KUWAIT Law and Practice Contributed by: Sam Habbas, Luis Cunha, Hisham Al-Quraan and Mustafa Sayed, ASAR – Al Ruwayeh & Partners
holder acquires an interest in the relevant GCC entity, the Ministry of Commerce and Industry (MOCI) may cancel the branch licence. • The relevant GCC entity must have been in existence for at least three years before the submission of the branch establishment application to the MOCI. • The activities of the relevant GCC entity must be permitted in the GCC region, and the Kuwaiti branch activities must be covered under the relevant GCC entity’s licensed activities. • The establishment of a GCC branch in Kuwait should be completed within one to two months from the date all required documents are submitted to the MOCI. Generally, the documents required for submission are the MOCI establishment application form, the constitutional documents of the foreign entity and the details of its partners/shareholders. The identification documents must be attest - ed and legalised at the Kuwaiti Embassy in the country of issuance and then attested and legalised in Kuwait before being submitted to the MOCI. Requirements to Obtain an Investment Licence From KDIPA To qualify for an investment licence under the FDIL, the foreign entity has to satisfy certain special requirements set out in the FDIL and its executive regulations. As a key factor, the for - eign entity has to demonstrate that its activities will benefit Kuwait as a whole and satisfy the criteria set out in Article 29 of the FDIL (that the activities will result in the transfer of technology, modern methods of governance and practical/ technical experience to Kuwait; create employ - ment opportunities and training for national labour; enhance the use of national products, etc). KDIPA will also take into account 15 sub-
criteria pursuant to Decision No 329 of 2019, which elaborates on the criteria as set out in Article 29. The steps to obtain the investment licence are as follows. • Application request: The submission of the application request online through the KDIPA portal is the first formal step in the application to be licensed under the FDIL. The applica - tion request should briefly summarise the proposed investment/project that the foreign party wishes to undertake in Kuwait under the FDIL. Once the application request is finalised and submitted, KDIPA will review the applica - tion and will typically respond to the applicant within a week regarding the success of the preliminary application. • Formal application: If KDIPA believes that the investment/project as set out in the applica - tion request complies with and addresses the points required under the FDIL, the applicant will proceed to the second stage of the appli - cation process. As part of this process, the applicant will have to submit an application form appropriate to the vehicle it will use to pursue the project. • Consultation: KDIPA and the relevant appli - cant discuss and consult on the applica - tion and the supporting documents (which will include a business study/plan); KDIPA may require additional information on par - ticular aspects of the project that should be addressed. • Consideration: Once the application and busi - ness study are finalised and formally submit - ted along with the attested, legalised and translated constitutional documents of the applicant, KDIPA is to respond to the appli - cant within 30 days regarding the success or failure of the application.
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