KUWAIT CITY, April 28: Minister of Commerce and Industry Khalifa Al-Ajeel issued a ministerial decision allowing any natural or legal person who owns more than 50 percent of a subsidiary or branch company to use a unified headquarters and a single automated number for up to five licenses for their subsidiary or branch companies.

In a statement to the Kuwait News Agency (KUNA), the Ministry of Commerce explained that the decision aims to ease the operational burdens investors face, particularly by reducing the costs of renting multiple headquarters. This initiative is especially targeted at owners of small and medium-sized enterprises (SMEs) and seeks to enhance Kuwait’s overall business environment.

The Ministry clarified that applications to unify headquarters must be submitted through the single-window platform specified in the resolution. As stipulated in Article Two of the resolution, applicants are required to provide a lease contract and a payment receipt registered in the name of the primary natural or legal person. It was further explained that companies and individuals covered by this decision must comply with Kuwait Municipality’s requirements regarding the classification of the property designated as a unified headquarters. This classification must align with the type of business license issued, and compliance with approved urban regulations must be verified before approval is granted.

The Ministry emphasized that the Public Authority for Civil Information will review the lease contracts attached to applications to ensure they meet all stipulated requirements. Based on this verification, separate civil ID numbers, up to five, will be issued for each licensed entity operating from the unified headquarters, according to the details specified in the approved lease contract.

The decision also addresses the problem faced by businesses previously forced to rent premises without actual operational need, which often posed a financial burden, particularly during their early stages.

The Ministry noted that competent authorities have been empowered to review applications, verify compliance, and establish inspection mechanisms to detect and address violations or fraudulent activities, such as using premises for unlicensed or purely formal purposes.

The Kuwait Municipality has been incorporated as a regulatory partner in this system and will ensure that the classification of properties used as unified headquarters aligns with the nature of the licensed activities and urban planning requirements.

The Ministry stressed that this decision is a preliminary step in a broader strategy to improve and regulate the labor market and ease operational burdens on business owners. The decision is effective immediately and will be published in the Official Gazette.

Finally, the Ministry stated that if the implementation of this decision proves successful and its impact is positively measured, plans are in place to study the possibility of expanding the benefits. Future amendments may include additional types of business activities and may allow for unification even when the ownership share is less than 50 percent.