Commerce Ministry tightens licensing rules; beneficial owner requirement mandatory

The Ministry of Commerce and Industry has updated the process for issuing commercial licenses, making it mandatory to register the beneficial owner at the company’s establishment stage.

This move strengthens transparency by requiring the owner’s data to be recorded before the launch of any new company.

The Ministry clarified that government employees can establish companies but cannot assume management roles, except for applied education faculty members who are limited to consultancy activities.

It also emphasized that employees may not establish freelance business companies.

The Ministry’s new guide distinguishes between one-person companies, where the owner holds 100% of the shares, and limited liability companies, which allow multiple partners. It also explained that freelance businesses differ by requiring only a PO Box, a deed, and an email address rather than a physical office.

The Ministry confirmed that foreigners may establish Kuwaiti companies with a maximum of 49% ownership, while Kuwaitis hold 51 per cent.

Gulf citizens, however, are permitted to establish companies individually. Exceptions to minimum capital requirements also remain in place for sectors such as banking, domestic labor, and insurance.

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