Bahrain Shareholding Company - Public

The Kingdom of Bahrain has been emerging as a one-stop business investment platform, leveraging ample opportunities for business investors to take a step forward and enter into the destination.

Heavily dwelling in the oil and natural gas sector, the nation has been wide-spreading its arms to encourage and uplift the other segments.

Incorporating a business in a foreign nation requires an investor or business owner to know certain essential factors. One key factor that every business person should focus on at the initial stage is the type of business structure one is looking forward to incorporating.

Joint Stock Companies are the widely used business structures opted widely, and Bahrain Public Shareholding Company quickly grabs the investor's attention. One of the core reasons for choosing the same is that the shareholders are liable to pay the company debts to the extent of investment made.

Company registration in Bahrain turns out to be a simplified process; however, it turns out to be fruitful if one holds knowledge before entering the business zone.

This guide will give you insight into the same that will turn out fruitful to take the further steps at ease.

What is a Bahrain Shareholding Public Company?

A Bahrain Shareholding Public Company, also called the Public Shareholding Company, is a specified business structure that can also be called a Joint Stock Company (JSC). The business structure consists of a minimum of 7 shareholders who underwrites negotiable shares.

Setting up a Public Shareholding Company in Bahrain requires a share capital of 1 Million Bahraini Dinars (BHD).

The company should be issued the required share capital and mention the information in the articles of association.

The issued shares have wholly underwritten by the shareholders, where the shareholders need to pay at least a quarter of the nominal value of the cash shares. Complete the remaining amount within not exceeding five years from the incorporation date.

Rules and Regulations: Bahrain Shareholding Public Company

Knowing the essentials at an in-depth level helps the investors take appropriate steps in the future.  Here are a few bare essentials below:

  • The shares shall be issued at a nominal value and may not be issued with a lower value
  • The claims stand indivisible and negotiable
  • An auditor is to be appointed who shall prepare an audit report every year
  • 10% of the net profit shall be allotted to the statutory reserve account
  • They can borrow money by issuing bonds by passing a resolution in the Ordinary General Meeting (OGM)
  • The share value may not be less than 100 Fils and not more than 100 BD.

As per the Ministerial Resolution, the shareholding companies can be segmented into variable share capital.

Documents Required for Company Setup in Bahrain

For Bahrain company formation, the investors must present the following documents to the relevant authorities.

  • An application form
  • Approvals from the external authorities
  • Memorandum and Articles of association
  • Capital Deposit Certificate
  • Feasibility Study
  • Financial Audit Report

If the Partners are Individuals

  • Passport Copy and Visa Clearance
  • Copy of Bahraini Partners and Expatriates
  • No-Objection Letter from the current employer
  • Bank reference letter
  • Copy of original educational certificate

If the Partners are Corporate Bodies

  • Copy of Commercial Registration Certificate
  • Copy of Memorandum and Articles of Association
  • The latest audit report of the company
  • Resolution of the Board of Directors
  • Authorization letter from the Ministry of Foreign Affairs of Bahrain

Clearing the legal and documentation part is one of the crucial stages to be done carefully. Foreign investors might be knowing a few parameters, but when it comes to practicality, one needs to have connections to complete the process faster.

Professional experts are the ones that you need at this point. Business experts are well-versed with the company setup proceedings and the authorities. Right from company incorporation to opening a corporate bank account, then can assist you at every step.

Additionally, the business departments prefer issuing permissions to those businesses that experts refer to mark authenticity.

Business Setup Worldwide is one of the top ten business consultants in Dubai who is keen on helping budding and establishing businesses to build their foundation.

Our experts hold years of industry experience that helps them provide tailored solutions suiting business needs.

If you are willing to set up your dream business in Bahrain, we can assist you in completing the processes at ease. For more info, get in touch with our experts today. Contact us now-we'd be glad to help!


1. What is the minimum share capital to start a business in Bahrain?

The minimum capital requirement to incorporate a business in Bahrain is BHD 1.000 (USD 2.65 Approx).

2. Can I start a trading business in Bahrain?

Yes, you can start a trading company in Bahrain.

3. Can I get 100% ownership while starting a business in Bahrain?

As per the Companies Commercial Law, 100% ownership is permitted for foreigners seeking to incorporate a business in Bahrain.

4. How many free zones does Bahrain have?

Bahrain has got three major free zones, namely:
• Bahrain Logistics Zone (BLZ)
• Bahrain International Investment Park (BIIP)
• Bahrain Airport Zone (BIA)