Single Person Company (SPC)
شركة الشخص الواحد
Company formation in Bahrain
The SPC is best suited for: Solo founders and individual entrepreneurs, Freelancers and consultants wanting a corporate structure, Foreign individuals setting up a one-person operation in Bahrain, Holding vehicles for a single beneficial owner. SPCs receive the same tax treatment as WLLs: 0% corporate tax on non-oil income, 10% VAT on applicable goods and services, no withholding taxes on outbound payments. The single-person structure has no additional tax implications beyond the standard Bahrain regime.
- Solo founders and individual entrepreneurs
- Freelancers and consultants wanting a corporate structure
- Foreign individuals setting up a one-person operation in Bahrain
- Holding vehicles for a single beneficial owner
Key Facts
Step-by-Step Formation Process
Reserve a company name and prepare documents
Submit your preferred name through SIJILAT and prepare the articles of establishment. An SPC requires a single founder document rather than a full MOA.
Submit the SIJILAT application
Upload passport copies, articles of establishment, proof of address, and activity description. Pay the registration fee.
Obtain the Commercial Registration
The Commercial Registration is issued once the application is approved. Register for VAT if applicable.
Required Documents
- Passport copy of the sole shareholder/director
- Proof of residential address
- Articles of establishment
- SIJILAT application form
- Registered office lease agreement
- Power of Attorney if applying through a representative
Cost Overview
Tax Treatment
SPCs receive the same tax treatment as WLLs: 0% corporate tax on non-oil income, 10% VAT on applicable goods and services, no withholding taxes on outbound payments. The single-person structure has no additional tax implications beyond the standard Bahrain regime.
Pros & Cons
- Single shareholder allowed — no need for a second partner
- No minimum capital requirement
- Fastest formation option in Bahrain — as little as 2 days
- 0% corporate tax benefit applies equally to SPCs
- Full limited liability protection for the sole owner
- Limited to a single shareholder — cannot add partners without converting to a WLL
- May carry less credibility with larger corporate clients compared to a WLL
- Some banking institutions prefer WLL structures for corporate accounts
- Cannot be used for certain regulated activities that require a WLL or BSC structure
Other Structures in Bahrain
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.