A Simple Commandite Company is a limited partnership which is established between two or more partners, who are jointly liable to the extent of their personal wealth for the company’s obligations and other partners who have invested in the company but are not involved in the management. A Simple Commandite partnership is formed by two categories of partners:
1. Silent Partners
They have no involvement in the management of the company and have limited liability to the extent of their investment (partnership limited by shares).
2. Managing Partners
They are jointly liable to the extent of their entire personal wealth for the company's debts and obligations (unlimited partners).
A sleeping partner, also called as a non-managing partner, does not have to be named or identified in the public records and should not appear in the company name as well, as this would void the limited partnership status.
Features of a Simple Commandite Company in Bahrain
- No minimum capital requirement (however, the business activity may dictate a minimum share capital)
- Capital share of Bahraini partner must not be less than 51%
- No local sponsor required but a local office is mandatory
- 0% corporate and personal tax
- Minimum number of directors required is 2
- A minimum number of partners required is 2. It can be one limited partner and one unlimited partner
- Banking, insurance, and investment activities are not allowed
How to Set Up a Simple Commandite Company in Bahrain?
In order to set up a Simple Commandite Company in Bahrain, a company name must be reserved with the Bahrain Company Register. It is advised to first search for the availability of suggested company name in the official website of the Ministry of Industry, Commerce and Tourism (MOIC) and then go forward with it. The next steps after registering the company name are as follows:
- Fill the application form for company registration in Bahrain by mentioning all the personal as well as professional details of the shareholders, partners, and directors of the company
- Submit the same to the Ministry. It takes minimum 2 days for the authorities to evaluate the details
- File for Commercial Registration in Bahrain if the application is accepted by the Ministry
- Once the evaluation is done you can submit all the documents with an attached copy of the business plan
- Draft a Memorandum and Articles of Association. Once the document is prepared and accepted by the Ministry it must be signed by the notary and a copy must be submitted online
- It takes 5-10 business days to get an approval and register the company with the MOIC
Documents Required to Set Up a Simple Commandite Company in Bahrain
1. General Documents
- Application form of company registration
- A draft copy of MOA
- External entities pre-approval depending on the type of business activity
- Financial auditor’s report or evolution letter for in-kind capital
2. Specific Documents Concerning Company Partners
- A copy of commercial registration certificate
- A draft copy of MOA and AOA and its amendments specifically for foreign companies
- BOD or general assembly resolution to be a shareholder in the company
3. Specific Documents Concerning Individual Partners
- CPR copy for Bahraini partners and expatriates, passport and visa page copies for non-Bahrainis
- Original, stamped and signed no- objection letter from the current employer for Bahrainis employed in the private sector (signed by the owner of the Establishment or from the company’s authorized signatory)
- An original bank reference and CV for non- GCC nationals
- Original educational qualifications and experience letter depending on the business activity
4. Specific Documents Concerning Directors of the Company
- CPR or passport copies for non-Bahraini directors
It should be noted that the Ministry of Industry and Commerce has the right to request additional documents if necessary at any time during the procedure.
Why set Up a Simple Commandite Company in Bahrain?
Bahrain is an ideal location for investors who are looking to widen their horizon in the business world as registering a business in Bahrain has its own benefits. It includes supplementary exemption from commercial taxes, import and export duties, land tax, building and property license fees, and limits on the transfer of capital invested there. The government of Bahrain also has brought an ease to setting up a business in Bahrain with its pro-business initiatives. The liberalized economy adds value to the hassle-free company formation process in Bahrain.
To register a company in Bahrain it is advised to take help of a registered agent or advisor for the obvious benefit of personal financial protection. We at Business Setup Worldwide have experienced advisors who will help you in guiding through the process of registering a Simple Commandite Company in Bahrain. We will coordinate filing the applications, getting the name approved and all the steps required. We can also assist in opening the bank account for the company. Contact us for more information related to company formation in Bahrain.