Being an entrepreneur

Attorney Fajer Ahmed

There are many definitions of the word ‘entrepreneur’, but the way I define entrepreneurs is as follows: “People who are willing to take risks and run their own businesses to make a difference within the community in a creative way.”
I think everyone is capable of making positive changes in society and we all have potentials that can be creative, and we can financially benefit from them. I know taking the decision to be an entrepreneur can be challenging at first, but it is something worth your while if you do not feel happy in your corporate job. This depends from person to person and you need to know what feels best for you. Here are a few legal points that are important for first-time entrepreneurs.

Owning a license

Not all creative activities need a legal license under Kuwaiti law, but it is always more professional to get one. If you are a photographer or a copywriter, you can always provide your services without a license to begin with to save on legal and administrational fees.

What type of license
What type of license you get depends on many different aspects regarding the activity of the company. Some licenses need special approval from certain ministries, such as anything media-related needs approval from the ministry of information. Some licenses can be merged with another, so one company can have two different activities, such as selling watches and gifts. To find out which license to get, you should visit the Kuwait Business Center.
If you have an idea for a company activity that you are interested in but it does not fall under a particular type of license, you can apply for a new type of license so do not feel like you have to stick to certain activities in Kuwait – be creative!

Shareholders
I cannot emphasis this enough – having a legal document between your partners and you is very crucial from the beginning, even if your partners are family members or friends. The obligations and responsibilities of each party should be laid out from the beginning – this can be done through a contract or through the constitutional documents of the company. The constitutional documents of the company are the license and the articles of association, a document that is certified by the ministry.

For questions or queries, please email us at info@ftl-legal.com.

By Attorney Fajer Ahmed