KUWAIT: In a move aimed at improving the business environment and reducing operational costs for entrepreneurs, Minister of Commerce and Industry Khalifa Al-Ajeel issued a ministerial decision Monday allowing individuals and legal entities to use a unified location and civil number for up to five licenses across their subsidiaries or branches, provided they own more than 50 percent of them. The Ministry of Commerce explained in a statement to Kuwait News Agency (KUNA) that the decision is designed to ease operational burdens — particularly for small and medium-sized enterprises — by eliminating the need to rent multiple business locations unnecessarily. It is part of broader efforts to enhance the investment climate in Kuwait and streamline procedures for businesses.
Under the new regulations, applicants must submit a request through the ministry’s one-stop service platform, along with a rental contract and payment receipt issued under the main entity’s name, in line with Article 2 of the decision. The ministry stressed that companies and individuals utilizing this benefit must comply with Kuwait Municipality’s zoning regulations. Properties used as unified headquarters must align with the nature of the licensed business activities and be verified before final approval.
The Public Authority for Civil Information (PACI) will review rental contracts submitted with unification requests, ensuring they meet all necessary criteria. Upon approval, PACI will issue separate civil numbers — up to five — corresponding to each licensed entity operating under the same address, based on the verified lease data. The ministry highlighted that the decision addresses longstanding challenges faced by businesses, particularly the costly requirement for some startups to rent multiple spaces even when not operationally needed. By removing this obstacle, the ministry hopes to foster a more supportive environment for new and growing businesses.
To safeguard the system, the ministry said relevant authorities have been empowered to inspect properties, ensure compliance, and manage violations — including misuse of the unified address for unlicensed activities. Kuwait Municipality will act as a regulatory partner, ensuring that properties classified as unified headquarters meet zoning laws and correspond appropriately with licensed activities. The ministry emphasized that this decision marks the beginning of a broader reform plan intended to regulate the labor market, lower operating costs for investors, and stimulate economic growth. Looking ahead, the ministry noted it is studying potential expansions of the initiative — including broadening the range of eligible business activities and possibly reducing the ownership threshold below 50 percent, depending on the success of the first phase. — KUNA
