Interesting facts about Kuwait
- Kuwait is a constitutional emirate with a parliamentary government. The ruler of Kuwait is known as an Emir;
- Kuwait is home to the world’s fifth largest oil reserves and petroleum products make up approximately 95% of the country’s export and 80% of the government’s income;
- Kuwait has the largest oil field, the Burgan field, which reach the capacity of approximately 70 billion barrels of oil reserves;
- The official language of Kuwait is Arabic, but English is also widely spoken and understood;
- Kuwaiti men usually wear the national dress of long white dishdashes and white head cloths, while women wear yashmaks;
- Most of Kuwait is covered by the Arabian Desert. It is a low lying country with the highest point reaching only 306 m (1,004 ft) above sea level;
- Approximately 75% of the Kuwait population over the age of 15 are overweight, making it the eighth fattest country in the world;
- Falcon is the national bird of Kuwait. The image of falcon appears on stamps and even on currency of Kuwait.
Frequently asked questions
- Can a Kuwait company be used to do business internationally?
There are no restrictions on where a Kuwait company can operate, although the company is usually used to conduct trade in Kuwait and within neighboring Gulf Cooperation Council (GCC) states.
- Is a Kuwait company a secure long-term solution?
Although it is economically stable and is a member of major economic organisations such as the World Trade Organisation (WTO), the government have encouraged foreign investment by creation of the Kuwait free trade zones with no import duties and corporate foreign income is relieved from tax. However, Kuwait is located in a volatile part of the world and is not a well known trading hub.
- Are there any restrictions on ownership of a Kuwait company?
100% foreign ownership has been allowed in Kuwait since 1995 within the Kuwait free trade zones. Any foreign owned enterprise outside these zones are restricted to 49% of the capital, and 40% in the case of banking, insurance, and investment firms.
- Are there any restrictions on the activities of a Kuwait company?
Importing goods. This is restricted to Kuwaiti citizens, firms who are wholly owned by Kuwaiti nationals and limited liability Kuwaiti companies.
- Is there a minimum number of shareholders required for a Kuwait company
A limited liability company must have a minimum of two partners (a husband and wife are considered a single party under Kuwaiti law) and can have a maximum of 30 partners. Please note that a husband and wife are considered a single party under Kuwaiti law.
- Are there any minimum capital requirements to set up a Kuwait company?
Yes, the minimum capital requirement for a limited liability company is KD1,000 (US$3,500).
- What are the tax implications of Kuwait Company formation?
Foreign companies are liable to pay corporate tax on profits from operations within Kuwait. A foreign partner (individual) will not be subject to income tax but a partner company will. Kuwaiti residents do not pay any income tax.
- Does Kuwait have a good network of double tax treaties?
Kuwait has a respectable network of double tax agreements with other countries. In this list includes United Kingdom, Germany, Italy, Netherlands, UAE, India, Hong Kong, Mauritius, South Africa, and Canada, plus many more.