The Commercial Registration and Licensing Council of Ministers Regulation No. 392/2016, which came into effect as of 28^th of October 2016 is amended by Regulation No. 461/2020. As per Regulation No. 461/2020, which came into effect as of 21^st of January 2020, is attached here under. The following salient amendments are introduced:

1. Article 7 (4) of Regulation No. 392/2016, which used to require applicants for an amendment to trade name to present an authenticated shareholders resolution and proof of declaration of such change on newspaper of wider circulation is amended so as the proof of declaration of such change on newspaper shall not be applicable but only notification be made via information communication technology channels.

2. The amendment has also exempted applicants from the requirement of presenting of authenticated lease agreement, ownership certificate or other documentation that shows applicants having right over the business address that it notifies to the registering organ. Now applicants can merely state their business address by completing and signing the application form prepared by the relevant body for this purpose. Hence, the address that the applicant notifies as his business address on this form will be taken as his business address, for all purposes that are envisaged by Regulation No. 392/2016 (as amended by Regulation No. 461/2020).

3. The provision of Article 9 (2) of Regulation No. 392/2016, which prohibited the obtaining of certificate of registration by sole proprietor based on power of attorney is removed by the amendment. As per the amendment to this provision, where an application for commercial registration or an application for business license is to be made by an agent of sole proprietor, the agent is required to produce a power of attorney authenticated by a legally authorized body.

4.  As per the amendment an applicant for certificate of commercial representative office can deposit the minimum required amount of USD 100,000 (one hundred thousand), which is earmarked for salary and administrative expenses, in the name of the principal or in the name of his representative.

5. As per the amendment an applicant who wishes to cancel its commercial registration certificate is not required to adduce proof of publication of a notice of cancellation in a widely circulated newspaper twice within a month interval but rather such notification of cancellation will be made via information communication technology channels. The same principle is also applicable for an applicant who applies for cancellation of the special certificate of registration of holding company.         

6.  The amendment has revoked the mandate of the Council of Ministers to decide on other products or goods that can be retailed by manufacturers or importers. The amendment provides that “producers or importers may retail goods of such a nature that cannot be sold otherwise than by retailing”.  

7. As can be seen from the various provisions of Regulation No. 392/2016 only holders of identity cards and passports issued by government were allowed to get services of the registering organ. However, as per the amendment not only holders of identity cards and passports but also holders of driving license and any identity card issued by employers are allowed to get the services of the registering organs.

Published on April 18^th 2020