Company Formation Services in Kuwait
Over the years, Kuwait has emerged as one of the top class destinations in the field of Trade and Commerce. The development of various new enterprises and businesses have created numerous economic as well as business opportunities which help to ensure all round development of the economy. There has also been a substantial rise in demand for effective Services in Company Formation which helps various entrepreneurs and business me in developing their business ideas.
INFLUENCE OF KUWAIT IN MODERN DAY WORLD
Kuwait is a small nation located in the Middle East that has emerged as one of the biggest pioneers in the field of Business, Trade and Commerce. These Business activities have played an important role in creating numerous avenues and opportunities for clients from across the globe. With a diversified economy comprising of different sectors such as Hospitality, Oil & Gas, Engineering Services, there has been a rapid boost to the economy of the nation. This sudden increase in economy has facilitated the creation of newer opportunities in the country which has led to both economic as well as entrepreneurial prosperity of the nation.
HOW CAN ONE SET UP A BUSINESS IN KUWAIT?
This is a common question that always alerts the mind of an entrepreneur looking to develop their own business in Kuwait. Some of the steps that are initiated for the formation of a Business or Enterprise in Kuwait are as follows
- The Company has to be initially registered at the Ministry of Commerce and Industry (MOCI) for attestation of documents.
- A unique name has to be reserved for the Company which helps to add a sense of exclusivity.
- The letter addressed to the Bank will then have to be received from the Department of Companies and an initial capital amount has to be deposited.
- The next step involves notarizing the Memorandum of Association before the Notary Public.
- The documents are then submitted to the Kuwait Chamber of Commerce and Industry after which a Commercial license is issued.
Company Formation Steps in Kuwait
Regulations and requirements of law changes as per the industry and business requirements. Helpline Group can help you understand these changes and makes the best decisions in Kuwait.
Licensing is a key part of getting a business set-up and running in Kuwait. Helpline Group can help you choose the right licences from the numerous options available in Kuwait.
Assurance on Reliability and Quality
Helpline Group's primary motto is to ensure quality and reliability while ensuring the highest customer satisfaction possible so that our customers become our evangelists. You, as a client, can be assured that your company formation processes are in good hands, and your business will be up and running in no time, adhering to the legal and regulatory requirements of the country.
Legal Structures of the Company
As the government continues to work towards attracting more investment to the country through industrial development and economic development, Kuwait presents attractive opportunities for businesses and entrepreneurs alike. Being the only country with the highest press freedom among GCC Countries, Kuwait has a lot of potential for a business hub in the Gulf region. However, setting up a business in Kuwait requires a thorough understanding and knowledge of the country, its legal and social conditions, its economic conditions, and cultural scenarios.
In addition to this, numerous choices are available to investors. Apart from the commonly used Limited Liability Company (LLC), which is a common choice among foreign companies, there are other suitable structures and models, which are:
- Limited Liability Company Formation
- Branch Office
- Commercial Agencies
- Representative Trade Offices
- General Partnership Company
- Limited Share Partnership Company
- Holding Company
- Public Share Holding Company
- Joint Venture
Limited Liability Company Formation in Kuwait(WLL)
A Limited Liability Company (LLC) in Kuwait is also known as “With Limited Liability” (WLL). LLC or WLL usually have two directors and two shareholders with a local partner. The local business partner in Kuwait shall have 51% of the share in the business. Although Kuwait has undergone deregulations in recent times, foreign entities are still not allowed to enjoy 100% ownership of businesses in the country. However, the Kuwaiti partner can act as a secretary or a manager to the company. A LLC company in Kuwait can be formed in a very short span of 3 months. Apart from that:
- An LLC in Kuwait has tax benefits since it is not taxable due to the involvement of a Kuwaiti partner
- As major shares are issued to a Kuwaiti partner, most LLCs are considered local businesses – corporate tax is only applicable to foreign companies
- A LLC must have a minimum of 1000 KWS as share capital in Kuwait
- LLCs in Kuwait shall not operate in insurance, banking or investment businesses
However, it is possible for an individual to get 100% control of LLC by getting approval through the Kuwaiti Investment Protection Agency (KDIPA) – such companies have an entirely different law and regulations governing them.
General Partnership Company in Kuwait
A general partnership in Kuwait is governed by the Articles 33 to 55 of the Companies Law in Kuwait. A general Partnership Company requires at least two partners, but there is no limit for the maximum number of partners. Similarly, it requires a minimum of two Directors and Promoters for a general partnership company in Kuwait. However, the liability associated with a general partnership company is unlimited, which means, liabilities of the business can be extended up to the personal wealth of the partners in the business. The form of companies is not used in insurance, banking and financial sectors. In addition to this, foreigners can gain 100% ownership in such General Partnership Companies in Kuwait.
Limited Share Partnership Company in Kuwait
It is possible to set-up a Limited Share Partnership company in Kuwait. Two or more persons can set-up and register a Limited Share Partnership Company in Kuwait, in addition to a local citizen. Mutual agreements and partnership deed are also required for a Limited Share Partnership company in Kuwait. Usually, the liability of partners in a Limited Share Partnership Company is only extended towards the extent it is mentioned in the contract. Unlike other forms of business, a Limited Share Partnership Company in Kuwait is bound to pay taxes based on shareholders’ individual financial status and performance.
Holding Company Formation in Kuwait
If companies or organisations or other entities want to invest in other companies in Kuwait, forming a holding company is the best option. A holding company is the one that used for holding shares in foreign or native Kuwaiti companies. In addition to this, a holding company also have the freedom to form a single person company, a limited liability company or a joint stock company in Kuwait. Contact Helpline Group to get more information on setting up and managing a holding company in Kuwait.
