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For particular commercial activities, specific licences are requierd and these are often issued by the ministry that controls that activity, eg publishing licences are granted by the Ministry of Information. Business licences are only issued to Kuwaiti nationals and Kuwait companies and. In some cases, to GCC nationals and companies. Costs are usually KD100 per licences, All licences require period renewal, normally even two years. The rules of commerce are in general similar to West European practice. Any Kuwaiti or GCC national over 21 years of age may carry on commerce in Kuwait provided he or she is not affected by a personal legal restriction. Business enterprises can take several forms, viz.
The time and cost of establishing and registering these entities ranges from one month and at least KD500 for a general partnership to about three months and KD3. There are no import duties and foreign corporate income is tax-free. Commercial, Industrial and service licenses are a variety of infrastructural services. Tel: 802808, Fax: 4822067 http: www. General import licences, which must be renewed annually, allow any amount of a variety of products from any country to be imported any number of times. To protect local industry, items such as vehicles over 5 years old and goods manufactured locally are prohibited. Unified Economic Agreement, apply, and if there is no suitable GCC, the product must adhere to international standards.
The required content of these documents is shown in the books overleaf. As well as being shown on the packing list, the country of origin must also be marked on each packing unit. To clear customer many products must be accompanied by additional certificate showing that they comply with health and safety regulation issued by the Ministry of Public Health, The Municipality and the MCI. Goods failing to clear customers must be re-export within a month. The minutiae of import regulation tend to change frequently and these changes are published in Al-Kuwait Al Your, The Official Gazette. Kuwait customer duties are the lowest in the region, though there are protective tariffs on some goods. However commercial samples worth up to KD5.
000 may be brought in temporarily. Where import are invoiced in foreign curries. Customs use a list of standard exchange rates to translate the CIF value into KD. There rates change infrequently and a list in Arabic is available for 250files from customers. Raw materials, semi-processed goods, equipment and spare parts for new industrial establishments provided an exemption has been obtained. Many locally products are protected by tariffs. The varies according to the value added y domestic production.
Only Kuwait individuals or firms may act as commercial agents in Kuwait, while foreign individuals or firms, except for GCC nationals, are not allowed to carry on commercial activities in the country except through a commercial agent. All arrangements between a foreign entity and its local agent are governed by Articles 260 to296 of the Commercials Code. An agency agreement must be in witting and must be register with the MCI. Generally speaking, the parties to the agency agreement have full freedom of contract, but a few privations of the code override what the parties might wish to agree and any terms, which contradict these privations, are void. If an agent is required to erect premises then the contract must be for at least five years. If a principal terminates an agency when his agent is not at fault, the agent the agent may seek copesation for loss of icome.
And, if an agent abandons his agency at an unsuitable time and without reasonable cause, his principal may seek compensation for damages. Any clause to the country in an agency agreement is void. Even where an agency is for fixed term, the law expects it to be renewed on expirty. There is no set legal formula for calculating compensation. To open a branch in Kuwait, a foreign firm must enter as agency agreement with a Kuwaiti sponsor or service agent.
The agent will expect a fee for his sponsorship and the use of his licences. An agency agreement is not enforceable under Kuwaiti law unless it has been registered in the Commercial Agencies Register at the MCI. Application for registration must be made within two months of the agency being created. Before applying to the MCI, the agreement must be registered with the KCCI.
The application for registration can only be made by the Kuwaiti agent. Where it was executed in Kuwait, it must be notarised by a Kuwaiti Notary Public. Upon registration, the MCI gives the agent a signed and stamped copy of the application, and advertises the the registration in the official gazette. Amendments to the agreement must also be register and when an agency terminates it must be removed from the register. The register may be searched by the names of agent, the names of principals and the trade names of goods. Amiri Decree under article 71 of the constitution.