Authorised distributor status requires 51% Bahraini ownership
TDT | Manama
The Daily Tribune – www.newsofbahrain.com
Only companies with at least 51% Bahraini ownership will be granted Authorized Distributor status in the Kingdom, top Industry Ministry officials announced. They also clarified that the company must have its headquarters in Bahrain.
This also means that eExisting distributors should regularise their status by October according to the new regulations.
This announcement was made during a seminar organised by the Bahrain Chamber in cooperation with the Ministry of Industry and Commerce for business owners, focusing on regulations for the “Authorized Distributor” activity.
The seminar featured a detailed presentation by representatives from the Ministry of Industry and Commerce, led by Assistant Undersecretary of Commercial Registration & Companies Faisal Saleh, Director of the Registration Department Bader Al-Saad, and Legal Affairs Advisor Mohamed Al-Eid.
The ministry officials explained that individual establishments and companies wishing to register as authorized distributors must have a Bahraini partner with at least 51% ownership and have their headquarters in Bahrain.
Applicants must also possess an active Commercial Registration (CR) and provide documentation of a distribution agreement with the trademark owner.
It was clarified that multiple authorized distributors can be registered for a single trademark.
However, if the trademark owner refuses to grant distribution rights to a company with more than 49% non-Bahraini ownership, both parties must notify the relevant ministry department.
The ministry will keep records of all distribution contracts and any amendments.
The officials emphasised the importance of complying with Bahraini laws and requirement to register the activity and distribution contracts in the authorised distributors’ registry.
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