Kuwait company registration

DOING BUSINESS IN KUWAIT IN 2022

pay fee by instalmentsbusiness setup without travelGuaranteed solutions

Since 2003, Healy Consultants Group PLC has been efficiently and effectively assisting our Clients with i) Kuwait business registration ii) business licensing iii) Kuwait business banking solutions iv) visa options and staff recruitment strategies and v) workspace rental solutions.

Compare different Kuwait entities Joint venture (JV) WLL Wholly foreign owned LLC Fast solution LLC Agency agreement Representative office Branch office
Also known as 51% WLL 100% LLC Fast solution Agency agreement RO Branch
Best use of company? All products/ svcs Big corporations Close client deal now All products/ svcs Marketing/ research Specific projects
How soon to invoice Clients? 3 months 6 months 1 month 2 months No 6 months
How soon can you hire staff? 3 months 6 months 1 month 2 months 6 months 6 months
How soon can you sign a lease agreement? 1 month 3 months 1 week 1 month 3 months 3 months
How long to supply corporate bank a/c? 4 months 7 months 2 months 2 months 7 months 7 months
How long to supply co. reg / tax numbers? 3 months 6 months 1 month 2 months 6 months 6 months
Corporate tax rate on annual net profits? 15% 15% 15% 15% 0% 15%
Limited liability entity? Yes Yes Yes Yes No No
Government grants available? Yes Yes Yes Yes No Yes
Govt approval required for foreign owners? Yes Yes Yes No Yes Yes
GCC resident director/manager required? Yes Yes Yes Yes Yes Yes
Minimum paid up share capital? US$3,270 US$75,000 US$10,000 0 N/A N/A
Can bid for government contracts? Yes Yes Yes Yes No Yes
Recommended Bank National Bank of Kuwait Citibank Kuwait ABK KFH KIB Ahli UnitedBank
Can secure trade finance? Yes Yes Yes Yes No Yes
Average total business set up costs? US$26,740 US$76,390 US$129,653 US$15,200 US$46,825 US$46,825
Average total engagement period? 4 months 7 months 3 months 3 months 6 months 6 months

See full table

Accounting and tax considerations Joint venture (JV) WLL Wholly foreign owned LLC Fast solution LLC Agency agreement Representative office Branch office
Statutory corporate tax payable? 15% 15% 15% 15% 0% 15%
Legally tax exempt if properly structured? Yes No No No Yes No
Group HQ tax incentives? Yes Yes Yes No No Yes
Must file an annual tax return? No Yes Yes Yes No Yes
Must file annual financial statements? Yes Yes Yes Yes Yes Yes
Must appoint an auditor? No Yes Yes Yes Yes Yes
Access to double taxation treaties? Yes Yes Yes No No Yes
Company Registration WLL Wholly foreign owned LLC Fast solution LLC Agency agreement Representative office Branch office
GCC resident director/manager required? Yes Yes Yes Yes Yes Yes
Min. number of shareholders/partners? 2 1 1 0 Parent company Parent company
Maximum shareholding for foreigners? 49% 100% 100% 0 100% 100%
Security deposit kept with government? No No No No No No
Time to incorporate/register a new entity? 3 months 6 months 1 month 2 months 6 months 6 months
Can easily convert to a PLC? Yes Yes Yes No No No
Public register of s/holders and directors? Yes Yes Yes Yes Yes Yes
Can have preference shareholders? Yes Yes Yes No No No
Business Considerations WLL Wholly foreign owned LLC Fast solution LLC Agency agreement Representative office Branch office
Can register for Trademark? Yes Yes Yes No No Yes
Can secure an import and export license? Yes Yes Yes Through the agent No Yes

Our Client must travel to Kuwait? No
Temp. physical office solutions available? Yes
You need a local resident as bank signatory? Yes
WH tax on payments to foreign s/holders? 0%
VAT payable on sales to local customers? N/A
The entity will likely be regulated by? Ministry of Commerce and Industry
Min. number of directors/managers? 1
Monthly VAT reporting to the government? No
Sign office lease during incorporation? Yes
S/holder/director docs attested/translated? Yes
Foreign director needs personal tax no.? No
Foreign director needs a residence visa? Yes
Maximum number of staff allowed? No maximum number for any entity
Expatriate to local staff ratio? Yes, ratio depends on business sector
Residence visa for business owner? Yes
Other useful information
What will be included in my customer sales invoice? Click link
Kuwait has signed free trade agreements? Yes
Kuwait is a member of WIPO/TRIPS? Yes, WIPO only
Kuwait is a member of the ICSID? Yes
Average custom duties suffered? 5%
Govt. foreign investment approval required? Yes
Average monthly office rent? (US$/sq m) 24
Minimum statutory monthly salary? US$216
Average monthly US$ salary for local staff? US$3,500
US$ deposit interest rate (year average)? 1.75%
Overseas remittance currency controls? None
Banking considerations
Multi-currency bank accounts available? Yes
Corporate visa debit cards available? Yes
Quality of e-banking platform? Good
Crowd funding available in this country? Yes

Kuwait business setup summary

  • In Kuwait, the most popular business entities for foreign investors are the LLC and branch;
  • Kuwait business set up is expensive and time-consuming due to i) high paid-up capital and other regulatory requirements ii) red tape;
  • A Kuwaiti national must own at least 51% of an LLC entity. The only exception to this is for foreign investments approved by Kuwaiti Direct Investment Promotion Authority (KDIPA);
  • All corporate entities trading in Kuwait will be subject to annual corporate taxation of 15%;
  • An option we offer our Clients is to simply negotiate an agreement with a local Kuwaiti agent to reduce their business setup costs. However, all income earned through an agency agreement is still subject to corporate income tax;
  • There is no withholding tax levied on payments from Kuwaiti entities to their non-Kuwaiti shareholders.

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For additional information on our company registration services in Kuwait, please contact our in-house country expert, Mr. Apurv Trivedi, directly:
Consultant at HC - apurv
  • Mr. Apurv Trivedi
  • Principal - Client Engagements
  • Contact me!