Revolutionizing Business in Kuwait: New Legislation Empowers Foreign Companies to Operate Independently

Wefaq Law Firm has closely examined the recent legislative changes in Kuwait, which have significant implications for foreign companies. On January 14, 2023, the Amir of Kuwait approved amendments to Article 24 of the Kuwait Commercial Law and Article 31 of the Public Tenders Law. These amendments enable foreign companies to establish branches in Kuwait and engage in business activities without requiring a local agent. This is a substantial shift from the previous regulations, which mandated foreign entities to have a local agent or establish a company for business operations in Kuwait.

The amendment to Article 24 of the Commercial Law allows foreign companies to open branches directly, offering them greater control and flexibility in their operations.

Furthermore, the revision to Article 31 of the Public Tenders Law permits foreign companies to apply for and execute tenders in Kuwait without a local agent, streamlining the process and reducing barriers to entry.

This development is expected to foster a more open and competitive business environment, attracting increased foreign investment. It benefits international businesses by reducing operational complexities and costs associated with local partnership requirements. For local businesses, it presents opportunities for new collaborations, technology transfer, and access to global best practices, potentially driving innovation and economic growth in Kuwait.

Wefaq Law Firm, with its expertise in Corporate Commercial and Corporate Structuring matters, is positioned to offer guidance on these new legal landscapes. The firm can assist organizations in navigating these changes and leveraging the opportunities they present. This includes providing insights on compliance, regulatory obligations, and strategic implications for businesses considering entering or expanding in the Kuwaiti market.

The new law's official issuance is expected in the Kuwait Official Gazette by January 21, 2024, and further executive regulations will provide more details on its implementation, particularly concerning employment and sponsorship aspects.

For comprehensive legal advice on this matter, please don't hesitate to contact us.