October 01, 2016
Bahrain has become the first country in the MENA region to integrate limited partnerships laws into its legal system nationwide with the introduction of the Limited Investment Partnership Law.
The new Law will allow partnerships to be regarded as a legal personality in place of companies. Activities encompassed within the Law include: collective investment undertakings, private investment undertakings, securitisation and insurance captives, as well as additional activities that may be later identified and added into the regulation by the Central Bank of Bahrain (CBB).
With partnership laws being a longstanding staple within Common Law jurisdictions such as London, New York and Singapore, the new Law will allow financial firms from such jurisdictions to be able to operate within a legal framework they are familiar with.
Furthermore, the Law will also support financial firms in establishing financial investment funds, and grant them access to new funding mechanisms.
The Law’s implementation came as a result of an initiative led by the Bahrain Economic Development Board (EDB) in collaboration with the CBB, with the goal of enhancing Bahrain’s competitiveness in financial services and making it easier to raise finance for investment activities.
Forming a Limited Investment Partnership (LIP) in Bahrain
You can form a LIP in Bahrain by either establishing a new professional partnership as an LIP, or converting an existing partnership into an LIP. All involved partners can be either individuals or companies.
Establishing an LIP is as immediate as filling in an LIP application form from the CBB.
Contact the EDB on firstname.lastname@example.org to find out more >