Since 2014, people in Kuwait have become interested in having a small business which they can run at home in addition to their main job. As a result of the benefits associated with such small businesses, people have become eager to work and even more interested in handiwork like baking, cooking, accessory crafting and tailoring, all of which inspire others to set up a business of their own. Running a business has always been beneficial to the pocket as well as to the national economy. But as the small business concept grew, problems began to develop. Selling a badly measured dress not of the agreed measurements; or a dress of inferior quality to the one expected by the customer; perhaps the customer was unable to find the supplier when trying to fix the item or exchange it, or when wanting to complain to the Ministry of Commerce in order to have their money refunded. What if someone bought a cake to find it was rotten? It is risky dealing with someone who is unknown and messaging through WhatsApp is not ideal business communication. From the business owner’s point of view, it gets even worse if the Ministry of Commerce confiscates the assets and possessions relating to your business because you violated their laws. What a terrible loss.
People who are running their own small business at home still do not understand that the laws of the Ministry of Commerce must be applied to their work. Which brings out the question, ‘Do the regulations of the Ministry of Commerce apply to ALL selling or buying processes?’ The answer is NO. When someone sells for one time only it is a civil process by law and because everyone has a right to buy, sell or freely manage their possessions, the civil law will be applied. However, when the selling process is occurring frequently, then it clearly reveals a business trade which makes the commercial law involved in this process.
For example, if you sold your old car to someone you would not be expected to have a licence from the Ministry of Commerce to start a business. But if you keep buying cars to sell them then the frequency reflects the intent of a business plan which means the Ministry of Commerce is going to supervise the business and there must be a licence before practicing such a business.
It would be really disappointing and frustrating if you spent your money on fabrics, accessories and tailoring to make a luxurious piece, but the Ministry of Commerce decided to confiscate all of your hard work and expensive assets because you didn’t have a licence to do business. You wouldn’t only lose your possessions but you might also have to pay fines or financial compensation as a result. For example, if you sold a cake that turned out to be rotten and, as a direct result, people went to hospital with food poisoning.
Please note that the regulations of the Ministry of Commerce are for the safety of each party involved. People who are running a business must apply for a licence from the Ministry of Commerce so they won’t later face the consequences of violating the regulations.
The Ministry of Commerce has made it easier to apply for the licence through their online website. They even have a special licence for small businesses.
Best of luck to you. I wish you a successful, legal, safe business.