Company Formation Services in Kuwait
Understand the most effective methods to form a company in Kuwait, legal structures of the companies, and the basic requirements for Company Formation in Kuwait:
- We would assist you with registering your company in Kuwait
- We would help you in searching for the suitable local sponsor or partner for your company in Kuwait
- Our team of native PRO experts would help you to complete the requirements to set-up your business in Kuwait
- We will help you to complete your tax registrations and licenses in stipulated time.
Go through the simple steps to register your business/ company in Kuwait and our important services offered for company formation.
Kuwait, officially known as ‘State of Kuwait’ is located in the Western part of Asia in the Middle East Region. The country is situated in the neighbourhood of Saudi Arabia & Iran. Arabic is the primary and the official language in this country for most of the communications. Kuwaiti Dinar, being the currency of this nation, considered as one of the most valued currencies in the global market.
The task of forming a company in Kuwait might be tedious for the newcomers that are unaware of the local laws and regulations. The economic benefits and the encouragement by the government for the foreign investments in the sectors such as oil & gas, agriculture and allied businesses, financial services and real estate; are attracting the investors from across the globe to expand their business setting up their branches and various other forms of companies in Kuwait.
Company Formation Steps in Kuwait:
It is necessary to follow some steps in order to register a company in Kuwait, according to the law in the country. We would provide company formation services at every stage of the process rendering valuable advice and representation to fill up the applications and follow-up with the concerned officials to get the required set of documents, their attestation and legalization as well.
Finding A Partner
You require support from a Kuwaiti national as a partner or sponsor for your company. We assist you to find out the most suited person or a fully owned Kuwaiti company for this purpose.
This is among the important steps as you need to decide the suitable legal structure before registering your company. We work closely with you to understand your business goals and find the appropriate legal structure according to the requirements and regulations in the country.
We provide the company registration services to corporate clients to accomplish the application process and submit the applications to the concerned government departments to get the approvals, licenses & certificates from the local and regional authorities well within the expected time.
Kuwait is well known for the freedom offered to the press and media in the GCC countries. So, there is a great potential for the media sector. Eventually, ‘Stock Exchange’ has also recorded a remarkable growth in the country. The government is keen about attracting investments in infrastructure development and real estate and some other non-oil sectors to diversify the sources of overall economic growth of the country. Kuwait government has low tax structures that encourages the entrepreneurs from across the globe to set-up their businesses in Kuwait.
Legal Structure of the Company in Kuwait
The business growth highly relies on the legal structure of the company and that is the reason; you need to determine the proper structure for your business before initiating the registration process. The companies can be formed in various structures in Kuwait:
- Limited Liability Company Formation
- Branch Office
- Commercial Agencies
- Representative Trade Offices
- General Partnership Company
- Limited Share Partnership Company
- Holding Company
- Joint Venture
Limited Liability Company
A minimum of two directors and two shareholders with a local partner carrying at least 51% share in the ownership can form such company that is also known as ‘With Limited Liability’ (WLL) as well. The Kuwaiti national can be the secretary, manager or both at this company and the foreign entities cannot own the major share as a matter of policy. The company can be formed within a span of merely 3 months and this is the simplest form of company in Kuwait.
The business is considered non-taxable due to the involvement of the local partner. With a minimum capital share of 1,000 KW, an individual can form an LLC that would be considered as a Kuwaiti business as the major ownership share would be with the Kuwaiti national.
The LLCs cannot operate in insurance, banking and financial sectors. After approval from the Kuwait Direct Investment Promotion Agency, an individual can enjoy complete control over such company. Some relaxations are provided through the latest FDI Law in 2013.
The LLCs need to be registered with a unique name and it is mandatory to file yearly tax returns and audited financial statements.
Branch offices would be suitable for the businesses dealing with engineering and financial sectors. The branch office in Kuwait can be set-up if the company is incorporated with any of the GCC countries or owned by a native GCC citizen. Otherwise, to set-up a branch office, an approval from Kuwait Direct Investment Promotion Agency is essential, stating the business activities, investments and the benefits of the company to the society.
The Branch Offices that are not owned by GCC citizens compulsorily require submitting yearly tax returns and audited financial reports.
Law No. 36 of 1964 governs the process of forming a company as a commercial agency in Kuwait. This form is suitable for the companies that don’t wish to have a Kuwaiti partner and don’t require further investment for expansions. A commercial agent that can be an individual or a wholly owned Kuwaiti company is required to work on behalf of the foreign principal. The commercial agent is supposed to promote the products of the parent foreign company and negotiate on their behalf.
A clear agreement with the commercial agent registered with the Ministry of Commerce & Industry stating the remuneration would be mandatory. The commercial agent is supposed to file yearly tax returns and would be subject to yearly corporate tax based on the corporate income made in Kuwait.
Representative Trade Offices
This form of company is not allowed to engage in the profit-making activities and can only promote the products and services of the parent company in Kuwait. A local resident is required to be appointed as a manager and for any further investment, prior approval from Kuwait Direct Investment Promotion Agency is mandatory.
Limited Share Partnership Company
This type of company can be formed by two or more business partners, including at least one local partner mandatorily, through a partnership agreement stating their roles, capital investments and profit-shares for the partners involved. In case, of the details aren’t specified precisely, the shareholders would possess equal rights and the taxes would be applicable based on the individual financial status of the partners.
This type of company is intended to invest and control the other Kuwaiti or foreign subsidiaries and can be formed as a Closed Shareholding Company, Single Partnership Company or an LLC. Holding Company is governed by Article 274 to 280 of Company Law.
These are simple contracts in terms of Association for Participation and don’t require official incorporation procedures for formation. The Article 57 of the Company Law governs these companies and as per Article 59, a Joint Venture cannot be considered as a legal entity in Kuwait and the business cannot be operated on its name.
This can be a contractual agreement between two or more business entities working for the same objective. The company can be dissolved after expiry of the agreement period, due to any legal disputes or achievement of the set goal. The transaction body, being the third party, can be held responsible for the activities and the other parties can be liable for their share.