Company Types in Bahrain

There are several types of companies you can open in Bahrain. Discover them below and rely on our specialists for support in registering the most appropriate one.

What are the available company types in Bahrain?

• limited liability company;
• public shareholding company;
• closed shareholding company;
• partnership;
• simple commandite company;
• commandite by shares company;
• individual establishment (sole trader).

Are there any specific business forms for foreign companies in Bahrain?

Yes, foreign companies can operate through:

• branch offices;
• subsidiaries;
• representative/ liaison offices.

What is the most common type of company in Bahrain?

The limited liability company.

IMPORTANT! We have company registration packages that start at BHD 700 and go up to BHD 2,600 (government fees excluded).

What are the main features of a public shareholding company in Bahrain?

• It must have at least 2 shareholders whose liability is limited to their contribution to the capital of the company;
• It must also have a minimum capital of BHD 1 million;
• It must have a board of directors and an auditor.

What are the main characteristics of a Bahraini closed shareholding company?

• It must have at least 2 shareholders;
• The minimum capital of this type of company is BHD 50,000;
• It must have a board of directors and at least one auditor.

What are the main features of a Bahraini limited liability company?

• It must have at least one shareholder;
• It is not subject to specific capital requirements;
• It must have at least one director.

What are the main features of partnership companies in Bahrain?

Partnership companies are entities without a legal personality. They must have at least two members who are jointly liable for the obligations of the company with their personal assets.

NOTE: Similar characteristics are available for commandite companies, except for the fact that they have silent partners who will have limited liability for the debts and obligations of the business.

What are the conditions to set up a sole proprietorship in Bahrain?

The sole proprietorship is the main business form for natural persons to undertake commercial or craft activities in Bahrain. As a foreigner, you must first obtain a Bahraini residence permit.

What are the conditions to open a branch or a subsidiary in Bahrain?

The conditions to expand a foreign business in Bahrain are explained here and here.

How do I choose the company type when launching a business in Bahrain?

The future activity of the business is important when deciding upon a specific business form; however, it is not the single criterion to be taken into consideration. The minimum share capital, for example, is another factor that can influence the investor’s decision.

Is full foreign ownership available for all types of companies in Bahrain?

Companies in Bahrain can be 100% foreign owned, and restrictions apply only in selected business sectors like gas bottling and distribution, construction or fishing. In other business fields, like catering services, a minimum Bahraini investment of 51% is required.

The Bahrain Ministry of Industry and Commerce also sets forth various requirements for registering a company here.

Investors who are interested in company formation in Bahrain can contact us for complete information about each business form and additional details such as the taxation of legal entities in Bahrain.

We can also help you with company formation in other countries, such as Georgia, through our local partners.