Bahrain Permits Foreign Firm to own 100% of Gas and Projects

by commitbizadmin 03, Jun 2020

Bahrain Permits Foreign Firm to own 100% of Gas and Projects

Bahrain is a part of the Gulf Cooperation Council. It is amongst the top fifty countries in terms of human development in an index. Bahrain enjoys remarkably favourable economic conditions. Bahrain has already made every extraordinary effort in reviving the economy to it where it is today. If you want to start your business in Bahrain, it can reap profit for your business.

Bahrain has adopted a new policy in which it is very welcoming and nurtures foreign investment by allowing a hundred percent foreign ownership.It offers excellent scope for skilled labour, economic development, relatively competitive costs, thriving industries, and doing business here is easy.To be entitled, the foreign parent company must have signed or been in the final stages of natural gas extraction agreement with Bahrain's government.

Bahrain’s Work-frame

Bahrain is to set to permit the foreign companies to own hundred per cent of natural gas extraction oil and projects following an order issued by Prime Minister Sheikh Khalifa bin Salman al Khalifa.

Bahrain News Agency reported that to be competent, the foreign parent company must have signed or been in the final stages of signing, a production and exploration agreement with the government.

The move comes days after a report given by Bahrain which expects to be short of some of the goals, as it is set as part of a fiscal adjustment programme bound to a ten-billion-dollar economic aid package from some of its Gulf Cooperation Council allies.

According to a final draft of its state budget in the upcoming two years, non-oil revenues and government expenditure will fall short of the previous forecasts.

The aid package by Saudi Arabia, the UAE and Kuwait were merged to several reforms was designed to remove the Gulf Kingdom's budget deficit.

Previously in May, Bahrain revised its budget, which indicated that it might take a bit longer than expected in order to balance the nation's budget.

In a statement to Reuters, a finance ministry spokesperson mentioned that Bahrain's deficit reduction programme was a bit ahead of schedule, with the budget having been reduced to 6.2 percent of GDP compared with a 9.8 per cent.

According to the International Monetary Fund forecasts, oil revenues of Bahrain will have 5.4 percent of GDP in 2019 and 5.7 per cent in 2020, falling short of the 6.2 and 6.6 per cent outlined in the fiscal adjustment programme.

Additionally, state spending is expected to account for twenty-four per cent of GDP in 2019 and 23.1 per cent in 2020. If compared to the previous targets of 22.6 and 21.6 per cent. The state expenditure would have accounted for 25.5 and 25.2 percent of GDP in 2019 and 2020 without the fiscal reform programme.

These are the five stages of starting your business

Following are the stages of starting your business in Bahrain.

Set Foundations and Decide a Legal Structure

The initial of setting up a business in Bahrain is to have a good picture in mind and then transform it into a full business plan. Devising an appropriate legal structure and taking your business idea into a well-structured business blueprint which gives a systematic design to frame your business around, and gets guidelines to obey by, thus making it sure that your business with a sturdy structure.

Name Your Company

Your company name is a tag that will forever be along with your company. Taking up a company name is a very thoughtful process.

Approvals and Permission

To get the upcoming the next procedure, you will need approvals on your present progress. Under the stage, the regulatory bodies will approve the company name, the Board of Directors, the structure of the business, or the legal structure, shareholders, stakeholders and the owners.

Assemble all the Documents

You are needed to procure all the necessary documents and all the legal work to affirm the declare of your business. The required documents will include the Commercial Registration papers which you shall receive after the initial approvals. You are also needed to submit the following documents to the Ministry of Industry and Commerce, Commercial Registration Directorate.

  • Relevant information on owners and shareholders and their respective nationalities.
  • A power of attorney of Bahraini nationality.
  • Local office address
  • Copies of passport attested along with it.
  • A copy of the latest audited financial report of the company is needed.
  • Memorandum and Articles of Association
  • Suppose if the business entity is a branch or a franchise, a copy of the parent company's Certificate of Incorporation.

Open a Corporate Bank Account

When you incorporate a business in Bahrain or any other location or country for that matter, one of the important parts of having into a place is a Corporate Bank Account. When you open a bank account in Bahrain, you will ensure precise documentation of all transactions of your business. A corporate bank is exceptionally essential when it comes to running a business.

Commitbiz, is a premium global consulting company. We specialize in guiding businesses in incorporating their business. If you want to incorporate business in Bharian, Our experts are well versed and will help you out with every requirement of yours. For more details, Contact Us, We would be happy to help.