Among the departments of the Companies Control Directorate are the Control Department and the Inspection and Commercial Guidance Department. These departments supervise the performance of all companies and commercial establishments in the Kingdom of Bahrain, updating, following up and implementing the laws, legislations, regulations, and resolutions of companies and other institutions.
Control Department Functions of the Companies Control Section
- To study and analyse complaints received by the department and follow up with the authorities concerned and with the inspection department.
- To investigate violators for offenses that require investigation, gathering evidence and preparing the relevant records.
- To supervise and transfer cases to the public prosecution service and attend the summons in order to issue the necessary certificate.
- To supervise, monitor, and maintain the file detailing black-listed violators.
- To supervise the investigation of suspects (those suspected of exploiting commercial records).
- To support the other departments in the Companies Control Directorate by carrying out a qualitative inspection of the audit offices, or by inspecting efforts to combat money laundering or corporate governance failures , as well as helping to monitor the attendance of the general assemblies.
- To facilitate the dissemination of information to clarify laws and commercial provisions and ensure that they are not violated.
- To supervise the cancellation of commercial establishments that violate the Commercial Register.
- To coordinate with the official authorities in regards to the procedures to be undertaken in the event of any commercial violations.
- To manage the disclosure of commercial violations related to publishing in social media or in advertisements in magazines.
- The Companies Control Department also conducts a periodic inspection and examination of all the data of the companies registered in the registry system “Sijilat”, to ensure that all commercial activity is in accordance with the conditions and controls set in advance of granting the Commercial Register. Additionally, the department is responsible for ensuring that the work is in accordance with the controls upon which the license was based.
The management is also responsible for the supervision and financial supervision of the business sector and certain other non-financial professions. The sampling process may begin either as part of the routine control plan or for any of the following reasons:
- When requested by shareholders or partners who own 25% or more of the company.
- When requested by the Minister of Industry, Commerce, and Tourism.
- When requested by other official bodies.
- To verify the nature of suspicious transactions.
- Upon failure to submit documents on which the violation was added .
- Upon failure to renew the Commercial Register for more than one year.
In addition, official licensors are responsible for supervising the licensing of their business activities, and are therefore regularly screened to ensure that they comply with the necessary conditions and licensing requirements. Laws related to the control function of the Companies Control Directorate
- Decree-Law No. (27) for the year 2015 concerning the Commercial Register and its Executive Regulations.
- Decree-Law No. (21) of 2001 on Commercial Companies and its Executive Regulations.
- Law No. (18) for the year 2012 regarding trade names.
- Decree-Law No. (1) for the year 1987 on the sale and rental of commercial shops.
- Decree-Law No. (26) for the year 1996 regarding auditors.
- Decree-Law No. (4) of 2001 on the prohibition and combating of money laundering and the financing of terrorism.