Frequently Asked Questions

If all the required documents are received, the entire process takes three to four weeks, and you will receive the investor visa after obtaining the active commercial registration (commercial registry).

In Bahrain, minimum capital requirements vary depending on the type of company. Below are the details:

Companies that do not require a minimum capital:

• Sole Proprietorship: No minimum capital required.
• Limited Liability Company (LLC): No minimum capital required.
• Partnership Company: No minimum capital required.
• Simple Recommendation Company: No minimum capital required.
• Branch of a Foreign Company: No minimum capital required.

Companies that require a minimum capital:

• Bahraini Joint Stock Company (B.S.C.): 1 million Bahraini dinars.
• Bahraini Closed Joint Stock Company (B.S.C. Closed): 250 thousand Bahraini dinars.

You must deposit the company's capital in a local bank once you obtain approvals from all ministries. The funds can be used after obtaining the investor visa.

You must sign the rental agreement after obtaining a security clearance and approving the trade name.

We can assist in finding a suitable office for you.

Note: Rent starts from 80 Bahraini dinars per month, depending on office size.

The renewal fee for your company's registration is only 150 Bahraini dinars.

Exchange rate: 1 Bahraini dinar = 2.65 USD.

Yes, you can edit any information you want; you can change the company name, add new partners, remove partners, add or delete business activities, open new branches, increase capital, and other modifications.

Yes, Americans are treated like Bahrainis and you can 100% own any activity such as services, industrial or commercial activities (so no need for a Bahraini partner if you don't want to).

Depending on the business, there are many activities you can engage in with 100% ownership.

Most of these activities are in the industrial sector and the service sector.

If your business activities are commercial activities (import/export), a Bahraini partner is required, and his percentage is estimated according to the partners’ agreement among themselves.

In the contracting sector, the percentage of a Bahraini partner is required to be 51%.

Yes, you can work in the GCC countries and invest in Bahrain no problem at all.

Yes, you can start your business in Bahrain if you do not get an objection letter from your employer.

Yes, you have more activities in one CR, and you can open other branches or other companies.

• Renewing the commercial registration annually.
• Renewing residence permits every two years.
• Paying rent and electricity bills.
• Paying the Labor Market Regulatory Authority bill.
• Preparing the company’s financial report after the completion of each fiscal year.

The Labor Market Regulatory Authority bill is a symbolic amount for each investor or employee working in the company and is estimated at 5 Bahraini dinars per month.

Yes, but the number of residence permits granted depends on the size and type of company activity. However, initially you can get two or three visas.

In the Kingdom of Bahrain, there are a range of activities that are legally prohibited to ensure the safety and protection of society. Prohibited activities include:

• Production of alcoholic beverages.
• Production and import of drugs.
• Weapons manufacturing.
• Cigarette/cigar production.
• Importing all types of waste, processing, storing, and disposing of radioactive materials and toxic waste.
• Importing, manufacturing, and trading asbestos and its products (not including asbestos removal contractors).
• Import and use of prohibited chemicals.
• Gambling.
• Pearl cultivation.
• Cigarette vending machines.
• Postal services (exclusively for Bahrain Post).

There are some activities in the Kingdom of Bahrain that are limited to Bahraini citizens only, and they are as follows:

• Public transportation.
• Distribution of newspapers, magazines, and promotional materials transportation companies.
• Mobile food service activities.
• Publishing activities.
• Connotation in real estate.
• Individual lawyers (legal consulting firms are allowed foreign ownership).
• Labor supply offices.
• Employment offices.
• Other business support services activities such as clearing government transactions.

The electronic key is a system linked to an individual’s personal card, and allows him to access and use various e-government services, including the records system.

You can obtain an electronic key by visiting the e-Government Services Center or the Bahraini Investors Center.

An eGovernment Authority representative will be able to create a personal electronic key for you, and biometric authentication (fingerprint) will be required as part of the process.

When applying for a commercial register, the following information must be provided:

• The applicant’s name, nationality, contact address, national ID, or passport number, as the case may be.
• The entity and legal form of the company.
• Names of partners, managers, and authorized signatories.
• Identity card or passport information for the managing partners and authorized signatories.
• Nationality of the managing partners and authorized signatories.
• Contact information for managing partners and authorized signatories.
• Trade name (if any).
• Type of activity required (can be changed at a later stage).
• Capital and participation percentage of each partner.
• End of the fiscal year. Note: This is not required for a sole proprietorship.

The trade name must be:

• A new, decent, and distinctive name.
• Palatable in Arabic or any appropriate foreign language and related to its commercial activity.
• Respect public and moral values.

The trade name must not be:

• Represent third methods or illegal ideas.
• Produce or imitate a similar or already registered trademark or trade name.
• Attributed to a governmental or international body.
• Contain or indicate religious connotations.

Yes, it is possible to submit a transaction to renew the commercial registration 6 months before the expiration date.

To start a business in Bahrain, an investor must follow specific steps to obtain the necessary commercial registration and licenses. Here are the basic steps:

1. Initial registration:
   • The company is registered with the Ministry of Industry, Trade, and Tourism.
   • Obtaining the initial commercial registration certificate (without a license).
2. Obtaining approvals and licenses:
   • Investors must submit an application to obtain the required licenses or approvals from the competent authorities based on the type of business activity.
3. Issuing a commercial registration certificate with a license:
   • After meeting all requirements and obtaining approvals, a commercial registration certificate with a license is issued.

Important notes:

• Detailed procedures vary depending on the legal form of the company (e.g., sole proprietorship, limited liability company, etc.) and the nature of the business activities to be carried out.
• It is important to check with the relevant authorities to ensure that all legal procedures are completed and requirements are complied with.

All data related to the merchant or institution, such as:

• Trade name
• Business address
• Type of business activity

The register is updated periodically to document any changes to this data, such as a change in address, activity, or owners.

The commercial register is issued without a license in order to register the register legally in the Kingdom of Bahrain, which facilitates the process of starting a business for the investor.

Obtaining a commercial registry without a license allows the investor to perform the initial tasks related to establishing the registry, such as:

• Leasing commercial space
• Dealing with banks
• Dealing with vendors
• Any other task that does not require a commercial license that must be obtained

The minimum age allowed to operate a business is 18 years (some licenses may require a different minimum age).

Yes, if he is not an employee in the public sector.

Private sector employees must submit a no-objection letter from their employer.

Yes, if he is not an employee in the public sector.

Private sector employees must submit a no-objection letter from their employer.

Sole Proprietorship

It is divided into two types:

• Ordinary commercial registry: A commercial establishment owned by one person who is fully responsible for the institution’s debts and obligations. The applicant must be a Bahraini, Gulf, or American citizen.
• Sijili: An individual institution available to Bahraini citizens that allows them to practice a number of commercial activities without the need for a fixed commercial address.

Company

There are several types of companies available for registration in Bahrain, each carrying certain legal advantages and obligations. The types of companies available for registration are:

• Limited liability company
• Solidarity company
• Simple recommendation company
• Limited partnership company
• Bahraini Public Joint Stock Company (B.S.C.)
• Bahraini Closed Joint Stock Company (B.S.C. Closed)
• Branch of a foreign company
• Limited investment partnership
• Specialized professional solidarity

All of the companies mentioned above consist of a number of people, except for limited liability companies, which may be owned by one natural person.

• Sole proprietorship: None
• Limited Liability Company: None
• Solidarity company: None
• Limited partnership company: None
• Partnership limited by shares: None
• Bahraini Joint Stock Company (B.S.C.): One million dinars
• Bahraini Closed Joint Stock Company (B.S.C. closed): 250 thousand dinars
• Branch of a foreign company: None

Nominal value of each share x number of shares = capital

The commercial activity determines the nature of the goods or services that the establishment will provide.

Each commercial activity has its own terms and conditions, and the investor may be required to obtain the approval of the relevant licensing authorities before practicing the activity.

• Public transportation
• Newspaper and magazine distribution and promotional materials transportation companies
• Mobile food service activities
• Publishing activities
• Connotation in real estate
• Individual lawyers (legal consulting firms are allowed foreign ownership)
• Labor supply offices
• Employment offices
• Other business support services activities: Clearing government transactions

Documents are accepted in Arabic or English only.

Documents submitted in other languages may be accepted if they are translated by an accredited translation office.

A process in which legalization is carried out by the embassy and the Ministry of Foreign Affairs in both the home country and the Kingdom of Bahrain, where a certificate/apostille stamp proves the authenticity of the document, making it internationally valid.

• Authenticate documents through a notary.
• Submitting notarized documents to the competent authority in the country of origin.

