In line with the regulatory changes taking place to better cater Bahrain for startups under Startup Bahrain, the Kingdom of Bahrain is on the verge of introducing new bankruptcy laws that aim to give better protection for businesses, especially startups against the risks of failure.
His Excellency, the Minister of Industry, Commerce, and Tourism, Mr. Zayed R. Alzayani announced that these bankruptcy laws will aid in the minimizing of risk factors will are currently irritant at this stage.
With the recent commercial activity fee hikes, the Minister confirmed that any decisions made by the Ministry will be in line with maintaining Kingdom’s competitive edge for businesses.
“Bahrain is still a very competitive business destination regionally and internationally and we will continue to add new dimensions of easing business while maintaining the competitiveness of the economy…”, the Minister announced.
At Startup MGZN, we believe that the new laws to be introduced might take the form of giving the opportunity to file for bankruptcy which will help startups by discarding debt or making a plan to repay debts. The friendly law aspect may look like the United States’ which is concerned around the fast and sufficient of liquidation of assets process that will act as a stimulus for entrepreneurship by allowing a quick reallocation and new opportunities. In English, the idea is to make Bahrain the best place to start fast and fail fast. If failing is dreadful, the incentive to start naturally lowers.
Such laws will provide a safe and fast environment for startups to fail with smaller consequences and move on quickly.
Stay tuned on what these bankruptcy laws will be and more on this topic.