Bahrain Trade Name Rules

The Kingdom of Bahrain has been performing as an outstanding business ground at an international level. By widening out the business opportunities, and focusing on the non-oil segment, Bahrain has paved out more ways to fetch-in more FDI.  According to Doing Business, Bahrain holds the 43rd rank among 190 nations in the ease of doing business.

Investors from all over the world are now convinced that Bahrain is one of the smart options to diversify their business and to enhance profit by entering the international market. In 2019, Bahrain’s GDP had a growth of 2.3% and is expected to hold a count of 2.45% by the end of 2022.

Business setup in Bahrain is a feasible option, but at the same time, it is to be kept in mind that the business entity needs to hold a trade name. This guide outlines the respective Bahrain trade name rules that an investor needs to know before setting up a business in Bahrain.

Bahrain Trade Name Registration Rules

A business trade name is the face of a business that needs to be chosen wisely. However, before finalizing the business trade name in Bahrain, one needs to abide by the rules and regulations set by the governed authorities. As per the Commercial Company Law, the following conditions are to be met accordingly:

  • The trade name has to be unique from its competitors
  • The trade name should be displayed on the company letterhead
  • The trade name must breach the public morals
  • The selected trade name needs to be registered in Arabic, but also is acceptable in the common foreign language

Reasons for Trade Name Rejection

As per the laws set by the governing authority, if the guidelines are not followed accordingly, that would lead to the rejection of the business trade name. Some of the core reasons for rejection of trade name in Bahrain include:

  • If the trade name is a copy of an international business entity
  • If the trade name causes any kind of confusion among the public
  • If the selected name holds any political, military or religious content
  • If the name is similar to any international non-profit-organization
  • If it contains an imitated trademark
  • If it’s used is banned or restricted to certain parties by a legislation

What is the Procedure to Register a Trade Name in Bahrain?

Trade name registration is a crucial step when it comes to company formation. The registration of trade name in Bahrain involves the below steps:

  • An application regarding the trade name needs to be duly filled and submitted to the competent Directorate, designated by the Ministry
  • Upon submitting the same, the competent Directorate shall decide on the acceptance or rejection of the trade name. (The complete process will not take more than ten (10) working days)
  • If the application is accepted, it shall be registered immediately and published in the Official Gazette. Also, the same will be published in the local newspaper in Arabic.
  • In case of rejection, the applicant may file a grievance against the refusal to the Ministry within thirty (30) days from the date of the rejection decision
  • The matter will be looked into, and a decision will be issued by the Ministry within fifteen (15) working days
  • In case, if the grievance gets rejected, the applicant may appeal it again before the competent court within thirty (30) days from the date of notification

If the Trade Name is Accepted

  • The selected business trade name shall enjoy protection after being registered in the Trade Name Registry
  • The proprietor of the trade name has the flexibility to prevent any third party to use the designated business name
  • The trader holds the flexibility to use more than one trade name to distinguish the different types of commercial activities
  • The business entity needs to write the trade name clearly in front of the business premise, and all forms of printed materials

Transfer of Business Trade Name

According to the conditions mentioned in Article (10), the transfer of the business trade name holds the following terms:

  • The owner might transfer, assign, mortgage the trade name
  • If the ownership has been transferred without transferring the trade name, then the business proprietor of the name may continue to use the same
  • The transferring of the title needs to be published in the Ministry’s electronic site, along with the local newspapers

Penalty Related to Business Trade Name in Bahrain

Violation of the trade name rules stated by the governed authorities will lead to penalty payment, in between BD 500-BD 1,000. Some of the conditions that lead to penalty include:

  • If the business owner has deliberately used a trade name owned by another person
  • If the trade name misleads the public or contravenes the provisions of the Law
  • If the trade name used is not present in the Trade Name Registry

Thus, by now you have got an idea regarding the business trade name registration process and the relevant proceedings that need to be followed. To carry out the complete process in an error-free way, the business owners prefer to proceed ahead with legal experts.

Why to Avail Professional Services?

The initiative of proceeding ahead with business expert reliefs the business owners to a great extent. Some of the benefits that the business owners can avail by moving forward with business experts are:

1.Well-versed with Legal Documentation

Dealing with the company documents and getting the relevant approvals turns out to be complicated at one point. Business experts have their network to speed-up the process, which helps the business owners to get quick results. This might not be possible when it comes to individual owners taking the initiative to deal with the legal process.

2.Less Burden

As mentioned above, the legal documentation gets handled quickly, the business owners are set free from the unwanted burden. This helps them to take necessary measures towards planning and strategy building to drive their business. At the same time, there is an effective utilization of the available resources and time.

3.Implementation of Expert’s Advice

Professionals end up dealing with multiple clients daily dealing with different industries. This interaction helps them to gain knowledge of various sectors. Implementing these insights turns out to be beneficial for the respective clients. On the other hand, if any business owner proceeds alone, he/ she may not be available of the relevant rules, procedures or happenings in the market.

4. Take care of the Company Essentials

An expert is well-versed with the company incorporation proceedings and thus, takes care of the pre-incorporation and post-incorporation essentials. While performing the relevant activities, the business advisors also keep accounting, audit, taxation services in mind, and complete the related business operations.

How Can We Help?

At Business Setup Worldwide, we take care of the business establishment process and is dedicated to providing the best business setup solutions. Along with the business incorporation process, our experts are well-versed with the legal proceedings and can guide you at every step.

Our business advisors take the initiative of understanding the business needs and provide tailored solutions accordingly. If you are looking forward to setting up your business in the Kingdom of Bahrain, feel free to have a word with our experts. Contact us today-we’d be glad to assist.