Only 116 member states of the Hague Apostille Convention can authenticate documents with an apostille.

Submitting notarized documents to the competent authority in the country of origin.

The memorandum/articles of association or incorporation document can be notarized after obtaining all approvals and licenses.

Notarization is the last step before the commercial register is issued with a license.

Documents must be notarized in the Kingdom of Bahrain in order to register a company in Bahrain.

The notarization process by the notary public takes only one business day.

• In front of a public notary.
• Private Notary: You can choose one of the private notaries licensed by the Ministry of Justice, Islamic Affairs and Endowments (additional fees apply).

Sole Proprietorship

It is divided into two types:

• Ordinary commercial registry: A commercial establishment owned by one person who is fully responsible for the institution’s debts and obligations. The person applying for a sole proprietorship must be a Bahraini, Gulf, or American citizen.
• Sijili: An individual institution available to Bahraini citizens that allows them to practice a number of commercial activities without the need for a fixed commercial address.

Company

There are several types of companies available for registration in Bahrain, each carrying certain legal advantages and obligations. The types of companies available for registration are:

• Limited liability company
• Solidarity company
• Simple recommendation company
• Limited partnership company
• Bahraini Public Joint Stock Company (B.S.C.)
• Bahraini Closed Joint Stock Company (B.S.C. Closed)
• Branch of a foreign company
• Limited investment partnership
• Specialized professional solidarity

All of the companies mentioned above consist of a number of people, except for limited liability companies, which may be owned by one natural person.

• Sole proprietorship: None
• Limited Liability Company: None
• Solidarity company: None
• Limited partnership company: None
• Partnership limited by shares: None
• Bahraini Joint Stock Company (B.S.C.): One million dinars
• Bahraini Closed Joint Stock Company (B.S.C. closed): 250 thousand dinars
• Branch of a foreign company: None

• Public transportation
• Newspaper and magazine distribution and promotional materials transportation companies
• Mobile food service activities
• Publishing activities
• Connotation in real estate
• Individual lawyers (legal consulting firms are allowed foreign ownership)
• Labor supply offices
• Employment offices
• Other business support services activities: Clearing government transactions

The time it takes to register a business depends on the legal form (whether it is a sole proprietorship or a business company) and whether the investors are local or foreign.

• Sole proprietorships and companies wholly owned by Bahraini, GCC, or US citizens can be registered within minutes but may take up to a maximum of three business days depending on the information provided.
• Companies with foreign investors (excluding GCC and US) may take up to 10 business days or more.

Registering a company does not include the process of obtaining a license. In addition, the time it takes to obtain a license depends on the specific activity.

Fees:

• Issuing a commercial register without a license:
• 50 dinars for a new commercial registration without a license application.
• Obtaining licenses for the commercial registry without a license:
• 20 Bahraini dinars for the license application.
• 10 Bahraini dinars municipal fee (not required for my record).
• 100 Bahraini dinars (minimum) electricity security deposit, if applicable.
• This fee is not required if you submit a (sajjili) application or if the rental agreement includes an electricity bill.
• Notarization fees: 30 Bahraini dinars (private notary fees may vary).
• 8 Bahraini dinars (minimum) BCCI membership fee (fees are subject to registered capital).
• 100 Bahraini dinars for activities not licensed by specific government agencies. This fee covers up to 3 activities, and any additional activity that differs from the existing activities will be subject to a 100 BD fee.
• License fees: Other licensing fees may be applicable depending on the specific activity. Please refer to the activity description page.

You can access records online by visiting.

The Sijilat system can be accessed through electronic and smart devices that support an Internet browser.

All browsers are compatible with logs, however for Safari you may need to adjust your browser settings to be able to access logs.

To start using a records system, you must have an advanced electronic key, otherwise you will have to apply through a professional office, a lawyer or an unrelated person under a notarized power of attorney and who has an electronic key.

• Bahrain Investors Centre, 2nd floor, Bahrain Financial Harbour, Manama, Bahrain
• Seef Mall - Muharraq Branch
• Statistics Center Authority - Isa Town

The application can be submitted through a professional office with an authorization letter that includes creating and submitting an application on your behalf.

An application for registration, renewal or amendment must be submitted by the relevant persons to the Commercial Registry, and the applicant’s data is verified before the application is accepted.

Applications are submitted on the Sijilat system by:

• Related party (owner, partner or shareholder in a commercial company, authorized signatory, director).
• Employee.
• Official authorization should be sufficient, if the application is submitted by a professional office authorized by the Ministry of Trade, Industry and Commerce.
• The application may be submitted by a person not related to the commercial registration under an official power of attorney notarized before a notary public.

If the commercial registry contains a violation by any concerned party licensed for the commercial activity registered in the commercial registry.

A scanned copy of the commercial registration certificate can be obtained through the electronic Sijilat system.

If you wish to obtain an original paper copy, you can visit the Bahrain Investors Center affiliated with the Ministry of Industry and Commerce located in the Bahrain Financial Harbour.

The fee for obtaining the original copy is 20 Bahraini dinars.

The commercial registration certificate is valid for one year from the date of issuance.

The commercial register must be renewed annually.

Yes, it is possible to submit a transaction to renew the commercial registration 6 months before the expiration date.

Anyone can renew the registration as long as there are no violations recorded in the commercial register.

You can apply online through the Sijilat system.

If the owner of the commercial register does not renew the commercial register before its expiration date, the Registration Department of the Ministry of Industry and Trade must cancel the commercial register.

However, striking out the commercial register does not terminate the liability of the registered owner and management, as their obligations continue as if the commercial register was still in effect.

Yes, you can revive your commercial registration by applying to revive a legally canceled commercial registration.

The owner of a commercial register may not stop practicing commercial activity for more than a year without reasonable justification, otherwise the Ministry of Industry and Trade has the right to cancel his commercial register.

• Implementing any judicial order or decision
• Violating the law, regulations, and decisions
• Failure to meet one or more of the registration conditions
• Failure to renew the registration before the expiration of its term or ceasing to practice the licensed activity for a continuous period exceeding one year

The Registration Department may issue a new commercial register after paying any amounts due on the previously deleted commercial register for the following reasons:

• Failure to obtain the required approvals and licenses from the relevant authorities
• Failure to renew or stop the activity
• Delete the registration and close the place of activity therein
• Implementation of a judicial ruling
• Violating the law, regulations, and ministerial decisions

• Decree Law No. (27/2015) regarding the commercial register
• Decree Law No. (28/2015) amending some provisions of the Commercial Companies Law No. (21) of 2001
• Resolution of the Minister of Commerce No. (126/2016) issuing the executive regulations of Decree Law No. (27/2015) regarding the commercial registry
• Minister of Commerce Decision No. (127/2016) amending some provisions of the executive authority
• Commercial Companies Law Regulations issued by Resolution No. (6/2002)
• Minister of Commerce Resolution No. (128/2016) regarding commercial registration fees
• Minister of Commerce Decision No. (129/2016) regarding the financial fine for delaying the renewal of registration in the commercial registry
• Minister of Commerce Resolution No. (130/2016) regarding fees for practicing commercial activities

Commercial agency means representing the client in distributing goods and products, offering them for sale or trading in exchange for a profit or commission, or providing facilities of whatever nature.

The commercial agency agreement is registered with the Ministry of Industry and Trade after it is signed by the parties to the agreement and after it is ratified by the competent authorities when submitting an application for commercial agency registration.

Ensure that you have your electronic key to be able to enter the Sijilat.bh records system to register a new commercial agency.

The applicant for registration of a new commercial agency must be a Bahraini national or a company owned 100% by Bahrainis.

You must have the documents for registering a new commercial agency available to be uploaded into the system when it opens.

Required Documents:

• An agency contract (agreement) between the principal and the agent stamped by the Chamber of Commerce and Industry of the country in which the agency or company is entrusted or any official body in this country and the stamp of the Bahrain Chamber of Commerce and Industry.
• The following data must be clear in the contract:
  • The client's name and address.
  • Agent's name and address.
  • The date of signing the agreement, the start date of the agreement, and its duration.
  • The funds, goods, and services covered by the agency, and the rights and obligations of both the agent and the principal, along with a statement of the amount of profit or commission that the agent is entitled to in exchange for his agency.
  • The trade name of the goods or trademarks.
  • Agent's work area.
  • Agent and principal trading center.
  • The agent’s commitment to provide sufficient spare parts and the necessary maintenance to repair the cars, machines, engines, equipment, or electrical and electronic devices covered by the commercial agency.
  • Arbitration terms, if any.
  • Any other conditions agreed upon by the principal and agent, provided that they do not conflict with the provisions of the law.
• The membership card of the Bahrain Chamber of Commerce and Industry, registered in the name of the Bahraini agent.
• An official certificate from the Trademark Registry that includes a statement about the mark or trademarks for the goods or services that are the subject of the agency.

