Al Qabas, 29 September 2026: Kuwait’s Cabinet has approved a draft decree-law amending provisions of the Companies Law to simplify company formation procedures and enhance the business environment.
The Cabinet approved a draft decree-law amending certain provisions of Kuwait Law No. 1/2016 on Companies and referred it to HH the Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah. The reforms are intended to facilitate company establishment, strengthen confidence in commercial transactions and support a more flexible and transparent business environment.
Under the amendments, company-related legal procedures and transactions will no longer require notarisation. Instead, documents will only need to be prepared and signed by partners or their representatives, with registration in the commercial register serving as the legal means of authentication. The draft also abolishes the joint venture company (Mohassa company) structure because it is not subject to registration or public disclosure requirements.
The reforms further allow professionals to establish single-owner professional companies. Transitional provisions grant existing offices and companies a one-year period to regularise their status while preserving the validity of contracts and companies established before the new rules enter into force.
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