How To Start Own Business In Kuwait And Register Company

• The financial responsibility in the project is not limited and does not attract people who are more keen to protect their money.

• Individuals prefer to work for listed companies more than the private ones because the listed provide better guaranteesfor individuals.

• Individual projects are better than large ones pertaining to discretion, taking decisions upon matters, and issuing orders. 

Establishing a company or a commercial project is a dream that shared by a lot of people who hope to be independent in their practical lives away from the idea of dependency and working in exchange for a limited financial income. Despite having this dream, a lot of people do not know the prerequisites steps to establish a company and the legal form for doing that.

As a result, Al-Anbaa has published a special study conducted by lawyer Areej Hamadeh who investigated the legal aspects to establish a company, and the resultant rights and responsibilities. 

The study has also clarified the necessary measures prior to embarking on establishing a project in terms of its organizing structure, its administrative efficiencies, methods of controlling and supervising it, and the required conditions to register the trademark of the company.

The study reviews the following legal aspects to establish a company or a commercial project:

First, the legal steps to establish a company:

Choosing a legal form leads to certain rights and financial responsibilities on the project and leads to the necessity of acting within certain limits or prohibiting other actions. In addition, the procedures of establishing a project are different; establishing an individual project is easy, whereas it is difficult in individualcompanies, and these procedures are complicated in capital companies. 

As far as the organizing structure of the project is concerned, individual projects are different from companies, and individual companies are different from capital companies in terms of establishing the senior administration.

As for financing the project, be that pertaining to obtaining the capital, personal borrowing of money houses, or issuance of bonds, the financial responsibility in projects can be unlimited; therefore, they do not attract people who are keen on protectingtheir money. 

Lastly, in terms of building administrative efficiencies, the size of the project, its nature, managing it, its dependency, and its moral stand have a significant influence on attracting proficient workers and managers. Moreover, the financial capability has an important role, too. Previous experiences have proven that individuals prefer working for listed companies more than the private ones because the listed provide better guarantees for individuals. 

Individual projects are better than large ones pertaining to discretion, taking decisions upon matters, and issuing orders.

The study deemed that control and supervision methods in individual projects are more useful and efficient because of connectedness and closeness with workers and management. As a result, defining the legal responsibilities has obtained an utmost importance to the degree that success of a project has become dependent on setting clear rules to define these responsibilities for each member in the project. 

General Conditions for Establishing Companies:

1) Address of the company and its trade name if available;

2) The head-quarters of the company;

3) The purpose of establishing the company;

4) Duration of the company if available;

5) Names of the partners, their titles and places of residence; 

6) Ways of managing the company, people in charge of management and their authorities;

7) The Amount of the capital of the company and the share of each partner, and a statement that details the provided in-kind contributions, their nature, and their estimated value. Possession of Kuwaiti nationals shall not be less than 51% of the capital;

8) The provisions subject to the distribution of profit and loss among the partners;

9) The financial year of the company;

10) The provisions subject to the liquidating the company and sharing its money. The partners may add other data. 

General Legal Principles:

The contract of the company must be in writing in an official registered document………