The agency contract shall be stamped by the Chamber of Commerce and Industry of the country in which the agency or company is appointed, or any official body in this country, and the stamp of the Bahrain Chamber of Commerce and Industry.

It is sufficient to have one branch carrying the same activity that is the subject of the commercial agency.

Yes. One brand can be added and other brands can be added later.

The agency cannot be registered more than once.

The aforementioned phrase (exclusivity) means that the principal has restricted the agency to the agent in a specific area of activity, and does not mean that the goods cannot be supplied by others, especially if the merchant/company is practicing the appropriate activity to supply those goods.

Both. Registration of the commercial agency with the Ministry of Industry and Trade does not give the right of exclusivity.

The profit or commission to which the agent is entitled shall be determined in the commercial agency agreement or in another agreement concluded by the agent with the principal.

Yes, any product can be imported and sold as long as the company is licensed to sell the product itself.

Article (27) of the Commercial Agency Law specifies the cases in which the violator is punished.

This matter is determined in accordance with the agency contract concluded between the principal and the agent.

The agent to whom the agency is transferred is obligated to buy from the first agent whatever goods he has of the goods covered by the agency, as long as they are fit for use, at their market price or at the cost price, whichever is lower, plus 5% of the price or the cost price as a maximum, unless there is a contrary agreement between the two parties.

The new agent and the principal shall be jointly responsible for all pledges arising from the agency contract that the first agent pledged to others. This responsibility shall be within the limits of the price of the goods or the price of the service in the market if the pledge is for a good or service.

Despite any contrary agreement, the agent has the right to demand compensation from the principal if his activity has led to apparent success in promoting the principal’s products or in increasing the number of his clients and prevents him from obtaining a profit from that success.

The principal’s termination of the agency contract (if the agency is indefinite in duration) or failure to obtain a profit from that success. The client’s approval to renew the agency contract (if the agency is for a limited period).

• Decree Law No. (10) of 1992 regarding commercial agency
• Resolution No. (2) of 1993 issuing the executive regulations of the Commercial Agencies Law

It is a natural person or natural persons who has or has the ability to exercise control, control, or ultimate effective influence over the commercial register or legal arrangement by any means other than legal ownership or the natural person(s) on whose behalf transactions are conducted (for them) or for his benefit (for their benefit).

No, the ultimate beneficiary must be a natural person only.

It is a number issued by some countries to people who are subject to income taxes, and it must be entered in the data of the final beneficiary in a records system if available, or the field must be left unfilled.

The ultimate beneficiary is someone who meets all or some of the following conditions:

• Direct or indirect ownership or control of a share equivalent to 10% or more of the capital or voting rights in the commercial register.
• If the commercial register is owned by another company, the ultimate beneficiary is the one who stands behind the ultimate owner in the chain of ownership or exercises actual control over it.
• The ability to make decisions or influence decision-making and impose them in the commercial registry, whether directly or through other means such as personal communications, participation in financing the project, family relationships, contracts, arrangements, understandings, or through a tiered entity (an overlapping chain of ownership of legal persons).
• The one who contributes to the financing of the facility or its belongings, or for whom transactions are conducted, even if they are hidden.
• Direct or indirect control over the operations of the commercial registry through a public agency, management agency, leasing contract, usufruct contracts, or similar agreements.
• Ultimate actual control through a chain of ownership or other means of control other than direct control on the commercial register.
• Exercising control through management positions within the registry in such a way as to fundamentally influence strategic decisions, business practices, or the general direction of the registry.

No, anyone of any nationality or age can be appointed as the ultimate beneficiary.

Fill in the required data fields, in addition to attaching a copy of the identity documents of the final beneficiary.

The ultimate beneficiary is designated at the time of submitting the license application for new records, and the ultimate beneficiary can be determined at any time for existing records.

The validity period is one year from the date of registration, and this information must be updated every year by either confirming the existing information or entering new data. It is also possible at any time during the year to update the final beneficiary’s information whenever any change occurs to it.

Yes, in the event of incorrect disclosure of the ultimate beneficiary or delay in disclosing and updating the information, this may expose you to taking administrative measures.

This is done through the following steps:

• Log in with the electronic key on the Sejlat website.
• Go to the list of electronic services.
• Select "Final Beneficiary" and proceed with registering the final beneficiary’s data.

Yes, it is possible.

Yes, this is possible if the conditions for determining the ultimate beneficiary apply to you.

Yes, this is possible. When entering the final beneficiary’s data into the records system, you can press the “Add Final Beneficiary” button so that you can enter the information of the other beneficiaries.

Companies and institutions subject to supervision must appoint a compliance officer to be responsible for monitoring the compliance of the institution or company and its internal policies with all laws, regulations, and instructions issued by local and international regulatory authorities.

This function identifies and evaluates the risks of non-compliance.

The compliance officer submits reports to the regulatory authorities on the extent of compliance with controls and regulatory requirements and also reports suspected cases of money laundering operations or attempted transactions.

A) If the person licensed to practice the activity of selling gold and jewelry is an individual institution or a company with only one branch, then the requirements are as follows:

• To be fluent in one of the Arabic or English languages, reading, speaking, and writing.
• To pass the qualifying course determined by the relevant unit in the Ministry.

The owner of the record may also be the compliance officer.

B) In the event of multiple branches, the requirements are as follows:

A general compliance officer must be appointed at the company or institution level and his deputy, in addition to appointing a compliance officer for each branch. The following requirements must be met:

Requirements for the general compliance officer and his deputy:

• He must be of Bahraini nationality.
• To be fluent in Arabic and English, reading, speaking, and writing.
• He must have a university qualification of no less than a bachelor’s degree in accounting, financial management, or their equivalent.
• He must have an accredited anti-money laundering specialist certificate issued by an authority accredited by the relevant unit of the Ministry.
• To pass all courses determined by the relevant unit in the Ministry.

Requirements for compliance employees at the level of each branch:

• To be fluent in one of the Arabic or English languages, reading, speaking, and writing.
• To pass the qualifying course determined by the relevant unit in the Ministry.

A general compliance officer, his deputy, and a compliance officer must be appointed, provided that they meet the following requirements:

• He must be of Bahraini nationality.
• To be fluent in Arabic and English, reading, speaking, and writing.
• He must have a university qualification of no less than a bachelor’s degree in accounting, financial management, or their equivalent.
• He must have an accredited anti-money laundering specialist certificate issued by an authority accredited by the relevant unit of the Ministry.
• To pass all courses determined by the relevant unit in the Ministry.
• The general compliance officer must have at least three years of practical experience in the field of auditing.
• The deputy compliance officer and the compliance officer must have at least one year of practical experience in the field of auditing.

The compliance officer must be appointed by filling out the designated fields and attaching the required and signed form. The system will automatically remove the violation. The compliance officer’s data must be updated annually.

All suspicious or unusual transactions or attempted transactions must be reported, regardless of their value, as long as there is any doubt or discomfort for any reason related to the transaction.

The customer must not be informed of the initiation of reporting the transaction to the authorities.

The Corporate Control Department is the entity entrusted with receiving financial reports through the electronic system, the commercial records system (“records”).

You can get the guide by clicking on.

Public and closed joint stock companies, a limited liability company, a limited partnership by shares, and a branch of a foreign company.

The audited financial report must be submitted within 6 months from the end of the fiscal year.

Authorized signatories:

• For public and closed joint stock companies: Signed by the Chairman of the Board of Directors and one of the members.
• For a limited liability company, a branch of a foreign company, and a limited partnership by shares: Signed by the manager or managers, as the case may be.

• The financial report must be issued by an audit office licensed by the Ministry of Industry and Trade.
• Prepared in accordance with international standards for the preparation and presentation of financial statements.
• It contains the auditor's opinion.
• Stamped with the seal of the issuing office or signed by a certified auditor registered with the Ministry of Industry and Trade.
• Signed by the Chairman of the Board of Directors and another member (joint stock companies) or managers.
• It includes the company name, commercial registration number, date of issuance of the report, and the company’s financial year.
• The report must be approved by the auditor and not a draft.
• Includes all branches of the company.

• Year of company establishment.
• If the legal form is converted to a form, the financial report is not required to be submitted.
• In the event of liquidation of the company.

• Year of company establishment.
• In the event that the legal form of the facility is converted to a form that does not require submission of the financial report.
• Liquidation.

