Ministry of Commerce Approves Regulation of Free Trade Activities, Specifies Licensing Conditions and Sectors

Kuwait - 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 fields and establishing the controls and requirements governing them. The Ministry stated 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 activities. It added that permitted fields 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 licensing for companies, including free trade companies that can be operated without the need for a commercial premises, in accordance with specified controls. It clarified that license applications are submitted through the Kuwait Business Center Administration, the unified government electronic services application (Sahl), (Sahl Business), or any other means approved by the Ministry. It further stated that the decision requires the licensed entity to take the form of a single-shareholder company, with its founder serving as its manager, being a Kuwaiti natural person of full legal capacity, aged at least 21 years, and not having been subject to a final judgment imposing a penalty restricting freedom for a felony or a crime involving breach of honor or trust, unless his reputation has been restored. The Ministry pointed out that the decision stipulates that the company must 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 the legislations and decisions governing them. The decision sets the license validity period at four years, renewable for similar periods, and mandates that companies disclose their commercial registration number in their official accounts and transactions. It added that the decision requires companies to open a bank account in the company’s name, use payment methods approved by the Central Bank of Kuwait, and display the company’s name and commercial registration number on its website and social media platforms. It warned against receiving company visitors or clients within a private residence, as the decision prohibits this, while allowing the exploitation, marketing, and sale of designs, innovations, ideas, and artistic models resulting from the activity. The Ministry explained that the decision permits companies to contract with licensed companies and establishments with commercial or industrial headquarters to carry out manufacturing, completion, preparation, printing, and packaging work. It also allows them to contract 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 controls. 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. (End) A.A.M. / K.D.A.