BUSINESS IN KUWAIT

From the early ages the strategic location of the State has promoted it to be a perfect niche for business. Kuwait welcomes foreign entities to carry on commercial activities in the country.

The Ministry of Information provides the Business visa, and requires the copy of the applicant’s passport and a copy of the signature authorization for companies.

Non-Kuwaiti citizens or foreign companies are not allowed to carry on any business related activities in Kuwait without a Kuwaiti partner or agent who has a share not less than 51%.

The license to carry out commercial activities is provided only to Kuwaiti individuals and agencies by the Ministry of Information. As per the Kuwaiti Law, foreign entities may establish their business in Kuwait by developing and investing in Limited Liability Company (WLL), Closed Joint Stock Company (KSC Closed), or Public Joint Stock Company. Upon establishing the company, the entity has to sign up with a Kuwaiti agent, which requires no formal procedures, but a simple contract. Commercializing the business requires both agency and representative that are strictly required to be national entities.

However, in recent years in a bid to attract more foreign investors, the State has allowed for 100% foreign ownership in certain approved sectors, and these have to invest under the Law Regulating Direct Foreign Capital Investment, passed in 2001.

Though the citizens, expatriates or Kuwaiti companies are not entitled to pay taxes, foreign companies are subjected to income tax. The tax rates range from 15% of the corporate income.