Kuwait Municipality urges businesses to verify activity and licensing requirements
New international classification system aims to unify economic activities and help investors avoid costly licensing mistakes
The Kuwait Municipality has urged business owners and investors to verify the activity, location and licensing requirements before starting any commercial project, warning that failure to meet municipal regulations could lead to violations and unnecessary costs.
The Municipality said it is keeping pace with Kuwait’s transition from local classifications to internationally recognized codes and classifications for economic and commercial activities, in line with directives from the Council of Ministers and the Ministry of Commerce and Industry.
Abdulaziz Al-Rashidi, head of the Engineering Licensing Department at Capital Municipality, told KUNA that Kuwait has been working to classify economic activities in accordance with the International Standard Industrial Classification of All Economic Activities (ISIC Rev. 4).
Issued by the United Nations, ISIC Rev. 4 provides a common international framework for describing and coding economic and productive activities. Al-Rashidi said the Municipality’s recently launched “License Your Business… Your Steps Are Right” campaign forms part of its efforts to raise awareness among business owners, correct the status of existing businesses and guide investors planning to establish new businesses toward selecting the activity that accurately reflects the nature of their operations.
He stressed the importance of obtaining information and consulting the relevant authorities before launching a project. Some activities cannot be licensed in certain locations or areas, while others are subject to specific requirements concerning their location within a building. In some cases, particular activities cannot be licensed on the first floor.
Al-Rashidi said checking the suitability of the activity and location in advance can help investors avoid unnecessary expenses and complications that may arise after a project has begun. The Municipality provides information on its website regarding activities, requirements and licensing procedures, while its branches across the governorates offer guidance and assistance to business owners.
He urged investors to make use of these services and provide the necessary documents and information about their businesses so they can receive appropriate guidance before beginning licensing procedures. Al-Rashidi said complying with the correct activity classification and fulfilling regulatory requirements from the outset is essential for conducting business legally. It also helps protect investors and their investments while contributing to a more stable and sustainable commercial environment.
Three key commercial licence violations
Meanwhile, Abeer Al-Aradi, head of the Engineering Licensing Department at Farwaniya Municipality, identified three violations being highlighted by the awareness campaign.
- Opening or operating a shop without a licence
- Adding an unlicensed area or changing the condition of a shop without obtaining Municipality approval
- Adding or practising an activity that is not covered by the existing commercial licence without prior approval
Al-Aradi stressed that business owners who expand their premises or wish to introduce an additional activity must first obtain the necessary amendments to the building permit and commercial licence. She emphasized that the commercial licence represents the legal basis for conducting the licensed business activity.
The Municipality’s message to investors is clear: verify the activity, confirm that it is permitted at the intended location, understand all regulatory requirements and obtain the necessary approvals before starting operations.
