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Ministry of Industry, Commerce & Tourism Bahrain has set CR Ownership rules and regulations for best economic environment and business practices. These rules and regulations define which Activity a person can practice in the Kingdom. These rules are based on applicants Nationality. Currently there are around 375 types of businesses that are allowed for all Non-Bahrainis. Activities allowed to Non Bahrainis are mostly related to Services & manufacturing. If you’re unsure which activities you can legally operate under your nationality, our business structure consultancy in Bahrain can help assess your eligibility.
What is Commercial Concealment?
In general, Commercial concealment means renting the CR. This act allows a Non-Bahraini to practice an activity that he is not allowed by law. An example is renting a Construction CR to a Non-Bahraini against a Monthly fee. Commercial concealment causes market instability, unfair competition and unfair overcrowded investment.
To avoid concealment risk, Bahrain company setup should be based on the correct activity, ownership structure, and legal operating authority from the beginning.
What is New about Commercial Concealment in Bahrain?
In line with the directives of the Government Executive Committee, headed by Crown Prince Prime Minister His Royal Highness Prince Salman bin Hamad Al Khalifa, Ministry of Industry, Commerce & Tourism in cooperation with BCCI has launched a National campaign to combat Commercial Concealment. All relevant law enforcement agencies shall collaborate to combat commercial concealment.
Penalties
If a person continues the violation the offending business shall be closed and CR shall be cancelled along following punishment:
- Imprisonment for a period not exceeding a year.
- Fine not exceeding BD1,000.
- Or Both of Above mentioned punishment.
Need help handling compliance or CR regulations? Our PRO services in Bahrain can support your business legally and efficiently.
How to legalize?
If you are committing commercial concealment in Bahrain by renting CRs to someone or you have rented someone’s CR, you can rectify the offense in following steps:
- Actual owner directly operates the CR.
- Convert Individual Establishment to WLL by making Renter & Rentee partners
When correcting a concealment issue, local sponsorship in Bahrain should be reviewed carefully so the CR, shareholder arrangement, and operating control match legal requirements.
