Kuwaiti ministry imposes restriction on freelance business, only allowing citizens to operate.
The Ministry of Commerce and Industry in Kuwait has announced significant changes to the regulations governing freelance businesses, aiming to make it easier for locals to start and run their own 'meta' businesses.
In a move to encourage entrepreneurship, the capital required to practice freelance business activities licensed under this regulation has been reduced to half the capital required for similar company activities. The minimum capital for freelance companies is now 50 dinars, down from the previous minimum of 100 dinars.
The decision defines freelance businesses as those operated by owners without a dedicated shop or office. All commercial transactions must be conducted exclusively via electronic payment methods.
To obtain a license to practice freelance activities, the business must be a single-person company, with the founder also serving as the manager. The license holder must be at least 21 years old, and the license specifies a registered address. Property owner approval is required for private residences. The license holder must sign the official pledge, avoid harmful materials, and comply with any other ministerial requirements.
The authority responsible for regulating freelance business activity in Kuwait is typically the Ministry of Commerce and Industry or the Public Authority for Manpower. The issuance of licenses for these businesses will be conducted through the Single Window Administration, the Sahel or Sahel Business applications, or any other method approved by a ministerial decision.
The Commercial, Professional, and Craft Activities Classification Committee at the Ministry of Commerce and Industry is responsible for defining freelance business activities, and has the power to add, amend, or cancel activities with ministerial approval. Currently, there are 120 eligible activities for freelance businesses.
License holders benefiting from these new regulations must submit annual documents, including bank statements, annual financial statements, electronic platform accounts, and social media accounts to the Ministry of Commerce and Industry. Expatriates and Gulf nationals are prohibited from acting as founders, partners, or managers of these businesses, as freelance work is exclusive to Kuwaiti nationals.
In addition to these changes, the duration of freelance business licenses has been extended from one year to four years. The decision applies to companies established both before and after its issuance, without prejudice to existing licenses. The Minister of Commerce and Industry, Khalifa Al-Ajeel, issued this ministerial decision.
These new regulations are expected to stimulate entrepreneurship and foster a more vibrant freelance business sector in Kuwait.
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