Bahrain: Two Men Fined BD 500 by Lower Criminal Court for Renting CR
The Lower Criminal Court has imposed fines on two individuals, a Bahrain and an Asian national, for violating Commercial Registration (CR) laws. Both men were fined BD 500 each for their involvement in breaching CR regulations by renting the document. A Commercial Registration certificate (CR) is a legal document issued to investors upon registering their establishment in the Kingdom of Bahrain with the Ministry of Industry & Commerce.
Case files say the Bahraini man allowed the Asian national to utilise his CR in exchange for a monthly fee, thereby contravening commercial laws in the country. Upon investigation, it was discovered that the Asian national had been using the CR details of the Bahraini man to operate a business under a lease agreement.
Prior to taking legal action, the Ministry of Industry and Commerce had issued a warning and a one-week deadline to the Bahraini man, urging him to rectify the violation. However, he failed to comply with the authorities’ instructions. During interrogation, the Asian national admitted to paying BD50 as a monthly fee to the Bahraini man for operating the business. He also confirmed that he was responsible for settling the EWA bills and other associated fees. As a result, the Lower Criminal Court imposed fines on both individuals and mandated them to bear the expenses of publishing the judgment.
In Bahrain, it is against the law for a business owner registered in the commercial register to engage in commercial concealment, which involves selling or renting out the commercial registration (CR) or leasing a commercial shop to a non-Bahraini individual. Commercial concealment refers to the act of enabling a non-Bahraini to carry out a commercial activity that is prohibited for them, such as using the personal data, license, or commercial registry of a Bahraini or someone of similar status.
These actions, which lead to commercial concealment, are considered criminal offences due to the fact that the government of Bahrain has granted the right to conduct commercial business exclusively to the registered business owner and not to be extended to others.
