, upgrade path.
- ✓Account information - BD 25,000
- ✓Payment initiation - BD 30,000
- ✓No customer float, lighter file
- ✓Live bank-side APIs to build against
- ✓Same CBB supervision and rulebook
- ✓Upgrade path to the full PSP
Costs and timelines are confirmed for your case before any work begins. Capital and guarantees are stated in the rulebook (AU module); substance and file costs are itemised in your quote.
Why Bahrain
The honest price of a Gulf licence.
Nowhere else in the region does a regulated payments entry start at five figures - with a single regulator who wrote the open-banking rules first.
✓
BD 25-30k open-banking entry
The AISP and PISP tiers are priced for startups in a region of institution-priced licences - a seed round covers the capital, not just the lawyers.Seed-round capital, real licence.
✓
Open banking that exists
Bahrain mandated bank APIs first in the Gulf - an initiation licence here plugs into rails that operate today, not into a consultation paper.Mandated first in the Gulf.
✓
One regulator, one rulebook
Banks, insurers, investment firms and PSPs all answer to the CBB under one integrated rulebook - no licence ping-pong between authorities.Single CBB supervision.
✓
Zero corporate tax - for most
No corporate income tax below the large-MNE threshold; the 15% top-up reaches only €750M+ groups. The operating maths barely has a tax line.DMTT only past €750M.
✓
Saudi next door
The causeway puts the Gulf's largest market fifteen minutes away - Bahrain-based teams serve Saudi mandates while the SAMA licence is built.Fifteen minutes by causeway.
✓
A regulator you can talk to
The CBB runs a sandbox and answers questions - pre-application meetings shape files here in ways larger desks rarely allow.Sandbox and pre-app meetings.
How it compares
How Bahrain differs from other routes.
Bahrain trades market size for regulatory economics. The honest comparison is below.
Bahrain vs other jurisdictions
| Feature |  Bahrain | Other jurisdictions |
|---|---|---|
| Entry capital | BD 25k-250k by tier | Higher flat minimums |
| Open banking | Mandated first in the Gulf | Later or voluntary |
| Regulator | One CBB rulebook | Split authorities |
| Home market | 1.5M - corridor base | Larger domestic markets |
Entry capital
BahrainBD 25k-250k by tier
Other jurisdictionsHigher flat minimums
Open banking
BahrainMandated first in the Gulf
Other jurisdictionsLater or voluntary
Regulator
BahrainOne CBB rulebook
Other jurisdictionsSplit authorities
Home market
Bahrain1.5M - corridor base
Other jurisdictionsLarger domestic markets
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Bahrain | PSP / AISP / PISP (CBB) | 0% · 15% DMTT large | BD 25k-250k by tier |
 UAE | RPS Cat I-IV (CBUAE) | 9% · 0% band | AED 0.1-3M by volume |
 Saudi Arabia | PI / EMI (SAMA) | 20% foreign share | SAR 1-10M by type |
 Qatar | PSP (QCB) | 10% foreign share | PSR 2021 · QCB scope |
BahrainLicense typePSP / AISP / PISP (CBB)
Taxation0% · 15% DMTT large
RequirementsBD 25k-250k by tier
UAELicense typeRPS Cat I-IV (CBUAE)
Taxation9% · 0% band
RequirementsAED 0.1-3M by volume
Saudi ArabiaLicense typePI / EMI (SAMA)
Taxation20% foreign share
RequirementsSAR 1-10M by type
QatarLicense typePSP (QCB)
Taxation10% foreign share
RequirementsPSR 2021 · QCB scope
Before you apply
Requirements for the CBB licence.Requirements for the licence.
The AU module states conditions rule by rule - the craft is a file that answers all of them at once. The checklist below is what a passing application contains.
01
A Bahraini company - locally incorporated, with the licensed activity as its business.
02
Core capital for your tier - BD 250,000 for PSP and card processing, BD 25,000 for AISP, BD 30,000 for PISP, evidenced and maintained.
