This has meant that all jurisdictions within the GCC have registration and regulation procedures to control foreign interests. As a general rule, the policy regarding foreign capital investments strongly favours local participation. A fully comprehensive guide to establishing a business in each of the GCC states would run to millions of words, but Gulf Business has collected some of the more important points of law which any Gulf-based entrepreneur is going to have to know before taking the plunge. Bahrain is unique in the GCC in that it allows six forms of company where 100 per cent foreign ownership is maintained. These include a minimum capital requirement of, at present, BD20,000.
Stock companies dealing in financial activities require a licence from the Bahrain monetary agency.
The general conditions for such a company are similar to those of the Resident Exempt companies but the minimum share capital is BD2,000. In addition, general board meetings may be convened out of the state of Bahrain. A shareholding company whose shares are not offered for public subscription may be established without an Amiri decree. The minimum share capital is BD200,000. One hundred per cent foreign ownership is restricted to industrial companies or service companies where Bahrain is used as the centre for regional distribution for the goods or services.