Bahrain Closed Shareholding Company (B.S.C. Closed)
A prestigious corporate structure often used for family businesses, joint ventures, and holding companies in Bahrain, offering limited liability without public trading.
Limited Liability
Shareholders' liability is strictly limited to their share capital, protecting personal assets from business risks.
Foreign Direct Investment
100% Foreign Direct Investment (FDI) is permitted for most commercial activities under the MOIC regulations.
Funding & Growth
Preferred by private equity, large joint ventures, and established family businesses due to its clear governance framework.
Structure Overview
The Closed Shareholding Company (B.S.C. Closed) is a separate legal entity registered with the Ministry of Industry and Commerce (MOIC). It is highly credible and suitable for both small and large operations.
Ideal For:
- Tech Startups & IT Firms
- Manufacturing & Trading
- E-commerce Businesses
- Foreign Subsidiaries
Key Features:
- Directors: Minimum 3 members on the Board of Directors
- Shareholders: Minimum 2 shareholders
- Capital: Minimum issued share capital of BHD 250,000
Setup Requirements
- Shareholders & Directors: Individuals or corporate bodies. Board must consist of at least 3 directors.
- Documents: Passports, CPRs, and Proof of Address.
- Name Approval: Unique name approval via the Sijilat portal.
- Registered Office: A physical address in Bahrain with NOC.
B.S.C. Closed Incorporation Process
Typical timeline: 10 - 15 Days
PRO & GRO Services
Set up Advanced eKey for online MOIC portal access.
Name Approval
Reserve company name and obtain initial MOIC approval.
Drafting Documents
Prepare MOA and AOA.
Incorporation Filing
File incorporation documents with MOIC and hold the constituent assembly.
Certificate (COI)
Issuance of the Commercial Registration (CR) from MOIC.
Bank Account
Open a corporate bank account with an Bahraini bank.
Capital Infusion
Deposit share capital in a local bank and obtain final CR.
Registrations
Register for VAT, LMRA, and Baladiya (Municipality).
B.S.C. Closed vs. Limited Liability Company (W.L.L.)
| Feature | Closed Shareholding Company | Limited Liability Company (W.L.L.) |
|---|---|---|
| Legal Entity | Separate Legal Entity | Separate Legal Entity |
| Liability | Limited to Share Capital | Limited to Capital Contribution |
| Funding | High (Preferred for large Private Equity) | Standard (Preferred structure for SMEs) |
| Audit | Mandatory statutory audit | Mandatory statutory audit |
Frequently Asked Questions
What is the minimum capital required for a B.S.C. Closed?
The standard minimum issued share capital for a Bahrain Closed Shareholding Company is BHD 250,000.
Is a local Bahraini partner mandatory?
No. In most commercial sectors, a B.S.C. Closed can be 100% foreign-owned. However, it must maintain a registered commercial address in Bahrain.
Can foreign nationals serve on the Board?
Yes, foreign nationals can serve on the Board of Directors. The board must consist of at least 3 members.
Can a B.S.C. Closed offer shares to the public?
No. As the name suggests, the company is "closed," meaning its shares cannot be traded publicly on the Bahrain Bourse or offered via an IPO.