KUWAIT CITY, March 16: The Ministry of Commerce and Industry is considering the implementation of a new clause to cancel licenses for businesses that have not been operational for six consecutive months. Sources indicated that this measure is under review following the discovery of a large number of licenses, which have not been used since their issuance. The proposed clause is in line with the Companies Law and is expected to be enforced more broadly, sources revealed.

According to the relevant article, a license will be revoked if the business activity has not been conducted for six consecutive months without notifying the ministry, if the company expires, is dissolved or liquidated, or if the license holder requests it. A license will be revoked as well if it is not renewed within one year of its expiration date. This proposed measure coincides with the introduction of the ‘Trade”’ application and the requirement for the registration of the beneficial owner.

The ministry previously revoked the commercial licenses of companies in the real estate, research and medical sectors that had not been active for six consecutive months. Several applicants have approached the ministry, stating they had forgotten about their licenses for several years and requested the implementation of this policy to expedite the revocation process. It will apply to all commercial licenses for companies that have failed to notify the ministry, in accordance with Article 11/3 of Law No. 111/2013 concerning commercial establishment licenses. These decisions also follow a review of the Companies Law, its amendments, executive regulations and commercial establishment licenses.

Moreover, the license may be revoked if it is proven that the licensee obtained the license through false information or forged documents; violated the conditions outlined in the executive regulations; breached health standards; sold spoiled, adulterated or harmful products; or lost the right to engage in trade under the law