Kuwait's Ministry of Commerce and Industry is seeking an advanced electronic link with the Ministry of Interior. The link would allow instant checks on whether individuals are legally eligible to conduct business, a step aimed at speeding up company formation and streamlining commercial transactions.

The ministry has asked the Interior Ministry to study completing and developing electronic connectivity between the two bodies. The goal is an automated mechanism to identify people legally barred from commercial activity.

Under the proposal, a pending case or an accusation alone would no longer hold up a transaction. Commercial restrictions would apply only where enforceable judicial rulings carry legal consequences prohibiting the person from trading, in line with Article 25 of the Commercial Law.

The Commerce Ministry's system would send the individual's civil ID number electronically to the General Administration of Criminal Evidence. The system would then automatically return a result showing one of two outcomes:

- An existing, enforceable ruling bars the person from commercial activity.

- The matter needs review by the competent authority.

The mechanism would disclose only what is needed to determine eligibility, without revealing unrelated details of cases or investigations.

The checks would cover partners, company directors and people linked to incorporation applications. They would also apply to partner entries and exits, changes in ownership shares, amendments to partner details, and beneficial ownership registrations.

The ministry stressed that verification must reflect the actual legal status of rulings, including whether their effect has expired or the person has been rehabilitated.

The technical proposals include 13 classification codes for offences covered by Article 25, among them commercial fraud, fraudulent bankruptcy, theft, breach of trust and forgery.