which form you choose for ypur business project in Bahrain
Abstract
Business enterprises vary from simple structure as sole-man operation to complicated huge organizations. The simplest type of enterprises can be formed in what so called sole owner company which consists of one person, who provides capital and assumes risks of the project. However, it is obvious that most projects, in the present time, need a huge capital, good management, experiments and skillful labor power which cannot be provided only through companies as they are the most appropriate instrument to gather all these utilities.
Although companies, in theory, are economical organizations enjoy legal personality, they are different types. Each differs from others in certain features, so, promoters and investors, while incorporating their projects should be aware of the structure of different types of companies.
Companies in Bahrain, but the Sole owner company, are constituted by contracts. They, save joint venture, enjoy legal personality. The relative importance of these two aspects varies from a company to another.
The aim of this paper is to explore the various forms of business projects that can be chosen for business enterprises in Kingdom of Bahrain, their characteristics, advantages and disadvantages of each form in order to facilitate the idea enabling promotors and investors to choose the most appropriate form for their own projects.
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- Companies benefit society by:
• Supplying goods and services that customer cannot, or do not want to, produce themselves;
• Creating jobs for customers, suppliers, distributors and coworkers.
These people make money to support themselves and their families, pay taxes and use their wages to buy goods and services;
• Continually developing new goods, services and processes;
• Investing in new technologies and in the skills of employees;
• Building up and spreading international standards, e.g. for environmental practices;
• Spreading “good practice” in different areas, such as the environment and workplace safety.
The role of business in society.
http://www.svensktnaringsliv.se/multimedia/archive/00000/The_role_of_business_i_376a.pdflast retrieved 18/12/2012.
-Mosleh A. At'tarawneh, Principles of Commercial Law, Dar Qatar Bin Alfouja'a, Doha –Qatar, 2007,P.375. Kameran Al-Salihi, Bahrain Commercial Companies & Bankruptcy –Composition Law, University of Bahrain Press, 2005. P.19 et seq. Prof. Salem Gumed Bahraini Commercial Companies Law, Provisions and Explanations, Bahrain University Press, 2014. P.7.
- Prof. op.cit, , 2014, p.8.
- The accumulation of capital is the gathering or amassing of objects of value; the increase in wealth through concentration; or the creation of wealth. Capital is money or a financial asset invested for the purpose of making more money (whether in the form of profit, rent, interest, royalties, capital gain or some other kind of return). This activity forms the basis of the economic system of capitalism, where economic activity is structured around the accumulation of capital (investment in order to realize a financial profit).
Human capital may also be seen as a form of capital: investment in one's personal abilities, such as through education, to improve their function and therefore capital accumulation (wealth) in a market economy. http://en.wikipedia.org/wiki/Capital_accumulation. Last retrieved 18/12/2012.
-The English word has its origins in the Old French military term compaignie (first recorded in 1150), meaning a "body of soldiers" originally taken from the Late Latin word companio "companion, one who eats bread with you", first attested in the (Lex Salica) as a claque of the Germanic expression gahlaibo (literally, "with bread"), related to Old High German galeipo "companion" and Gothic gahlaiba "messmate". By 1303, the word referred to trade guilds. Usage of company to mean "business association" was first recorded in 1553 and the abbreviation "co." dates from 1769. (The equivalent French abbreviation is "cie".) http://en.wikipedia.org/wiki/Company.
-In the United States, a company may be a "corporation, partnership, association, joint-stock company, trust, fund, or organized group of persons, whether incorporated or not, and (in an official capacity) any receiver, trustee in bankruptcy, or similar official, or liquidating agent, for any of the foregoing."[1] In the US, a company is not necessarily a corporation Geoffrey Morse. Charlesworth's Company Law. 23th Edition, Stevens & Sons, London 1978.
In English law and in the Commonwealth realms a company is a body corporate or corporation company registered under the Companies Acts or similar legislation. It does not include a partnership or any other unincorporated group of persons, although such an entity may be loosely described as a company. Andreas Cahn & David c Donald Comparative Company Law: Text and Cases on the Laws Governing Corporations in Germany , UK and USA. Cambridge University Press, Cambridge, UK & New York, 2010. P. xxii
- This law was passed in 20/6/2001 and published in 2428 Bahraini Official Gazette
- BOG, Supplementary Issue No 2476,09/05/2001.
- Article (1/1) of the Bahraini Commercial Company Law No 21/2001. See also Bahraini Civil Law, Article (452).
- Len Sealy & Sarah Worthington, Cases and Materials in Company Law, Oxford University Press, New York, 2008, p. 31.
- Luis M Camarinha-Matos, Hamideh Afsarmanesh, Virtual Organizations: Systems and Practices, Springer Since, Boston USA, 2005 p.169
- Some writers refer to this partnership as: partnership under collective name. See Kamiran Al Salihi, op cit. p.45. Some legislations use, the same name such as Mexico. For example: see Mexico. Secretaría de Hacienday Crédito Público, McCorquodale & Co., Limited, 1912, p.310. Detailed Assessment Report on Anti-Money Laundering and Combating the financing of terrorism, International Monetary Fund, IMF Report No 09/7, 2009, p.37. Thomas McCord, The Civil Code of Lower Canada, Published by Dawson Brothers, Montreal Canada, 1870, p. 296. Max Weber, Lutz Kaelber, The History of Commercial Partnerships in the Middle Ages, published by Rowman & Littlefield, USA 2003, p.176.
