In Kuwait, a foreign company needs to either establish a local presence in Kuwait or appoint an agent or distributor to commercialise its products.

The general rule under Kuwaiti law is that foreign companies cannot engage in commercial activities without having a local Kuwaiti partner, whose equity holding in such company would be at least 51%.

Therefore, international companies resort to appointing agents or distributors as an alternative to establishing a local company with a Kuwaiti partner.

Kuwait Law No. 116/2013 Amending the Law on the Regulation of Direct Investment of Foreign Capital in the State of Kuwait makes it possible for foreign investors to establish companies in Kuwait without a local partner. However, such a subject is outside this Practice Note's scope.

Agents and distributors' services typically include obtaining the required product registration and necessary approvals for importation, distribution and promotion of products.