Commerce Ministry cracks down on dormant licenses, expired permits

As the deadline for beneficiary registration concluded on April 9, the Ministry of Commerce and Industry has begun removing commercial licenses that expired over a year ago.

This initiative, according to Al-Jarida, is part of a broader effort to regulate commercial licenses and ensure the cancellation of inactive ones.

Ministry sources anticipate that about 95% of license holders have complied with the actual beneficiary registration requirement, while approximately 5% have yet to register.

The ministry clarified that some exceptions would be made, such as for individuals who are studying abroad or seeking medical treatment. This action comes in response to requests from license owners for an easier process, especially for those whose licenses expired long ago and have remained unused.

The Ministry of Commerce also discovered a significant number of dormant licenses that had not been activated since the requirement for actual beneficiary registration was enforced, aimed at preventing fines ranging from 1,000 to 10,000 dinars.

The decision aligns with the Companies Law and ministerial regulations, with the ministry also considering a new clause to revoke licenses that have not been active for six consecutive months. In addition, licenses will be revoked if the company is dissolved or liquidated, the license holder requests it, or if the license isn’t renewed within a year of its expiration.

Under Ministerial Resolution No. 16 of 2025, all registered entities, including sole proprietorships and various types of companies, are required to disclose the identity of their beneficial owners, excluding companies listed on the Kuwait Stock Exchange or foreign financial markets, as well as government-owned entities.

https://www.aljarida.com/article/94771