Kuwait eases rules on beneficial ownership disclosure for businesses

• Approximately 66 percent of commercial licenses—out of a total of 226,938 subject to disclosure—have registered their beneficial owner information which reflects ongoing compliance efforts by license holders.

The Ministry of Commerce and Industry has allowed all partners in commercial licenses to disclose the identity of the actual beneficiary, eliminating the requirement for the procedure to be carried out solely by the company or institution’s director.

According to Al Rai newspaper, this move is expected to expedite the status resolution of numerous businesses facing challenges due to a director’s absence abroad, legal disputes, or other complications that hinder compliance with this requirement.

Sources indicated that the Ministry of Commerce’s move in this direction came in response to demands from a large segment of commercial license holders, particularly those demonstrating a strong commitment to disclosing the actual beneficiary.

However, legal or procedural challenges related to the appointed manager have made it difficult for some to comply, exposing them to penalties imposed by the ministry. These penalties range from KD 1,000 to KD 10,000, with additional fines of up to KD 500,000 under the Anti-Money Laundering and Terrorism Financing Law.

They noted that allowing all partners to complete the disclosure process facilitates compliance with the “actual beneficiary” requirement in commercial licenses and aligns with their legal rights and responsibilities.

The sources also revealed that specific penalties are planned for individuals found to have provided inaccurate information. The first step will involve verifying the accuracy of the information submitted by license holders. If false information is discovered, penalties will be imposed, although the exact sanctions are still under legal review.

According to the latest recorded data, approximately 66 percent of commercial licenses—out of a total of 226,938 subject to disclosure—have registered their beneficial owner information. This reflects ongoing compliance efforts by license holders.

The ministry aims to achieve 90 percent disclosure by June, in line with the recommendations of the Financial Action Task Force (FATF) regarding Kuwait’s adoption of additional measures to combat money laundering and terrorist financing.

The Ministry of Commerce has identified the entities required to register the identity of the beneficial owner, including any entity registered with the ministry and holding a commercial register. This applies to sole proprietorships, companies of all types, partnerships, joint-stock companies, and any entity engaged in commercial activity.

All are required to register in the beneficial owner system in accordance with Ministerial Resolution No. 16 of 2025. However, companies listed on domestic or foreign stock exchanges, as well as government-owned companies, are exempt from this requirement.