The Ministry of Commerce and Industry is studying structural and regulatory changes to the framework governing freelance business licenses as part of a broader push to modernize the commercial licensing system and align it with Kuwait Vision 2035. The amendments aim to make it easier for entrepreneurs to participate while reducing instances where businesses are registered under names of non-beneficial owners due to existing legal restrictions. Ministry officials indicated the revisions would also strengthen transparency around ownership and management structures across small-scale operations. The ministry’s review follows a temporary suspension of new one-person company license issuances announced in July 2026 to allow time for coordination with the Public Authority for Civil Information on procedures and electronic connectivity between agencies.
Freelance businesses operate on a small scale without the need for a dedicated office or shop and currently encompass roughly 120 specialized activities including consulting, software development, design and technical services. Under existing rules an applicant must form a one-person company with the founder serving as manager and meeting several conditions such as being a Kuwaiti national of full legal capacity at least 21 years old. The Ministry of Commerce and Industry data placed the number of such licenses issued during the first five months of 2026 at 6,586 before the July suspension took effect. A 2025 ministerial resolution had already restricted these activities exclusively to Kuwaiti citizens and extended license validity to four years while halving the required capital compared with similar company activities.
Among the proposals under consideration the ministry would permit government employees to own freelance business licenses for the first time a significant shift from current prohibitions on such dual roles. The changes would further extend eligibility to retirees and private-sector employees provided they appoint a qualified Kuwaiti manager meeting all regulatory standards. Officials noted that owners could then designate a Kuwaiti manager from outside the ownership structure rather than being required to manage the venture personally as the rules now mandate.
Additional revisions would broaden participation through an updated founders and beneficial-owner framework designed to clarify control and accountability. The ministry is also weighing requirements that applicants hold relevant university degrees or professional qualifications for specialized activities before a license can be granted. Such measures would ensure competence while allowing licensees to add complementary economic activities drawn from the ministry’s approved directory without submitting a separate application.
The proposed adjustments remain consistent with provisions in Kuwait’s Companies Law that define one-person companies as one of seven legal entities and already permit government employees full ownership when a commercial headquarters is involved. Any final decision on the package would maintain current licensing requirements until formal approval and publication in the official gazette. The ministry continues to accept applications under the existing regime for those who meet all stipulated conditions including provision of a registered address and property-owner consent where a private residence is used.
