New Amendments to Commercial Registry Law
Ministry of Industry and Commerce (MOIC) has implemented two new Ministerial Orders under the amended Commercial Registry Law No. 27 of 2015 (the “Commercial Registry Law”), aiming to streamline registration, licensing, and reinstatement processes for businesses. These updates simplify delegation requirements, introduce flexible renewal options, and reduce the financial impact of delayed registrations.
The recent amendments are presented in two orders, each addressing specific aspects of the Commercial Registry framework:
– Ministerial Order No. 62 of 2024: This order revises the Implementing Regulations of the Commercial Registry Law, initially set out in 2016 and amended in 2018. It introduces simplified requirements for authorizing representatives in registration submissions and allows annual renewal options for activities requiring longer approval timelines, such as factories and hospitals.
– Ministerial Order No. 63 of 2024: This order revises the financial penalties for delays in renewing commercial registrations, with a newly structured penalty system and a cap to limit financial liability.
Under the amended Article 6, Paragraph 2, registered entities can now delegate registration submissions more easily. Instead of requiring an official power of attorney, recognized professional bodies and employees of the registrant can submit authorizations using a standard form. This adjustment is expected to reduce administrative burdens, streamline processing, and lower associated costs.
To encourage timely compliance, Article 10 mandates that registrants obtain necessary licenses within one year of registration or face automatic deletion. Notifications for such deletions will be issued via the Ministry’s online portal. However, for industries with inherently longer approval timelines—such as manufacturing and healthcare—annual renewal is now possible if valid reasons and fees are submitted.
Ministerial Order No. 63 of 2024 introduces a revised penalty structure for delays in renewing registrations. This structure not only encourages timely compliance but also caps total penalties to reduce financial strain on businesses. The new fee system is as follows:
- First Year of Delay: BHD 10 per month
- Second Year of Delay: BHD 20 per month
- Third Year of Delay: BHD 30 per month
- Beyond Three Years: BHD 500 per year, with a maximum total cap of BHD 5,000
The cap on financial penalties is particularly beneficial for businesses facing prolonged delays, as it reduces the risk of significant cumulative fees.
Effective as of October 17, 2024, these amendments reflect Bahrain’s commitment to modernizing and adapting its commercial regulatory framework. By streamlining delegation requirements, offering annual renewals for complex registrations, and capping penalty fees, these new orders provide businesses with greater flexibility and clarity in managing their commercial registrations.
