How to Set Up a Single Person Company in Bahrain?

How to Set Up a Single Person Company in Bahrain?

Thanks to a business-friendly environment, new regulatory reforms, and so forth, Bahrain has become the new go-to destination for global companies, foreign investors, and entrepreneurs. The kingdom of Bahrain aims to help start-ups and small-medium enterprises or SMEs by establishing a direct connection with investors and government agencies. The time to set up your own Bahrain business is now.

The popularity of the single-person company in Bahrain has increased by leaps and bounds due to its many advantages. These companies offer complete liability protection to the investors and help them realize their business dreams.

Are you wondering about company registration in BahrainDo you wish to learn about how you can set up a single person company in Bahrain effortlessly? We have got you covered! Read on to know more.

What is A Single Person Company? 

A single person company is more than just a sole proprietorship and serves as an actual company. Therefore, it is the perfect choice for foreign entrepreneurs who wish to own and control their own companies in Bahrain.

A legal body independent of its owner, a Bahrain SPC confers upon its owner complete liability protection. Furthermore, it also curtails the owner's liability to the money poured into the functioning of the company. Other significant benefits include full foreign ownership, one shareholder who can serve as the director, and so on.

A Bahrain SPC is unarguably one of Bahrain's most desirable business opportunities as foreign investors can enjoy 100% of shares in the companyThe Commercial Companies Law of 2001 takes care of all business functions concerning an SPC, such as its formation, registration, business activities, termination, and so forth.

Name of the Company 

Entrepreneurs interested in business setup in Bahrain must ensure that the name of the SPC does not bear any resemblance to any other legal entity in the kingdom of Bahrain. The name must end with "Single Person Company" or "SPC".

Qualifications Required for Setting up an SPC 

SPCs can indulge in local businesses as well as international activities. However, there may be certain limitations in banking, insurance, financing activities, etc.

Are you wondering about how to start a business in Bahrain? You will have to keep the following things in mind.

  • The applicant for an SPC must be at least 18 years of age. Some business activities require the applicants to be 21 years of age or older.
  • The applicant must be of sound mind.
  • They should be willing to commit their full time to the business of choice.
  • They should not possess any past criminal record.

Single Person Company Registration in Bahrain 

A single person company registration in Bahrain mandates the submission of the following documents:

  • A copy of the passport for non-Bahraini investors or entrepreneurs
  • If the director and founder are two separate entities, the former will have to offer a Bahraini ID (if a citizen) or a passport (if not a citizen).
  • The original notarized power of attorney by the business applicant's representative
  • Proposed registered address of the local office branches (In case a signed office lease agreement exists, the applicant will have to submit the same)
  • A copy of a draft MoA (Memorandum of Association) and a draft AoA (Articles of Association) concerning the SPC
  • Original Declaration of the SPC
  • A copy of the resolution from the Board of Directors, which sanctions the formation of the SPC (The founder can carry it out as the sole member of the Board of Directors.)
  • A copy of the resolution by the Board of Directors, which appoints a director and authorized signatory for the SPC

Limited Liability 

The owner of an SPC enjoys liability up to their monetary contribution towards the company.


There should be at least one shareholder (the founder). This person can belong to any country or be a resident of any place across the globe. Please keep in mind that an SPC can only issue registered shares and not public shares due to the single-person nature of the company. Additionally, an SPC cannot issue debentures or any negotiable warrant.


The kingdom of Bahrain mandates the existence of at least one director. The person can reside anywhere in the world or be a citizen of any country.

Registered Agent and Office 

If you are hoping to go forward with a single-person business set up in Bahrain, you must appoint a local registered agent whose office can be registered as the official address of your SPC.


You will be satisfied to know that the kingdom of Bahrain does away with any taxes concerning an SPC. It covers income tax, corporation tax, capital gains tax, gift tax, inheritance tax, wealth tax, and withholding tax.


The SPC shall file an audited financial statement concerning its business activities every year.

Public Records 

The founder's name as the sole shareholder should be included in the public records.

Formation Time 

The application process may take up to two weeks to get completed.

Shelf Companies 

The kingdom of Bahrain offers shelf companies to purchase.

The benefits of a single person company are manifold, and the time to set up a Bahrain business is now. Get in touch with us today to learn more!

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