Freelance work within Kuwait's borders is now limited exclusively to Kuwaiti nationals as indicated by the ministry's recent announcement.
In a significant move, the Minister of Commerce and Industry, Khalifa Al-Ajeel, has issued a ministerial decision regulating freelance businesses in Kuwait. This decision aims to streamline and modernise the process for freelancers, providing clarity and structure for those operating within the sector.
Under the new regulations, freelance work is exclusive to Kuwaiti nationals, as it prohibits expatriates and Gulf nationals from acting as founders, partners, or managers. The Commercial, Professional, and Craft Activities Classification Committee at the Ministry of Commerce and Industry is responsible for defining freelance business activities.
Freelance businesses are defined as those operated by owners without a dedicated shop or office. These businesses must not handle materials harmful to the environment or public health and safety, as defined by competent authorities. All commercial transactions must be conducted exclusively via electronic payment methods.
The first fiscal year for a freelance business begins on the date of registration in the commercial register and ends on the date specified for the conclusion of the following fiscal year. The capital required to practice freelance business activities licensed under this regulation has been reduced to half the capital required for similar company activities. The minimum capital for freelance companies is now 50 dinars, down from the previous minimum of 100 dinars.
License holders benefiting from Cabinet Resolution No. 391 of 2001 and its amendments are required to submit annual documents, including bank statements, financial statements, electronic platform accounts, social media accounts, and any additional documents specified by a decision of the Minister or his delegate. Approval from the property owner is required if using a private residence as the business address.
The decision specifies 120 eligible activities and freelance business licenses are extended from one year to four years. The license must specify a registered address, post office box, or email according to the Public Authority for Civil Information. The issuance of licenses for the companies shall be conducted through the Single Window Administration, the Sahel or Sahel Business applications, or any other method approved by a ministerial decision.
To ensure compliance with the new regulations, the Ministry of Commerce and Industry will submit periodic reports to the Public Authority for Manpower. Additionally, the license holder must sign the official pledge prepared for this purpose and disclose their commercial registration number in all official company accounts and transactions. The license holder must be at least 21 years old, unless authorized by the court to practice commerce.
However, the search results do not provide information about the name of the chairman of the committee responsible for defining freelance business activities.
This decision applies to companies established both before and after its issuance, without prejudice to existing licenses. The decision requires license holders to submit additional documents annually, including bank statements, annual financial statements, accounts of electronic platforms and social media platforms associated with the licensed company, and any additional documents specified by a decision of the Minister or his delegate.
In summary, the new regulations aim to provide a more streamlined and modern approach to freelance businesses in Kuwait, with a focus on transparency, reduced capital requirements, and extended license durations. The Ministry of Commerce and Industry will continue to monitor compliance and make adjustments as necessary to ensure the success of these new measures.
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