Kuwait Agency Law - Law Firm, Lawyers, Law Firms, Lawyer, Injury, Attorney in Kuwait

articles

Business Law

Commercial Code

Industrial Law

Intellectual Property Law

Employment, Criminal and Labor

Criminal Laws

Labor Law

Family

Family Law

Govt. agencies and Taxation

Agency Law

Taxation Law

Immigration, Appeal and Others

Immigrations Laws

Real Estate, Wills and Trust

Arbitration Law

constitution

search a lawyer

Country:

City:

ACTS, STATUTES

Submit Article

Article Login


Find a Lawyer :

Country :

State :

City :

Category :

Home > Kuwait > Agency Law

Agency Law Kuwait

AGENCY LAWS OF KUWAIT

The Law Firm of Labeed Abdal

Doing Business through a Kuwaiti Agent

Doing business under the auspices of a local Kuwaiti agent is another machinery on the furtherance of which a foreign party can acquire legal presence in Kuwait . The foreign party cannot register itself or open a branch office in its own name in Kuwait, whatever title that office may have unless it first appoints a local agent; which is a condition precedent for establishing such an office. This is because Article 24 of the 1980 Commercial Code of Kuwait expressly provides:

" No foreign company may establish a branch of its own, in Kuwait and it may not undertake commercial activities in Kuwait unless through a Kuwaiti agent. "

The Commercial Law categories the most important types of commercial agencies. These include:-

Contracts Agents;
Commission Agents; and
Commercial Representatives.

Contracts Agency: It is a contract between the foreign party and the local (Kuwaiti) agent, under which the local agent undertakes to continuously urge and negotiate in a certain territory of activity on concluding deals for the interest of the principal/foreign party in consideration for remuneration. The contracts agent is independent of his principal even though he acts in the name on the account of the principal/foreign party.
Commission Agency: It is a contract between the foreign party and the local (Kuwaiti) agent, whereby the commission agent undertakes, in consideration for remuneration, to carry out in his own name any legal act on account of the principal (Article 287(1)).
Commercial Representative: It is a contract whereby any person who is entrusted by a merchant to carry out some of his business whether at his place of business or elsewhere by means of an employment contract shall be deemed to be a commercial representative. A merchant shall be responsible for the transactions and contracts made by his representative within the limits of the authority granted to the representative by the merchant).

Registration of the Agency Agreement:

Following the execution of an agency agreement, it is imperative
(by Law No.36/1964) on the Commercial Organization to register same with the Ministry of Commerce and Industry Kuwait . Assuming that the agency agreement has been concluded and duly registered, the agent in its capacity as sponsor can issue work and residence permits and visas for foreign party's personnel.