Much of the old law has remained the same, leading to criticism that CAL is not broad enough. Instead of reforming agency laws in Kuwait, CAL focuses on procedure and clarifying the cumbersome formalities required to have an agent in Kuwait. The 2016 Agencies Law No.13 (“CAL”) business has now entered into force and aims to clearly regulate, clarify and define the formalities and requirements for agency law in the State of Kuwait (“Kuwait”). CAL replaces the old 1964 CAL 36, which was criticized for blocking foreign principles of the Kuwaiti market because of the complexity of the formalities in setting up and monitoring agency agreements in Kuwait. The company has helped many foreign companies create agencies and distribution agreements in Kuwait. Experienced ARALF lawyers negotiate, design and verify agency and distribution agreements and, if necessary, have successfully represented many clients in litigation arising from such agreements. The investor must enter into an agency contract and register it by the Chamber of Commerce and the Department of Commerce. The application is accompanied by an official copy of the agency contract and the statutes and statutes of the Kuwaiti company. The registration of the agency contract can take up to 15 days.
Article 24 of Kuwait`s trade law confirms that a foreigner cannot operate in Kuwait without a Kuwaiti partner. There are three types of commercial agencies; “The lexology is excellent and I can`t wait to read it every day. It`s great! The removal of the principle of exclusivity is a significant change in the context of the PROGRAMME. CAL provides that the importation or delivery of goods or products cannot now be limited to a single representative or distributor, even if there is an exclusive agreement. This means that the principles can designate several representatives or distributors in the territory in order to promote fair competition and the protection of consumer rights in the fight against monopolies. The authorities hope that CAL will help promote Kuwait on foreign principles and further promote international trade, and it remains to be seen whether it will have the desired effect. The definition of a sales agent has also been amended to include “franchisees” and “licensees,” who must now comply with the same laws and regulations as agents and distributors.