Legal And Regulatory Requirements For Conducting Business Ventures

1091 Words Dec 5th, 2016 5 Pages
Another external risk that may affect the success of the project is legal and regulatory requirements for conducting business ventures in Kuwait. Keurig’s expansion project is very dependent on the company’s ability to partner with Kuwaiti retailers such as the Alshaya Group, supermarkets, and distribution companies. The partnerships with prominent Kuwaiti businesses will serve as Kuwaiti sponsor for Keurig to ensure the success of the expansion. The legal and regulatory problems that Keurig will face in Kuwait include less than transparent regulations pertaining to industry standards, highly bureaucratic procedures, insufficient intellectual property rights protection, and complicated and insufficient public contracting and procurement procedures (U.S. Commerce Service, 2015). Kuwait amended Companies Law Decree 97/2013, which mandates that foreign commercial entities may not establish a branch or perform any commercial activities without a Kuwaiti partner or agent (U.S. Commerce Services, 2015). Keurig would benefit more with partnerships rather than hiring an agent to avoid taxes bills. Partnerships would provide valuable insight into marketing strategies and brand recognition and assist in navigating business policies and procedures in Kuwait. Kuwait is a member of the Gulf Cooperation Council (GCC) which includes other Middle-Eastern countries such as Saudi Arabia, Bahrain, Oman, Qatar, and the United Arab Emirates (UAE). The GCC has a 5% flat rate tax on all…
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