Reduce VCR fees by half: MP

TDT Manama

As part of the efforts of Bahrain’s Council of Representatives to support the extraordinary measures taken to combat the negative impacts of the coronavirus (COVID-19) on the national economy, a lawmaker recently called for the reduction of the monthly fees paid by owners of a Virtual Commercial Registration (VCR) by half.

This was proposed by MP Ahmed Al Aamer, who called upon the Industry, Commerce and Tourism Ministry to consider reducing the monthly fees by 50 per cent, due to the recession that has hit several business sectors that are operating in the Kingdom via VCRs.

VCRs are granted to Bahrainis only and include 39 professions to be carried out without the need to register the entity at the address of an office or place of business. These professions include public relations, translation services, design of training programmes, graphic design, personal events planning, packaging activities, and more.

Owners of VCRs are required to pay a monthly fee of BD150 to the Ministry. The MP pointed out that the financial stimulus packages launched by the Government to support several categories in the private sector to overcome the economic effects of the pandemic do not include VCR owners, who he said have taken drastic losses during these challenging times.

Additionally, MP Al Aamer mentioned that several VCR owners working in the field of training and consultancies have conveyed their ordeal to him, especially that seminars, gatherings, lectures and other essential activities for their businesses have been halted until further notice as a result of the precautionary and preventive measures taken to combat the spread of the disease.

“We invite the Ministry to support this category by reducing the monthly fees by 50 per cent, as they are struggling to survive during these difficult times, especially after many of them lost their contracts of offering training services to ministries, companies and individuals because of applying social distancing measures,” the MP said.

It is worth mentioning that VCRs were launched by the Industry, Commerce and Tourism Ministry a few years ago with the aim of “supporting and encouraging small individual enterprises”, by giving them the legal status to perform their activities and to simplify the procedures for the establishment of some businesses (entrepreneurs such as photographers, translators, trainers, consultants, etc.).

The Ministry says the move comes as part of the its desire to introduce a new model for the practice of some commercial activities. However, VCR owners are obliged to adhere to special requirements, such as being Bahraini nationals, not owning a sole proprietorship or single-person company, or being directors or members of any business, plus not being entitled to permits to bring in foreign workers.