Company Formation in Kuwait, Company Registration & setup - IMC
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KUWAIT

Kuwait, officially the State of Kuwait is an Arab country in Western Asia. Located on the northeastern edge of the Arabian Peninsula at the tip of the Persian Gulf it is a third wealthiest country per capita in the Middle East. Rising oil production is targeting 3.65 mm barrels per day by 2020. The basic laws regulating company formation in Kuwait states that non-Kuwaitis cannot engage in commercial activities without a Kuwaiti partner whose equity holding should not be less than 51 per cent. A special case of those under Law No 8/2001 has been enacted allowing foreign entities to determine Kuwaiti firms with stakes up to 100% foreign equity participation. Read further for more details on company registration in Kuwait. The following ways define how a foreign individual or entity may enter the market and carry out business in Kuwait:

  • Company Formation in Kuwait
  • Signing a joint venture agreement
  • Appointing a Kuwaiti commercial agent
  • Appointing a commercial representative
  • Applying for license under foreign investment law

company formation kuwait

COMPANY REGISTRATION & COMPANY FORMATION IN KUWAIT

  • Foreign individuals and corporate may establish a Limited Liability Company (LLC) company formation in Kuwait. The share of the Kuwaiti citizen in the LLC Company must be at least (51%). Since Kuwaiti citizens do not pay individual income tax, and solely non-Kuwaiti corporate bodies pay corporate tax, LLC companies do not pay taxes.
  • Closed Kuwaiti Joint Stock, companies that can be established by non-Kuwaiti entities. As a rule, only Kuwaiti citizens may be shareholders of a joint stock company formation in Kuwait. However, foreigners may own up to (49%) of the share capital of a Closed Joint Stock company (KSC Closed) for the company setup after obtaining approval of the concerned authorities.
  • Joint Stock Company Formation in Kuwait, The regulation of Minister of Commerce and Industry the maximum amount of shares which non-Kuwaitis may hold and their corresponding rights.

 LICENSING IN KUWAIT FOR THE COMPANY SETUP

  • Foreign contractors must acquire no-objection certificates from the Director of Income Taxes to send plant and machinery out of Kuwait

 ACCOUNTING AND TAX

  • Generally, people (Kuwaiti and foreign nationals) and Kuwaiti firms are not subject to taxes on income. Notwithstanding, a foreign corporate body engaged in commercial activities in Kuwait is subject to income tax. The recent amendment on tax rate is 15% of net income
  • Kuwait has limited network of double taxation agreement with many countries
  • Capital Gains are considered as normal business profits and are subject to tax as the normal rate
  • Dividends are not taxed in Kuwait

Company setup Type Limited Liability Company (WLL)
Under Kuwait law, foreigners can own 49%
Share Capital KD 7,500
Shareholders Minimum Two
Memorandum and Articles of Association Yes
Can the entity hire expatriate staff in Kuwait Yes
Tax Registration Certificate Required Yes
Statutory audit required Yes
How long to open Corporate Bank Account 1 Day
Timeframe for Incorporation: 3 Months
Annual Return Must be filed
Annual Tax Must be filed
Access to Kuwait double tax treaties Yes