Deadline for submission of audited financial statements and new requirements imposed by the MOIC

The requirement to submit audited financial statements to the Ministry of Industry and Commerce (MOIC) on an annual basis applies to all corporate entities or legal presences incorporated or registered in Bahrain including; With Limited Liability Companies, Branches of Foreign Entities and Bahrain Shareholding Companies (Closed).

Corporate entities registered in Bahrain with a financial year ending 31 December annually are required to submit their audited financial statements to the MOIC within six (6) months of the end of the financial year. As such, the deadline for such corporate entities is 30 June 2023.

Audited financial statements are submitted to the MOIC via their online portal. Failure to submit audited financial statements by end of June 2023 will result to a violation placed on the Commercial Registration (CR) of the entity on the MOIC online system, which has the effect of preventing the entity from, for example, carrying out any online applications or renewal of Commercial Registrations (CRs).

New Requirement

Historically, the MOIC only required a copy of the audited financial statement upon submitting the relevant application. As of 2023, and in line with a circular sent to registered audit firms in Bahrain, the MOIC now also require a copy of the resolution of the shareholders approving the appointment of the auditor / audit firm.

What should you do next?

To avoid a violation(s) being placed on the Commercial Registration (CR), your Bahrain based entity must:

1. Approach a registered audit firm in Bahrain in order to prepare audited financial statements for the financial year ended 2022;
2. Submit the audited financial statement on the online portal of the MOIC before 30 June 2023;
3. Ensure that your Commercial Registration (CR) is free of other violations and that it is renewed and active at the time of the submission of the audited financials.

How can we help?

As the leading law firm in the Middle East & North Africa Region and with strong corporate structuring experience across all industry sectors in the region, Al Tamimi & Company is well placed to assist you in complying with the Commercial Companies Law 21 of 2001, including working with you to complete and submit the required annual audited financial statements.

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.