Licensed audit offices in the Kingdom of Bahrain: These are companies and institutions licensed to practice the activity of audit offices by the Ministry of Industry and Commerce.

If the company is not engaged in any activity, it must at least submit the most recent “financial position” prepared by an external audit company that reflects the current position of the company.

In addition, a letter issued by the auditor confirming that the company did not carry out any commercial activity during that specific year must be attached to the financial report.

If the report is not ready, it is possible to submit a letter requesting a period of time, which is accepted only once for the fiscal year, prepared by an external audit company, specifying the date of submission of the financial report. The violation will then be temporarily lifted until the report is delivered.

If your company is engaged in a relevant activity, it must have “adequate” levels of qualified employees working full-time in Bahrain (Ministerial Resolution 106, Article 2C). Otherwise, it will not meet the requirements of economic substance.

Holding companies have reduced economic substance requirements. The conditions stipulated in Article 3C must be met.

The activity undertaken by the subsidiary must be looked at, and if it is a relevant activity, the subsidiary will have to prove substance. The test will be applied to each subsidiary.

For establishments applying for a new commercial registration and existing establishments in connection with new related activities or acquiring new intellectual property assets, the effective date is January 1, 2019.

For all other existing establishments, the effective date will be July 1, 2019.

For operational reasons, the timeline for establishments to submit the appropriate form will be within three months of the end of the financial year.

The establishment may receive:

• Written warning notices.
• Suspension from the commercial registry.
• Administrative fines of up to 1,000 Bahraini dinars (per day) for non-compliance for the first time.
• 2,000 Bahraini dinars for the second time.
• Delisting from the registry.

The term used legally is "adequate". “Adequacy” is not a quantitative measure, but rather a qualitative measure.

It is about having the competence to do the job, make decisions, and manage the business, taking into account the size, nature, and composition of the business.

Employees must be residents of Bahrain.

There is no requirement for board members to reside in Bahrain, but they must be present in Bahrain whenever the need arises for a board meeting to be held.

Ministerial Resolution 106 is not mandatory in determining which employees must attend Board of Directors meetings, and this will be based on the merchant’s decision.

Providing loans is an example of banking and financing activities, “core activities that are the main source of income for an enterprise.”

However, if the subsidiary of the holding company makes loans for business gain, it will be necessary to prove substance as it will be considered an included entity carrying out a related activity (i.e. banking).

In general, banking will be covered by the Central Bank of Bahrain's economic guidance.

Every international financial center is urged to implement the core requirements by the European Union and the OECD.

The goal is to prevent international companies from taking advantage of different tax laws between countries by artificially shifting profits to regions that impose little or no income tax.

• Agenda.
• Minutes of the previous meeting.
• A list of the names of board members and their positions.
• Management comments letter submitted by the auditors for the ending financial year.
• Auditors’ report for the ending financial year.
• Corporate Governance Report.
• Invitation form to attend the general assembly meeting addressed to shareholders / Ministry’s invitation letter to the meeting.
• The agreed-upon procedures report issued by the company’s external auditors, including “company governance procedures” for the ending financial year.
• The agreed-upon procedures report issued by the company’s external auditors, including “transactions with related parties” for the ending financial year.

The Ministry of Industry and Trade issued the Corporate Management and Governance Charter in 2018 and amended some provisions of the Corporate Management and Governance Charter in 2022.

A copy of the form for appointing a corporate governance officer can be obtained for submission via the “Sajilat” website through the following link.

To learn how to fill out the governance compliance steps by the company governance officer in the Sijilat system.

All public and closed joint stock companies, including companies licensed by the Central Bank of Bahrain.

Disclosure shall be in accordance with the forms prepared by the Ministry, and you can obtain a copy of the forms for disclosing the remuneration of members of the Board of Directors and Executive Management.

Disclosures regarding remuneration for members of the Board of Directors and Executive Management must be included in the annual report of the Board of Directors accompanying the financial statements.

In accordance with Article (188) of the Commercial Companies Law and Article (125) of the Executive Regulations of the Commercial Companies Law:

Members who combine Board of Directors and Executive Management positions in the company must additionally disclose what they received as employees or administrators (executive members) in addition to the rest of their remuneration in the form for remuneration for members of the Board of Directors.

Additionally, their total remuneration must be included in the form for executive management remuneration whenever those members are among the top six executive management remuneration recipients, including the CEO and the company’s chief financial officer.

This requirement exists because holding both Board of Directors and Executive Management positions naturally leads to the application of different provisions depending on the roles held by the member in the company.

The presence of executive and non-executive members in the Board of Directors leads to disparities and differences in legal positions between these members, necessitating the application of appropriate legal regulations to each role as intended by the legislator.

The public legal person or the company owned by him receives the rewards directly in accordance with Article (190) of the law or as per an approved policy regarding the provisions for representation on the boards of directors of those companies and the method of distributing the rewards due to their representatives.

The percentage that the representatives of the legal entity receive from the total remuneration for representing it in those companies is estimated.

Disclosure Mechanism:

The required disclosure for representatives of the public legal entity is as follows:

• The name of the shareholder (who will receive the reward) must be stated in the box designated for the names of the board members on the form prepared by the Ministry.
• The shareholder's name must be appended with a statement (in parentheses) specifying the name of the representative on the Board of Directors of the relevant company.
• Next to the name of the shareholder and his representative, all amounts of remuneration due for the relevant financial year must be stated.

As for the percentages estimated by the public legal person or the company owned by it, which representatives on the boards of directors receive as a reward for their representation in those companies, this is a matter that concerns the legal person and its company and is not included in the disclosure form.

These additional amounts may be paid as bonuses to some board members by the parent company in accordance with an internal policy approved by the board of directors of the parent company.

The required disclosure in this case is by stating the total remuneration due to each member of the Board of Directors of the parent company in the box “Remuneration of the Chairman and Members of the Board”, whether:

• The annual remuneration to the members of the Board of Directors of the parent company.
• The remuneration paid by the parent company to the members of the Board of Directors working in any of the boards of subsidiaries.

• During the three months following the end of the financial year for companies listed on the Bahrain Stock Exchange and companies licensed by the Central Bank of Bahrain.
• During the six months following the end of the financial year for all other companies.

For members of the Board of Directors (independent, non-executive, executive):

The Board of Directors’ report must include a comprehensive statement of all the remuneration that the Chairman and members of the Board of Directors received separately during the financial year, including:

• Any benefits, share of profits, and allowances.
• Attendance, representation allowance, and expenses.
• Amounts received as employees, administrators, or for technical, administrative, consulting, or any other work.

For members of executive management:

The Board of Directors’ report must include a statement of the total amount received by members of the company’s executive management, which includes all members who received the six highest bonuses during the financial year.

This includes any:

• Salaries, benefits, and shares.
• Share of profits.

The report must include both the CEO and the highest financial officer in the company in all cases.

Yes, the amounts of remuneration paid and due to members of the Board of Directors and Executive Management for the relevant financial year must be disclosed in the forms.

No, the disclosure forms prepared by the Ministry must be included as they are, without change or abbreviation.

If there is no bonus amount in one of the disclosure items required in the form, a mark (–) must be placed in the empty box.

No, disclosures regarding the remuneration of members of the Board of Directors and Executive Management must be included in the annual report of the Board of Directors and not in the corporate governance report.

In the event of violating the provisions of the Commercial Companies Law or the decisions issued in implementation of its provisions, one of the penalties stipulated in Article (362 bis) of the Commercial Companies Law may result, which are:

• Suspension of registration in the commercial register.
• Imposing an administrative fine on a daily basis not exceeding 50,000 Bahraini dinars.
• Imposing a total administrative fine not exceeding 100,000 Bahraini dinars.
• Cancellation of registration from the commercial register.

The Bahraini dinar or the currency in which the company’s capital was registered and its financial statements were prepared.

The commercial register must be renewed annually.

Yes, it is possible to submit a transaction to renew the commercial registration 6 months before the expiration date.

Anyone can renew the registration as long as there are no violations recorded in the commercial register.

You can apply online through the Sijilat system.

If the owner of the commercial register does not renew the commercial register before its expiration date, the Registration Department of the Ministry of Industry and Trade must cancel the commercial register.

However, striking out the commercial register does not terminate the liability of the registered owner and management, as their obligations continue as if the commercial register was still in effect.

Yes, you can revive your commercial registration by applying to revive a legally canceled commercial registration.

Commercial agency means representing the client in distributing goods and products, offering them for sale or trading in exchange for a profit or commission, or providing facilities of whatever nature.

The commercial agency agreement is registered with the Ministry of Industry and Trade after it is signed by the parties to the agreement and after it is ratified by the competent authorities when submitting an application for commercial agency registration.