03
Bank guarantee - BD 50,000 from a Bahrain-licensed retail bank; BD 100,000 where prepaid cards are issued.
04
Prepaid discipline where relevant - wallet caps of BD 2,500 per natural person and BD 10,000 per legal person, enforced in the product.
05
EFTS connectivity - direct technical access to the national switch, uninterrupted, around the clock.
06
PCI-DSS certification - obtained and kept current through the licence's life.
07
Fit and proper management and holders - competence, clean records, ownership transparent to UBOs.
08
A programme of operations - services, volumes and three-year financials the CBB can interrogate.
09
AML/CFT framework - KYC, monitoring and reporting with a resident MLRO.
10
Governance and systems - board arrangements, control functions and technology documentation to rulebook standard.
01
Bahraini company, locally run.
02
Tier capital: BD 250k / 25k / 30k.
03
Guarantee BD 50k - 100k prepaid.
04
Prepaid caps BD 2,500 / 10,000.
05
Direct EFTS access, 24/7.
06
Current PCI-DSS certification.
07
Fit & proper to UBOs.
08
Interrogable programme of operations.
09
AML with resident MLRO.
10
Rulebook-grade governance and IT.
Reflects CBB Rulebook Volume 5, Ancillary Service Providers (AU module), as of 2026.CBB Rulebook Vol 5, AU module, as of 2026.
How it works
From first call to the CBB register.
01
Route and tier
PSP, card processing or the AISP/PISP tier - we fix the route, capital and guarantee in writing.PSP or AISP/PISP - in writing.
02
Bahraini company and people
Incorporation, capital evidence, the retail-bank guarantee and the resident officers the CBB vets.Capital, guarantee, resident officers.
03
The application file
Programme, AML, EFTS and PCI-DSS documentation per the AU module - complete before filing, because completeness is the timeline.Complete before filing - that is the timeline.
04
CBB review
Question rounds answered, pre-application groundwork paying off - plan on four to eight months end to end.4-8 months realistic.
05
Licence and launch
Register entry, EFTS live, certification current - and the reporting calendar running.Registered, connected, certified.
Quick facts
RegulatorCBB
RulebookVolume 5 · AU module
PSP capitalBD 250,000
AISP / PISPBD 25k / 30k
GuaranteeBD 50k · 100k prepaid
Prepaid capsBD 2,500 / 10,000
Realistic timeline4-8 months
EFTS accessDirect · 24/7/365
The rulebook names its numbers - capital, guarantees, caps - which makes Bahrain one of the few desks where the budget is knowable before the first meeting.
Your Bahrain desk
Run from our Gulf office in Dubai.
Prifinance - Gulf desk
Dubai · coordinating Bahraini mandates
33 Level, Al Saqr Business Tower, Dubai
01
Bahraini company formation
Local incorporation, capital placement and the corporate layer the CBB expects - structured for the licence from day one.Structured for the licence.
02
The CBB file
Programme of operations, capital and guarantee evidence, AML pack and systems documentation per the AU module - drafted by us and defended through the rounds.AU module answered in full.
03
EFTS and PCI-DSS
The technical file most applicants underestimate: switch connectivity, certification and the operational procedures behind both, prepared in parallel.The technical file, done early.
04
Substance and staffing
Resident MLRO, compliance and operations hires from Manama's financial talent pool - a real presence the CBB recognises.Resident MLRO from Manama's pool.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
London
United Kingdom
7 Bell Yard
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of payment companies in Bahrain.
For most licensees the corporate tax line reads zero - the top-up applies only past €750 million of group revenue.
Corporate tax 0%
No corporate income tax on ordinary companies - a PSP's fee income accrues untaxed below the large-MNE threshold.Below the large-MNE line.
15% DMTT - large groups only
The domestic minimum top-up applies from January 2025 to multinational groups above €750 million in consolidated revenue - startups and mid-size groups sit outside it.Only €750M+ groups.
VAT 10%
The standard rate since 2022; financial services follow exemption rules by product - we map the mix before launch.Product-mapped exemptions.
