A general partnership company in Bahrain is a company without any limited liabilities. The general partnership association usually has two or more parties operating under to trade together under a specific collective trade/business name for commercial purposes. In general partnership, the partners join together to work under the agreement of assuming joint liability both in profits and losses to the extent of their entire property for the partnership debts.
There is no provision in the Bahraini law regarding the specified minimum and maximum capital funds required for commencing a general partnership company or the minimum & a maximum number of partners permitted for this venture. 100% foreign ownership is allowed but banking and assurance activities are not allowed to carry out. The minimum share capital is not applicable and a number of partners and promoters is required at least two where the local sponsor is not required. Other types of partnerships are limited partnerships and partnership limited by shares.
Requirements for Starting a Partnership Company in Bahrain
- Unlimited liability company structure
- Partnership agreement
- Local office presence is required
- Minimum of two partners are necessary
- Minimum of two directors are necessary
- Banking, insurance, and investment activities are not allowed
- Have no criminal record
- Annual submission of the audited financial statements to MOICT is compulsory
Advantages of Starting your Partnership Company in Bahrain
- No minimum share capital
- 100 percent foreign ownership for most of the business activities
- No requirement for the local sponsor
- Local operations are permitted
- Can hire local Bahraini as well as expatriate staff
- No restriction on capital and profit repatriation
- Strategic location in the Middle East with Low operating costs
- Excellent connectivity to Saudi Arabia and other GCC countries
- Access to Bahrain’s double taxation treaties
Documents required for Setting up your Partnership Company
General Documents
- Company Registration Application
- Draft Memorandum & Articles of Association
- External entities pre-approval (depending upon the business activity)
- Financial auditor’s report or evolution letter for any kind of investment capital
Documents Required for Individuals
- CPR copy for Bahraini partners and expatriates
- Passport and visa pages copy for non-Bahraini citizens
- Original, stamped & signed no objection letter from the current employer for Bahraini 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 (according to the type of business activity)
Who We Are
We at Commitbiz have expert professionals that provide vision to world-class management and business setup services in Bahrain by assisting them in their business incorporation. Our business experts are well-versed with the Bahrain legal laws and will help you in the company formation process. If you want to know more about the business opportunities in the Kingdom of Bahrain, feel free to Contact Us.