This issue is filled with great insights and expert commentary on areas that are relevant to the legal landscape and highlight how the business community is embracing technology, media and telecommunications. There are various topics covered, from new ways of working and digital transformation in the finance sector to data protection regulatory updates and guidance. We also have a series of articles that focus on e-commerce across a number of jurisdictions.
You will also find insights from our lawyers around real estate analytics, tech trends, and data centres.
We hope this edition of Law Update provides some useful food for thought – enjoy the read!Take a read of the edition
In 2019, Al-Tamimi published a news update to highlight 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”). The Resolution prescribed the requirements to be met by entities in Bahrain in terms of economic substance in Bahrain (the “Rules”).
The MOICT have now published 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”). This information article will summarise some of the key clarifications and reconfirmations appearing in the Guidance Notes.
The Guidance Notes reconfirm that the Rules apply to commercial entities in Bahrain which engage in the following commercial activities (“Relevant Entities”):
The Guidance Notes however re-clarify that commercial entities which engage in the following commercial activities regulated by the Central Bank of Bahrain (“CBB”), are required to abide by the CBB Directive (OG/499/2018) (this information article will however only focus on the Rules, and not the requirements to CBB regulated entities with reference to the relevant CBB Directive, which will be addressed in a separate client update to be circulated by Al-Tamimi):
Some key clarifications provided by the Guidance Notes include the following:
Failure to adhere to the requirements of the Resolution may result in a variety of sanctions being imposed by the MOICT with reference to the Law. These include:
It is important for your Bahrain based businesses to:
As the largest law firm in the Middle East & North Africa 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.
If you would like to further discuss the contents of this update , and find out what it means for your business, please contact Al Tamimi & Company in Bahrain.
Trainee Lawyer, Corporate Structuring