No tax on salaries
Zero personal income tax - hiring compliance and engineering talent prices on salary alone.Talent priced on salary alone.
No withholding
Dividends, interest and royalties leave Bahrain without withholding - group structures stay clean above the licensee.Clean outbound dividends.
The causeway economics
Manama's office and payroll costs run well below Dubai and Riyadh - the licence's operating base is the region's cheapest serious one.Manama payroll and rent.
Tax summary
Corporate tax0% standard
Large-MNE top-up15% · €750M+ groups
VAT10%
Personal income taxNone
WithholdingNone
Payroll costsRegion's lowest tier
*Figures as of 2026 per the National Bureau for Revenue. DMTT scoping is confirmed per group structure.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Bahraini company, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed institution.
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Bahrain · CBB
Launch your payment project in Bahrain with expert support.
Full-service assistance - from incorporation to the CBB licence, EFTS connectivity and ongoing compliance.
Get a consultation →Free legal opinion
Is Bahrain the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The Bahraini payment licence, answered.
What licence does a payment business need in Bahrain?+
An ancillary service provider licence from the Central Bank of Bahrain under Rulebook Volume 5 - as a PSP or card processor for money-touching models, or as an AISP/PISP for open-banking products that never hold funds.
How much capital is required?+
BD 250,000 core capital for a PSP or card processor; BD 25,000 for account information; BD 30,000 for payment initiation. The rulebook states the numbers outright - no negotiation, no folklore.
What guarantees are involved?+
A BD 50,000 bank guarantee from a Bahrain-licensed retail bank for the standard licence, rising to BD 100,000 where prepaid cards are issued - held alongside the capital, not instead of it.
What are the prepaid wallet caps?+
BD 2,500 per natural person and BD 10,000 per legal person - enforced in the product design, which is exactly where we build them in.
What is the EFTS requirement?+
Direct technical access to Bahrain's national electronic funds transfer switch, uninterrupted, 24/7/365 - plus current PCI-DSS certification. The technical file carries as much weight as the legal one.
How long does licensing take?+
Plan on four to eight months end to end, with pre-application meetings shaping the file early. The CBB's process rewards arriving complete - which is our job.
How are payment companies taxed?+
No corporate income tax below the large-MNE threshold; the 15% domestic minimum top-up reaches only groups above €750 million in revenue. VAT runs at 10%, salaries and outbound dividends untaxed.
Why is the open-banking tier interesting?+
Because it is real twice over: capital of BD 25,000-30,000 that a seed round covers, and bank-side APIs the CBB mandated first in the Gulf - so an initiation product launches against live rails.
What substance is expected?+
A Bahraini company with resident management and an MLRO, real systems behind the EFTS and PCI-DSS commitments, and governance to rulebook standard. Manama's talent pool makes the hiring practical.
Why Bahrain rather than the UAE or Saudi?+
As the regulatory home base: the cheapest serious entry in the Gulf, one approachable regulator, zero tax for most - with Saudi fifteen minutes away and the UAE an hour. Corridor models licence here first and expand from strength.
Which licence?+
CBB ancillary: PSP, card processing, AISP or PISP.
Capital?+
BD 250k PSP; BD 25k/30k open banking.
Guarantees?+
BD 50k; BD 100k for prepaid issuers.
Prepaid caps?+
BD 2,500 person · 10,000 company.
EFTS?+
Direct access, 24/7, plus PCI-DSS.
How long?+
4-8 months realistic.
Taxes?+
0% CIT for most; VAT 10%.
Open banking?+
Live rails - mandated first in the Gulf.
Substance?+
Local company, resident MLRO, real systems.
Why Bahrain?+
Cheapest serious Gulf entry; Saudi next door.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
“I had their assistance in company registration and I would recommend them. They were answering all my clarification during the process and offering all their supportThank you Daniel and Irinia”
Google
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Google
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Google
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Google
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Google
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Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Central Bank of Bahrain or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.