Cabinet approves draft decree-law amending certain provisions of the Companies Law - Sarmad
The Cabinet approved amendments to the Companies Law to facilitate establishment and remove bureaucratic hurdles.
Translated by Qiyas from سرمد — Original source
(KUNA) – The Council of Ministers approved on Tuesday a draft law decree amending certain provisions of the Companies Law issued by Law No. 1 of 2016, with the aim of facilitating company establishment and enhancing confidence in dealing with them, in line with the state’s direction toward a more flexible and transparent business environment.
Deputy Prime Minister and Minister of State for Cabinet Affairs Shari’ah Al-Muwasharji said in a statement that this decision came during a Council of Ministers meeting held in the conference room of the administrative building in the third phase of Martyr’s Park, presided over by His Highness Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, Prime Minister, may God protect him.
He clarified that the aforementioned draft law decree exempted all legal procedures and actions related to companies from the requirement of notarization, from their establishment throughout their existence and any amendments to their contracts and articles of association. It sufficed with the writing and signing of the partners or their representatives, and made registration in the Commercial Register tantamount to notarization, which renders the company contract and its amendments and resolutions of its extraordinary general assembly enforceable against third parties. It also abolished the “muhasasa” (silent partnership) company, as it is not subject to registration or publication.
He added that the draft law decree allowed free professionals to establish a professional company with a single person, and included transitional provisions granting existing offices and companies a one-year period to regularize their status, while preserving the validity of contracts and companies established prior to its implementation.
He noted that the Council of Ministers submitted the draft law decree amending certain provisions of the Companies Law issued by Law No. 1 of 2016 to His Highness the Amir of Kuwait, Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, may God protect and care for him.
