20 Oct Kuwait – A Vision towards Modernisation
The Kuwait’s economy to modernise has been on constant growth. Towards supporting the growth, the legal system must expand and become more refined to manage the requirements of modern establishments. The government has therefore authorised various laws governing certain sectors, including laws related to the protection of taxation, competition, foreign investment, Public Private Partnerships, regulation of companies, anti-money laundering and protection of capital and labour markets.
H.H. the Amir’s aspirations are expressed through the Kuwait vision 2035.
The Kuwait vision 2035 aims to transform Kuwait into a world-class financial and commercial centre, with the private sector leading economic activities, increasing productivity and fostering competitiveness. Supported by viable public institutions, while maintaining national identity and the deeply rooted values, towards achieving balanced human and economic development, backed by the adequate legal framework, infrastructure and enabling business environment.
There have been several developments over past few years, proving that Kuwait has the potential to develop much further in its legal framework.
Kuwait passed the Competition Law in 2007, which intends to ensure fair competition in Kuwait. It affects a wide variety of areas, from mergers and acquisitions to the fixing of prices for goods. The Law will also create an authority for better oversight of the competition protection in Kuwait.
Kuwait has persisted to strengthen its legal, commercial and regulatory framework since the global financial crisis of 2007. Kuwait had established the Capital Markets Authority (2010) and passed the Financial Stability Law (2009) due to the crisis.
Public Private Partnerships (PPPs) were a great stride in Kuwait. The first PPP law was passed in 2008 and its subsequent amendment in 2014. These laws’ passage has assisted and will continue to aid PPP developments throughout Kuwait.
Kuwait’s corporate income tax system has also been updated through the path of Law No. 8 (2008). It was also modernised through the regulations governing establishments with the New Companies Law (2012), and it was amended under Law No. 1 (2016). This comprehensive law provides more forms of businesses that can be formed in Kuwait. International standards have also been met for opposing against terrorist financing and money laundering by passing Law No. 106 (2013) Regarding Combating Money Laundering and Terrorist Financing.
The Foreign Investment Law No. 116 (2013) on the Promotion of Direct Investment in the State of Kuwait, which is also known as the “Direct Investment Law”. Under the Direct Investment Law, foreign organisations may issue investment licenses by which they will have complete ownership of a Kuwaiti establishment.
There is a great hope that Kuwait will persist to reinforce its commercial legal framework and comprehend its full potential in the economy. Although there is significantly more to do, Kuwait has made tremendous advances in the growth of its commercial legal system, and such progress is expected to continue over the years ahead.
GCC Solutions provides LLC company formation services in Kuwait. GCC operates a 100% Kuwaiti-owned WLL (With Limited Liability) in Kuwait that will act as a corporate nominee sponsor to facilitate the legal requirements for operating a WLL within Kuwait.