- The proposed amendments cover several articles of the law and will introduce new business models for commercial licensing
- New model will feature a flexible and simplified legal framework
- Amendments under review include revisions to companies’ basic regulations
In step with the government’s accelerated drive to modernize Kuwait’s legal framework — an effort that has recently delivered key economic laws such as the Finance and Liquidity Law and the Real Estate Developer Law, aligned with Kuwait Vision 2035, the Ministry of Commerce and Industry is preparing a new set of amendments to the Companies Law.
The aim is to further improve the business climate and bolster Kuwait’s appeal as a destination for foreign investment.
According to the sources, the process of establishing companies in Kuwait has indeed become more streamlined in recent years, with fewer procedures, reduced registration time and expanded digitization, reports Al-Rai daily.
However, the accelerated pace of economic reforms has created a need for additional improvements that can draw more local and international investors while offering stronger protections for shareholders, particularly minority shareholders.
The sources indicated that the proposed amendments cover several articles of the law and will introduce new business models for commercial licensing. Notably, a new legal form of company is expected to be added to the existing types—beyond joint-stock, closed, and other structures currently recognized by the ministry.
This new model, they explained, will feature a flexible and simplified legal framework, inspired by successful corporate structures adopted in other Gulf markets. It will incorporate lessons learned from Kuwait’s experience since the introduction of the Companies Law in 2016 and adapt them to the evolving needs of modern commercial activity.
The Companies Law has undergone a series of notable updates in recent years, the latest being Decree Law No. 106 of 2024, which amended parts of Law No. 1 of 2016. These changes have helped refine regulatory processes; however, practical experience has revealed areas that require further adjustment.
The upcoming amendments under review include revisions to companies’ basic regulations to help overcome procedural obstacles that often hinder shareholders—especially minority owners—from carrying out essential actions such as convening general assemblies or completing executive requirements.
According to the sources, the planned amendments aim to support all categories of owners, with particular focus on small and minority shareholders.
The overarching goal is to eliminate unnecessary procedural complications and create a legal environment that allows companies to finalize administrative processes swiftly—preventing delays that disrupt operations and harm shareholder rights.
Officials at the Ministry of Commerce are also studying proposals that align the Companies Law with Kuwait’s expanding digital transformation.
The shift toward online corporate services and digital transactions requires legal provisions that integrate fully with the new digital ecosystem, enhance market competitiveness and support recent legislative updates, including the Digital Commerce Law.
The targeted amendments, the sources said, are designed to build a cohesive legal framework that complements the broader set of economic and administrative reforms recently approved or under development.
