14-Jun-2023 SMEs REGISTRATION SYSTEM IN BAHRAIN
free zone business smes smes registration system classification certificate start-up platforms tech-innovation hubs export bahrain program bahrain development bankWe are excited to announce the launch of Small and Medium Enterprises (SME) registration in Bahrain. As a business owner in Bahrain, this is a great opportunity to register your small or medium-sized enterprise and gain access to a range of benefits. The SME registration program is designed to support the growth and development of small and medium-sized enterprises in Bahrain. The program offers a range of benefits, including access to funding, training and development programs, and networking opportunities. To be eligible for SME registration, your business must meet certain criteria. We encourage all eligible businesses to take advantage of this program and register as an SME. This is an opportunity to grow your business and take it to the next level.
OVERVIEW:
Bahrain being global hub for new businesses has inculcated a culture of SMEs and entrepreneurship by encouraging start-up platforms, tech-innovation hubs, multiple free zone with relaxed rules and 100% ownership and profit repatriation rules.
SME registration in Bahrain allows the enterprises to benefit from the initiatives and support programs dedicated for SMEs.
The SME Classification Certificate allows the eligible institutions to benefit from the Cabinet’s Resolutions No. (2416-06) of 2017 and No. (2516-04) of 2019, which are concerned with allocating a 20% share of the value of government procurements and tenders to SMEs, and granting SMEs 10% preference in the biddings of service facilities within government departments and in the government tenders as well, except for tenders and auctions of a special nature.
The SMEs Registration System classifies enterprises by size and awards classification certificates to micro, small and medium enterprises only to be used as a proof of size by entities that require a valid classification certificate to provide their support services or programs.
CLASSIFICATION OF SME:
Company Classification is a process that is issued by the Kingdom of Bahrain to carry out all the business transactions in a standardized form.
Classification certificates in Bahrain are obtained by evaluating and classifying them based on their size and specialties.
The process of classifying enterprises shall be subject to the provisions and criteria adopted in Resolution No.(229) of 2017 on the classification of micro, small and medium enterprises.
ELIGIBILITY TO REGISTER:
All types of enterprises except for the categories mentioned in the following are allowed to submit applications to obtain the classification certificate provided that the enterprise has a commercial registration from the Ministry of Industry and Commerce of Kingdom of Bahrain and its status is considered active.
- 1. SME classification certificates are not awarded to large-size enterprises.
- 2. Companies with the type “Branch of a Foreign Company”.
- 3. Commercial registrations which include any of the following activities:
- a. Banks Activities
- b. Insurance/ Reinsurance Activities or
- c. Other credit granting activities.
- 4. SME classification certificates are not awarded in case of existence of a large size subsidiary with 20% shares or more even if the commercial registration in the application is classified as SME itself.
5. SME classification certificates are not awarded in case of existence of a large-size subsidiary owned by the same group of shareholders and partners of the commercial registration specified in the application even if the shares of each individual is less than 20%.
APPLICATION PROCEDURE FOR CLASSIFICATION:
- 1. The application has to be submitted via website of Ministry of Industry Commerce and Tourism(MOIC).
- 2. The application for classification and certification shall be submitted on branches level of enterprises, but classification is decided by commercial registration (CR) level i.e., if the commercial registration of an enterprise includes more than one branch, the classification will be determined based on the total number of employees and total annual revenues of all active and deleted by law branches.
- 3. The system also allows the classification of Small, Medium and Micro enterprises depending upon its size and capacity.
- 4. Medium-size enterprises that do not exceed 18 months since the issuance of the license are allowed to submit in-house financials report in addition to bank statements as an alternative of the audited financial report.
- 5. The bank statement submitted through the application must be for the last 3 months, and if the enterprise has not exceeded 3 months since the issuance of the license, then the available bank statements for the period from the date of license issuance until the date of the application will be acceptable.
- 6. Applications status will be updated within 3 working days from the date of receipt.
- 7. Once the application is approved, a classification certificate is issued by MOCIT.
THE ADVANTAGES ASSOCIATED WITH THE SMES CLASSIFICATION CERTIFICATE:
- 1. Entering the largest SMEs database in Bahrain & be nominated to participate in various events dedicated for SMEs
- 2. An exclusive discount of 7% on the rates of the health insurance program "Nomu" provided by Bahrain National Life Insurance Company.
- 3. Benefiting from the "Export Bahrain" program, which enables the institution to display its products in international markets.
- 4. Receiving notifications about the latest initiatives & programs and the most important news related to SMEs.
- 5. The qualification to participate in tenders set aside for SMEs
- 6. The SME Registration is a setup established to promote small and medium start ups in the Kingdom of Bahrain.
- 7. The qualification to benefit from the training program to build the capabilities of SMEs in cloud computing.
- 8. The eligibility for a discounted rate (interest/profit) rate of 0.5% p.a. of loan pricing from Bahrain Development Bank.