Open a Holding Company in Bahrain

If you want to open a holding company in Bahrain, our local specialists can help you. From the selection of the legal entity to its registration with the relevant authorities, our agents are at your service.

What is a holding company, according to the Bahraini legislation?

The holding company is a business created for investment and management of other businesses, called subsidiaries. A Bahraini holding company can also have one subsidiary.

The holding company in Bahrain is incorporated for the purpose of owning shares in other companies either in Bahrain or abroad. It does not engage in commercial activities; it does not provide goods or services.

Do I need a local partner if I open a holding company in Bahrain?

No. Full foreign ownership is available for most types of companies, including holdings.

What are the steps to register a holding company in Bahrain?

In order to open a company in Bahrain, investors must follow the following steps:

1. Choose a business form: the first step is to choose a business form for the future holding company from one of those previously described.
2. Choose a company name: one that is not already registered and one that does not violate public order, traditions or religious belief; the name cannot mock the activity carried out by the business.
3. Company documents: the company’s Bylaws and Articles of Association are drafted and submitted for approval by the parties; they are later signed.
4. Capital: a certificate of capital deposit must be obtained prior to moving further with the process.
5. Registration: the application for registration can be submitted electronically; all of the documents, the Articles of Association and others, need to be attached.
6. Others: as the holding company is not engaged in economic activities, it will not have to obtain special permits and licenses.

Here is also an infographic on this type of company:

Is there a minimum capital requirement to establish a holding company in Bahrain?

Depending on the legal entity chosen, the minimum amount required:

• is BHD 50,000 (USD 133,000) and BHD 1 million (around USD 2.66 million USD) for a closed, respectively, a public joint stock company;
• USD 2,500 is recommended for a private limited liability company.

What types of holding companies can I set up in Bahrain?

You can launch:

• a pure holding company, which has a main purpose of holding shares in its subsidiary(ies);
• a management holding, which is established to coordinate the operations of its subsidiary without interfering in its daily operations;
• an operating holding, which can be involved the management and operations of one or more subsidiaries;
• a financial holding, which is established with the purpose of managing financial assets.

NOTE: In the case of financial holdings, a local partner may be required, depending on the shareholding structure of the subsidiary.

What business forms can I use to create a holding company in Bahrain?

The following:

• closed joint-stock company: a company with at least two founders and a capital composed of shares that cannot be offered for public subscription;
• open joint-stock company: unlike the closed variant, the shares of this company can be publicly traded;
• limited liability company: a business with one or more partners (no maximum since 2020), each liable to the extent of their invested capital;
• single person company: the business is now set up as a WLL with a single owner, whose liability is limited (the separate SPC form was abolished in 2020).

How much time does it take to open a holding company in Bahrain?

The procedure for setting up a holding company in Bahrain takes around 2 weeks (without including the bank account opening procedure).

NOTE: Our local specialists can start both company registration and bank account opening procedures at the same time.

What types of assets can a Bahraini holding company own?

The types of assets owned by a holding company can be shares in other corporations as well as private equity funds, hedge funds, bonds, real estate, patents, trademarks, as well as other valuable assets.

Contact our agents who specialize in company registration in Bahrain for complete details on the steps needed to open a holding company, as well as details about the holding company regime.