WLL or single person company in Bahrain
I am a solo founder. Should I set up a WLL or a single person company in Bahrain?
The situation
A single person company has one owner with limited liability. A WLL needs two or more partners. Both are formed under the Commercial Companies Law through Sijilat.
The law
- Commercial Companies Law, Decree-Law No. 21 of 2001: Sets company forms (WLL, SPC, BSC), management, accounts, dissolution and liquidation
What it means for you
If you are the only owner, a single person company gives limited liability without a nominee partner. If you expect co-founders or investors soon, a WLL avoids a later conversion. Banks and clients treat both as companies. Audit and filing duties should be checked for your form with MOIC, as its FAQ lists WLLs, BSCs and branches as required filers.
What to do
- Decide whether you will add partners in the next year.
- Choose SPC if solo, WLL if partners are coming.
- Confirm the audit and filing duty for the chosen form.
- Prepare the founding documents for that form.
Avoid adding a nominee partner just to form a WLL.
We can do this for youSet up a Bahrain WLL or single person company through Sijilat (MOIC): BHD 900