Ministry of Commerce approves regulations for free trade activities, defines licensing conditions and sectors

The Ministry of Commerce and Industry issued Ministerial Decision No. (216) of 2026 concerning the regulation of free trade activities, and Ministerial Decision No. (217) of 2026 approving the schedule of free trade activities, with the aim of defining permissible sectors and establishing the controls and requirements governing them.

In a statement to the Kuwait News Agency (KUNA) on Tuesday, the ministry clarified that free trade activities encompass professional, scientific, technical, consulting, commercial, building services, administrative support, business support, arts, entertainment, education, training, and tourism sectors.

It added that permitted activities also include rental activities, usage, maintenance, and repair activities (simple crafts), information and communications, real estate activities, and the textile, apparel, and leather industries.

The ministry noted that the regulation allows for licensing companies, including free trade companies that can be operated without a physical commercial premises, in accordance with specified controls. It stated that license applications can be submitted through the Kuwait Business Center Administration, the unified government electronic services application (Sahl), (Sahl Business), or any other means approved by the ministry.

The decision stipulated that the licensed entity must take the form of a single-shareholder company, with its founder serving as its manager. The founder must be a Kuwaiti national of full legal capacity, at least 21 years of age, and must not have been subject to a final judgment imposing a sentence restricting liberty for a felony or a crime involving moral turpitude or breach of trust, unless their reputation has been restored.

It pointed out that the decision requires the company to have an address consisting of a chosen domicile, a post office box, or an email registered with the Public Authority for Civil Information, with the consent of the property owner obtained if the chosen domicile is in a private residence.

The Ministry of Commerce stated that the decision obligates companies to obtain approvals from relevant regulatory authorities for activities requiring such approvals, in accordance with applicable laws and regulations. It also set the license validity period at four years, renewable for similar periods, and mandated that companies disclose their commercial registration number in their official accounts and transactions.

Furthermore, the decision requires companies to open a bank account in the company’s name and use electronic payment methods approved by the Central Bank of Kuwait. Companies must also display their name and commercial registration number on their websites and social media accounts.

The ministry warned against hosting company visitors or clients within private residences, as the decision prohibits this, while allowing the exploitation, marketing, and sale of designs, innovations, ideas, and artistic models resulting from the activity.

It clarified that the decision permits companies to contract with licensed companies and establishments with commercial or industrial premises to carry out manufacturing, completion, preparation, printing, and packaging works. It also allows contracting with licensed warehouses and establishments to store products, receive sales orders, prepare them, and execute related logistics operations.

The Ministry of Commerce indicated that companies are allowed to participate in exhibitions, temporary markets, and electronic platforms to display, market, and sell their products and services, in accordance with prevailing regulations.

Finally, it noted that the decision entrusts the Commercial Register and Economic Activities Administration with determining free trade activities, with the possibility of adding, amending, or abolishing any activity by a ministerial decision published in the Official Gazette.