Ensure that you have your electronic key to be able to enter the new commercial agency records system.

The applicant for registration of a new commercial agency must be a Bahraini national or a company owned 100% by Bahrainis.

You must have the documents for registering a new commercial agency available to upload when the system opens.

Required Documents:

• An agency contract (agreement) between the principal and the agent stamped by the Chamber of Commerce and Industry of the country in which the agency or company is entrusted, or any official body in this country, and the stamp of the Bahrain Chamber of Commerce and Industry.
• The contract must include:
  • The client's name and address.
  • The agent's name and address.
  • The date the agreement was signed and its effective start date.
  • The funds, goods, and services covered by the agency, and the rights and obligations of both parties, along with the profit or commission the agent is entitled to.
  • The trade name of goods or trademarks.
  • The agent's work area and trading center.
  • The agent’s commitment to provide sufficient spare parts and necessary maintenance.
  • Arbitration terms, if any.
  • Any other conditions agreed upon, provided they do not conflict with the law.
• The membership card of the Bahrain Chamber of Commerce and Industry, registered in the name of the Bahraini agent.
• An official certificate from the Trademark Registry with details of the goods or services under the agency.

The agency contract shall be stamped by the Chamber of Commerce and Industry of the country in which the agency or company is entrusted, or any official body in this country, and the stamp of the Bahrain Chamber of Commerce and Industry.

No, it is sufficient to have one branch carrying the same activity that is the subject of the commercial agency.

Yes, one brand can be added, and additional brands can be added later.

No, the agency cannot be registered more than once.

The exclusivity clause means that the principal has restricted the agency to the agent in a specific area of activity.

It does not mean that the goods cannot be supplied by others, especially if the merchant or company is practicing the appropriate activity to supply those goods.

No, registration of the commercial agency with the Ministry of Industry and Trade does not grant the right of exclusivity.

The profit or commission the agent is entitled to shall be determined in the commercial agency agreement or another agreement concluded between the agent and the principal.

Yes, any product can be imported and sold as long as the company is licensed to sell the product itself.

Article (27) of the Commercial Agency Law specifies the cases in which the violator is punished.

This matter is determined in accordance with the agency contract concluded between the principal and the agent.

The agent to whom the agency is transferred is obligated to buy from the first agent whatever goods he has of the goods covered by the agency, as long as they are fit for use, at their market price or at cost price, whichever is lower, plus 5% of the price.

Or the cost price as a maximum unless there is a contrary agreement between the two parties.

The new agent and the principal shall be jointly responsible for all pledges arising from the agency contract that the first agent pledged to others.

This responsibility shall be within the limits of the price of the goods or the price of the service in the market if the pledge is for a good or service.

Despite any agreement to the contrary, the agent has the right to demand that the principal be harmed if his activity has led to apparent success in promoting the principal’s products or in increasing the number of his clients and prevents him from obtaining a profit from that success.

The principal’s termination of the agency contract (if the agency is of indefinite duration) or failure to obtain a profit from that success.

The client’s approval to renew the agency contract (if the agency is for a limited period).

• Decree Law No. (10) of 1992 regarding commercial agency
• Resolution No. (2) of 1993 issuing the executive regulations of the Commercial Agencies Law

It is a natural person or natural persons who has or has the ability to exercise control, control or ultimate effective influence over the commercial register or legal arrangement by any means other than legal ownership or the natural person(s) on whose behalf transactions are conducted.

(For them) or for his benefit (for their benefit).

No, the ultimate beneficiary must be a natural person only.

The ultimate beneficiary is someone who meets all or some of the following conditions:

• Direct or indirect ownership or control of a share equivalent to 10% or more of the capital or voting rights in the commercial register.
• If the commercial register is owned by another company, the ultimate beneficiary is the one who stands behind the ultimate owner in the chain of ownership or exercises actual control over it.
• The ability to make decisions or influence decision-making and impose them in the commercial registry, whether directly or through other means such as personal communications, financing the project, family relationships, contracts, or understandings through a graduated entity (interconnected chain of ownership of legal persons).
• Someone who contributes to the financing of the facility or for whom transactions are conducted, even if they are hidden.
• Direct or indirect control over the operations of the commercial registry through a public agency, management agency, leasing contract, usufruct contracts, or similar arrangements.
• Ultimate actual control through a chain of ownership or other means of control other than direct control over the commercial register.
• Exercising control through management positions within the registry in such a way as to fundamentally influence strategic decisions, business practices, or the general direction of the registry.

No, anyone of any nationality or age can be appointed as the ultimate beneficiary.

Fill in the required data fields and attach a copy of the identity documents of the final beneficiary.

The ultimate beneficiary is designated at the time of submitting the license application for new records. The ultimate beneficiary can be determined at any time for existing records.

The validity period is one year from the date of registration. This information must be updated annually by either confirming the existing information or entering new data. Updates can also be made at any time during the year whenever any changes occur.

Yes, incorrect disclosure of the ultimate beneficiary or delays in disclosing and updating information may expose you to administrative actions.

Yes, it is possible.

Yes, this is possible if the conditions for determining the ultimate beneficiary apply to you.

Yes, this is possible. When entering the final beneficiary’s data into the records system, you can press the “Add Final Beneficiary” button to enter the information of additional beneficiaries.

Companies and institutions subject to supervision must appoint a compliance officer to be responsible for monitoring the compliance of the institution or company and its internal policies with all laws, regulations, and instructions issued by local and international regulatory authorities.

The compliance officer's role includes:

• Identifying and evaluating the risks of non-compliance.
• Submitting reports to regulatory authorities on the extent of compliance with controls and regulatory requirements.
• Reporting suspected cases of money laundering operations or attempted transactions.

A) If the person licensed to practice the activity of selling gold and jewelry is an individual institution or a company with only one branch, the requirements are:

• To be fluent in one of the Arabic or English languages (reading, speaking, and writing).
• To pass the qualifying course determined by the relevant unit in the Ministry.

The owner of the record may also be the compliance officer.

B) In the event of multiple branches, the requirements are as follows:

A general compliance officer must be appointed at the company or institution level along with a deputy, in addition to appointing a compliance officer for each branch.

Requirements for the general compliance officer and his deputy:

• Must be of Bahraini nationality.
• Must be fluent in Arabic and English (reading, speaking, and writing).
• Must have a university qualification of no less than a bachelor’s degree in accounting, financial management, or an equivalent field.
• Must have an accredited anti-money laundering specialist certificate issued by an authority accredited by the relevant unit of the Ministry.
• Must pass all courses determined by the relevant unit in the Ministry.

Requirements for compliance employees at the branch level:

• Must be fluent in one of the Arabic or English languages (reading, speaking, and writing).
• Must pass the qualifying course determined by the relevant unit in the Ministry.

A general compliance officer, his deputy, and a compliance officer must be appointed, provided that they meet the following requirements:

• Must be of Bahraini nationality.
• Must be fluent in Arabic and English (reading, speaking, and writing).
• Must have a university qualification of no less than a bachelor’s degree in accounting, financial management, or an equivalent field.
• Must have an accredited anti-money laundering specialist certificate issued by an authority accredited by the relevant unit of the Ministry.
• Must pass all courses determined by the relevant unit in the Ministry.
• The general compliance officer must have at least three years of practical experience in the field of auditing.
• The deputy compliance officer and the compliance officer must have at least one year of practical experience in the field of auditing.

The compliance officer must be appointed by filling out the designated fields and attaching the required and signed form.

The system will automatically remove the violation. The compliance officer’s data must be updated annually.

All suspicious or unusual transactions or attempted transactions must be reported, regardless of their value, as long as there is any doubt or concern regarding the transaction.

The customer must not be informed about the initiation of reporting the transaction to the authorities.

• All legal persons (commercial registries) must not deal with or have any relationship, regardless of its nature or type, with any persons or entities listed in the Security Council and local lists.
• Any suspicions related to these transactions or attempted transactions must be reported immediately through the commercial records system for auditing offices and gold and jewelry merchants.
• For all other commercial activities, reports must be submitted by filling out and attaching the required documents and sending them immediately via email.
• The Financial Action Task Force has developed a series of recommendations that are recognized as the international standard for combating money laundering, terrorism financing, and the proliferation of weapons of mass destruction.
• All local legal persons (commercial registries) must constantly follow updates in the Security Council’s ban lists as well as the local lists issued by the Council of Ministers.

The Corporate Control Department is the entity entrusted with receiving financial reports through the electronic system, the Commercial Registration System (“Sajilat”).

Public and closed joint stock companies, limited liability companies, limited partnerships by shares, and branches of foreign companies.

