The Ministry of Commerce and Industry has announced the reopening of its automated systems, allowing expatriates with Article 18 residency to become partners or managing partners in companies and institutions. This decision marks a significant shift, enabling these expatriates to register in the commercial register once again.

Background of the Ban

Previously, the Ministry of Commerce had imposed a ban last month that restricted expatriates from owning companies unless they held Article 19 residency. This restriction continues to apply to individuals with residency under Articles 20, 22, and 24. Specifically, domestic workers under these residencies are required to either divest their ownership in companies or transfer their residency to Article 19.

Resumption of Services

Sources indicate that the Ministry’s systems are expected to resume processing requests and procedures for the exempted group of expatriates this week. Once reactivated, existing commercial entities with shareholders holding Articles 18 and 19 residencies will be permitted to establish and renew their status, as well as make amendments to all companies and institutions, following the protocols in place prior to the ban.

Additionally, the lifting of restrictions will allow new company applications that include residents with Article 18 residency, adhering to previous regulations governing non-Kuwaiti ownership.

Temporary Suspension of Partner Incompatibility Clause

In line with the new directive, the clause concerning the incompatibility of partners with existing and new licenses will be temporarily suspended, particularly for partners or managers under Article 18. This suspension will remain until further notice, specifically until new regulatory controls are issued.

Review of Regulations

Coordination is ongoing with the Public Authority for Manpower to assess the regulations governing non-Kuwaiti ownership of companies. Joint committees are being formed to develop final guidelines for reinstating conditions for non-Kuwaiti ownership. These guidelines are anticipated to include a legally binding deadline for disposing of properties that do not comply with upcoming instructions.

Regulatory Measures Under Review

According to the Public Authority for Manpower, approximately 10,000 expatriate workers in the private sector, primarily holding Article 18 work permits, have secured status as partners or managing partners in around 45,000 licenses for existing companies. This underscores the necessity for regulatory measures to ensure the rights of all parties involved, including current shareholders who obtained commercial licenses under existing regulations.

The government, particularly the Ministry of Commerce and the Public Authority for Manpower, remains committed to organizing commercial licenses with updated controls. They plan to enforce various laws related to labor and foreign investment, establishing new partner controls for expatriate workers holding residency under Article 18 with appropriate mechanisms.