By Majd Othman
KUWAIT: Minister of Commerce and Industry and Minister of State for Youth Affairs Mohammad Al-Aiban issued a decision that permits business owners engaged in multiple commercial activities to operate from a single headquarters using a single commercial serial number. This decision applies as long as the business owner does not exceed having four companies operating from one headquarters.
This decision eliminates the need for business practitioners or merchants with multiple activities and commercial licenses to rent multiple offices. Instead, a central office is now sufficient for licensing all their diverse businesses under one roof. As per resolution no. 146/2023, outlined in article 1, companies and their subsidiaries can share a single headquarters and operate under one commercial serial number.
However, there are specific requirements that must be met. The company’s ownership in its subsidiary must exceed 50 percent, and the company should issue consolidated financial statements that incorporate the financial information of its owned companies. Importantly, the total number of companies operating from a single headquarters should not exceed four.
Furthermore, article 2 of the decision stipulates that, in addition to the conditions mentioned in the previous article, business owners must submit an application to the ministry of commerce and industry expressing their intent to centralize their company and subsidiary operations within one headquarters.
This application should be submitted through the official channels affiliated with the ministry and must include one or more lease contracts specifying the names of the added subsidiaries or one rental receipt listing the name of the company and its subsidiaries. The decision also specifies that competent authorities, within their respective jurisdictions, are responsible for implementing this ruling. It is effective from the date of its issuance and will be published in the official gazette.