Are you a foreign investor interested in company formation in Kuwait? We suggest you explore this page for information about the key characteristics of business incorporation in this country. You can benefit from legal advice and a wide range of company formation-related services from our Kuwaiti lawyers.
| Quick Facts | |
|---|---|
| Types of companies which can be started by foreigners | – Limited Liability Company, – Closed Joint Stock Company, – Public Joint Stock Company |
Minimum share capital for LTD company (if applicable) and paid-in requirement | Min. 1,000 KWD must be paid for company formation in Kuwait. |
Minimum number of shareholders for limited company | 2 |
| Time frame for the incorporation (approx.) | It takes at least 3 months for company formation in Kuwait. |
| Corporate tax rate | 15% |
| Dividend tax rate | 15% |
| VAT rate | Currently, Kuwait does not impose VAT. |
| Number of double taxation treaties (approx.) | 82 |
| Do you supply a registered address (Yes/No) | Yes |
| Local director required (Yes/No) | No |
| Annual meeting required | Yes |
| Redomiciliation permitted | Yes |
| Electronic signature | Yes |
| Is accounting/ annual return required? | Yes |
| Foreign ownership allowed | No |
| Any tax exemption available? (offshore income, dividend income, etc.) | Zero tax on income |
| Any tax incentives (if applicable) | Foreign tax credit |
Table of Contents
Is 100% foreign ownership permitted in Kuwait?
Yes, but special conditions might apply to specific business entities like joint stock companies and holding enterprises.
Who approves foreign companies in Kuwait?
Kuwait Direct Investment Promotion Authority (KDIPA).
Where do I register a company in Kuwait?
At the Ministry of Commerce and Industry (MOCI).
What types of companies are available in Kuwait?
- With limited liability – WLL,
- Joint Stock Company – KSC,
- Single- Person Company,
- Branch,
- Subsidiary,
- Holding company,
- Liaison office, etc.
What is the most popular business structure in Kuwait?
The limited liability company – WLL in Kuwait.
What is the minimum share capital for a WLL in Kuwait?
KWD 1,000.
What are the conditions to open a WLL in Kuwait?
- foreign citizens must be at least 21 years old to open a limited liability company in Kuwait,
- a registered business address in Kuwait must be secured. A lease agreement is needed,
- at least 2 shareholders can incorporate a WLL in Kuwait,
- you will need to obtain a 100% foreign ownership certificate from KIDPA,
- all shareholders & directors must present clear criminal records,
- a corporate bank account in Kuwait is required,
- tax registration in Kuwait is another essential step in forming a WLL in Kuwait.
What are the conditions to open a branch in Kuwait?
We have an article here about branches in Kuwait.
Do you offer support in opening subsidiaries in Kuwait?
Sure, read the info here.
Can I buy a shelf company in Kuwait?
Yes, these are ready-made or vintage companies in Kuwait.
Can I be assisted in setting up a foundation in Kuwait?
Yes, read the formalities here.
Are PRO services available for foreign investors in Kuwait?
Yes, PRO services can cover all business-related matters in Kuwait, through dedicated facilities tailored to foreign investors.
Are there any precautions when opening a company in Kuwait?
- you should navigate all legal matters with precaution and be assisted by a specialist in the field, such as our attorneys in Kuwait,
- serious compliance penalties are imposed on those not complying with the business rules in Kuwait,
- foreign investors should properly choose the local business partner and draft the legal agreement,
- international entrepreneurs must observe the employment rules and hire the required number of Kuwaiti workers as stated by the Labor Law in this country.
Would you like to know more about company incorporation in Kuwait? You can access our online legal services and work with our law firm in Kuwait. Contact us today and benefit from our personalized offers.
If you want to register a company in another country, such as the UAE, we can put you in touch with our local partners. If you want to extend your business and incorporate LLCs in several countries, including Austria, we can help you with the company incorporation process.