-This partnership, sometimes is known as simple commandite partnership. See Kameran Al-Salihi, op cit, p. 53. Van Beal & Billis, Business Law Guide in Belgium, Kluwer International, Netherlands, 2003, p.78.
-This sort of commercial enterprises is being called in many previous writings as Association in Participation. See Kameran Al-Salihi, op cit, p.60.
- This company is known as Commandite company by shares. Ibid. p.
This company newly enacted according to the decree LAW No (22)/2016, BOG 32282, in 13/10/2016.
يوضع رقم الجريدة الرسمية
-Mosleh A. At'tarwaneh, Principles of Commercial Law. Published by: Dar Qatari Bin Alfouja'a, Qatar, 2007, p.390.
- Hugh J. Ault, Brian J. Arnold & Guy Gest, Comparative Income Taxation: A Structural Analysis, published by kluwer International, The Netherlands, 2010, p.338 et seq.
-Mohammed M Helalya, Principles of Commercial Companies (text in Arabic), Dar Alnahdh Al Arabiea, Cairo, (dateless), p.8.
This is the trend which was adopted by the Egyptian Commercial Companies Law No17/1999. See 19 Egyptian Official Gazette, (duplicated), 17th of May 1999. Mohammed Helalya, op.cit, p.8. Kameran Al-Salihi, Commercial Law of Bahrain, University of Bahrain, 2006, p. 72.
-Mohammed Helalya, op.cit, p. 10. Masoud Madi & Fadhel Al-Zahwi, The Commercial Companies In Libyan Law, ( text in Arabic) University of Al Jabal Al GHarbi, Libya, 1997. P13
-Masoud Madi & Fadhel Al-Zahwi, op.cit, p. 19. - Mohammed Helalya, op.cit, p. 10.
-Christopher Joseph Mesnooh, Law & Business in France: A Guide to French Commercial and Corporate Law, Kluwer, Martinus Nijhoff Publishers, Netherlands, 1994. p.16.
-Kameran al-Salhi, op.cit, p. 21 et seq.
-Mohammed Helalya, op.cit, p.10.
-The Bahraini Companies' Law was copied from the Egyptian Law, therefore any company formed in one of the forms of commercial companies is considered commercial regardless to its objects. See inn classifications of companies in Egyptian Law: Mohammed Helalya, op.cit, p. 8. Fayez Naeem Radhwan, The Commercial Companies, (text in Arabic) Dar Al-Nahdha Al Arabia, Cairo,2000, p.3..
- Kameran Al-salihi, op.cit, p. 72.
-This classification resembles the classification of companies to private and public companies in the Anglo-Saxon legal system, where there are three main classifications of registered companies. The first classifies registered companies as being limited by shares, limited by guarantee or unlimited. The second classifies them as being either public or private companies, (Any limited company with a share capital may be either a public or a private company) The third classifies private companies into small, medium –sizes and large companies, a classification relevant to the public disclosure. See:
- Mohammed Helalya, op.cit, p. 13.
- Max Weeber, The history of Partnerships in the Middle ages, Translated by Lutz Kaelber. Published by Rowman & Littlefield Publishers INC, Oxford UK, 2003, p. 127.
- Hussain Al Mahi, The Commercial Companies, Text [in Arabic], Dar Al Nahdhah Al Arabea, Cairo, 2000, p.32.
-Mahmoud AlKelany, Banking and Commercial Encyclopedia, 5th Vol, Commercial Companies, Dar AlthaqafaH, Jordan, 2009, p. 20.
-Fatooh Abd Rahman Dooma, Libyan Commercial Law, [text in Arabic] National Bookshop, Benghazi, 1973, p. 208..
-Mosleh A.At'arawneh, op.cit, p. 390. Al Kelany, op.cit, p. 207.
-Mahmoud Alkelany, op.cit, 209 et seq. Mohammed Helalya, op.cit, p.91 et seq.
-This partnership is called in Bahrain "Sharikt al Mahasa".
-They are known by their Arab names which are respectively: Sharikat Tadhamun and Sharikat Tawsiyah Baseeth.
-Their Arab names respectively are: Sharikat al Mosahamh. Sharikt Tawsiyah Bel ashum, and Sharikat that Massoliyah Mahdoda.
-For example Kamiran Al Salhi in his book: Commercial Company Law in Bahrain.
-Mohammed Helalya, op.cit, p. 22 et seq. Kameran Al Salihi, op.cit, p. 23 et seq.
-The Affectio Societatis This is the French legal concept that means that two people or more share the same idea, and personally commit themselves to achieving the purpose of the association. The combining of contributions and the sharing of profits are not always enough to distinguish a contract of partnership from other juridical acts, such as association and in division. The courts and legal authors have therefore added an indispensable subjective criterion: the intention to be involved in a partnership or affectio societatis, which is enshrined in the new Civil Code by the expression [spirit of cooperation].
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