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Home businesses under Kuwait’s law

By Fajer Ahmed

Kuwait business laws are becoming more and more business friendly, especially for small businesses and home businesses, which were legalized under ministerial decision 330/2017. Many home businesses successfully operate from social media platforms. Today I will answer a few questions that concern home businesses which are referred to as micro businesses under Kuwaiti law.

Question: Do I need a small business license as a home business? If so, can you provide us with more information?

Fajer: It is advised that you get a small business license for many different reasons, one of which is working with payment providers, delivery companies, etc. Home business licenses are available in Kuwait and you can obtain them from Kuwait Business Center under the Ministry of Commerce. They are actually easy to obtain, and you can apply online. Unlike other licenses, you do not need a physical location, and therefore do not need to pay rent. Actually, all you need is an email to apply.

A few things to keep in mind though: Home licenses are only for specific activities. They are only provided to Kuwaiti citizens that are over the age of 21, and you cannot register for social security with a home license.

Question: I read that recently the Central Bank in Kuwait is not allowing small businesses to receive any funds or payments through payment providers if they are a home business. Is this true?

Fajer: The Central Bank clarified in recent regulations that home businesses may not receive funds from payment providers unless they have written permission and approval from their local bank to receive said funds electronically.

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