The first Law Update of 2024 is here, and our first focus of the year spotlights Healthcare and Lifesciences, a sector that is undergoing significant growth and development across the MENA region.
Our focus provides an insight into some of the most important regulatory updates across the region, such as the UAE’s groundbreaking law on the use of human genome, Kuwait’s resolution on nuclear and radioactive materials, the new regulations for healthcare services in Qatar, Egypt’s healthcare regulatory framework, and the impact of the Saudi Civil Transactions Law on the healthcare and life sciences sector … and there is so much more!
Beyond the healthcare pages our lawyers share with you multi-sector insights where you will discover articles on Dubai’s DIFC regulatory framework for startups, Bahrain’s commercial agencies law, and we also shed light on Kuwaiti civil code and the advantages of setting up a joint stock company in Saudi Arabia.Read the full edition
This news update follows Al Tamimi’s previous articles confirming the issuance by the Ministry of Industry, Commerce and Tourism (“MOICT”) of Resolution No. (106) of 2018 regarding the requirements of validating the actual economic substance of entities’ activities in the Kingdom of Bahrain (“Resolution”), and the publication of the detailed guidance notes with the aim of serving as a preliminary guide to relevant entities on the scope and application of the Rules (the “Guidance Notes”).
Al Tamimi’s previous articles can be located at the following links:
The Bahrain ESR Regime places certain obligations on various types of entities incorporated or registered in Bahrain, requiring that such entities have an actual economic presence in Bahrain. The Rules currently only applies to companies that undertake certain distribution activities, service centres, activities of head offices, activities of holding companies, shipping activities, intellectual property activities, and leasing activities (“Relevant Entities”). Such obligations include the imposition of requirements with respect to the holding of management/shareholder meetings; the taking of strategic decisions; record keeping; number of employees; outsourcing; and the seeking of the MOICT approval for certain designated actions
All Relevant Entities are required to file an annual return (“ESR Annual Return”) with the MOICT within three (3) months of a Relevant Entity’s financial year end. The form of the return has also been published by the MOICT.
This meant that for Relevant Entities with a financial year that ended as of 31 December 2019, the ESR Annual Return should have been submitted to the MOICT by 31 March 2020.
In light of the spread of COVID-19, and as a means to providing more flexibility to the Relevant Entities, the MOICT however extended the deadline for Relevant Entities to submit the ESR Annual Return to 30 June 2020.
Failure to adhere to the requirements of the ESR (including failure to submit the completed ESR Annual Return to the MOICT by the deadline) may result in a variety of sanctions being imposed by the MOICT.
These potentially include:
It is important for your Bahrain based businesses to:
As the largest law firm in the Middle East and with strong corporate structuring experience across all industry sectors in the region, Al Tamimi & Company is well placed to assess the impact of the recently introduced Resolution on your organisation and assist you in complying with the Resolution.
We are currently offering clients a fixed fee arrangement with respect to advising on what the ESR mean for your business; carrying out a ‘health-check’ on your existing level of economic substance in Bahrain; and (if required) assistance in completing and submitting the ESR Annual Return to the MOICT.
If you would like to further discuss the contents of this update, please contact Al Tamimi & Company in Bahrain.
Trainee Lawyer, Corporate Structuring