Bahrain Business

Bahrain Business

Bahrain Business

Bahrain holds strategic location among GCC countries and the country is an excellent place for starting and doing business. There are few different types of Bahrain Business structures are available and the Ministry of Industry, Commerce, and Tourism (MOICT) is responsible for monitoring, registration and regulating any kind of business activities in Bahrain. The Aim of the MOICT is to maintain an open and transparent commercial market environment that may develop Bahrain's economy and encourages foreign investments. In this article, we are going to discuss the Bahrain business in details.

Requirements for Bahrain Business

Any organization wishes to conduct commercial activity in Bahrain must be incorporated with MOICT and they must select the relevant segment. There are some activities that may require prior approval. In recent years the government of Bahrain reduces the available list of activities to approx 400 and this change occurs due to the reason that the country is accepting the international standards. The department sent of economics and Social Affairs of United Nations Secretariats in Bahrain are developing these standards for the country.

Legal Structures of Bahrain Business

In this segment, we are going to discuss the legal structures that available in Bahrain.

Individual Establishment

This is a simple form of business plan in Bahrain where an individual establishes simple business and continue trade on own account. The potential business owner must acquire trade license for conducting business activity in the country. This type of business is not referred as a company rather referred as the establishment and the individual owner of the business got unlimited liability for the full extent of the business license In Bahrain, asset and any other form of financial activity. The business establishment of these types does not have any separate legal identity from its owner.

Single Person Company

The single person company (SPC) in Bahrain got the separate legal entity from its owner and they may hold minimum share value of Bahrain Dollar 50. The company may be managed by its owner and he may appoint one or more managers for the business. According to the company law of Bahrain business, the foreigners and also the citizen of GCC or US may start single person company in Bahrain and there is no restriction applies for any kind of business activity. Please note that the owner of a single person company will be only liable for the capital of the company.

General Partnership Company

This types of business forms when two or more individuals or corporate persons engage in business activity. The partners of the company are responsible for their personal assets and also for the debts and liabilities. This type of business does not require any minimum share capital and depending on the business activity, the company can be 100% owned by the foreigner.

Bahrain Shareholding Company

Any Bahrain Shareholding Company is listed on Bahrain Bourse and they are typically the joint stock company in the country. For Bahrain business with this type of vehicle, the company should have at least two shareholders and the shareholders of the company are completely liable for any kinds of debt and obligations that are only to extend the value of their shares. There are capital requirements apply to these types of company which is Bahrain 1 million dollars and there should be at least five directors in the company.

Close Stock Company

For Bahrain Business, the closed stock company may have a minimum of two shareholders and the shares of the company cannot be distributed to the public the minimum share capital requirements for forming this types of company is BHD 250,000 and the shareholders are liable for the debts and obligation that is applicable only to the extent of their share’s value.

With Limited Liability Company

This type of company is similar to a Limited Liability Company that existed in other GCC countries and this is one of the most common types of business vehicle. The numbers of shareholders of the company should be limited into 2 to 50 and the shareholders of the company may be a neutral person or corporate legal entity. The shareholders are responsible for the debts and obligation of the company that is equal to their respective share capital. The minimum share capital required for the company is BHD 50 and the company should have at least 2 directors.

Foreign Company Branch

Bahrain business may have a foreign company branch and the law of Bahrain does not enforce to have a local partner. The foreign companies may use Bahrain as their operational office or their local representative office. However, then they must obtain a few approvals based on their Bahrain business activity. For example, the companies willing to engage in banking and insurance acidity in Bahrain must get approval from the Central Bank of Bahrain.

Shelf Company

This type of company may take any type of corporate form and the company is not considered as active unless the proper approval is taken from the authority.


Company Registration Expert Since 2012