English translation published by the Legislation and Legal Opinion Commission. The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.
Related Persons' annual Supplies are aggregated for the registration test. Under Article (40) of the Regulations, where the total exceeds the mandatory threshold each Related Person must apply individually, and the NBR may register them on its own initiative (automatically) or where they are shown to have split their activities to avoid registration.
Owners, family groups, Related companies and operators using multiple entities or commercial registrations.
Formal separation does not prevent aggregation where financial, economic and organisational links exist. Avoidance intent is not a precondition: it is one ground for NBR registration, alongside the NBR's own-initiative power and each Person's duty to apply.
Current text
Review Related Persons
- 1
Identify financial, economic and organisational links.
- 2
Aggregate annual Supplies of Related Persons for the threshold test.
- 3
Document the genuine commercial basis for separate entities or activities.
- 4
Where the aggregate exceeds the threshold, test each Person's application duty rather than waiting for automatic registration.
Connected provisions
Regulations — Article (40)
Registration of Related PersonsIt requires aggregation, identifies the three links, requires each Person to apply individually where the total exceeds the threshold, and permits the NBR to register them on its own initiative or where activities were split to avoid registration.
Open connected ArticleLaw — Article (29)
Mandatory registrationThe mandatory threshold is applied after Related Persons' Supplies are aggregated under the Regulations.
Open connected ArticleOfficial guides and tools
Connected Madar tools
One activity split across Related entities
If the same activity is divided among financially, economically and organisationally linked entities, each below BHD 37,500 but together above it, each entity must apply individually. The NBR may also register them on its own initiative, including where the split is shown to have been made to avoid registration.
Questions to help you apply it
- Do all three financial, economic and organisational links exist?
- Do aggregate annual Supplies exceed the threshold?
- Is there a documented commercial reason for separation, or does it appear designed to avoid registration?