Partnership Company in Bahrain

A general partnership company is formed between two or more people under a specific name, and the partners assume joint responsibility, to the extent of all of their funds, for the partnership’s obligations. There must be at least two partners, at least two directors and the company must set up a local office. Depending on the category, 100% foreign ownership is permitted and a local sponsor is not required.

A simple limited partnership company (Simple Commandite) is established between two categories of partners, joint and limited partners. Joint partners are jointly and severally responsible, to the extent of all their funds, for the company’s obligations. Limited partners invest capital in the company but do not undertake management and are not held responsible for the company’s obligations save to the extent of his share in the capital. Joint partners must be Bahraini nationals and their share of the capital must be at least 51%.

A limited partnership by shares (Commandite by Shares) is established between two categories of partners, joint and limited partners. Joint partners are jointly responsible, to the extent of all their funds, for the company’s obligations. Limited partners, the shareholders, are not liable for the company’s obligations except to the extent of their shares in the capital. There must be at least four partners and at least two directors. All joint partners must be Bahraini nationals and the percentage of their capital must not be less than 51%. The minimum capital is BHD 20,000. The company must have a local office but a local sponsor is not required and 100 % foreign ownership is possible.