Partnership Company in Bahrain

Bahrain, over the last few years, is making constant efforts to attract foreign investment into the country and is consistently ranked for being the top open economies to do business. The country is better known for is well regulated financial sector and has introduced many laws to enable further growth in the investment sector. Foreign investors willingly invest in Bahrain due to the government’s pro-business ideology and in return enjoy the profits that they continue to make in Bahrain. An investor can set up business in Bahrain through various business entities, the most common one being, a Partnership Company.

A general partnership company is a company without a limited liability. Two or more parties sign an agreement to share profits and losses together under a specific collective trade name for a commercial purpose. There are no provisions in the law concerning the minimum or maximum capital required of a partnership or the maximum number of partners allowed. However, the partnership should have a minimum of two partners. Other types of partnerships include Limited Partnerships and Partnership Limited by Shares.

Features of a Partnership Company in Bahrain

  • The liability is unlimited
  • Banking, insurance, and investment activities are not allowed
  • No minimum share capital
  • 100% foreign ownership is allowed
  • A minimum of 2 partners
  • A minimum of 2 directors
  • The presence of local office is mandatory
  • Local operations are allowed
  • Local sponsor is not required

How to Set Up a Partnership Company in Bahrain?

To establish a Partnership Company in Bahrain, there are certain prerequisites to run a legal business in the country. The first and foremost step is to decide on the company structure, which in this case is a Partnership Company. The next steps are as follows:

1. Choosing a Company Name

Choosing a company name is something that will stick with your business forever, which is why the Ministry of Industry and Commerce (MOIC) has set up some guidelines to assist the business owners in their search for a company name. If the suggested name violates the guidelines of the Ministry, it is rejected. Hence before naming the company, it is advised to go through the rules and regulations.

2. Commercial Registration Papers

For companies, the commercial registration papers are made at the Bahrain Investors Centre. But the Commercial Registration papers can be acquired only when the Ministry does not find any fault in the application form which is filled in the initial stage. Once the application form is approved, the Commercial Registration papers are acquired after paying the requisite fees.

3. Licensing and Approval

The next step to get your company legalized is to apply for a license. The type of license depends on the company structure. Some businesses need not have a license to get the Commercial Registration done. They are approved right away by the Ministry of Industry and Commerce. But there are few businesses wherein license and approvals are needed to get the CR and ultimately get the business started.

Documents Required to Set Up a Partnership Company in Bahrain

  • Application form of the company registration
  • Draft of Memorandum and Articles of Association (MAA)
  • Copy of commercial registration certificate
  • An original bank reference and CV for non-GCC nationals
  • Original educational qualifications and experience letter of each partner and director (depending on the activity)
  • Passport and visa copies (for non-Bahrainis)

Why Set Up a Partnership Company in Bahrain?

Starting a business in Bahrain has advantages of its own. The benefits include: employees are not required to pay income or corporate tax to the Bahraini authorities and there is no wealth tax, tax on capital gains or inheritance tax. Bahrain has no exchange control restrictions on repatriation of capital, profits or dividends, which allows them to be fully transferable. Bahrain has not yet introduced Value Added Tax (VAT) like the UAE and Saudi Arabia but it is understood that it will do so later in 2018.

The above brief overview is encouraging enough for an investor to invest in Bahrain. If you are looking to set up a company in Bahrain then we at Business Setup Worldwide are here to guide you through the process and help in the company set up while availing all the advantages that a developing economic trading hub provides. Our advisors in Bahrain will take care of all the formalities and allow corporates to enjoy their company formation process without worrying about the legal procedures. Contact us for any business-related enquiries.


What are the benefits of a partnership company in Bahrain?

No required share size
The majority of commercial operations are owned entirely by foreigners.
There is no demand that the local sponsor
Local business is allowed
Can employ both Bahraini locals and foreign workers

What are the requirements for a partnership company?

Unlimited liability company structure
Partnership agreement
Local office presence is required
A minimum of two partners is necessary
A minimum of two directors is necessary
Banking, insurance, and investment activities are not allowed
Have no criminal record
Annual submission of the audited financial statements to MOICT is compulsory.

What is the minimum share capital for LLC?

BHD 20,000.

Is 100% foreign ownership possible in Bahrain?