The term “Corporate Conversion” refers to the process through which an entity converts its legal status from one form to another. The process of corporate conversion in the State of Kuwait is subject to a set of procedures and legal requirements regulating the same under the Companies Law No. 1 of 2016 and its Executive Regulation, as amended. Such requirements shall be entirely met to have the application for conversion approved.
What are the statutory requirements that should be met by corporates intending to undergo conversion?
Corporates intending to undergo conversion shall engage an independent auditor other than the auditor who performs the audit of its annual financial statements.
The engaged auditor shall prepare a net assets valuation report as of the date of conversion pursuant to the following:
- Article 250 of the Companies Law No. 1 of 2016, as amended.
- Article 131 of the Executive Regulation of the Companies Law No. 1 of 2016, as amended.
What is the timeframe for completing the conversion procedures?
Pursuant to the provision of Article 132 of the Executive Regulation of Companies Law No. 1 of 2016, as amended, the company applying for conversion shall complete all conversion procedures within maximum six months from the filing date of the application. If the conversion procedures aren’t completed within this period, the application shall be deemed null and void.
What is the added value to business entities from preparing the Auditor’s Report on Corporate Conversion?
- Ensuring compliance with the legal requirements and procedures for corporate conversion.
- Increasing the stakeholders’ trust in the company and enhancing its reputation.
What are the services that Baker Tilly Kuwait provides?
Preparing the Auditor’s Report on Corporate Conversion