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  • AU-4.2 AU-4.2 Authorisation of a Branch or Subsidiary

    • AU-4.2.1

      Licensees may open branches or subsidiaries in the Kingdom of Bahrain or in foreign jurisdictions after obtaining the CBB's prior written approval.

      January 2013

    • Authorisation of a Branch

      • AU-4.2.2

        Unless otherwise directed by the CBB, the following documents must be provided to the CBB in support of an application to open a branch:

        (a) A business plan explaining:
        (i) The reasons for applying for a branch, including the applicant's strategy and market objectives; and
        (ii) A minimum of three-year financial projection, with all assumptions clearly outlined, demonstrating that the branch will be able to meet all liabilities and obligations;
        (b) The location of the proposed branch, including the full address; and
        (c) Confirmation from the external auditor that the licensee's capital adequacy is sufficient to support the operation of the branch, in addition to other existing branches (if applicable), at the time of filing the request.
        January 2013

    • Starting Operations of a Branch

      • AU-4.2.3

        Licensees must submit to the CBB confirmation that the authorised branch has commenced operations within 6 months of the authorisation letter.

        January 2013

    • Authorisation of a Subsidiary

      • AU-4.2.4

        Licensees wishing to establish a new subsidiary undertaking must submit to the CBB the following information as part of their request:

        (a) Proposed name of subsidiary;
        (b) Country of incorporation;
        (c) Legal structure;
        (d) Proposed issued capital;
        (e) Proposed shareholding structure;
        (f) Purpose of establishing the subsidiary;
        (g) Draft incorporation documents of the subsidiary;
        (h) Board resolution approving the establishment of the subsidiary; and
        (i) Any other information or documentation requested by the CBB.
        January 2013

      • AU-4.2.5

        Licensees wishing to acquire a new subsidiary undertaking must submit to the CBB the following information as part of their request:

        (a) Annual report, including audited financial statements of the subsidiary being acquired;
        (b) Purpose of acquiring the subsidiary;
        (c) Memorandum and Articles of Association of the subsidiary;
        (d) Board resolution approving the acquisition of the subsidiary; and
        (e) Any other information or documentation requested by the CBB.
        January 2013

      • AU-4.2.6

        Licensees should ensure adherence with Rules contained in:

        (a) Chapter CA-1 and in particular with the gearing ratio requirements contained in Paragraph CA-1.1.4;
        (b) The minimum liquidity requirements outlined in Chapter LM-1; and
        (c) The reporting requirements for close links contained in Paragraph GR-6.1.3

        when considering the impact of a subsidiary on these requirements.

        January 2013