The Ministry of Commerce and Industry issued a decision including the regulation governing professional engineering companies.
The regulation was approved and comprises 39 articles distributed over 10 chapters, the first of which includes definitions, while the second sets out general provisions.
Article Two stipulates that «Kuwaiti engineers may establish professional engineering companies after submitting a certificate from the Profession Practice Regulation Committee».
And that «engineers may not establish commercial companies to practice engineering works or consultancy, nor may they be partners, managers or employees in general contracting companies, construction materials trading companies or other companies related to these activities».
It explained that the Article defined the form of the professional engineering company as either a general partnership, a closed shareholding company, a limited partnership, or a limited liability company, noting that professional engineering companies are subject to the Profession Practice Regulation Committee, with which a special register is established in which professional engineering companies incorporated in accordance with the provisions of the law and this regulation are recorded.
Regarding the incorporation conditions, «Commerce» stated that the regulation stipulates that the application for incorporating a professional engineering company shall be submitted to the Kuwait Business Center «One-Stop Shop» accompanied by a certificate from the Profession Practice Regulation Committee, and the incorporation of the professional engineering company shall be subject to the same procedures prescribed for the form it takes.
It added that the capital of the professional engineering company, whatever its form, must not be less than KD 100 thousand, and the closed shareholding company shall be managed by a board of directors composed of a number of its shareholders, with the company's articles of association defining the powers of the board and the provisions relating to its formation.
It affirmed that a partner or shareholder in a professional engineering company may not be a partner or shareholder in another professional company practicing the same profession, nor practice the profession for their own account or through another person, whether concealed or under a pseudonym.
It indicated that the professional engineering company is competent to practice only the profession that is the subject of its activity, and may not engage in commercial business or participate through the establishment of commercial companies; however, it may own financial and real estate assets to serve its purposes.
«Commerce» said that the professional engineering company shall not be granted a license to practice the activity until it submits an insurance policy concluded with local or international insurance companies having branches in the State of Kuwait to compensate for professional errors committed by its partners, shareholders or employees, provided that the validity of this policy extends for six months after the expiry of the company's contract and is renewed throughout the term of the company, indicating that the policy must not be less than KD one million, unless the regulation on the practice of the profession for engineering offices and consultancy firms prescribes another rate.
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