Kuwait sees noticeable surge in private nature companies

There is a noticeable surge in the demand for establishing companies of a private nature without a physical headquarters, driven by the streamlined processes facilitated by the Ministry of Commerce and Industry after the ministry issued four decisions to ease the licensing procedures for this category of businesses.

Official data released by MCI reveals a significant increase in transactions submitted to the Single Window Department for the establishment and licensing of companies with specific characteristics. In October 2023, the total number of applications reached 1,862, reports Al-Anba daily.

Companies of a private nature are those engaging in activities performed by their owners independently, without the necessity of employees, a commercial establishment, or approval from another regulatory body. This exception to the requirements outlined in the executive regulations of the Commercial Shop Licensing Law is designed to facilitate and support projects.

According to the data, the total number of licenses issued for specific activities in October 2023 was 839, with the administration having approved 351 license applications and rejected 672 establishment applications.

In May 2023, Minister of Commerce and Industry and Minister of State for Youth Affairs, Muhammad Al-Aiban, regulated 109 activities eligible for practice through companies of a special nature with the issuance of Decision No. 82/2023.

Subsequently, Resolution No. 86/2023 outlined 54 additional activities, while Resolution No. 170/2023 introduced 50 more activities, and Resolution No. 176/2023 added five additional activities to the list of activities of a special nature in the country.