In order to conduct business activities in Bahrain, entities have to a legal presence in the region under the provisions of Decree Law No. (21) Of 2001 Promulgating The Commercial Companies Law (“CCL”). All commercial companies are governed by the provisions of the CCL together with the executive regulations thereof and the ministerial orders implementing such law issued by the Minister of Commerce. In addition, Companies may also be subject to other laws and regulations depending on the nature of their activity. The CCL provides for a wide business structures that can be established under its provisions. Non-Bahrainis who wish to establish a company in Bahrain may do so through the formation of a Bahraini limited-liability company. Articles 265 to 271 of the CCL govern company with limited liability. Further, the partners may not resort to public subscription for raising share or loan capital.

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