Bahrain is yet to introduce a new legislation regulating companies. The draft law, in the hands of the Cabinet, embraces impressing changes designed to achieve a liberalized business environment through deregulation and transparency.
The formation of business according to this new draft will have decreased authority approvals by abolishing requirement of an Emiri Decree and authorizing the Minister of Commerce to grant licenses. In addition, the new law provides for registering two new forms of companies, which are the Sole Proprietorship company and the Holding company. With respect to Exempt companies, changes have occurred to allow Memorandum and Articles of Association to be written in English, and minimum share capital requirement is set. More importantly the new law will give less power to the Ministry of Commerce, whereby the guiding authority for any company will be its Articles of Association.
These new changes in the Companies Law will pour into the efforts of Bahrain to maintain a healthy environment for investment and business growth.