Kuwait’s latest legislation regulating companies

Law firm Salah Alghanim is pleased to publish this briefing on the key points contained in Kuwait Companies Law No. 1 of 2016 (KCL 2016), which repealed Companies Law No. 15 of 1960. (KCL 1960).

The KCL 2016 contains 306 provisions regulating the operation of commercial companies. Although KCL 2016 retains many of the old rules contained in the KCL 1960, it also incorporates more modern rules which help to align Kuwait more closely with the approach adopted at a local, regional and international level.

A summary of the key features of the KCL 2016 is set out below.

• The KCL 2016 permits the establishment of professional services firms as companies, as well as the establishment of a company with a single person.

• The KCL 2016 permits the establishment of non-profit companies, but prohibits them from receiving donations.

• The KCL 2016 provides that, in the event of a partner’s death or bankruptcy, a limited liability company will not terminate (unless stated otherwise in the company’s memorandum and articles).

• The KCL 2016 stipulates that a limited liability company can have a maximum of 50 partners.

For any legal advice, please contact me via email: info@alghanim.law