Kuwait has introduced stricter rules requiring companies to keep accurate and up-to-date records of their beneficial owners, the individuals who ultimately own or control a business.
The new regulations aim to improve corporate transparency, strengthen compliance, and help prevent financial crimes such as money laundering and the concealment of ownership.
The Ministry of Commerce and Industry has introduced new regulations aimed at increasing transparency in the business sector by requiring companies to maintain accurate records of their real owners and report any changes promptly.
Under Ministerial Resolution No. 156 of 2026, Kuwait has amended its existing rules on identifying a company’s beneficial owner, the individual who ultimately owns, controls, or benefits from a business, even if the company is registered in another person’s name or through multiple corporate entities.
The new measures are intended to make company ownership more transparent and strengthen Kuwait’s efforts to combat money laundering, financial crime, and the misuse of corporate structures.
New obligations for companies
The updated rules require every legal entity operating in Kuwait to create and maintain a dedicated register containing the details of each beneficial owner.
Existing companies must establish this register within 15 days of the regulation taking effect, while newly established businesses must do so within 15 days of their registration.
Companies are also required to keep the information up to date. If there is any change in ownership or control, the register must be updated within 15 days from the date the company becomes aware of the change, or when it reasonably should have become aware of it.
Rules for nominee directors
The regulations also apply to nominee directors and board members, individuals who officially serve on behalf of another person rather than acting in their own interest.
Anyone appointed as a nominee director or board member must notify the company of that status and provide the required information within 15 days of assuming the role.
Those who were already serving in such positions before the new regulations were issued must notify their companies within 15 days of the decision’s publication.
Information to be submitted
Companies must submit both their beneficial owner register and their register of shareholders or partners to the competent government registry within 15 days of the decision taking effect or within 15 days of obtaining their business licence and registration.
The regulations also require companies to protect these records from loss, damage, or destruction and ensure they remain accurate and accessible.
Effective immediately
The Ministry confirmed that the new rules came into force on July 30, 2026, the date the ministerial decision was issued. The resolution will also be published in Kuwait’s Official Gazette, with all relevant authorities responsible for enforcing its provisions.
Why the changes matter
The updated regulations are designed to ensure that authorities can identify the real individuals behind companies, making it more difficult to conceal ownership through intermediaries or complex corporate structures.
By strengthening disclosure requirements and introducing strict deadlines for reporting ownership changes, Kuwait aims to improve corporate governance, enhance business transparency, and align its regulatory framework with international standards for preventing money laundering and other financial crimes.
