The Ministry of Commerce and Industry is reviewing structural and regulatory amendments designed to make entrepreneurship more accessible while improving ownership transparency under Kuwait Vision 2035 objectives.
Restructuring Ownership and Beneficial-Owner Rules
The proposed regulatory changes address the long-standing practice of registering businesses in the names of individuals who are not the actual beneficiaries, a loophole often created by strict legal barriers that prevent real owners from obtaining licenses, according to the Arab Times. Under the current framework, applicants seeking freelance licenses must establish a one-person company under Kuwait’s Companies Law. The new proposals aim to modernize this system across approximately 120 specialized activities.
These operations do not require a traditional commercial establishment like an office or a shop.
Expanding Participation for Government Employees and Retirees
The regulatory review introduces a significant shift regarding government employment. Current rules strictly prohibit Kuwaiti government employees from owning freelance business licenses. Under the proposed framework studied by the Ministry, government employees would be permitted to own and participate in freelance micro-businesses, provided they obtain the appropriate economic license.
These extensions would remain subject to specific conditions, including the requirement to appoint a qualified manager.
Management Flexibility and Educational Requirements
The proposed framework introduces flexibility regarding business administration. Under current rules, founders must generally manage their freelance businesses personally.
Applicants seeking licenses for specialized fields, including specific consulting services, would be required to hold a relevant university degree or technical qualification.
The proposed amendments remain under study by the Ministry of Commerce and Industry and have not yet replaced existing commercial regulations.
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