Kuwait’s strategic location, robust economy, and investor-friendly environment make it an attractive
destination for entrepreneurs and foreign investors. Whether you are a local or international business
owner, understanding the Kuwait company formation process, legal requirements, and compliance
obligations is essential to starting your business successfully.

Step-by-Step Process to Register a Company in Kuwait

1. Choose Your Business Activity

  • Identify your primary business activity and ensure it complies with Kuwait’s Commercial Companies Law.
  • Some activities require additional approvals from ministries (e.g., Ministry of Health, Education, or Commerce).

2. Select the Legal Structure

Choose from approved company types (explained below) based on ownership rules, liability, and capital requirements.

3. Reserve Your Trade Name

  • Apply to the Ministry of Commerce & Industry (MOCI) for trade name reservation.
  • Ensure the name is unique, compliant, and in line with Kuwait’s naming regulations

4. Draft and Notarize the Articles of Association (AOA)

  • Prepare the AOA and authenticate it at the Ministry of Justice

5. Secure a Kuwaiti Corporate Sponsor (if applicable

  • Most company types require a Kuwaiti partner holding at least 51% shares unless registered under KDIPA.

6. Deposit the Required Share Capital

  • Deposit the minimum share capital into a local Kuwaiti bank and obtain a deposit certificate

7. Obtain Government Approvals and Licenses

  • Certain sectors require additional clearance from regulatory bodies

8. Register with the Chamber of Commerce & Industry

Mandatory for most commercial activities

9. Set Up Civil Information and Labor File

  • Register with the Public Authority for Civil Information (PACI) for company details.
  • Open a labor file with the Ministry of Social Affairs & Labor for employee recruitment

10. Begin Operations

  • Open a corporate bank account, hire employees, and commence business.

Types of Companies in Kuwai

Type

Ownership

Liability

Minimum Capital

Notes

Limited Liability Company (WLL)

Up to 49% foreign, 51% Kuwaiti

Limited to share capital

KWD 1,000–10,000 (varies by activity)

Most common form for SMEs

Joint Stock Company (KSC)

Public or closed

Limited to share capital

KWD 25,000+

Suitable for larger projects

Partnership

Kuwaiti partners only

Unlimited

No fixed minimum

High personal risk

Branch Office

100% foreign (special approval)

Linked to parent company

Based on activity

Limited to government contracts or approved sectors

Representative Office

100% foreign

No commercial activity

N/A

For market research and liaison only

Corporate Sponsorship in Kuwait

Most foreign investors require a Kuwaiti partner holding 51% shares unless they qualify for 100% ownership
under KDIPA in strategic sectors.
A corporate sponsor can be:
• A Kuwaiti citizen
• A Kuwaiti-owned company
Sponsors typically receive a percentage of profits or a fixed annual fee, based on mutual agreements

Kuwaitization Policy

Kuwaitization mandates hiring a certain percentage of Kuwaiti nationals in private sector jobs.
• Quotas vary by sector – e.g., oil & banking have higher requirements.
• Non-compliance may result in restrictions on work permits.
• Companies should budget for hiring, training, and retaining local talent

Popular Business Activities in Kuwait

• Retail & Wholesale Trade
• Construction & Infrastructure
• Oil & Gas Services
• IT & Software Development
• Healthcare & Medical Services
• Hospitality & Food & Beverage
• Education & Training Centers

FAQ – Kuwait Company Registration

Can foreigners own 100% of a company in Kuwait?
Yes, but only under KDIPA or for approved branch offices tied to government contracts
How long does company registration take?
On average 2–4 months, depending on approvals and activity type.
What is the minimum capital for a Kuwait LLC?
Generally KWD 1,000 to 10,000 depending on the business activity
Is corporate tax applicable?
Yes, 15% corporate tax applies to foreign-owned entities; Kuwaiti-owned entities are exempt
What are the ongoing compliance requirements?
Annual audits, license renewals, Chamber membership, and adherence to Kuwaitization quotas
  • Reserve trade name and choose legal structure.
  • Apply for CR and e-commerce license via Sijilat.
  • Activate payment gateway.
  • Register for VAT (if applicable).
  • Ensure compliance with Consumer & Data Protection laws.
  • Set up logistics (own warehouse or 3PL).
  • Launch online platform (website, app, or marketplace).

Conclusion

Starting a business in Kuwait offers significant opportunities, but it requires understanding local laws,
sponsorship rules, and employment policies. Partnering with a professional business setup consultant in
Kuwait ensures faster registration, compliance, and smooth operations

Book a Consultation with MajuBiz.