IMC can handle the Corporate Secretarial functions of the company as outlined in the law. It involves periodic conducting of statutory meeting, preparing minutes as per the requirements and filing with the appropriate government monitoring agencies. We can advise on the systems and procedures to be followed. These are required either because of the local laws or to comply with overseas requirements if the company is a global company. IMC has been operating in GCC for over 10 years.
Kuwaiti was the first Gulf Arab Country to enact a Company Law.
Filling of Statutory Financial Statements: Limited Liability Companies (WLL), Kuwaiti Shareholding Companies Closed (KSCC) (Unlisted) and Kuwait Public Shareholding Companies (KPSC) (Listed) registered in Kuwait are required to prepare annual financial statements and file these with the Ministry of Commerce and Industry, Kuwait (“MOCI”) and the concerned authority, i.e., Kuwait Stock Exchange (for listed companies) and Central Bank of Kuwait (for KPSCs and KSCC banks). Further, all banks and investment companies (irrespective of whether they are listed or not), fall under additional compliance regulations of the Capital Markets Authority (CMA), Kuwait.
Timeline:Audited financial statements are required to be filed within 3 months from the end of the financial year with MOCI and all concerned authorities. Additionally, for all the companies covered by the CMA Law (KPSCs and KSCC investment companies and banks), the financial statements are also required to be submitted to the CMA within 5 working days of the approval of financial statements.
The regulations in Kuwait require all companies to prepare and file a complete set of financial statements including the statement of financial position, statement of comprehensive income, statement of changes in equity, statement of cash flows, and other explanatory information. Listed companies are required to file their interim unaudited financial statements with the Kuwait Stock Exchange within 45 days after each quarter end.
In Kuwait, the following forms of companies are required to have their financial statements audited:
● Limited Liability Companies
● Kuwaiti Shareholding Companies Closed
● Kuwait Public Shareholding Companies
● Any other business in respect of which an audit is required by any other law, for example, Ministerial Decision no. 46601/67 for Private Education System (schools), Commercial Law no. 68 of 1980 for establishments.
Audit is not mandatory in Kuwait for proprietorship entities. Normally such entities get their financial statements audited when they are required to do so by any regulatory body or financial institution or to meet any other special requirement (for instance, an audit is mandatory for those individuals who hold 5 or more establishments).
Appointment of Auditor: In Kuwait, auditor’s appointment is done in the name of the individual partner of the firm. Auditors are appointed for a fixed period of one year and can continue as the auditor of the company after the first year, subject to the approval of the shareholders/partners in the general assembly meeting. This rule is applicable for all the companies registered in Kuwait. Article 6 of CMA Decision no. 24 of 2012 requires auditor rotation for KPSCs to be done once every 4 years. Joint audits are required only in respect of KPSCs.
Auditing Standard: Auditors in Kuwait are required to undertake their audit and express an opinion on the financial statements in accordance with International Standards on Auditing issued by IFAC and applicable laws of the country.