Bahrain is one of the important countries in GCC and got excellent facilities to attract investors from all over the world and the country is a relentless acceleration for the economic growth in several decades. There are different types of business vehicles available in the country and company in Bahrain is one of them. In this article, we are going to discuss the Single person company Bahrain in details.
What is Single person company Bahrain?
The Single person company is a business structure and any single person, corporate body, any Bahrain citizen, or any foreign citizen may start Single Person Company in Bahrain. The benefits of such a company are that the owner of the company is not responsible for the debt or liabilities that exceed the extent of the capital amount allocated for the company. The minimum amount of capital requirements for setting up such companies is BHD 50,000 and as mentioned before, the owner of the company is liable only for the mentioned amount.
Regulation for the Single person company Bahrain
According to the Commercial Company Law, the owner of the company may manage the Single person company Bahrain. However, the owner may appoint a manager and the appointed manager may run the business on his behalf. Similar to W.L.L companies in Bahrain, the Single person company does not have the permission to involve in business activities into banking, investments or insurance from the third parties. Additionally, the Single person company in Bahrain cannot be established based on the capital increased or the borrowing that made in accordance with subscription fro the public. In addition, the company not allowed issuing any kinds of shares and bond to the public. Based on the company’s law, the Single person company Bahrain should have two separate accounts and they need to maintain the financial account and the company’s capital account separately.
The Incorporation process for the Single person company Bahrain
The incorporation application for the Single person company should be direct to the Ministry of Commerce and the numbers of documents to submit depends on the status of the applicant. The categories are divided into the corporate entity and Individual However, there are some general papers that to be submitted by both categories. The lists of general papers are given in below.
- Proper application form
- Company’s incorporation certificate declarations.
- Statement for the amount of deposit by the shareholders.
- Statements of the shareholders about the delivery of shares
- The details of the managers or the directors of the company such as the name, address, occupation, and nationality.
- The required application fees for the application.
- The bank statements showing the shareholders have made the deposit.
- The following list shows the documents requirements if the applicant is a corporate body.
- The certificate of incorporation for the relevant company.
- The statement showing that the approval achieved for the required authority.
- The articles of associations.
- The latest copy of the audited financial statement.
- The board of directors of the company resolution from.
- Power of attorney forms the authorized personnel.
- The name and address from the banker’s wit ha reference letter.
The following list shows the documents requirements if the applicant is an individual.
- The copy of the passport from the applicant.
- The CV of the applicant showing the education and career and also the description of personal qualifications.
- The reference letter from two referees.
- The reference letter from any commercial bank in Bahrain
- Power of attorney to the authorized person who may work for the applicant to establish and register the company on behalf of the owner of the company.
The Ministry of Commerce provides the approval for such companies and after receiving the required approval in Arabic or in bilingual language (Arabic and English) version of memorandum and article of association that is signed by the proper authority, one should notarize the document in presence with a notary public. This document may be used as the certificate of registration for the company. However, one may have to present additional documents for proving the certificate of registration as well. These documents include a certificate from any commercial bank in Bahrain showing that the capital amount from the shareholders is deposited to a respective bank account. Additionally, the companies have to show the cheque that is made for the appropriate annual registration fees of the company.
If all the documents mentioned above are complete and in the authority is satisfied with that then the Directorate of the Company affairs will issue a certificate of registration for that specific company. This is the final copy of incorporation for the company and company may use these certificates for any kind of legal activity in the future. Please note that the incorporation is not complete until and unless the certificate of incorporation is not received from the Directorate of the Company affairs for the single person company Bahrain.