A Long-Awaited Legislation – Foreign Companies to operate in Kuwait without a local agent

On January 14, 2023, the Amir of Kuwait has approved a law to amend Article 24 of the Kuwait Commercial Law and Article 31 of the Public Tenders Law allowing foreign companies to establish branches in Kuwait and conduct business without the necessity of a local agent.

What does this mean for companies in Kuwait?

Article (24) of Decree No. (68) of 1980 regarding Commercial Law has been amended to allow a foreign company to establish a branch in Kuwait and carry out its work without the need for a local agent.

Further, Article (31) of Law No. (49) of 2016 regarding Public Tenders has been amended (without prejudice to Law No. (1) of 2016 and Law No. (116) of 2013) to allow foreign bidders to be exempted from having a commercial registration in Kuwait and the need of having a local agent, which means that foreign companies are now allowed to apply for a tender in Kuwait and execute it without a local agent or the need to set-up a company.

What’s next?

We expect that this law will be followed by detailed executive regulations to address the particulars of such a law and its consequences especially from employment and sponsorship perspective.

The law is expected to be officially issued in the Kuwait Official Gazette by Sunday 21 January 2024.

How can we help?

This law will be a game changer for foreign companies doing business in the country and we hope that it will encourage foreign investment.

Al Tamimi & Company’s Kuwait office is well-versed in advising on Corporate Commercial and Corporate Structuring matters, as well as supporting clients in meeting compliance and regulatory obligations in Kuwait.

We are available to offer additional information on this recent development and can assist your organization in navigating the new regulatory landscape.

To learn more about the details of this alert, please reach out to one of our key contacts.