Evicting Offices and Companies in Bahrain: Commercial Dispute Committee Mechanisms

In the free trade sector supported by Bahrain, the landlord is not allowed to terminate a contract for an active company and evict it arbitrarily solely upon the expiration of the term in the contract; rather, commitment and automatic renewal are required. The only way out to evict commercial establishments is their falling into serious violations exclusively mentioned in the law and eviction via the (Rent Dispute Committee).

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Commercial eviction cases for companies are complex and require representation by a specialized lawyer. Information last verified: March 2026.

Legal Basis for Filing a Commercial Eviction Lawsuit

The owner of a hotel tower or complex may demand immediate eviction at the Dispute Committee for the following cases concerning companies:

1. The Company Defaults on Payment and the Strict Grace Period

If the company (tenant) defaults on paying the monthly or annual rent installment, the landlord sends a (formal registered notice with acknowledgment of receipt). If (15 days) pass without paying the arrears, the landlord's right to file a lawsuit to the Dispute Committee arises.

• If it is the company's first precedent in defaulting and it pays all dues and attorney fees during the session, the Committee saves the company from eviction. But in the case of repeated stalling and attempting to pay later, the Dispute Committee in Bahrain is strict and often rules for immediate eviction for the commercial entity's lack of commitment.

2. Changing the Purpose and Commercial Activity (The Greatest Risk)

Lease contracts in complexes are drafted with studied percentages and balances (a cafe next to a pharmacy next to clothing). If the company changes the shop's license from a "clothing showroom" to a "restaurant" requiring new connections and potential damage to the complex (without written order and prior approval from the landlord), this constitutes sufficient justification to break the contract and rule immediately for eviction for breaching the condition of usufruct.

3. Hidden Subletting Operations and CR Transfer

This is a practice where manipulation abounds, which is the primary tenant terminating their activity and renting the commercial shop and decoration to another investor to sublet and running it with a different Commercial Registration (CR), without gaining the complex owner's permission. The landlord discovers this and evicts the shop entirely based on the violation of the (prohibition of subletting) clause.

• Note and Exception Regarding (Selling Goodwill/Assignment): If the entire establishment is sold as an active commercial registration, trademark, and trade name to another person, commercial custom considers the property a subordinate part of the activity sold to the new buyer, and the landlord must not insist on requesting eviction as long as the new buyer remains committed to paying rent and continuing the same activity, and the withdrawing tenant remains a guarantor in case the new one defaults, unless the landlord accepts concluding an exclusive lease contract with the new investor entirely.

To protect your commercial center and project, the Landager system provides tools for landlords in Bahrain to closely follow schedules for submitting Post-dated Cheques and the validity of licenses attached to every tenant company, as well as issuing a series of automated warnings regarding delayed transactions to mitigate risks early.

Back to Bahrain Commercial Laws Overview.