Since the early age, the geographical location of the State has promoted it to be a perfect niche for business. Kuwait welcomes foreign entities to perform commercial activities in the country.
The Ministry of Information provides Business visa, which requires a copy of the applicant’s passport and an authoritative signature from the company.
Non-Kuwaiti citizens or an offshore company is not allowed to commence any business related activities in Kuwait, as the license to initiate commercial activities is provided only to Kuwait nationality or agent (who has shares not less than 51%) by the Ministry of Information.
As per the Kuwait Law, foreign entities may launch their business in Kuwait by developing and investing in Limited Liability Company (WLL), Closed Joint Stock Company (KSC Closed), or Public Joint Stock Company. While establishing the company, the entity has to make a transparent contract with a Kuwaiti agent, which requires no formal procedures. Commercializing the business strictly demands both the agent and the representative to be Kuwait nationalities.
However, in recent years in a bid to attract more foreign investors, the State has allowed up to 100% foreign ownership in certain approved sectors, and these have to invest as per Law No(8) on Regulating Foreign Capital Direct Investment, passed in 2001.
Though the citizens, expatriates or Kuwaiti companies are not entitled to pay taxes, the foreign corporates are subjected to income tax which ranges from 15% of their income.