Article 3 of Companies Law

A company shall be established by a contract pursuant to which two or more persons undertake each to contribute 1( Added by Law No. 79 of 2019. to an undertaking aimed at making a profit by providing a contribution of property or work, to share the profit or loss arising from that undertaking. In the cases stipulated by law, a company may be established by a unilateral act of one person. Companies not aimed at making a profit may also be established under a contract or articles specifying the partners’ rights and obligations and other conditions. Transfer of partners’ interests therein shall be subject to redemption by the partners in accordance with the special conditions regulated by the company’s 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, which must be derived from its purpose. It may include the name of one or more partners in its business name. ʿ 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 stipulated in Article Four of this Law appropriate to its nature, and does not adopt the form of a public shareholding company. A non-profit company may not be converted into a profit-making company. In the event of liquidation, all the company’s assets, after payment of its obligations- shall pass to one of the charitable associations or foundations registered in the State of Kuwait, by a resolution of the extraordinary general assembly.