A Kuwaiti company is a tax efficient way for international businesses to legally conduct business in oil rich Kuwait and throughout the Gulf Cooperation Council (GCC).
Advantages of Kuwait company registration
- The fastest way to start business in Kuwait is through a Commercial Agency. The majority of multinationals invest in Kuwait in this way. Consequently, there is no need to register a Kuwaiti LLC;
- Some businessmen and contractors also proceed with business registration in Kuwait because the country provides an ideal gateway into the neighbouring GCC countries and Iraq;
- Kuwait is a key member of the Organization of the Petroleum Exporting Countries (OPEC). Oil accounts for around 50% of Kuwait’s gross domestic product (GDP). Many investors choose to register a company in Kuwait to tap opportunities into the booming oil sector;
- While Arabic is the official language of Kuwait, English is still widely spoken. It is used during business negotiations and is the compulsory second language in schools. Therefore, foreign investors find it easier communicating with employees, customers and suppliers;
- Without our Client travelling, Healy Consultants will assist with corporate bank account opening with one of the world’s leading retail banks, including HSBC and Citibank in either Kuwait or internationally to support the Kuwaiti company.
Kuwait has a reputation for being one of the politically stable and relatively efficient countries in the Middle East. Furthermore, its transparent government structure makes it a relatively better place to do the business.
Kuwait is exempt of taxes including: i) personal taxation; ii) interest; iii) royalties; iv) VAT; v) stamp and transfer duties and vi) property taxes.
Disadvantages of Kuwait company registration
- It is outrageously expensive to start a business in Kuwait. Our Clients’ should budget at least US$110,000 excluding the paid up share capital;
- In accordance with Article 191 of the Companies Law, the share of the Kuwaiti citizen in a WLL must be at least 51%. Most of our Clients request Healy Consultants to be the resident shareholder. Healy Consultants resident shareholder service fee amounts to US$50,500 per annum;
- Only after 7 months from engagement, our Clients’ should expect to issue their first sales invoices and sign contracts! The Kuwait Government takes very long to review and approve foreign company registration;
- All documents required for the company registration must be notarized and attested at the Kuwait Embassy in the Client’s country;
- business registration in Kuwait is challenging because of inconsistent regulations and slow moving bureaucracy. Kuwait is negatively ranked as the 69th least corrupt country in the world, according to the 2013 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
- The minimum capital requirement for business registration is 10,000 Kuwait Dinars (US$35,000);
- Kuwait is ranked as the world’s 76th freest economy by the Heritage Foundation’s 2014 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment, and labour markets;
- According to the 2013 Doing Business Survey by the World Bank, Kuwait is the world’s 104th easiest place to do business. The survey measures factors including business start-up procedures, time, cost, and minimum capital required to start a business;
- Kuwait is ranked as the world’s 36th most competitive economy in the World Economic Forum’s Global Competitiveness Report 2013 – 2014;
- During company registration and corporate bank account opening, the Kuwaiti Government frequently requests documents to be attested by the Kuwaiti Embassy in the country of origin of our Client. This is both a costly and time consuming exercise and complicates the company incorporation process. Examples of documents include i) passports copies of directors; ii) parent company certificate of incorporation and M&AA; iii) power of attorney issued by the parent company; iv) Bank reference letter and proof of address of directors. To overcome this problem, our Clients’ appoint Mr. Aidan Healy as the temporary nominee shareholder, director and bank signatory.
Though a large number of people speak English, business documents are written in Arabic, therefore foreign investors have to face the translation costs.
Frequently asked questions
What number of directors must be appointed when starting a new business in Kuwait?If you are registering a limited liability company in Kuwait with 51% local shareholding, 1 director will be appointed. However, if a wholly locally owned LLC is incorporated, 2 directors must be appointed.
How many shareholders will be required if I register a business in Kuwait?For successful business registration in Kuwait, you must have at least 2 shareholders.
Is it mandatory to have a resident director or shareholder for Company Registration in Kuwait?Yes. Resident director and resident shareholder are mandatory for registering a company in Kuwait. Please refer to our section on Different Kuwaiti business entities for more information.
How to register a business in Kuwait?For Kuwait business registration, our Client will be required to i) send Healy Consultants the requisite due diligence ii) reserve the company name iii) submit an application for company registration at the Ministry of Commerce and Industry iv) supply the office lease agreement v) open the corporate bank account and deposit the share capital vi) register the company with the Chamber of Industry and Commerce vii) file for a Civil Number with the Civil Data Department and viii) obtain a commercial business license.
Healy Consultants’ experts are company registration specialists and will assist our Clients at every step of the engagement.
Can Healy Consultants assist my firm with Kuwait subsidiary company registration?Yes. Healy Consultants is a qualified and experienced company registration agent and will be able to assist you and your Firm with this process in Kuwait.
Our company registration services in Kuwait include i) business registration ii) business license registration iii) immigration solutions iv) employment strategies v) business banking solutions and vi) office rental requirements.
Is there a business video which can provide me with vital information about doing business in Kuwait?Yes. Please click on the following link to find more information about doing business in Kuwait.