Kuwait'reorganizes' licenses for particular business activity
In a development that serves a large segment of microbusiness owners, the Minister of Commerce and Industry Muhammad Al-Aiban issued a decision through which he reorganized licenses for activities of a special nature in a way that would reduce the burden of rents for headquarters for a large segment of business owners, reports Al-Qabas daily. According to informed sources, the number of activities expected to be covered by the decision exceeds 60 commercial and handicraft activities.
There is no need for the owners of these activities to rent official premises to practice their commercial activity, provided that the they undertake it without the need for workers, a commercial store, or the approval of other regulatory authorities such as the municipality, the Ministry of Interior, the Public Authority for Industry, and others.
The activities intended in the decision cannot register or recruit expatriate workers. Regarding the entitlement of holders of commercial licenses of a special nature to support national manpower, the sources said the decision to disburse labor support is not in the hands of the Ministry of Commerce and Industry, as they will not be granted “national manpower support” for these activities, unless the Public Authority for Manpower issues a decision allowing them to do so. The sources said this decision would restrict the activity of fictitious office rental brokers, as there are those who rent a fake office or for a short period with the aim of obtaining a commercial license. adding that this measure will stop tampering with this file.
The following was stated in resolution No. 82/2023 regarding licensing activities of a special nature:
Article 1: In the application of this decision, it means companies carrying out activities of a special nature by their owners without the need for workers, a commercial store, or the approval of other regulatory authorities. It is within the framework of facilitating and supporting projects, and as an exception to the requirements stipulated in the executive regulations of the aforementioned commercial store licensing law.
Article 2: The application for licensing the companies mentioned in the previous article should be submitted through the ministry’s “single window center” along with the required documents in accordance with the laws and decisions in force, with the exception of submitting a rental contract or receipt if the following data is submitted:
- A proof of the legality of the home address of the applicant, or the chosen domicile of the applicant, whether it is a law firm or an auditor’s office.
- Any other documents for which a decision is issued by the minister or whomever he authorizes.
Article 3: The provisions of this decision apply to companies established before and after its issuance. The license is issued for a period of three years.
Article 4: With the exception of the provisions contained in this decision, the provisions of the relevant ministerial decisions remain valid. Article 5: The concerned authorities – each within the scope of their competence – shall implement this decision. It shall come into effect from the date of its issuance. It shall be published in the official gazette.
Conditions for obtaining a license are as follows:
1 – Commercial licenses of a special nature are not issued to public sector employees, and are granted to citizens only registered under chapters 3 and 5, and to retirees.
2 – Permitted commercial licenses must require approvals from bodies other than the Ministry of Commerce and Industry.
3 – The applicant for a license who is registered under Chapter 5 is not entitled to labor support for the activity of a special nature.
4 – The owner of the license must practice the work himself. It is forbidden to register or recruit workers for the license.
The following are some of the activities that are allowed to be practiced without a headquarters:
■ Software and web design
■ Consulting activities that do not require the approval of professional bodies
■ Artistic activities such as translation, drawing, calligraphy, photography and booking concerts, events and museums
■ Designing fashion clothes, jewelry, gold artifacts and precious stones
■ Home and office decoration design
■ Organizing sports tournaments and booking stadiums and tickets.