The audited financial report must be submitted within 6 months from the end of the financial year.

The report must be signed by:

• The Chairman of the Board of Directors and one of the members (for public and closed joint stock companies).
• The director or directors, as the case may be (for a limited liability company, a branch of a foreign company, and a limited partnership by shares).

• The financial report must be issued by an audit office licensed by the Ministry of Industry and Trade.
• Prepared in accordance with international standards for the preparation and presentation of financial statements.
• It must contain the auditor's opinion.
• Stamped with the seal of the issuing office or signed by a certified auditor registered with the Ministry of Industry and Trade.
• Signed by the Chairman of the Board of Directors and another member (for joint stock companies) or directors.
• It must include the company name, commercial registration number, date of issuance of the report, and the company’s financial year.
• The report must be approved by the auditor and not a draft.
• It must include all branches of the company.

• Year of company establishment.
• If the legal form is converted to a form that does not require submission of the financial report.
• In the event of liquidation of the company.

• Year of company establishment.
• In the event that the legal form of the facility is converted to a form that does not require submission of the financial report.
• Liquidation.

If the company is not engaged in any activity, it must at least submit the most recent “financial position” report prepared by an external audit company that reflects the current status of the company.

Additionally, a letter issued by the auditor confirming that the company did not carry out any commercial activity during that specific year must be attached to the financial report.

If the report is not ready, a letter requesting a period of time may be submitted. This is accepted only once for the financial year, prepared by an external audit company, specifying the date of submission of the financial report.

The violation will then be temporarily lifted until the report is delivered.

Ministerial Resolution 106 applies to all merchants who practice the following relevant activities, except for those licensed by the Central Bank of Bahrain:

• Leasing business
• Headquarters business
• Service and distribution center operations
• Shipping business
• Commercial uses of intellectual property
• Holding companies linked to related activities

If your company is engaged in a relevant activity, it must have “adequate” levels of qualified employees working full-time in Bahrain (Ministerial Resolution 106 Article 2C). Otherwise, it will not meet the requirements of economic substance.

Yes, the entity must carry out the core activities that are its main source of income in Bahrain (Article 3) and must direct and manage the relevant activities of the entity within Bahrain (Article 2a).

Holding companies have reduced economic substance requirements. The conditions stipulated in Article 3C must be met.

The activity undertaken by the subsidiary must be assessed. If it is a relevant activity, the subsidiary must prove substance. The test will be applied to each subsidiary individually.

For establishments applying for a new commercial registration and existing establishments in connection with new related activities or acquiring new intellectual property assets, the effective date is January 1, 2019.

For all other existing establishments, the effective date will be July 1, 2019.

However, for operational reasons, the timeline for establishments to submit the appropriate form will be within three months of the end of the financial year.

The establishment may receive:

• Written warning notices.
• Suspension from the commercial registry.
• Administrative fines of up to 1,000 Bahraini dinars per day for the first instance of non-compliance.
• 2,000 Bahraini dinars per day for the second instance of non-compliance.
• Delisting from the commercial registry.

The term used legally is "adequate." “Adequacy” is not a quantitative measure but rather a qualitative measure.

It refers to having the competence to perform the job, make decisions, and manage the business while considering the size, nature, and composition of the business.

Employees must be residents of Bahrain.

There is no requirement for board members to reside in Bahrain, but they must be present in Bahrain whenever the need arises for a board meeting to be held.

Ministerial Resolution 106 is not mandatory in determining which employees must attend Board of Directors meetings.

This decision will be based on the merchant’s discretion.

The sale and supply of goods in a “retail” process is not considered a relevant activity under Ministerial Resolution 106.

However, Ministerial Resolution 106 indicates that the operation of a “distribution (and service) center business” may fall under the relevant activities.

Distribution center facilities purchase raw materials and finished products from other group members and resell them for a small percentage of profits.

Neither retail nor wholesale trade activities are included among the relevant activities.

Providing loans is an example of banking and financing activities, which are considered “core activities that are the main source of income for an enterprise.”

However, if the subsidiary of the holding company makes loans for business gain, it will be necessary to prove substance, as it will be considered an included entity performing a related activity (i.e., banking).

In general, banking activities will be covered by the Central Bank of Bahrain's economic guidance.

In general, relevant traders satisfy the substance requirement when the criteria in Article 2 are met.

However, it depends on the type of activity involved. For example, if it is high-risk intellectual property, additional information will be necessary.

Every international financial center is urged to implement the core requirements by the European Union and the OECD.

The goal is to prevent international companies from taking advantage of different tax laws between countries by artificially shifting profits to regions that impose little or no income tax.

There is no specific number in Ministerial Resolution 106. Merchants must comply with the requirements set out in any other relevant legislation.

Facilities should provide as much detailed information as possible in their material returns, as well as detailed explanations, justifications, and supporting evidence regarding suitability testing.

Unfair sanctions will not be imposed on those who demonstrate their willingness to comply with the requirements of economic substance.

The Corporate Control Department is responsible for receiving invitations to general assembly meetings of commercial companies and reviewing the meeting agenda.

To remove the violation of “failing to hold a general assembly meeting,” the company must submit a request and invite the general assembly at least 10 days before the meeting date by following the prescribed steps.

• Agenda.
• Minutes of the previous meeting.
• A list of the names of board members and their positions.
• Management comments letter submitted by the auditors for the ending financial year.
• Board of Directors’ report on the company’s activity for the ending financial year.
• Auditors’ report for the ending financial year.
• Corporate Governance Report.
• Invitation form to attend the General Assembly meeting addressed to shareholders / Ministry’s invitation letter to the meeting.
• The agreed-upon procedures report issued by the company’s external auditors, including “company governance procedures” for the ending financial year.
• The agreed-upon procedures report issued by the company’s external auditors, including “transactions with related parties” for the ending financial year.

The Ministry of Industry and Trade issued the Corporate Management and Governance Charter in 2018 and amended some provisions in 2022.

A copy of the form for appointing a corporate governance officer can be obtained for submission via the “Sajilat” website.

To learn how to fill out the governance compliance steps by the company’s governance officer in the Sijilat system, refer to the system’s instructions.

All public and closed joint stock companies, including companies licensed by the Central Bank of Bahrain, must disclose the remuneration of Board of Directors and Executive Management members.

Disclosure shall be in accordance with the forms prepared by the Ministry. You can obtain a copy of the forms for disclosing the remuneration of members of the Board of Directors and Executive Management by clicking on the following link.

Disclosures regarding remuneration for members of the Board of Directors and Executive Management must be included in the annual report of the Board of Directors accompanying the financial statements.

• During the three months following the end of the financial year for companies listed on the Bahrain Stock Exchange and companies licensed by the Central Bank of Bahrain.
• During the six months following the end of the financial year for all other companies.

For Board Members (Independent, Non-Executive, Executive):

The Board of Directors’ report must include a comprehensive statement of all the remuneration that the Chairman and members of the Board of Directors received separately during the financial year, including:

• Any benefits, share of profits, attendance allowance, representation allowance, and expenses.
• A statement of what they received in their capacity as employees, administrators, or consultants in exchange for technical, administrative, consulting, or any other work.

For Executive Management Members:

The Board of Directors’ report must include a statement of the total amount received by members of the company’s executive management, covering the six highest remunerations during the financial year. This includes:

• Salaries, benefits, and shares.
• Share of profits.

The report must include both the CEO and the top financial officer of the company in all cases.

Yes, the amounts of remuneration paid and due to members of the Board of Directors and Executive Management for the relevant fiscal year must be disclosed in the forms.

No, the disclosure forms prepared by the Ministry must be included as they are, without change or abbreviation.

If there is no bonus amount in one of the disclosure items required in the form, a mark (—) must be placed in the empty box.

No.

In the event of violating the provisions of the Commercial Companies Law or the decisions issued in implementation of its provisions, one of the following penalties stipulated in Article (362 bis) of the Commercial Companies Law may apply:

• Suspension of registration in the commercial register.
• Imposing an administrative fine on a daily basis not exceeding 50,000 Bahraini dinars.
• Imposing a total administrative fine not exceeding 100,000 Bahraini dinars.
• Cancellation of registration from the commercial register.

