A legal entity separate that provides the shareholders with full liability protection also limits their liability to the amount of company capital invested. In the Kingdom of Bahrain there are two types of Shareholding Companies – closed and public.
Public Shareholding Company includes more than 7 promoters who subscribe therein by way of negotiable shares. Only Bahrain citizens, GCC and non-GCC citizens can subscribe to those shares.
A closed shareholding company also known as a closed joint stock company consists of minimum 2 shareholders who subscribe to it by way of negotiable shares that are not offered to the public for subscription. It can only be subscribed by Bahrainis, GCC and non-GCC.