New Commercial Companies Law

The new Commercial Companies Law added Article 21, which allows the Minister of Industry and Commerce to issue resolutions specifying the minimum capital requirements for some forms of companies. Furthermore, Article 64 of the old Commercial Companies Law, which required that all shareholders in a public joint stock company shall be of Bahraini nationality, has been repealed. Article 65 of the Commercial Companies Law has been amended to allow the incorporation of public joint stock companies with foreign capital and expertise, whilst giving the Minister of Industry and Commerce the power to impose foreign ownership restrictions within certain business sectors or when undertaking certain activities. In addition, the previous restriction on trading in stocks and shares representing foreign capital in a public joint-stock company until a three-year period from incorporation had lapsed, has been removed. The new Law also amended Article 347 of the Commercial Companies Law so that branches of foreign entities no longer require a Bahraini sponsor. With the exception of companies exclusively incorporated by the government, the new Law also amended Article 75(d) so that the minimum number of founders required for a joint-stock company in Bahrain has been reduced to two instead of seven.

• Type:

  • Entry and establishment (Ownership and control)

• Sources:

  • Ministry of Industry, Commerce and Tourism, LAW NO. (50) OF 2014 AMENDING CERTAIN PROVISIONS OF THE COMMERCIAL COMPANIES’ LAW PROMULGATED BY LEGISLATIVE DECREE NO. (21) OF 2001, https://www.moic.gov.bh/en/RegulationsAndAgreements/Regulations/Regulations/LAW%20NO.%20(50)%20OF%202014%20AMENDING%20CERTAIN%20PROVISIONS%20OF%20THE%20COMMERCIAL%20COMPANIES%E2%80%99%20LAW.pdf, 11 Sep 2014
  • Oxford Business Group, New amendments to Bahrain's Commercial Companies Law, https://oxfordbusinessgroup.com/overview/rule-law-overview-recent-amendments-commercial-companies-law, 18 Feb 2016