Commercial Registration
CautionWhat happens if you are late renewing your commercial registration
Late renewal of the commercial registration leads to its suspension and to all related transactions at the Ministry of Industry and Commerce being blocked, with a knock-on effect on work permits at the Labour Market Regulatory Authority. Reactivation remains possible for up to three years from the date of suspension, after which the registration is lost for good.
Statutory deadlines
| Transaction | Submission deadline |
|---|---|
| Renewal of the commercial registration entry | Six months before expiry |
| Renewal of the commercial activity | Six months before expiry |
| Renewal of a registration without a licence | Within the last fifteen days before the due date |
| Chamber of Commerce membership | Three months before the entry expires |
What happens when you are late
Suspension of the registration
The registration stops being capable of transactions, so it cannot be amended, liquidated or used in any procedure.
The fine rises over time
The fine starts at 60 BD from the first day of delay, in addition to the renewal fees themselves, and rises by 10 BD per additional month of delay.
The legal status of the registration changes
From the first day after the registration expires, its status becomes "legally cancelled", and it stays that way throughout the reactivation window. Once the three years pass without reactivation, the status changes permanently to "administratively cancelled".
Labour transactions are blocked
The suspension of the registration is reflected in the establishment's file at the Labour Market Regulatory Authority, which may put the work permits of existing employees at risk.
Higher cost
The cost of dealing with a suspended registration, and the time it takes, exceed what renewing on time would have required.
How the recovery period is counted
The three-year period available for reactivation starts from the date of suspension, not from the date the owner became aware of the matter.
Recovery period
| Situation | Action available |
|---|---|
| Within three years of the suspension | Reactivate the registration |
| After three years | The registration is lost for good |
| You want to close down | Convert the suspended registration into one that is officially cancelled and struck off |
A point many people miss
Stopping the activity does not mean closing the registration. Anyone who stops trading and leaves the registration without liquidating it remains bound by its obligations, and fines build up without their knowledge. Formal closure is a separate procedure that has to be carried out.