Minister of Commerce and Industry Khalifa Al-Ajil canceled licenses of 516 companies on Jan. 11 for failing to file financial statements for three years, per Decree No. 196 of 2025. The measure, based on the 2016 Companies Law, initiates dissolution and liquidation, effective upon publication in the Official Gazette, Arab Times reported.
According to Arab Times, the decree was issued under Paragraph 7 of Article 266 in Law No. 1 of 2016, which designates the non-submission of financial statements for three years as a cause for dissolution. The ministry is to notify the companies named in the appendix so they can commence liquidation proceedings. All relevant authorities must now enforce the decision following its appearance in the Official Gazette.
The Companies Law of 2016 was designed to improve transparency and accountability among Kuwaiti businesses. Legal assessments from firms such as Al Tamimi highlight the annual obligation for audited accounts to be approved and filed. Persistent failure triggers regulatory intervention including license revocation and forced winding up.
A comparable enforcement action took place in August 2025 when the ministry suspended over 600 licenses due to irregularities, Times Kuwait reported at the time. Officials had collaborated with the municipality and fire department to examine exemptions granted between 2021 and 2025. The latest decree continues this pattern of tightening oversight on corporate compliance.
Figures from the World Bank place the total of listed domestic companies in Kuwait at 138 for 2024. The 516 firms impacted this month are understood to be from the wider pool of commercial registrations that must maintain up-to-date filings. Separate monitoring by Boursa Kuwait focuses on listed entities showing substantial accumulated losses.
The decree’s second article mandates the start of dissolution aligned with the full terms of the Companies Law. Affected businesses will receive direct notification to proceed with liquidation steps. Implementation responsibilities lie with the designated departments as stipulated in the final article.
