"Bahrain's Ministry of Industry, Commerce, and Tourism has implemented CR Ownership rules and regulations to promote an ideal economic climate and best business practices.These regulations determine the types of activities individuals can engage in within the Kingdom, based on their nationality. Currently, there are approximately 375 business activities open to non-Bahrainis, primarily in the services and manufacturing sectors."
Background
What is Commercial Concealment?
Commercial concealment refers to the illegal practice of renting a Commercial Registration (CR). This allows a non-Bahraini to engage in activities they are not legally permitted to practice. For instance, renting a construction CR to a non-Bahraini in exchange for a monthly fee constitutes commercial concealment. This practice disrupts market stability, creates unfair competition, and leads to overcrowding in investments.
What’s New About Commercial Concealment in Bahrain?
Under the directives of the Government Executive Committee, led by Crown Prince and Prime Minister His Royal Highness Prince Salman bin Hamad Al Khalifa, the Ministry of Industry, Commerce & Tourism, in collaboration with the Bahrain Chamber of Commerce and Industry (BCCI), has launched a national campaign to combat commercial concealment. This initiative involves coordinated efforts from all relevant law enforcement agencies to address and eliminate this illegal practice.
Penalties for Commercial Concealment
Businesses found in violation of commercial concealment laws face severe consequences, including the closure of the offending business and the cancellation of the Commercial Registration (CR). Additional penalties include:
- Imprisonment for up to one year.
- A fine of up to BD 1,000.
- Or both imprisonment and a fine.
How to Legalize Commercial Concealment in Bahrain?
If you are involved in commercial concealment in Bahrain, either by renting out a Commercial Registration (CR) or renting someone else’s CR, you can rectify the situation by following these steps:
- The actual owner must directly operate the CR.
- Convert the individual establishment to a WLL (With Limited Liability) by making both the renter and rentee partners.