• Coordinating the work of the Small and Medium Enterprises Development Council to develop SMEs and increase their numbers to create more job opportunities and contribute to the local economy.
• Establishing and developing mechanisms and plans to support and encourage SMEs and business incubators to increase their contribution to the national economy.
• Conducting studies and research on SMEs and business incubators and providing recommendations.
• Developing standards, requirements, and classifications for SMEs and business incubators in accordance with international best practices.
• Following up on the implementation of strategic initiatives and programs to support SMEs in coordination with relevant authorities.
• Monitoring the performance indicators of SMEs, including their contribution to GDP, exports, and employment, and evaluating them accordingly.
• Maintaining a database of SMEs and tracking their financial and operational conditions per relevant regulations.
• Providing guidance and advisory support to SMEs and entrepreneurs through consulting services and development and training programs.
• Identifying problems and obstacles faced by SMEs and working with relevant authorities to develop solutions.
• Simplifying laws and procedures to create an encouraging business environment for SMEs and entrepreneurs.
• Collaborating with local, regional, and international organizations to hold seminars, conferences, and workshops, and engage experts to support entrepreneurship and SMEs.

Business incubators and accelerators provide an environment designed to develop and accelerate the growth of startups and small and medium enterprises by offering a comprehensive package of support services.

Services provided by business incubators and accelerators:

• Workspaces equipped with IT services.
• Business consulting, guidance, and mentoring.
• Training programs and workshops to develop professional and technical skills.
• Marketing, public relations, and networking activities.
• Assistance with business planning.

Additional services provided by business accelerators:

• Structured business acceleration programs.
• Assistance in obtaining financing and investors.
• Investment in startups through equity participation.

The maximum incubation period is two years from the date of the “license issuance” request.

The period can be extended for another year only once, based on the recommendation of the business incubator and the approval of the administration.

Terms and conditions apply.

It is an electronic system that allows businesses to apply for the "Small and Medium Enterprises Classification Certificate," an official certificate approved by the Ministry of Industry and Trade that indicates the size of the organization.

This certificate enables small and medium enterprises to benefit from programs and initiatives designated for them.

• Visit the Ministry of Industry and Trade website and go to the Small and Medium Enterprises page.
• Select the SME registration system.
• Choose the SME registration service, then log in using the electronic key.
• Select the branch for which you would like to obtain the classification certificate.
• Fill in the data and attach the required documents.
• Email notifications will be sent once the application is successfully received and approved.
• After approval, go to the application page to obtain or print the classification certificate.

Required documents:

• The latest financial data report audited by certified public accountants.
• If the report is unavailable, the following documents must be provided:

Micro enterprises:

• Bank statement for the last 3 months.

Small enterprises:

• Bank statement for the last 3 months.
• The internal accounts report for the past year covering all branches (including income statements and balance sheets approved by the institution/company).

• 10% preference when submitting government bids and tenders.*
• 10% preference when applying for auctions for service facilities within government agencies.*
• Benefit from a 20% allocation of government purchases and tenders to small and medium enterprises.*
• Access to Exports Bahrain services and programs.
• Preferential profit or interest rates for financing by the Bahrain Development Bank.
• Training programs for cloud computing capacity building.
• Nomination for participation in various events.
• Receive alert notifications related to small and medium enterprises.

*Based on Cabinet Decisions No. (241606) and No. (251604).

There are no fees.

The request will be answered or changed within 3 working days.

The Inspection Department is responsible for monitoring all types of commercial records and their branches.

Its primary objective is to ensure a safe and transparent commercial market where businesses can grow and flourish.

Main responsibilities:

• Conducting inspections of commercial and industrial establishments.
• Enforcing legal procedures on violators and calling for corrections where necessary.
• Providing business owners with information and guidance to ensure fair trade practices.
• Raising public awareness of the importance of compliance with laws and regulations.
• Conducting periodic inspections and inspection campaigns across various regions in Bahrain.
• Coordinating with relevant inspection departments within the Ministry and external entities.
• Receiving and verifying complaints from official bodies and the general public, then taking appropriate action.
• Providing a unified inspection service under one umbrella for all departments in the Ministry of Industry and Trade.

No, the licensed trade name must be displayed on the storefront, regardless of the presence of the trademark.

No, the activity can only be carried out after obtaining all necessary approvals, licenses, and registration certificates.

No, it is considered as practicing a commercial activity without a valid license, which is illegal.

Reconciliation is an agreement between the competent administration and the violator upon committing a violation of the provisions of Decree Law No. (27) of 2015.

It allows the violator to pay a sum of money (up to 1,000 Bahraini Dinars) in exchange for the administration dropping the criminal case.

Administrative closure is a legal procedure that stops an establishment from practicing its violating commercial activity for a specific period.

This procedure is activated when warnings are not complied with and violations listed on the registration are not corrected.

Judicial seizure status authorizes inspectors to carry out procedures to collect evidence on the extent of a commercial or industrial facility’s compliance with applicable laws and regulations.

It includes accessing the websites of those establishments, conducting investigations, and verifying violations.

No.

Yes, all trade laws require that the commercial registration number and branch be mentioned on the trade name plate, correspondence, invoices, publications, etc.

Submit a request to change the commercial address in the electronic records system to match the actual location of the business, to avoid violations.

Yes, it is considered a violation, and the jewelry must be examined and marked at the Ministry of Industry and Trade.

No, displaying or selling precious metals inlaid with cultured pearls is a legal violation.

• Gold
• Silver
• Platinum

Yes, all imported jewelry must be re-examined and labeled by the Ministry of Industry and Trade.

Caliber refers to the number of parts of pure precious metal per 1,000 parts by weight.

24K, 22K, 21K, 18K, 14K

Gold:

• 22 carat: 916 parts per 1,000.
• 21 carat: 875 parts per 1,000.
• 18 carat: 750 parts per 1,000.
• 14 carat: 585 parts per 1,000.
• 24 carat is considered pure gold (1,000 parts per 1,000).

Silver:

• 925 parts per 1,000.
• 830 parts per 1,000.
• 950 parts per 1,000.

Platinum:

• 950 parts per 1,000.

Yes, transferring or tampering with a hallmark (stamp) is a violation punishable by law.

The merchant must disclose any non-precious metals used in the jewelry and document them in the sales receipt.

• Company name and commercial registration number.
• Buyer's name.
• Sale date.
• Description of the goods by type.
• The caliber of the jewelry.
• Total weight of the precious metal used.
• If the jewelry contains diamonds, its weight must be mentioned separately along with its purity level.

Yes, a prior license is required from the Ministry of Industry and Trade.

No, but a receipt detailing the pearls’ description and nature must accompany the sale.

• Seller's name and commercial registration number.
• Buyer's name.
• Description of the goods (type, color, shape, number, and weight) separate from any metal.
• Sale date.

• Documenting the violation.
• Seizing and controlling the violating materials.
• Transferring the materials to the competent department for examination and compliance with standards.
• Writing a judicial arrest report and referring the violation to the Public Prosecution.

The artifacts are seized pending the case.

After a final judgment of conviction is issued, the Department of Inspection and Metrology examines the artifacts. If they meet legal standards, they are marked with the corresponding caliber; otherwise, they are destroyed.

• The trade name plate must be clear and posted on the storefront.
• It must contain the trade name exactly as licensed in the commercial registration certificate.
• It must include the commercial registration number.

Obtaining a commercial license is the second step in the commercial registration process. The license must be secured within one year from the date of issuing the commercial registration without a license. Failure to do so will result in the cancellation of the commercial register by the Ministry of Industry and Trade.

Requirements:

• Commercial address.
• Final beneficiary data of the commercial registry.
• Some activities may require additional documents.

By submitting the "Partner Management" request, applicants can add, remove, or update partner/shareholder information. Required documents must be provided according to the company type.

By submitting a request to “add a new branch to the commercial registration,” a new branch will be added to the existing commercial registration. The branch may practice commercial activities similar to other branches or introduce new commercial activities.

The mandatory VAT registration limit is calculated based on:

• The value of annual supplies subject to VAT during any previous twelve months.
• The value of expected annual supplies subject to VAT during the next twelve months.

Annual supplies subject to VAT for registration purposes are specified in Article (34), which includes supplies subject to VAT at the basic rate or zero percent rate. Supplies exempt from VAT or sales of capital assets are not included in the calculation.

These are activities that are similar in type or nature.

These are activities that require office management, including commercial and service-related activities.

You can search in the "Commercial Records Search" system, which will display registered commercial records.

Audit offices must be registered as a professional joint-venture company or a sole proprietorship, with the following requirements:

• The license applicant must be registered as an auditor with the Ministry of Industry and Trade.
• The applicant must have at least five years of experience in auditing in a licensed auditor’s office in Bahrain.
• Auditors affiliated with recognized certified public accountant associations must have at least 12 years of experience in auditing, either inside or outside Bahrain.
• For opening a branch of a foreign audit office, there must be a work center in Bahrain under the responsibility of a partner registered with the Ministry.

