Kuwait Criminalises Commercial Concealment Under Decree-Law No. 78 of 2026

Kuwait has issued Decree-Law No. 78 of 2026 on combating commercial concealment, published on 10 August 2026 — one of the most significant tightenings of the country's business licensing regime in years. The 14-article law prohibits any individual or company from enabling another person to conduct business without the required licence, or beyond the scope of an existing licence, including through the use of a commercial registration, trade name or business licence. Common arrangements such as renting out a licence for a monthly or annual payment now fall squarely within the definition of a criminal offence. Penalties are substantial: one to three years' imprisonment and fines ranging from KD 10,000 to KD 100,000 — or an amount equal to the profits generated from the violation, whichever is greater. Courts may also order confiscation of assets, closure of the business, and deportation of foreign violators. Penalties are doubled for repeat offences within five years. The law offers a way out for those who come forward: violators may settle before or during court proceedings by paying at least half the maximum applicable fine and correcting their legal status. It also introduces a reward of up to 10 percent of collected fines for informants whose evidence leads to a final conviction. Enforcement will be coordinated between the Ministry of Commerce, the Interior Ministry, the Public Prosecution and the Financial Intelligence Unit, drawing on bank transaction analysis to detect beneficial-ownership discrepancies. Enforcement begins once the executive regulations are issued, with application expected roughly six months later — a window businesses should use to regularise. Companies operating in Kuwait under informal licence arrangements should treat this grace period as their opportunity to restructure lawfully. Future Gate's Kuwait team advises on licensing, company restructuring and foreign investment routes under Law No. 116 of 2013.