Investors who are interested in company formation in Bahrain can choose between several legal structures, with the corporation being the primary business vehicle used in this country. The Commercial Companies Law provides for the formation of types of companies, which are differentiated according to the liability of the investors, the permitted number of investors and other characteristics.
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.
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. We also have a team of immigration lawyers in Bahrain ready to help with relocation procedures.
Our team of agents who specialize in company registration and immigration in Bahrain highlights the main types of companies, and their primary characteristics, in the list below:
Our specialists can provide investors with additional information and assistance to set up a company in Bahrain according to the chosen business type. The business form will determine the steps needed for registration, as complex legal entities require a different capital and are subject to several requirements for the issuance of shares (mainly in case of the public shareholding company). We can also assist with accounting services in Bahrain.
We can also assist in immigration to Bahrain. Obtaining a residence permit in Bahrain implies choosing the type of permit first. It can be a short or long-term residency visa. For each, you must meet certain requirements which can be related to your qualifications or financial sufficiency if you choose investment as a means of immigration. Our local lawyers will help you understand the conditions for each of them.
The requirements for the minimum share capital in Bahrain depend on the chosen type of company. Thus, the public shareholding company (BSC) is the one that requires the highest capital, of no less than 1 million BD. The capital for the closed shareholding company, or closed BSC, is 250,000 BD with the share value of no less than 100 Fils and no more than 100 BD (this also applies to the public BSC). There is no required minimum share capital for the limited liability company, although the amount needs to be divided into equal shares valuing no less than 50 BD. The minimum share capital for a company limited by shares is 20,000 BD (divided into negotiable, par value and indivisible shares).
The founders of the public BSC, closed BSC, the limited liability company, the company limited by shares and the single person company (SPC) need to appoint an auditor. The foreign branch also needs to submit an audited annual financial statement.
The Bahrain Ministry of Industry, Commerce and Tourism also sets forth other requirements for companies, including for the transfer of shares or for the increase of the share capital. Separate requirements apply for VAT registration.
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. You can also rely on our immigration lawyers in Bahrain for support in moving here.
We can also help you with company formation in other countries, such as Georgia, through our local partners.