1. 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

2. 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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