Single Person Company (S.P.C) in Bahrain


These days I am getting a lot of queries from investors for setting up a Single Person Company in Bahrain. Many of them are not informed that they can open S.P.C only in limited sectors not in every sector as noticed by them in advertisements.

A vast majority of those investors are from the Kingdom of Saudi Arabia who wants to move to Bahrain because of its business-friendly atmosphere, openness, and multicultural society plus setting up a business in Bahrain give them easy access to the Kingdom of Saudi Arabia which is the biggest market in the GCC.

If you are looking to invest in Bahrain and start a Single Person Company then it is one of the best time to open. The cost of operating a business in Bahrain is still very low compared to other countries.

For those who are not aware of the features of the S.P.C the main features of S.P.C are as follows:

  1. There is only one owner
  2. No partner is required
  3. The name of the company is followed by the name of the owner
  4. The capital requirement could be as low as BD 1,000 depending on the nature of the activity
  5. The owner of the company shall have limited liability which will be the company’s capital (Article 292 of the Commercial Companies Law)
  6. The article of the Association is the main document of the Single Person Company (Article 290 of the Commercial Companies Law of Bahrain)
  7. The company owner may appoint a manager to manage the S.P.C

The only drawback which I feel S.P.C has is the dissolution of the company in case of the owner’s death in case the shares are not confined to one person.

It is also to be noted that the liability of the owner is not limited if the S.P.C is liquidated with a malafide intention to defraud the creditors.

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