Article 2 of Companies Law

The provisions of this Part shall apply to all companies, subject to the provisions specific to each form of company provided for in this Law. Article 3 (1) A company shall be incorporated by a contract under which two or more persons undertake that each of them shall contribute (1) Added by Law No. 79 of 2019 Index of the Law 1463 Home Page Companies Law Law No. 1 of 2016 Promulgating the Companies Law to a venture aimed at making a profit by providing a contribution of property or work, to share the profit or loss arising from that venture. In the cases provided for by law, a company may be incorporated by a unilateral act of one person. Companies not aimed at making a profit may also be incorporated under a contract or articles specifying the partners’ rights and obligations and other terms. Transfers of partners’ interests therein shall be subject to redemption by the partners in accordance with the special terms regulated by the company contract, in addition to the conditions prescribed in this Law. The company may not issue negotiable bonds or sukuk and shall not receive donations. The company may adopt a special name that must be derived from its purpose. It may include the name of one or more partners in its firm name. The Executive Regulations shall regulate the provisions governing these companies and the model of their memorandum of incorporation, provided that the company adopts one of the forms provided for in Article Four of this Law appropriate to its nature, and provided that it does not adopt the form of a public shareholding company. A non-profit company may not be converted into a for-profit company. In the event of liquidation, all the company’s property, after payment of its obligations, shall devolve upon one of the charitable associations or charitable foundations registered in the State of Kuwait, by a resolution of the extraordinary general assembly.