The Ministry of Commerce and Industry has issued two ministerial resolutions establishing a regulatory framework for freelance business activities in Kuwait, identifying the sectors in which such businesses may operate and setting out the licensing conditions and requirements.
The measures aim to define the areas open to freelance businesses and establish clear controls governing their operations. According to a ministry statement, the permitted activities cover a wide range of sectors, including professional, scientific and technical services, consultancy, and commercial activities, building services, administrative services, business support, arts, entertainment, leisure, education, training and tourism.
The approved list also includes rental activities, the use, maintenance and repair of products and equipment involving simple crafts, information and communications, real estate activities, and industries related to textiles, clothing and leather.
A key feature of the new framework is that licensed companies may conduct their activities without maintaining a physical commercial shop. This allows eligible businesses to operate under a formal company structure without the requirement of a traditional retail or business premises, subject to the conditions specified in the resolutions.
Applications for licences can be submitted through the Kuwait Business Center Administration, the unified government electronic services application Sahel or Sahel Business, or through any other channel approved by the ministry.
Under the regulations, a freelance business must be established as a single-person company. Its founder and manager must be Kuwaiti who is at least 21 years old and has full legal capacity. The applicant must also have no final conviction involving a custodial sentence for a felony or an offence involving moral turpitude or dishonesty, unless legal rehabilitation has been granted.
The company must provide a registered address, which may be a chosen domicile, a post office box or an email address registered with the Public Authority for Civil Information. Where a private residence is used as the company’s chosen domicile, approval from the property owner is required.
The ministry also requires companies to secure approvals from the relevant regulatory authorities for activities that are subject to additional licensing or regulatory requirements under applicable laws and decisions. The licence will be valid for four years and may be renewed for successive periods of the same duration.
To ensure transparency in commercial dealings, licensed companies must disclose their commercial registration number in their official accounts and business transactions. They are also required to open a bank account in the company’s name, use electronic payment methods approved by the Central Bank of Kuwait, and display both the company name and commercial registration number on their websites and social media accounts.
The regulations prohibit companies from receiving visitors or clients inside a private residence, even when that residence is registered as the company’s chosen domicile. This distinguishes the use of a home address for official registration purposes from operating a customer-facing business from the residence.
At the same time, the framework allows companies to exploit, market and sell designs, innovations, ideas and artistic models produced through their licensed activities.
It also permits freelance companies to enter into contracts with licensed companies and establishments that have commercial or industrial premises to undertake manufacturing, completion, preparation, printing and packaging work. They may similarly contract with licensed warehouses and establishments for product storage, receiving and preparing sales orders, and carrying out related logistical operations.
In addition, licensed businesses may participate in exhibitions and temporary markets and use electronic platforms to display, promote and sell their products and services, in accordance with the regulations in force.
The ministry assigned the Department of Commercial Registry and Economic Activities responsibility for determining the activities covered by the freelance business framework. The list may be expanded, amended or reduced through a ministerial decision published in the Official Gazette.
The two resolutions therefore establish the permitted scope of freelance business activities, while setting requirements for company ownership, licensing, financial transactions, business addresses and commercial operations. They also provide a framework for businesses to market and sell products and services through approved channels without necessarily maintaining a conventional physical shop.
