In a recent seminar organized by the Bahrain Chamber in collaboration with the Ministry of Industry and Commerce, top officials announced that only companies with a minimum of 51% Bahraini ownership will be granted Authorized Distributor status in the Kingdom. It was further clarified that these companies must also have their headquarters located in Bahrain. Existing distributors are required to regularize their status by October in accordance with the new regulations.
The seminar featured a comprehensive presentation by representatives from the Ministry of Industry and Commerce, including Assistant Undersecretary of Commercial Registration & Companies Faisal Saleh, Director of the Registration Department Bader Al-Saad, and Legal Affairs Advisor Mohamed Al-Eid. The officials explained that individual establishments and companies looking to register as authorized distributors must have a Bahraini partner with at least 51% ownership and maintain their headquarters in Bahrain. Additionally, applicants must possess an active Commercial Registration (CR) and provide documentation of a distribution agreement with the trademark owner.
It was highlighted during the seminar that multiple authorized distributors can be registered for a single trademark. However, in cases where the trademark owner refuses to grant distribution rights to a company with over 49% non-Bahraini ownership, both parties are required to notify the relevant ministry department. The ministry will maintain records of all distribution contracts and any subsequent amendments, underscoring the importance of compliance with Bahraini laws and the necessity to register the activity and distribution contracts in the authorized distributors’ registry.
Business owners in Bahrain attending the seminar were informed about the regulations for the “Authorized Distributor” activity and the essential criteria that companies must meet to qualify for this status. The emphasis was on the requirement of majority Bahraini ownership and a local headquarters, as well as the need for an active CR and a distribution agreement with the trademark owner. This initiative aims to promote and support local businesses while ensuring adherence to established regulations and legal protocols.
The Ministry of Industry and Commerce’s initiative to grant Authorized Distributor status exclusively to companies with 51% Bahraini ownership is part of a broader effort to bolster the local economy and prioritize local businesses. By requiring companies to have a significant Bahraini stake and maintain their headquarters in the country, the ministry aims to create opportunities for local entrepreneurs and foster economic growth. The regulations set forth during the seminar are designed to streamline the process of registering as an authorized distributor and enhance transparency and compliance within the distribution sector.
Overall, the seminar organized by the Bahrain Chamber and Ministry of Industry and Commerce provided valuable insights into the regulations and requirements for businesses seeking Authorized Distributor status in Bahrain. By outlining the criteria for eligibility, emphasizing the importance of compliance with Bahraini laws, and highlighting the need for transparency in distribution contracts, the officials have taken proactive steps to ensure a level playing field for all companies operating in the Kingdom. As companies work to regularize their status by October and align with the new regulations, the initiative is expected to create a more robust and competitive business environment in Bahrain.