The Inspection Department is responsible for monitoring commercial records and their branches to ensure compliance with trade regulations.

Main Responsibilities:

• Conducting inspections of commercial and industrial establishments.
• Applying legal procedures to violators and calling for corrections.
• Providing business owners with information on compliance requirements.
• Raising public awareness of trade laws.
• Coordinating with relevant inspection departments and external bodies.
• Receiving and investigating complaints from official bodies and the public.

• The commercial signboard must be clear and posted on the storefront.
• It must display the trade name exactly as licensed in the commercial registration certificate.
• It must include the commercial registration number.

No, in all cases, the licensed trade name must be displayed on the storefront, regardless of the presence of the trademark.

Reconciliation is an agreement between the competent administration and a violator under Decree Law No. (27) of 2015.

The violator may pay 1,000 Bahraini dinars in exchange for the administration dropping a criminal case.

Administrative closure is a legal procedure that stops an establishment from practicing its commercial activity for a specific period.

This is enforced when warnings are not followed and violations are not corrected.

Judicial seizure status allows inspectors to collect evidence regarding a facility’s compliance with applicable laws and regulations.

Inspectors can enter establishments, investigate operations, and document violations.

No.

Yes, all trade laws require that the commercial registration number and branch be mentioned on the trade name plate, correspondence, invoices, and publications.

Submit a request to change the commercial address in the electronic records system to match the actual business location and avoid violations.

Reconciliation is an agreement between the competent administration and a violator under Decree Law No. (27) of 2015, allowing the violator to pay 1,000 Bahraini dinars in exchange for the administration dropping a criminal case.

Yes, it is considered a violation, and jewelry must be examined and marked at the Ministry of Industry and Trade.

No, displaying or selling precious metals inlaid with cultured pearls is a legal violation.

Yes, all imported jewelry must be re-examined and labeled by the Ministry of Industry and Trade.

24K, 22K, 21K, 18K, 14K

Yes, transferring or tampering with a hallmark (stamp) is a violation punishable by law.

Yes, a prior license is required from the Ministry of Industry and Trade.

A trademark is a distinctive sign used to differentiate goods or services from others. It can include words, logos, images, or a combination of these elements.

Any individual or business with a commercial or industrial facility in Bahrain, or any member country of the Paris Union or those with bilateral agreements in Bahrain, can apply for trademark registration.

5 days

3 days

It is not permissible to establish an industrial project without an industrial license, in accordance with the Unified Industrial Organization Law (Regulation) of the Gulf Cooperation Council countries.

An industrial license is issued according to the unified model for the Gulf Cooperation Council (GCC) countries, which authorizes the project owner to begin implementation.

Once approval is obtained, an industrial license is issued, allowing the project owner to start implementation.

The initial approval remains valid as long as the application is in the records system.

Initial approval is a no-objection certificate from the Industrial Development Department that allows the project owner to proceed with application procedures with other government agencies.

No, the initial approval is only a no-objection certificate. The project owner must complete further application procedures with government agencies before obtaining the industrial license and commencing production.

The industrial license expires after one year and must be renewed.

The industrial license is automatically renewed when the commercial registration is renewed.

14 days

All owners of industrial projects must register their establishments in accordance with the Unified Industrial Organization Law of the GCC countries. The registration certificate is also required when dealing with official authorities inside and outside Bahrain.

An application for registration in the industrial registry must be submitted within 60 days after the start of production.

60 - 90 days

All industrial inputs, including:

• Machinery and equipment
• Spare parts
• Primary raw materials
• Semi-finished materials
• Packaging materials directly necessary for industrial production

The customs exemption lasts for two years and is renewable.

The "Made in Bahrain" program is a promotional initiative to support the development of national industries. It provides a mark to national factories, aiming to:

• Stimulate local industry and encourage reliance on Bahraini products.
• Enhance consumer confidence in national products.
• Facilitate entry into regional and global markets.
• Support food security and self-sufficiency.
• Encourage Bahraini exports and improve product quality.

Local industrial establishments licensed and registered with the Ministry of Industry, Trade, and Tourism.

The certificate is valid for one year and is linked to the expiration date of the industrial and commercial registration.

• The mark can be printed, pasted, attached, or engraved on registered products' external packaging.
• The mark can be used in marketing, advertising, and promotional materials related to registered products.
• It is prohibited to use the mark on unregistered products.
• The mark's components and colors must not be altered in any way.
• General statements about the manufacturer must not include the mark for unregistered products.
• The mark cannot be incorporated into a factory, company logo, or any surrounding elements.
• The trademark must not be used without obtaining a certificate proving a local content percentage of at least 35%.

• Industrial activities: 1 BHD per square meter per year.
• Industrial activities (sea-facing plots): 1.5 BHD per square meter per year.
• Logistics activities: 4 BHD per square meter per year.
• Logistics activities (sea-facing plots): 6 BHD per square meter per year.
• Commercial activities: 9 BHD per square meter per year.

• Creating an environment that encourages entrepreneurship.
• Coordinating between agencies for SME development.
• Participating in training and qualification programs for entrepreneurs.
• Identifying obstacles and working with authorities for solutions.
• Licensing and monitoring business incubators and accelerators.
• Licensing emerging enterprises in incubators.
• Registering small and medium enterprises in the SME registration system.
• Issuing SME classification certificates.

Business incubators and accelerators provide structured support to startups and small businesses, including:

• Co-working spaces.
• Guidance and counseling.
• Marketing and commercial planning.
• Financial planning and public relations.

These initiatives aim to create a supportive business environment for entrepreneurs.

The maximum incubation period is two years.

Micro Enterprises:

• Bank account report for the last 3 months.
• Or the annual audited financial report.

Small Enterprises:

• Bank account report for the last 3 months.
• Internal accounts report or annual audited financial report.

Medium Enterprises:

• Annual audited financial report.

• 10% preference for government tenders.
• 10% preference for auctions for service facilities in government agencies.
• Access to a 20% share of government purchases and tenders.
• Export Bahrain services including financing, credit, and training.
• Eligibility for future SME development initiatives.

1. Selling via the Internet (ISBN 4791):

This includes online retail, where buyers select and pay for products online.

2. Operating marketplaces, websites, or portals (ISBN 6312):

This includes:

• Running online marketplaces displaying third-party products (without owning the products).
• Operating websites/mobile apps that use search engines to index internet content.
• Managing media websites that provide periodic content updates.
• Providing cloud computing-based services via websites/apps.
• Revenue may be generated from subscriptions, registration fees, or commissions.

If the business owner wants to purchase products for resale, the "Selling via the Internet" activity (code 4791) must also be added.

• Providing the website domain for the commercial registry (the website must be active).
• Providing a return and exchange policy, usage policy, and user protection policy.
• Providing a secure electronic payment method.
• Providing an activated shopping cart.
• Providing goods delivery service to customers.
• The products must not include heavy machinery, cars, weapons, pesticides, alcoholic beverages, or any other items requiring official approvals.

Conditions for obtaining a license:

• Must be a Bahraini national.
• Must not be the owner of a sole proprietorship or commercial company, or a manager/representative in any commercial company.
• Must commit to practicing commercial activity as a sole commercial enterprise only.
• Must provide a permanent mailing address.
• Must have an existing website for the virtual store.
• Must purchase products for sale only through the local market.

Restricted Products:

• Food and beverages.
• Medical devices and pharmaceutical products.
• Industrial chemicals, oil, and gas products.
• Tobacco products.
• Fertilizers, soil conditioners, and pesticides.
• Sale of live animals.
• Waste, junk, and heavy machinery.
• Weapons and other products requiring official approvals.

• The electronic market link must be entered into the registration system before starting the activity.
• A secure electronic payment option must be provided if consumers are allowed to purchase products or services through the platform.
• Products and services offered on the platform must be from registered and licensed companies or institutions.
• The name of the company or institution offering the products or services must be displayed on the electronic market.

Yes.

Yes.

• The report must be issued by an audit office licensed by the Ministry of Industry and Trade.
• Prepared in accordance with international financial reporting standards.
• Contains the auditor’s opinion.
• Stamped with the seal of the issuing office or signed by a certified auditor registered with the Ministry of Industry and Trade.
• Signed by the Chairman of the Board of Directors and another member or directors.
• Includes the company name, commercial registration number, date of issuance, and financial year details.
• The report must be final and approved (not a draft).
• Must include all branches of the company.

• Bank statement.
• Recent electricity bill.
• Copy of the lease contract.
• Copy of the employment contract.
• Photos of the store and the commercial name plate.
• Ministerial decision approving the company's reactivation.
• Recent financial report proving the company’s capital existence.