company formation in Bahrain

The nature and size of the proposed business, as well as the particular requirements of investors govern the choice of legal vehicle in Bahrain. All types of Bahraini companies give the shareholders or the directors an Investor’s Residence Visa. The Bahrain Commercial Companies Law (BCCL) of 2001 replaced the old Bahrain Commercial Companies Law of 1975 and made substantial changes. This law applies to all legal structures except that of a Sole Proprietorship, which is registered according to the provisions of Bahrain Law of Commerce, Decree No. 7 of 1987. The principal types of vehicle are:

Limited Liability Company – known as company With Limited Liability (WLL)

A WLL is a company of which partners are responsible for the company debts and liabilities only to the extent of their capital. The minimum number of partner is 1 and the maximum is 50. A WLL cannot engage in banking and insurance activities and cannot issue public shares, negotiable warrants or debentures. 100% foreign ownership is allowed and local operations are permitted.

Foreign Company Branch

A branch of a foreign company that is incorporated and registered outside Bahrain may be established as an Operational, Representative or a Regional Office. The limits of liability are the same as the parent company. Local operations are permitted only for an Operational Office, which require local sponsor.

Bahraini Establishment or Sole Proprietorship

Commercial registration for a sole proprietorship or individual establishment is only issued to Bahraini citizens, or GCC or US citizens resident in Bahrain, over the age of 18. The liability of the sole proprietor is unlimited.

Partnerships

A general partnership company is formed between two or more people under a specific name, and the partners assume joint responsibility, to the extent of all of their funds, for the partnership’s obligations. There must be at least two partners, at least two directors and the company must set up a local office. Depending on the category, 100% foreign ownership is permitted and a local sponsor is not required.

Sovereign Business Hub

The Sovereign Business Hub is a new business incubator that is designed to increase the successful development of new businesses, job creation and employment in specific sectors that are aligned with the Kingdom of Bahrain’s areas of opportunity.

SOVEREIGN BAHRAIN – THE ‘GREEN PACK’

Sovereign Bahrain’s ‘Green Pack’ is a bundle of services that is designed to protect and maintain your Bahrain company and ensure that it remains in good standing throughout the year.

A corporation is a legal entity that is legally separate from its owners, with its own rights and obligations, and is the most widely used legal vehicle for operating a business. But failure to manage a company correctly can not only mean that intended objectives and benefits are not realised but can also lead to unintended consequences and liabilities.

Other information

The costs of incorporation vary considerably, depending on the type of entity required and the activity that it undertakes. Each business activity needs specific pre-approval from the relevant government department. Whilst Sovereign will handle all procedures, the timescales can be uncertain. Prices are in the range of BHD1,500 to BHD5,000. When we understand the nature of the business and the type of entity required, we will provide a comprehensive all-inclusive quotation before proceeding

Once incorporated, we provide a domiciliary service, which includes the provision of company secretarial, registered office and full management services. Re-mailing services are available at modest cost for all companies established by Sovereign.

Note: Ancillary services
In addition to providing incorporation, we provide PRO services , which can keep the company in a good standing, renewing the commercial license onetime, pay the company various bills, applying and renewing residency permits etc. also assistance with office relocation, introduction to real estate agents, government agencies and other third parties.