Opening a subsidiary in Kuwait begins with the formalities imposed by the Ministry of Commerce and Industry (MOCI). As the process can be a complex one for foreign entrepreneurs, we recommend the specialized assistance offered by our Kuwaiti lawyers. We invite you to explore the following lines with information about the main steps of establishing this business structure.
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What are the steps for setting up a subsidiary in Kuwait?
The first thing a foreign entrepreneur must do when setting up a subsidiary in Kuwait is to choose the optimal business structure. Limited liability company or joint stock company can be options at hand, depending on the business plans and objectives. Here are other formalities and procedures:
- business name verification and reservation with MOCI in Kuwait is required.
- we proceed to the preparation of Articles of Association for a subsidiary in Kuwait, in notarized form. These must be registered with MOCI, the institution that issues approvals for such a business entity.
- depending on the activities to be carried out under a subsidiary in Kuwait, you will have to obtain special business licenses and permits. The local authorities issued such licenses.
- opening a corporate bank account for a subsidiary in Kuwait is also required.
- another important step in opening a company in Kuwait, such as a subsidiary, is registering for taxation. The Kuwait Tax Authority issues the required tax ID.
With the help of our specialists, including our lawyers in Kuwait who can guide you through all the legal aspects of a subsidiary, you can establish such a legal entity in a fast and reliable manner.
Is 100% ownership in a subsidiary in Kuwait allowed?
According to the Foreign Investment Law in Kuwait, entrepreneurs from abroad can establish a subsidiary here with 100% ownership if approved by the Kuwaiti Investment Agency. The law in this sense is permissive, as there are other business entities for which a local partner with 51% ownership in the firm is required. Consider the support of our attorneys in Kuwait when establishing your business presence here.
Post-registration formalities of a subsidiary in Kuwait
Once the subsidiary is registered in Kuwait and the Certificate of Incorporation is issued, foreign entrepreneurs must also take care of other aspects:
- subsidiary employees in Kuwait must be registered with the Public Authority for Civil Information and the Ministry of Labor and Social Affairs.
- it is recommended to collaborate with a team of accountants in Kuwait to align the business with the requirements in this sense. We can put you in touch with our partners to benefit from complete accounting services in Kuwait.
About the Kuwaiti economy in a few lines
If you want to get an idea of the economic direction of Kuwait before opening a subsidiary here, the following information may be useful:
- Kuwait’s economic growth in 2025 was around 2.6%. The non-oil sector was the main driver of GDP growth.
- The inflation rate in Kuwait stood at around 2.5% in 2025, with a chance to decrease by approximately 2.1% in 2026.
- The International Monetary Fund (IMF) estimates a GDP growth of about 3.8% in Kuwait in 2026.
- Kuwait authorities are set to implement a set of fiscal measures and reforms in 2026 to boost the non-oil sector. Furthermore, some measures will target the private sector to boost the number of jobs in foreign companies.
Are you planning to open a subsidiary in Kuwait? We recommend our legal services, including if the starting point as a foreign investor is to immigrate to Kuwait. Please explore this article and then contact our law firm in Kuwait for more information and personalized services.