Law & Regulation
Commercial Companies Law
Bahrain's general company law, in force since 1 January 2002, governing the formation, management and regulation of companies including limited liability, joint stock, holding and single-person companies, plus foreign-capital companies. Materially amended by Decree-Law No. 38/2025 (effective 12 September 2025), which strengthened corporate governance and regulatory structure.
Legal Significance
What This Instrument Does
Establishes the full company-formation and corporate-governance framework for Bahrain, including the dedicated chapter on Foreign Capital Companies that underpins foreign investors' ability to incorporate and hold equity in Bahrain.
Why It Matters
The foundational instrument for any commercial entity, joint venture or project company operating in Bahrain, including every infrastructure project SPV in this dataset.
Legal Framework Position
- Companies & CorporatePrimary / Framework Instrument
- Foreign InvestmentSupporting / Related Instrument
Instrument Overview
- Official Citation
- Legislative Decree No. (21) of 2001, as amended (including Decree-Law No. (38) of 2025)
- Instrument Type
- Decree
- Enactment Date
- 20 June 2001
- Effective Date
- 1 January 2002
- Last Verified
- 30 September 2026
Official Source
View official source ↗Recent Developments
- Regulatory · 12 September 2025Commercial Companies Law amended
Decree-Law No. 38/2025 amending Bahrain's Commercial Companies Law took effect on 12 September 2025, strengthening corporate governance and the regulatory structure for companies.