Law No. 13 of 2016 regarding the Commercial Agencies
As a part of the continuous economic reform adopted by the government of Kuwait, Law no. 13 was issued at the beginning of 2016 arranging the commercial agencies (the “Law”) to supersede previous relevant laws which were allowing products and services monopoly through an exclusive agent or distributor in Kuwait and also to enhance the market competition.
The Law stipulated upon the eligibility criteria to be appointed and registered as a local agent or distributor in Kuwait which are:-
The Law expressly referred to the minimum requirements which should be clearly mentioned in the agency agreement which are:-
Furthermore, the Law allowed the appointment of more than one agent or distributor for the Principal in Kuwait without any restriction besides the conditions of providing the repair and after sale services related to products even if the products were not purchased from the local agent.
A local agent or distributor must register the agency agreement within the designated register at the Minister of Commerce and Industry and any unregistered agency will not be considered.