With Limited Liability Company in Bahrain

The Kingdom of Bahrain is a heartfelt destination that has left its footprints in the minds of business investors.

The entrepreneur-friendly policy of the ground has become a tool for growing global talent. Thus, it turns out to be an absolute suitable platform for new businesses to emerge and existing companies to expand.

This has created an overall thriving business environment that has narrowed down the business setup cost by almost 30% compared to the other G.C.C. nations, which has escalated the company formation in Bahrain.

Among the wide range of business structures, With Limited Liability Company (W.L.L.) is one of the widely chosen corporate styles where the partners are responsible for debts and liabilities of the company to the extent of their shareholding.

This guide will help you to get a piece of in-depth information on the said business structure. So, let's take a step forward and understand.

What is a Bahrain W.L.L.?

A With Limited Liability Company (W.L.L.) is one of the most common business structures foreign investors widely choose.

In simple language, a W.L.L. company can be defined as a company with a maximum of 50 partners. None of them is liable except for their share capital invested.

As per Bahraini Law, any business investor looking forward to company formation in Bahrain need to gather respective approvals from the Ministry of Commerce, Industry and Tourism (M.O.I.C.T.).

Starting a business in a foreign land requires specific parameters that any investor should know before incorporation.

Features of A With Limited Liability Company

A WLL Company Formation in Bahrain comes with the following features:

  • No requirement of a local sponsor, which means 100% foreign ownership is allowed
  • Minimum 2 directors and two shareholders are mandatory
  • A WLL is not permitted to engage in banking or insurance business activities or invest funds on behalf of third parties
  • A WLL is required to submit annual audited financial statements
  • Requirement of an external auditor
  • Presence of a local office

How to Start a With Limited Liability Company in Bahrain?

Incorporating a W.L.L. Company in Bahrain involves a series of steps to be followed accordingly.

Selecting a Commercial Activity

Before investing your hard-earned money, an entrepreneur needs to hold clear transparency regarding the core business activities of the business.

Figure out the opportunities in the market, and align the essential pointers with mapping the route, which will help you take the right step at the right time.

Finalizing the Name of the Organization

The next step to company registration in Bahrain is to finalize the business trade name.

Ensure that the selected name shouldn't imitate any existing competitor in the market.

Additionally, it would help to make sure that the trade name shouldn't sound offensive or hurt the religious sentiment.

Structure the Company's Total Shared Capital

As per the commercial laws, the minimum required share capital for a W.L.L. in Bahrain stands at BHD 100,000; you need to make sure that the investment is appropriately utilized.

Make sure to prepare a financial budget and allocate the finance as per the nature of business, demand existing in the market, etc.

Prepare the Essential Docs

Filing the business papers is something that you can't skip. Documentation provides legal authority to the business and the employees to carry out the respective tasks and deal with the relevant processes ethically.

The documents required to set up a With Limited Liability Company (W.L.L.C.) are:

  • Application form of the company registration
  • Draft if Memorandum and Articles of Association
  • External entities pre-approval (depending upon the activity)
  • Certificate of capital deposit (after preliminary approval)
  • Copy of Bahraini ID of each shareholder
  • Copy of Passport if the investor is not a local
  • Proposed commercial address, under which the business is to be operated
  • Power of Attorney issued on behalf of consultant representing the applicant before the Ministry – duly notarized
  • Copy of the applicant's educational qualification – for all commercial activities

Obtain the Business License

The next step is to get the license after following all the requirements of that particular business activity. Then, from time to time will ask you to rectify the mistakes, if any and then submit all the necessary documents.

Recruit the Right People

There's no doubt that the employees are the company's tangible assets that contribute to the organization's overall success. 

Hiring the right set of people and allocating them to the right place at the right time can turn out to be a boon for any business.

Finalize the Respective Designations

Once you are done with the hiring process, give the respective designations. In general, two directors are required to form an L.L.C. Alternatively, other companies also appoint three directors to avoid any conflict.

Make sure to create a motivational environment to contribute the best to your organization so that the assigned professionals can contribute the best.

Clear Bank Process

The process of setting up a business in Bahrain won't get complete until you clear the bank processes. Then, all you need to do is collect the bank deposit certificate from the bank where you will be opening your corporate account. The certificate collected from the bank is submitted to the M.O.I.C.T.

Once you are done with the overall processes, the incorporation process ends. After that, the relevant business activities can be commenced accordingly. To know more, here's a guide on the advantages of setting up a business in Bahrain that you can have a look at!

The journey of big brands starts with small steps. Well, let me tell you that if you hold a dream to see your business growing, you need to start at the earliest.

So, what are you thinking about?

Mapping the core essentials of business takes time, and thus, it is recommended to carry out the process with the help of business experts.

Professionals like Business Setup Worldwide can help you fetch out creative and productive solutions to build the foundation of your business.

Our experts can take you through the essential steps and interpret the feasible solutions suiting your business requirements.

Take a step forward by joining hands with our experts. For a better experience, contact us now-we'd be glad to assist you!


1. When should one convene the Ordinary General Assembly?

As per the rules, the Ordinary General Assembly shall convene once a year during the last six months.

2. Article 288 (Bis) should one convene the Ordinary General Assembly?

The introduction of Article 288 states that the shareholder's profits will be distributed no later than thirty days from the date of approval by the general assembly

3. Is it mandatory for the trading companies to avail for a Bahraini shareholder?

Trading companies in specific business segments require a Bahraini shareholder holding a minimum of 51% of company shares.

4. What is the corporate tax rate for a W.L.L in Bahrain?

Business entities involved in the exploration, extraction, production and refining of oil and oil products are subjected to 46%.

5. Are bearer shares allowed for a W.L.L?

Yes, bearer shares are permitted for a Bahraini W.L.L