A major challenge faced by investors (local and foreign) is identifying a suitable business partner within Kuwait due to the lack of accessibility to public records, which can provide relevant background information about potential business partners. With it close to impossible to find out information about an individual or company’s business profile or legal record, without hiring a private investigator, many investors end up working with unpleasant partners.
Investors can now enter partnerships with a sigh of relief with the newly implemented Law No. 18 for the Year 2018 regarding the Commercial Register, with the purpose of modernizing the Commercial Register system.
The law requires every business owner to register in the Commercial Register under its name. Registration applies to commercial representation offices, commercial agencies, and foreign companies’ branches.
The records shall contain some of the following information of the registrant: name, nationality, certain judgments that concern the registrant, trade name, store name, trademark, type of business, time in business, business address, previously owned businesses, partners and business capital.
The highlight of this law is that it provides any person the right to request a copy of the company owner’s records. Investors can now review the commercial register’s records for potential business partners prior to entering into and/or finalizing an agreement. While records will not always tell the full story, it allows business investors to enter deals more informed. Business is a risk and the modernization of the Commercial Register allows the investor to better analyze their risks.
SOURCE : ARABTIMES