Amending the Companies Law... Towards a More Flexible Business Environment

- Abolition of Decree No. 240 of 2012 establishing the Silk City and Bubiyan Island Development Authority.

- Exemption from the requirement to notarize all procedures related to companies from their establishment throughout their existence.

- Reliance on written documentation and signatures by partners, with registration in the Commercial Register serving as the official notarization.

- Abolition of the silent partnership company and authorization for self-employed professionals to establish a single-member professional company.

- Amendment of the “Bayt al-Zakat” (Zakat House) Law and reduction of its board of directors’ membership from 12 to 7 members to enhance efficiency and flexibility.

This came during the Cabinet meeting held today, Tuesday, in the conference hall of the administrative building in the Third Phase of Martyr’s Park, chaired by His Highness Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, Prime Minister.

The Cabinet approved a draft Law Decree amending certain provisions of the Companies Law issued by Law No. 1 of 2016, aimed at facilitating company establishment and enhancing confidence in dealing with them, in line with the state’s direction toward a more flexible and transparent business environment. The draft Law Decree exempted the requirement to notarize all procedures and legal acts related to companies, from their establishment throughout their existence, including amendments to their contracts and articles of association. It relied instead on written documentation and signatures by the partners or their representatives, making registration in the Commercial Register constitute the official notarization, which renders the company contract, its amendments, and resolutions of its Extraordinary General Assembly enforceable against third parties.

The draft Law Decree abolished the silent partnership company, as it is not subject to registration or publication, and authorized self-employed professionals to establish a single-member professional company. It also included transitional provisions granting existing offices and companies a one-year period to regularize their status, while preserving the validity of contracts and companies established prior to the law’s implementation.

Additionally, the Cabinet approved a draft Law Decree amending Article 3 of Law No. 5 of 1982 concerning the establishment of Bayt al-Zakat, which includes reconstituting its board of directors and reducing its membership from 12 to 7 members. The amendment aims to create a more flexible and efficient board for Bayt al-Zakat, chaired by the Minister of Awqaf and Islamic Affairs, with membership comprising the Director General of Bayt al-Zakat as Deputy Chairman, the Undersecretary of the Ministry of Islamic Affairs, the Undersecretary of the Ministry of Social Affairs, Family and Childhood, the Undersecretary of the Ministry of Finance, the Secretary General of the General Secretariat of Awqaf, and the Director General of the Public Authority for Affairs of the Royal Court, with the draft submitted to His Highness the Amir.

The Cabinet reviewed several agenda items, reports, and minutes of ministerial committees, and approved them. It also decided to refer some items to the relevant ministerial committees for study and submission of appropriate recommendations to complete the necessary procedures for their implementation.

At the outset of its meeting, the Cabinet was briefed on the content of a letter addressed to His Highness the Amir of Kuwait, Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, from his brother, His Majesty King Salman bin Abdulaziz Al Saud, King of the Kingdom of Saudi Arabia, inviting His Highness to participate in the Second Summit between the Gulf Cooperation Council (GCC) and the European Union, scheduled to be held in Riyadh on Saturday, October 24, 2026.

The Cabinet commended the statement delivered by the representative of His Highness the Amir of Kuwait, Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah, before the 81st session of the United Nations General Assembly at the UN headquarters in New York City last Thursday. In his address, His Highness highlighted the unjust Iranian aggression, involving ballistic missiles, cruise missiles, and drones, that Kuwait, the Gulf Cooperation Council (GCC) countries, and the Hashemite Kingdom of Jordan have been subjected to since February last year. He stressed that these countries are not parties to the ongoing regional conflict, and that the attacks constitute a blatant violation of international law, international humanitarian law, and the UN Charter. These brazen, systematic, and repeated attacks targeted civilian objects and critical infrastructure, including Kuwait International Airport, power and water stations, and oil facilities, revealing an adversarial approach aimed at disrupting essential life support systems and vital infrastructure. The heinous attacks resulted in the martyrdom of several individuals and innocent civilians, caused numerous injuries, and inflicted severe material and economic damage.

His Highness affirmed that Kuwait’s message, which it has believed in and acted upon, and will continue to uphold, is that just peace is the path to stability. He emphasized that respecting state sovereignty, safeguarding the rights of peoples, and resorting to international law in resolving conflicts are indispensable pillars for the security and stability of nations. Kuwait will remain, as it has always been known to the world, a voice of wisdom and moderation.

On another note, the Cabinet was briefed on the outcomes of the meeting attended by the representative of His Highness the Amir, hosted by the President of the United States, Donald Trump, with the participation of leaders and heads of delegations from several Arab and Islamic countries attending the high-level week of the 81st UN General Assembly in New York City last Wednesday. During the meeting, the rapid developments and serious new developments in the region were discussed and reviewed, particularly the heinous Iranian attacks on regional countries, the safety and freedom of maritime navigation, and global energy supplies, as well as the situation in the Gaza Strip. The meeting also underscored the importance of strategic partnership and close, continuous coordination with the United States to enhance regional and international security, support de-escalation efforts, and establish the foundations of comprehensive and just peace in the region.

The Cabinet expressed its strong condemnation and rejection of the ballistic missile launches by the Houthi militia toward the Saudi cities of Taif and Yanbu last Thursday. It firmly rejected the recurrence of these shameful hostile attacks, which constitute a blatant violation of the Kingdom’s sovereignty and a flagrant breach of international law and international humanitarian law. It reiterated Kuwait’s absolute solidarity with the friendly Kingdom of Saudi Arabia, its steadfast support alongside the Kingdom, and its backing of all measures taken to safeguard the Kingdom’s sovereignty, security, and the protection of its citizens and residents. The Cabinet emphasized that the security of the Kingdom is an integral part of Kuwait’s security and the security of the GCC countries.