Simple Commandite Company in Bahrain

The Kingdom of Bahrain stands as an outstanding zone for company formation. In the last decade, it has been standing as a commercial landscape.

Although the nation is well-known for its rich oil and other natural resources, there exist a competitive zone favourable for the business investors to come forward and play the business game globally.

So, are you planning to invest in the Kingdom of Bahrain?

Well, then this guide highlights the essentials required to incorporate a simple commmandite company in Bahrain, which is one of the most opted business structures by foreign investors.

Setting up a company in Bahrain is simple and straightforward, and if you are looking for a simple and complicated procedure, you can proceed ahead with the establishment of a simple commandite company in the zone.

What is a Simple Commandite Company?

A Simple Commandite Company is a legal entity, a form of limited partnership which is established between two or more partners.

The partners in the contract 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.

Partners in a Simple Commandite Company

When it comes to a simple commandite company, the core element that distinguishes the entity from other legal business structures is the presence of two different types of company partners.

Silent Partners

The silent partners are the ones who don’t participate in the management activities of the entity. The limited liability is limited to the extent of their investment made during the company formation process.

As per the Bahrain Commercial Law, they don’t have any commitment in the prompt organization and are allowed to contribute only 49% of the total capital.

The silent partners are also called the non-managing partner and are not identified in the public records. The presence of their name in the business records would void the limited partnership status.

Managing Partners

The managing partners are jointly liable to the extent of their investment made and are solely responsible for the company’s debts and obligations.

It is to be noted that the active partners should be Bahraini nationals for managing accomplices with boundless obligations.

You can also read more on the Partnership Company in Bahrain.

Features of a Simple Commandite Company

The legal characteristics of a simple commandite company in the Kingdom of Bahrain include:

  • The business activities can be performed in Bahrain
  • The minimum capital requirement stands at BHD 20,000
  • The foreign ownership is limited to 49%
  • The shares of the limited partners are negotiable, while the shares for the unlimited partners are not
  • No requirement of local sponsor from a Bahraini trader
  • 0% corporate and personal tax
  • Banking, insurance and investment activities are not allowed

Requirements of a Simple Commandite Company

Since you are focusing on establishing the business entity, let’s have a look at the core requirements to start a simple commandite company, which includes:

  • The presence of a minimum of two directors (must be a Bahraini national)
  • The presence of a minimum of two partners
  • At least 51% of Bahraini shares
  • There must be one manager
  • The authorized signatories should be Bahraini national
  • Presence of a local office

Documents Required to Setup a Simple Commandite Company

The list of documents that you need to present while setting up a commandite company in Bahrain includes:

General Documents

  • A duly filled application form
  • Identity and address proof of the investors and shareholders
  • Pre-approval of the external entities
  • Certificate of capital deposit
  • The report from financial auditor or letter of evolution for in-kind capital

Specific Documents Concerning Company Partners

  • A copy of the commercial registration certificate
  • A copy of the Memorandum and articles of association and the company amendments
  • General assembly resolution to be a shareholder in the company

Specific Documents Concerning Individual Partners

  • CPR copy for the Bahraini partners and expatriates
  • Passport and visa page copy for the non-Bahrainis
  • Original signed and 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)
  • A copy of the Memorandum and articles of association and the company amendments
  • General assembly resolution to be a shareholder in the company
  • Original educational qualifications and experience letter depending on the business activity

Specific Documents Concerning Directors Partners

  • CPR or Passport copies for the non-Bahraini directors

While submitting the required documents, it is to be kept in mind that the Ministry of Industry and Commerce (MOIC) has the right to request additional documents, and the requirement is to be met accordingly.

How to Set Up a Simple Commandite Company in Bahrain?

The steps to incorporate a simple commandite company in Bahrain are outlined below:

Clear Idea Regarding the Business

The first and foremost task is to get a clear understanding of the business activity that you are planning to start. This will help you to do market research on the same industry and fetch out better insights.

Here’s a guide on the Business Opportunities in Bahrain that you can have a look at!

Fill in the Form & Submit the Docs

In the next move, fill in the respective details of the company shareholders and investors. It is essential to attach the relevant business documents at the time of submitting the same.

Evaluation of the Docs

After the submission, the documents get evaluated by the government authorities. It takes a minimum of 2 days for the authorities to evaluate the details.

Gather the Approvals

If the documents stand perfect, the approvals are obtained. In case, if it is not, you need to cross-check and get the documents rectified, or submit the necessary docs (if asked).

In general, it takes 5-10 business days to get approval and register with the MOIC.

Thus, we can see that the process of incorporating a simple commandite company is a simple one if performed accordingly. However, it becomes hassle-free if one is well-versed with the legal proceedings.

Since it’s not possible for foreign ex-pats to hold a correct idea about every legal move, they prefer to join hands with professional experts to carry out the task at ease.

To ease the process for the business minds, we at Business Setup Worldwide take a step to simplify the process. Our well-experienced team are well-versed with the legal proceedings and can assist you accordingly.

To know more about the same, feel free to have a word with us today. Contact us now-we’d be glad to assist!


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Bahrain Bourse is the only licensed stock exchange in the Kingdom of Bahrain. Any company that wants to offer its shares to the public, must register itself with BHB.