The recent decision to ban expatriates under Article 18 from becoming partners in companies is set to affect more than 10,000 expatriates involved with over 45,000 companies.

Starting Tuesday, August 6th, expatriates will no longer be able to join as partners in companies and institutions or be registered in the commercial register, unless they meet the conditions for transferring their residency to Article 19 (investor visa).

The Ministry has already begun a review process for all expatriates under various residency articles, including Articles 17 (government work), 18 (private work), 19 (investor), 20 (domestic workers), 22 (family), and 24 (self-sponsor).

According to report, the Public Authority for Manpower had monitored about 10,000 expatriate workers working in the private sector, with Article 18 residency, had their status as 'partner or managing partner' on about 45,000 licenses.

Based on the new directives, these expatriates are supposed to amend their status and transfer their residency from Article (18) to Article (19), in line with the Foreigners’ Residency Law, to continue as partner in the companies, otherwise they will have to sell their shares. They will be given a grace period to liquidate their shares, reports indicated.

In order to get an investor residency under article 19, the non-Kuwaiti partner’s share shall not be less than one hundred thousand dinars (1,00,000 KD) of the company’s total capital.