New eCommerce rule comes into force

Manama : With an intention to help Bahraini entrepreneurs thrive in online business, expatriates have been ruled out from running the business in the Kingdom.

This comes as a recently implemented ministerial decision which stipulated that Virtual Commercial Registrations (VCRs) would be strictly issued for Bahrainis, came into effect on Friday, a day after its publication in the Official Gazette.

The official publication stated that the decision was taken by  Minister of Industry, Commerce and Tourism Zayed bin Rashid Al Zayani on December 1 and that it includes 39 businesses.

Decision 152 of 2016 which allows ‘the practice of commercial activities through virtual locations’ mentions that the applicants for VCRs must be Bahrainis who do not own or manage any commercial establishments. They should provide a permanent mailing address and should strictly commit to operating the business through an individual commercial establishment.

“The businesses are allowed to be practiced through virtual locations, in accordance with the evaluation of the concerned directorate in the ministry and the nature of the business.”

The decision also highlights that those granted licenses are not authorised for issuing work permits for foreign employment in relation to their businesses.

Al Zayani’s decision comes almost one year after the issuance of VCRs was announced. The ministry said that the initiative is to help Bahraini entrepreneurs practice their work with the least cost, and to also legalise such activities to help them obtain consumers’ trust.

“VCRs will open new doors for Bahrainis to practice their home-based businesses without being obliged to have a physical establishment ,” the minister stated back then. 

With the introduction of the Virtual Commercial Registrations (VCRs), Bahrainis could be integrated within the local labour market without bearing the expenses of forming companies, rents, employees and capitals that are usually required to obtain a regular commercial record, according to Minister of Industry, Commerce and Tourism Zayed bin Rashid Al Zayani.

The businesses included in the decision are: administrative consultancy services, public relations, fashion designing, interior decoration and design, graphic design, photography, translation, publishing programmes, movies, video and television production, publishing voice recordings and music, computer consultation, computer programming, operating websites, preparing data for websites and networks, sports instruction (football, baseball, cricket and swimming).

Horse-riding training, martial arts training, yoga training, designing training, arts and drama designing, live performances production, handcrafts, drawing, sports events organising, personal events organising, tailoring, packing, business supporting activities, maintenance, jewellery designing, teaching and training related activities, trade of stamps and antiques, laundry and ironing, other specialised designing activities, shoe repair and manufacture of metal materials are among the other businesses that can be run online.