Proposal Aims to Ease Financial Burden on Bahraini Businesses

TDT | Bahrain

The Daily Tribune - www.newsofbahrain.com

The Financial and Economic Affairs Committee of the Council of Representatives is reviewing a proposed law that would reduce business license fees and annual registration fees for any commercial entity wholly owned by Bahrainis (100%).

The explanatory memorandum accompanying the proposal highlights its aim to alleviate financial burdens on business owners, stimulate commercial activity in the Kingdom of Bahrain, and encourage Bahraini participation in trade. The proposed legislation stipulates a reduction in annual registration fees for commercial entities to a mere 30 Bahraini dinars.

Additionally, it proposes a 60 Bahraini dinar annual fee for companies that are 100% Bahraini-owned. Regarding foreign companies, the proposal does not specify specific fees. Instead, it mandates that fees for foreign entities or companies with foreign ownership be determined by ministerial decree following approval from the Council of Ministers.

The proposal further suggests reducing annual fees for conducting any commercial activity to 10 Bahraini dinars per activity for 100% Bahraini-owned companies and institutions. The first three activities would be exempt from this fee. Fees for foreign entities or companies with foreign ownership will be determined by ministerial decree following approval from the Council of Ministers.

The proposal's text argues that, "While Bahraini citizens are currently obligated to pay prescribed fees and other financial obligations to the Labour Market Regulatory Authority (LMRA) and other entities when establishing companies and institutions, these fees are not conducive to fulfilling their aspirations and ambitions.

Given the diverse commercial landscape in Bahrain, the current fees create significant financial burdens on business owners, potentially leading to closures. Recognising this, and acknowledging the legislative authority's responsibility to periodically review and amend legislation to reflect changing circumstances, particularly those affecting the fundamental elements of society, we present this proposal to the council."