Set your Kuwait business on the right track
Get in touchLimited Liability Company
The most common type of corporate entity in Kuwait is the limited liability company (“WLL”). The capital in a WLL must be owned 51% by a Kuwaiti national (corporate entity or individual). A WLL requires at least two shareholders and can operate in all sectors with the exception of the banking and insurance sectors and is prohibited from investing funds on behalf of third parties. The minimum share capital for a WLL is Kuwaiti Dinars 1,000, but varies depending on the company activities.
Kuwait Shareholding Company Closed
A further widely used type of corporate entity is the Kuwait Shareholding Company Closed (“KSCC”), which requires a minimum of five shareholders and a minimum share capital of Kuwaiti Dinar 10,000. A two-year lock up period applies in respect of shares held in a newly incorporated KSCC.
Foreign Investment Incentives
Pursuant to the Direct Investment Promotion Law No. 106 of 2013 (“Investment Promotion Law”) the Kuwait Direct Investment Promotion Authority (“KDIPA”) can grant investment licenses to companies incorporated in Kuwait, which allow up to 100% foreign ownership. In addition, KDIPA can grant further exemptions and incentives to such licensed companies.
Branch Office
The Investment Promotion Law further allows for the establishment of a branch of a foreign company on the basis of a license granted by KDIPA. Such a license can allow the operation of a branch of a foreign company in Kuwait without the involvement of a local representative or agent.
Representative Office
Under the Investment Promotion Law a foreign company may also open a representative office without a local partner. Such offices may not conduct any financial transactions related to the company’s commercial activities in Kuwait.
Commercial Agency
As an alternative to establishing an own entity or branch in Kuwait or in cases where no eligibility exists to receive a relevant license from KDIPA, foreign entities can appoint an agent to market goods and services within Kuwait. A commercial agent generally acts as the exclusive provider of services of the foreign principal or exclusive distributor in Kuwait for the foreign produced goods. Kuwaiti law allows for far reaching protection in favour of the local agent, including difficulties to terminate the agency agreement and compensation claims in favour of the agent in the event of termination.
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Contact us today to see how we can help you set up your business in Kuwait.
Aeon Gulf General Trading & Contracting Company WLL
T +965 2220 5891
F +965 2220 5892
E info@aeongulf.com
PO Box 206, 13003 Safat, Kuwait
Al-Watania Tower, 7th floor, Fahed Al-Salem street, Al-Qibla, Kuwait.
Commercial Register Number: 119298
Paid Capital: KD 250.000