Ready to open a branch in Kuwait? This page provides you with details on this type of entity, its characteristics, and incorporation formalities. Plus, if you are a foreign entrepreneur, you can benefit from assistance to start a branch here from our Kuwaiti agents.
Table of Contents
What are the main characteristics of branches in Kuwait?
- must keep the same name as the parent company,
- cannot have other activities except those of the foreign company,
- it is controlled by the parent company,
- can engage in local contracts & direct sales,
- it is not a separate legal entity,
- it acts as an extension of the foreign company, etc.
Is a branch in Kuwait 100% foreign owned, or do I need a local partner?
A branch in Kuwait can be 100% foreign owned. There is no need for a local partner.
What are the key conditions to open a branch in Kuwait?
• you must apply for permission to open a branch in Kuwait.
• it is necessary to prepare and present specific documents that mention capital investment, business model, and the advantages of the business to society.
• Kuwait Direct Investment Promotion Authority (KDIPA) issues the necessary permits for establishing a branch in this country.
• the Department of Trade and Commerce in Kuwait issues the required approvals for opening a branch, as well as information about incorporation costs.
NOTE! We specify in this case that only the enterprises with origins in the Gulf Cooperation Council or owned by GCC citizens can open branch offices in Kuwait. The only exception is if KDIPA issues specific approvals for foreign entities.
What is the minimum share capital needed to open a branch in Kuwait?
Not imposed.
Do I need a representative agent to open a branch in Kuwait?
Yes, it is recommended to work closely with a local agent when opening a branch in Kuwait.
What documents are needed for establishing a branch in Kuwait?
- proof of registered business address in Kuwait,
- Articles and Memorandum of Association,
- Official Board Resolution stating that a branch is opened in Kuwait,
- a copy of the parent company documents,
- audited financial statements from the foreign company,
- a power of attorney for the branch representative in charge of all paperwork and procedures (who can be one of our Kuwaiti lawyers),
- copies of IDs/Passports, etc.
NOTE! All documents must be translated into Arabic and then notarized before submission to the relevant authorities in Kuwait.
Where is branch registration done in Kuwait?
At the Ministry of Commerce and Industry (MOCI).
Who is liable for a branch in Kuwait?
The parent company.
Can I open more than just one branch in Kuwait?
Yes, with approval from MOCI.
Do I need to apply for a business license for a branch in Kuwait?
Absolutely! You will need to obtain the commercial licenses that allow a branch to develop specific business activities in Kuwait.
NOTE! A business license can be issued by MOCI or by KDIPA in Kuwait.
Are there any extra conditions to set up a branch in Kuwait?
- make sure you verify and reserve the name first,
- register for taxation in Kuwait,
- align with the accounting and reporting rules in Kuwait, etc.
What is the taxation of branches in Kuwait?
- 15% corporate income tax,
- 5% Tax retention regulation instead of a dividend withholding tax.
What are the accounting obligations for branches in Kuwait?
- branches in Kuwait must respect the International Financial Reporting Standards (IFRS), plus the accrual basis accounting,
- annual financial statements are mandatory for branches in Kuwait.
NOTE! Because a branch is established by a foreign company and it is subject to 15% corporate income tax in Kuwait, the annual financial statement requirements are strictly enforced to comply with the local tax liabilities.
What is the registration fee for a branch in Kuwait in 2026?
Around KWD 30 and KWG 150 as the state administration fee.
What is the time frame to register a branch in Kuwait?
About 2-6 months.
Assistance in opening branches in Kuwait is at your disposal at any time. Plus, our clients can benefit from personalized services when applying for residency in Kuwait. We recommend requesting the support of our experts at our law firm in Kuwait, regardless of the matters that need to be solved. Contact us online or by phone whenever you decide to know more about company formation in Kuwait.