Strong Substance.
Stronger Standing.
Expert guidance and end-to-end ESR compliance services to navigate the complexities of Bahrain’s regulatory environment.
Economic Substance Regulations (ESR)
In Bahrain, all businesses registered with a Commercial Registration (CR) are required to comply with ESR. These regulations ensure that entities demonstrate substantial economic presence and operations within Bahrain.
Failure to meet these requirements may result in severe penalties, including fines, suspension of commercial registration, or criminal prosecution.
Core Income-Generating Activities (CIGA)
Businesses conducting these activities must demonstrate substantial economic presence in Bahrain.
Economic Substance Test Requirements
Conduct relevant Core Income Generating Activities (CIGA) in Bahrain.
Maintain adequate number of qualified full-time employees and physical offices in Bahrain.
Management must be physically present with local Board of Directors meetings.
Board of Directors must possess necessary authority and knowledge for strategic decisions.
Our ESR Compliance Services
Comprehensive support to ensure your business stays fully compliant with ESR regulations.
ESR Classification and Assessment
We review your business activities, determine ESR applicability, and ensure accurate classification for a clear and compliant approach.
ESR Reporting and Notification
We manage ESR reporting and notifications, ensuring every submission is accurate, timely, and fully aligned with regulatory requirements.
ESR Compliance
We create tailored ESR compliance plans designed around your operations, helping your business meet all mandated regulatory expectations smoothly.
Record-Keeping and Documentation
We maintain organised ESR documentation, ensuring your business stays prepared for regulatory audits, reviews, or compliance-related inquiries anytime.
Regulatory Authorities
Consequences of Non-Compliance
Warning Notices
Official notifications regarding compliance gaps.
Suspension of CR
Temporary or permanent suspension of your Commercial Registration.
Criminal Prosecution
Legal actions against non-compliant entities and directors.
Financial Penalties
Penalties of up to BD 1,000 per day for ongoing non-compliance.
Striking off CR
Complete removal from the Commercial Register.