Ministry of Commerce Approves Free Zone Business Activities, Sets Licensing Conditions and Sectors

The Ministry clarified in a statement to the Kuwait News Agency (KUNA) on Tuesday that free trade activities encompass professional, scientific, technical, consulting, commercial, building services, administrative support, business support, arts, entertainment, educational, pedagogical, and tourism sectors.

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

It added that 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 natural person of full legal capacity, at least 21 years of age, and must not have been subject to a final judgment imposing a sentence restricting freedom 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 required 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 obliged companies to obtain approvals from relevant regulatory authorities for activities requiring such approvals, in accordance with the laws and decisions governing them. It also specified that the license duration is four years, renewable for similar periods, and mandated that companies disclose their commercial registration number in their official accounts and transactions.

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

It warned against receiving company visitors or clients within a private residence, as the decision prohibited this, while allowing the exploitation, marketing, and sale of designs, innovations, ideas, and artistic models resulting from the activity.

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

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