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Open a Branch in Kuwait

Open a Branch in Kuwait

If you want to set up a branch in Kuwait, you should ask for specialized help to face the possible complexities in terms of procedures and formalities. Here we advise you to get in touch with our Kuwaiti lawyers who can guide you from the start in this endeavor. In the following lines, you can discover some important information about opening a branch in Kuwait.

What are the formalities for setting up a branch in Kuwait?

Opening a branch in Kuwait requires, first of all, to appoint a representative or to have a Kuwaiti partner who should own at least 51% of the shares in the company. Here are other aspects that you must take into account:

  • 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 advantages of the business to society.
  • Kuwait Direct Investment Promotion Authority (KDIPA) issues 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.
  • Depending on the activities, a trade license is required to be able to carry out the desired activities in Kuwait, under the selected branch.

We specify in this case that, only the enterprises with origin in the Gulf Cooperation Council or owned by GCC citizens can open branch offices in Kuwait. The only exceptions are if KDIPA issues specific approvals for foreign entities. But for more information on this matter, we recommend you contact our lawyers in Kuwait.

On the other hand, you have at your disposal the services offered by our immigration lawyers in Kuwait, if you are interested in a residence permit in this country when you want to start a business.

What other specifications related to branches in Kuwait do you need to know?

The legislation is clear regarding opening a branch in Kuwait, and those interested must inform themselves in advance about this structure to see if it is included in their business plans. For example, you should know that:

  • Branches in Kuwait can develop economic and business activities in this country and sign contracts with local clients.
  • Offices for business operations in Kuwait can be rented.
  • The tax system in Kuwait must be taken into account, as well as the immigration legislation in the case of foreign employees or investors in this country.

Number of directors accepted for the Kuwaiti branch

At least 1 director is needed to register a branch in Kuwait. He/she can be of any nationality, as long as he/she resides in Kuwait.

We remind you that foreign shareholding in a branch is restricted to 49%, and approval is done in advance by KDIPA. We recommend specialized help from our attorneys in Kuwait for opening a branch in this country.

Some statistical data about the economy of Kuwait

If you want to set up a branch in Kuwait, it is good to know some information about the economic direction of the country:

  • Non-oil GDP expansion increased to approximately 3.4 % in 2021, due to a solid improvement in national and external demand.
  • A general real GDP growth recovery of 8.2% has been registered in 2022 in Kuwait.
  • The overall fiscal balance recorded a surplus of about 6.5% of GDP during 2021 and 2022.
  • The fiscal excess is projected to be enhanced to 23.4% of the total GDP for 2022-2023.

We recommend requesting the support of our Kuwaiti lawyers for opening a branch. Contact us online or by phone whenever you decide to do business in this country.