Law no. 16 of 2013 regarding to the Promotion of Direct Investment in Kuwait
According to Article no. 12 of the Law no. 16 of 2013 regarding the Promotion of Direct Investment in Kuwait ( PDIK Law ), a foreign investor may start a direct business in Kuwait through one of the following legal entities:-
Furthermore, Article no. 15 of PDIK Law stipulated that once the foreign investor submits the required documents and information related to establishing one of the above legal entities, then the Kuwait Direct Investment Promotion Authority “ KDIPA “ must respond to the application within thirty days only. Also if KDIPA rejected the application submitted by the foreign investor the rejection must be reasoned and in writing, then the foreign investor shall have the right to appeal the rejection decision issued by KDIPA within thirty days from its issuance date.
PDIK Law created One- Stop Shop concept where the foreign company or its attorney will be able to proceed with the required procedures through one employee only without the necessity of approaching other authorities involved in the licensing process which enhanced the efficiency of PDIK Law and accelerated the relevant procedures.
As a reflection for the Kuwait Vision 2035 which –mainly- aims to attract the information technology companies, investment companies along with major infrastructure international entities, the legislators provided an extra protection for the confidential information of the foreign investor operating in Kuwait through expressly stipulating in Article no. 23 of PDIK Law upon the such protection in addition to criminal punishment to any employee of the foreign investor who disclosed the confidential information to third party if such employee has received the confidential information during his employment with the foreign investor.
Although that the foreign investors could invest in any activity in Kuwait, however that the Council of Ministers issued its decision no. (75) of 2015 Regarding the List of Excluded Direct Investments from the Provisions of Law No. (116) of 2013 regarding the Promotion of Direct Investment in the State of Kuwait, this decision exclusively excluded the application of PDIK Law in respect of certain activities which are:-
In order to attract the international giant entities, PDIK Law stated that the foreign investors shall have the right to transfer abroad their profits, capital or proceeds resulting from the disposal over their shares or participation in the investment entity in addition many other incentives and exemptions which will be explained through our weekly articles.
MMA Law Office