Kuwait Suspends Business Registrations for Article 18 Residency Holders

Kuwait, 21 November, 2024 : The Ministry of Commerce and Industry has temporarily suspended business registrations for expatriates holding Article 18 residency. These individuals are now barred from establishing companies, acting as partners, or managing partners unless they meet the conditions outlined in Article 19 residency regulations.

This move, aimed at preventing individuals from combining worker and employer roles, will remain in effect until new regulations are implemented. Currently, about 9,600 Article 18 residency holders are listed as partners in nearly 44,500 business licenses.

The Ministry is working with the Ministry of Interior and the Manpower Authority to revise the regulations, which may include raising the minimum investment threshold for Article 19 and limiting the number of branches companies with Article 18 partners can open.

Existing companies with Article 18 shareholders can continue operations as usual, and affected partners will have a one-year grace period to transition to Article 19 or comply with new rules.

The reforms aim to attract serious investors, improve Kuwait’s business environment, and curb residency trading.