Online registration rules not for home-based businesses

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

The new regulation for virtual commercial registrations, issued recently by the Minister of Industry and Commerce, His Excellency Abdullah bin Adel Fakhro, excludes home-based businesses, which are under the jurisdiction of the Ministry of Social Development. This clarification came after home-based businesses expressed worries about the new regulation for online businesses.

The new decision allows holders of virtual registrations to sell 71 products online, while prohibiting the sale of only 12 products. The new decision revokes three previous decisions: Decision No. (152) of 2016 concerning the authorisation of commercial activities through virtual commercial establishments, Decision No. (11) of 2021 concerning the regulation of the “chef” activity through virtual commercial establishments, and Decision No. (12) of 2021 concerning the regulation of online sales through virtual commercial establishments.

The new regulations establish three requirements for obtaining a virtual commercial registration: the applicant must be a Bahraini citizen, operate the business through a sole proprietorship, and provide a permanent correspondence address.

The decision prohibits holders of virtual commercial registrations from engaging in online sales of 12 products, including: food and beverages, medical devices and products, pharmaceutical and medical goods, industrial chemicals, tobacco products, oil and gas products, fertilisers, soil improvers and pesticides, live animals, waste and scrap, heavy machinery, weapons, and other products requiring approval from relevant government entities.

The decision outlines three requirements for operating a “chef” activity through a virtual commercial establishment: displaying the commercial registration number on the main page of the platform where the “chef” activity carried out or on the website, maintaining strict hygiene throughout all stages of food preparation, and ensuring food safety, including ingredients, preparation methods, and storage.

Chefs are allowed to sell directly to consumers or through contracts with restaurants, hotels, or other entities. The decision permits online sales for virtual commercial activities for 71 products, including: textile manufacturing, tailoring, clothing and garment making, electrical installations, plumbing installations, handicrafts, antiques, art exhibitions, stamps, coins, luxury goods, equestrian supplies, food delivery, software publishing, management consulting services, public relations activities, and more.

The list of products and services permitted for online sales through virtual registrations also includes activities such as designing and manufacturing clothing, shoes, jewelry, interior design, translation services, agricultural engineering, photography, and other services. There has been a flurry of frustration among those running home-based businesses, stirred by the latest online trading rules set out by the Ministry of Industry. Insiders reveal that while the new measures are designed to regulate online sales, they don’t seem to apply to production carried out at home.