Commerce Ministry warns 26.7% unregistered beneficial owners of penalties
Kuwait’s Ministry of Commerce urged businesses to register their beneficial owners by end of the month to avoid fines up to 10,000 dinars, with 26.7% still non-compliant.
The Ministry of Commerce and Industry announced that 73.3% of commercial registration holders have complied with the requirement to register the beneficial owner, totaling 167,531 registrations as of last Wednesday. However, 60,957 registrations remain incomplete, potentially facing financial penalties ranging from 1,000 to 10,000 dinars.
Sources informed Al Jarida that the compliance rate rose from 65% to 73.3% within just two business days. This increase followed the introduction of a registration procedure requiring all partners to participate, simplifying the process for applicants to disclose the “beneficial owner” on their licenses.
The Ministry of Commerce reiterated its call for the remaining 26.7% of registration holders to promptly disclose their “beneficial owner” identities, warning that failure to comply could result in financial penalties of up to 10,000 dinars.
The ministry’s offices and service centers saw a surge of visitors seeking clarification on their commercial records, addressing the status of long-suspended or forgotten companies, resolving issues with unissued licenses, and understanding the correct process for registering the actual beneficiary.
The Ministry of Commerce clarified that partners must specify their ownership percentage during registration to be recognized as effective beneficiaries. In partnerships, individuals can register themselves without requiring authorization from the director. Additionally, the ministry emphasized the necessity of registering the effective beneficiary, even if the commercial license has not yet been issued.
Furthermore, the Ministry of Commerce stated that disclosing the beneficial owner aims to enhance transparency in economic transactions and facilitate access to this information for law enforcement agencies, judicial authorities, and regulatory bodies, ensuring better oversight and compliance.
The Ministerial Resolution No. 16 of 2025 has set the end of this month as the deadline for identifying the beneficial owner, with non-compliance resulting in fines ranging from 1,000 to 10,000 dinars.
The resolution mandates registration for all entities with a commercial registry, including sole proprietorships, partnerships, and joint-stock companies, except for stock exchange-listed firms and government-owned companies.
