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.
The NBR may automatically register Related Persons in cases set by the Regulations. The detailed rule targets business fragmentation used to avoid the registration threshold, not the mere existence of a relationship.
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 and the business was fragmented to avoid registration. The NBR may register each relevant Person with immediate effect.
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 and permits immediate registration where fragmentation to avoid registration is proven.
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, the Regulations test whether the split was used to avoid registration. The NBR may then register the relevant Persons immediately.
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?