A shareholding company, commonly known as a Joint Stock Company in Bahrain, is a business entity where the investors are liable to the company debts to the extent of their investment in the business. In Bahrain, a shareholding company is of two types: closed and public.
Bahrain Shareholding Company – Public
A public shareholding company or a public joint stock company consists of minimum 7 shareholders who subscribe to it by the way of negotiable shares. The company must have a board of directors consisting of 3 to 12 members nominated for the period of three years. It must also be noted that the majority of shareholders must be Bahraini citizens or nationals of the Gulf Cooperation Council (GCC), and must reside within the borders of the country. And the shareholders of an open joint stock company can sell their shares only to other Bahraini citizens.
A public shareholding company in Bahrain is suited for businessmen planning to list their company in the Bahrain Bourse (BHB) and offering its shares to the public.
Features of a Public Bahrain Shareholding Company
- The shareholders bear limited liability
- The minimum number of founding shareholders required is 7
- The minimum number of directors required is 5
- The minimum share capital required at the inception is BD 1 million
- A local registered office is called for
- The shares of a public shareholding company in Bahrain can be owned by GCC nationals or foreign investors
- Commercial, banking, insurance and investment activities are allowed
Documents Required to Set Up a Shareholding Company in Bahrain
- Application form for company registration
- Board of Directors’ resolution resolving to establish a company in Bahrain (for corporate partners)
- Memorandum and Articles of Association (MAA)
- National ID card (Central Population Registry (CPR)) copies of the company’s representatives. If the partners are not present themselves to register the company, copies of the ID cards of their lawyers/representatives should be furnished
- Résumé of each partner
- Lease agreement for proof of the company’s registered address
Why Set Up a Shareholding Company in Bahrain?
Corporate law in Bahrain is not unlike that in western countries. The government of Bahrain supports the actuation of new forms and hence provides them with all the required facilities. In light of this, firms are eager to reap new market opportunities and are open to new business ideas in Bahrain. If you are looking to establish a Bahrain shareholding company, look no further! We at Business Setup Worldwide help entrepreneurs establish their company and make the process hassle-free. We guide you through your company formation, with your business objectives at the centre of our ecosystem, all the way. Contact us for business setup in Bahrain – our advisors will be glad to understand your requirements and fulfil them at the earliest.