No insurance company or organisation operating in Bahrain shall carry on business in any of the insurance branches set forth in Article 4 save after obtaining a licence for this purpose from the Minister for Commerce and Agriculture.

Subject to the provisions contained in this Law, the Minister for Commerce and Agriculture may by an order to be issued in this respect lay down general rules comprising the conditions for engaging in the business of any branch of insurance or issue a licence in every individual case.

Nevertheless, existing insurance companies and organisations in Bahrain on the effective date of this Law shall continue to carry on their business for a maximum period of two years commencing from the effective date thereof. During this period, they shall modify their business affairs in compliance with the provisions of this Law and shall file an application for a licence with the Minister for Commerce and Agriculture, otherwise they shall be deemed to have been wound upon accordance with the Law or their licence for the branch of insurance rejected by the Minister shall be revoked.