Ministry of Commerce Approves Free Business Activities Regulations and Licensing Terms
The Ministry of Commerce and Industry issued two decisions regulating free business activities and defining licensing conditions for Kuwaiti companies for a period of four years.
Translated by Qiyas from السياسة — Original source
- Licenses are valid for four years and are renewable... The company’s founder must be a Kuwaiti national aged at least 21 years.
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 concerning the approval of the free trade activities schedule, with the aim of defining permitted fields and establishing the controls and conditions 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, and commercial fields, as well as building services, administrative support, business support, arts, entertainment, and leisure activities, and 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 for licensing companies, including free trade companies that can be operated without 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” or “Sahel Business,” or any other means approved by the ministry.
The ministry stated that the decision requires the licensed entity to 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, aged at least 21 years, 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 stipulates that the company must have an address consisting of a chosen domicile, a post office box, or an email address registered with the Public Authority for Civil Information, with the property owner’s consent required if the chosen domicile is in a private residence.
The Ministry of Commerce said the decision obligates companies to obtain approvals from relevant regulatory authorities for activities requiring such approvals, in accordance with applicable laws and decisions. It specified that the license is valid for four years and is 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 and to use payment methods approved by the Central Bank of Kuwait. Companies must also display their name and commercial registration number on their website and social media accounts.
The ministry 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.
It clarified that the decision permits companies to contract with licensed companies and establishments having 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 regulations.
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.
