FACT SHEET

Kuwait Kuwait, officially the State of Kuwait is an Arab country in Western Asia. Located on the northeastern edge of the

Arabian Peninsula at the tip of the Persian Gulf it is a third wealthiest country per capita in the Middle East.

Rising oil production is targeting 3.65 mm barrels per day by 2020. The basic laws regulating conduct business

in Kuwait states that non-Kuwaitis cannot engage in commercial activities without a Kuwaiti partner whose equity

holding should not be less than 51 per cent. A special case of those under Law No 8/2001 has been enacted

allowing foreign entities to determine Kuwaiti firms with stakes up to 100% foreign equity participation. The

following ways define how a foreign individual or entity may enter the market and carry out business in Kuwait:

Establishing a company

Signing a joint venture agreement

Appointing a Kuwaiti commercial agent

Appointing a commercial representative

Applying for license under foreign investment law

Company Incorporation in Kuwait

1. Foreign individuals and corporate may establish a Limited Liability Company (LLC) in Kuwait. The share of

the Kuwaiti citizen in the LLC Company must be at least (51%). Since Kuwaiti citizens do not pay individual

income tax, and solely non-Kuwaiti corporate bodies pay corporate tax, LLC companies do not pay taxes.

2. Closed Kuwaiti Joint Stock, companies that can be established by non-Kuwaiti entities. As a rule, only

Kuwaiti citizens may be shareholders of a joint stock company. However, foreigners may own up to (49%) of

the share capital of a Closed Joint Stock company (KSC Closed) after attaining approval of the concerned

authorities.

3. Joint Stock Company, The regulation of Minister of Commerce and Industry the maximum amount of shares

which non-Kuwaitis may hold and their corresponding rights.

Licensing in Kuwait

1. Foreign contractors must acquire no-objection certificates from the Director of Income Taxes to send plant

and machinery out of Kuwait

Accounting and tax

1. Generally, people (Kuwaiti and foreign nationals) and Kuwaiti firms are not subject to taxes on income.

Notwithstanding, a foreign corporate body engaged in commercial activities in Kuwait is subject to income

tax. The recent amendment on tax rate is 15% of net income

2. Kuwait has limited network of double taxation agreement with many countries

3. Capital Gains are considered as normal business profits and are subject to tax as the normal rate

4. Dividends are not taxed in Kuwait

FACT SHEET Kuwait

Type: Limited Liability Company (WLL)

Under Kuwait law, foreigners can own 49%

Share Capital KD 7,500

Shareholders Minimum Two

Memorandum and Articles of Association Yes

Can the entity hire expatriate staff in Kuwait Yes

Tax Registration Certificate Required Yes

Statutory audit required Yes

How long to open Corporate Bank Account 1 day

Timeframe for Incorporation 3 months

Annual Return Must be filed

Annual Tax Must be filed

Access to Kuwait double tax treaties Yes

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