Various legal options are provide in Bahrain based by the size and nature of business as well as the requirements of investors. Shareholders and Directors of Bahrain companies are given an Investor’s residence visa. The available types of company registration include:
A Limited Liability Company is a company consist of more than one shareholder who are responsible for the company debts and liabilities only to the extent of their capital. If only one shareholder is left, the company will have a warning period of 30 days in order to introduce new shareholders otherwise the LLC company will be either dissolved or converted to a single person company. Some restriction are the an LLC company cannot issue public shares, debentures and negotiable warrants, banking and insurance activities are not allowed. A Limited Liability Company cannot issue public shares, negotiable warrants, or debentures. Main features of this company type are:
A single person company is actually a Limited Liability Company sharing most of the characteristics of LLC but with some diffrences.
A branch of a foreign company is an entity that is incorporated and registered outside Bahrain but can establish an operation office in Bahrain. Main features of this type of entity are:
• Limits of liability same as the parent company.
• Local operations are allowed only for an operational office.
• Representative and regional Office are only permitted to undertake marketing and promotion. • Banking and insurance activities are allowed (operational offices only).
• Local office presence is required.
• Minimum share capital is not applicable. • Branch manager is required.
• A local shareholder is required only for an operational office.
Costs of incorporation of company depends on the type of entity required, and the activity which it undertakes. Each business activity of the entity will need specific approval from the relevant government department. Whilst our associated office will handle all procedures the timescales vary and the prices are in the range of BD. 1,500 to BD. 5,000.