Company formation procedure in Bahrain

Company formation procedure in Bahrain can be divided into two stages:

A- Name reservation

B- Obtain License

PI Startup Advisory is specialized in startup consultancy and company formation. Our corporate services for company formation in Bahrain includes following steps:

A- Name Reservation

1. Power of Attorney
At very first step of company formation procedure client will give power of attorney to a representative of PI Business Solutions to register business in Bahrain. If the investor is in Bahrain Power of Attorney can be made at public or any private notary. In case you are out of Bahrain, you can make power of attorney from your home country. If your country is Hague Apostille Member also get apostille stamp from foreign office.
2. CR Name Reservation.
We will require three proposed commercial names at this step. We will submit a request to MOICT to reserve commercial and trade name for you.

B- Obtain License

3. Municipality Approval
At this step we will require an office/shop/workshop commercial address where companies head office shall be situated. As a proof of address Shop Pictures, Tenancy Agreement Copy and Electricity Bill Copy is required.
4. Memorandum of Company
PI Business Solution will draft memorandum and of association/Articles of Association and submit to MOIC after client’s approval.
5. Notarization
Draft memorandum shall be notarized from a private notary (Urgent) or public notary (Upon appointment)
6. Company Bank Account
PI Business Solutions shall provide client with necessary documents to open bank account and client will visit suitable bank to deposit company capital. Upon deposit bank will issue capital deposit certificate.
7. Final Approval by MOIC
Notarized Memorandum and Bank certificate shall be submitted to MOIC for final approval. Once approved company formation procedure is complete.

Learn more about Company formation in Bahrain

What is CR

Commercial Registry (CR) is a business license. It allows an individual to perform commercial activity in Bahrain. To get CR in Bahrain the most important thing to consider is Investor’s Nationality. To get CR in Bahrain there are several factors one should consider.

Business activities in Bahrain are allowed according to the nationality of Investor. There are more then 350 business activities that any foreigner can own without a local sponsor. Business activities involved in trade, import and export require a 51% Bahraini, Gulf or American partner. Most of the services related business activities can be owned 100% disregard to investor’s nationality.

Again, the type of commercial registry (business nature) also depends on nationality. Followings are popular types of CR in Bahrain:

Types of Businesses (CR) in Bahrain

Individual Establishment:

Individual Establishment in Bahrain is similar to Sole Proprietorship in other countries. The sole owner is responsible for all liabilities of the business. Business is not considered a separate entity from the owner. This type of businesses can only be owned by a Bahraini national or a GCC national.

With Limited Liability (WLL):

WLL is the most famous type of the company in Bahrain. It is similar has similar features as an LLC in other countries. Following are some features of a WLL company:

1. There is no restriction for number of partners.
2. There is no minimum capital restriction.
3. WLL is governed by The Commercial Companies Law DECREE LAW NO. (21) OF 2001 PROMULGATING.
4. Unlike Individual Establishment, the liability of the shareholder is limited to the extent of investment.
5. Company is considered separate from the owner.
6. Amount, type and currency of the capital is declared in public along percentage of the ownership of each shareholder.
7. Directors of the company are nominated.
8. Annual audited financial reports are submitted to MOICT every year (1^st year is exempt).
9. This type of business can also be owned by other nationalities as well depending on business activity.
10. It allows investor visas (Residence Permit) to its shareholders.

Note: Single Person Companies (SPC) registration type has been cancelled. All existing SPC’s are converted to WLL.

Bahraini Partnership Company

It is similar to general partnership in other countries. To form a Bahraini Partnership Company there should be at least 2 shareholders whose liabilities will be unlimited to the extent of their personal belongings. This type of company also has to declare its representatives. This type of CR can be 100% foreign-owned depending on business activities.

Simple commandite company

Simple commandite company is similar to Limited Partnership. This partnership consists of one or more silent partners and one or more managing partners. Silent partner’s enjoy limited liability but they cannot interfere in management decisions. Managing partners share full liability to the extent of their personal belongings. Managing partners can interfere in any management decision or company operation. Remaining features are similar to Bahraini Partnership Company.