Ministry of Commerce and industry (MOCI) decision number 82/2023

May 21, 2023 - Authors : Salwa Abdulla and Michel Ata

The Ministry of Commerce and Industry (MOCI) issued Decision No. 82/2023, targeting small companies engaged in activities of private nature without employees, physical commercial premises, and without the need for regulatory approval from any authority other than the MOCI. This decree aims to provide support and incentives to such businesses.

“Activities of a private nature” refer to commercial activities conducted by a company on a small scale, characterized by the absence of employed staff and a physical commercial premise. These activities typically include solo businesses where the owner operates independently without the need for hiring employees, such as individual consulting services, specialized crafts services, and online e-commerce.

Implications of the MOCI decision

The main repercussion of this decision is that individuals seeking a license for an activity of a private nature are no longer required to submit a lease contract or rental receipt as proof of commercial premises. Instead, the applicant must provide a document demonstrating their legal residence address or the chosen domicile, which can be a law firm or an auditing office. Additionally, the Ministry may request the submission of any other necessary documents as part of the application process.

This decree applies to both existing and newly constituted companies. The licenses granted under this decree will have a validity period of three years.

This client alert has been prepared for clients and professional associates of Meysan Partners. Whilst every effort has been made to ensure accuracy, this client alert is not an exhaustive analysis of the area of law discussed. Meysan partners cannot accept responsibility for any loss incurred by any person acting or refraining from action as a result of the material in this client alert.

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