Kuwait Shareholding Company (Public Shareholding Company)
A Kuwait Shareholding Company is a company that allows the public to buy its shares and become owners. A Kuwait Shareholding Company (KSC) is a commercially registered company with a legal entity. For large scale, investors looking at third-party investments in Kuwait can opt for a Kuwait Shareholding Company. However, this form of business structure requires a large amount in the capital and it may take much longer to make a profit. A Kuwait Shareholding Company would require a minimum of 3 Board of Directors, followed by obtaining approval from the Kuwait Ministry of Commerce and Industry. The lability of the shareholder is limited to the number and value of shares he has with him.
Joint Venture Formation in Kuwait
Also known as Association in Participation, a joint venture is formed between two companies in Kuwait. However, a Joint Venture in Kuwait may not need a formal business establishment process. As per the Kuwait Companies Law, Article 57, and as per the Article 59, a Joint Venture in Kuwait does not have legal recognition and existence and it certainly cannot be operated on its own name.
Therefore, Joint Ventures in Kuwait are usually performed with a single venture, under a direct contractual agreement with another (or other) parties. All legal recognition and merit as a contract and agreement between two companies or persons are applicable to Joint Ventures in Kuwait. Please speak to Helpline Group to know more about how Joint Ventures in Kuwait operates.
Representative Trade Offices in Kuwait
Commercial Agencies in Kuwait are established to gain an alternative legal presence in the country. The activities and processes of a Commercial Agency in Kuwait is governed by Kuwait, Law No. 36 of 1964. A parent company or a foreign company can appoint a commercial agent in Kuwait to carry out their commercial activities without making large investments or setting up a formal business establishment. A commercial agent should be a Kuwaiti citizen who can represent the Commercial Agency in Kuwait.
It is possible for a commercial agent to engage in activities promoting the products and services of the parent company or engage in negotiating for contracts and business deals in Kuwait. In addition to this, the law requires to have a signed agreement between the company and the commercial agency. The commercial agent must be registered with the Kuwaiti Ministry of Commerce and Industry. Helpline Group can manage all these requirements on your behalf and establish a Commercial Agency in Kuwait as per your requirements.
Commercial Agencies in Kuwait
A commercial agency is the best alternative to make a legal presence in Kuwait. In Kuwait, Law No. 36 of 1964 governs and tells how to do business in Kuwait via a Commercial Agency setup. This Business form is suitable for those who do not want to have Kuwaiti shareholding in their business or make further business investments. In Kuwait, a commercial agent is required to represent its parent company or foreign company and works on behalf of it. A Commercial Agent can deal with promoting products of a parent company in Kuwait and can also negotiate on their behalf.
Under this business form, there must be a signed agreement with the commercial agent who should be registered with the Kuwaiti Ministry of Commerce and Industry. In the agreement, the mode of payment to an agent (fixed salary or commission) should be clearly mentioned by the parent company. Commercial Agency in Kuwait is supposed to submit yearly tax returns and pay an annual tax on their corporate income earned in Kuwait. Helpline Group can help you register your Commercial Agency in Kuwait and take care of all regulatory and legal requirements.
Branch Offices in Kuwait
Companies may set-up Branch Offices in Kuwait in order to deal with customers, engineering, financing activities, or business promotions. However, you may only open a branch office in Kuwait, if the company is incorporated in any other Gulf Cooperation Council (GCC) country or if the company is owned by a citizen of any of the GCC country. In addition to this, it is possible for other companies to set-up a branch office in Kuwait by getting approval from the Kuwaiti Investment Promotion Agency (KDIPA).
However, the requirements associated with such approvals are complex, and it must detail all aspects, including investments, expected benefits to the Kuwait society and so on. It is also a mandatory requirement for Branch Offices not owned by GCC residents to file for annual audited financial statements. Such Branch Offices may also get a tax benefit for 10 years. Helpline Group can provide you with more details and help you set-up a branch office in Kuwait, whether you have a company incorporated in GCC, or if you are a GCC resident, or not.
Helpline Group Company Formation Services
Other Factors You Should Consider for Qatar Business Formation
Helpline Group is ideally placed to support all your real estate needs associated with Kuwaiti commercial registration to establish your real estate business or business operations. Helpline Group will manage all legal requirements and compliance goals associated with real estate businesses and real estate acquisition for businesses in Kuwait.
In Kuwait, foreign businesses are bound to pay tax. Companies registered in any of the Gulf Cooperation Council nations or a resident of any of these GCC countries may not need to pay taxes in Kuwait. Kuwait has a flat corporate tax charge at 15%, which is filed on an annual basis. Helpline Group can help you set-up taxation and file your taxes as per the requirements in the country.
As foreign businesses and individuals enter Kuwait for new business ventures, you must begin with a visa. Helpline group has established dedicated services and a dedicated global visa processing network that deals with all GCC countries, and the middle eastern region, with more regions coming in the near future. Speak to one of our consultants to understand how we can help you or your business right from planning to visa application to establishing and running a business.
Importing and Licensing System
As foreign businesses come to Kuwait for business activities, they may get into situations demanding to import and exporting of goods and products. Major products imported by Kuwait are food, automobile, and raw material for the oil and gas industry. Hence, there is a lot of potential in these sectors, but one must comply with laws and regulations. Helpline Group can help you set up importing systems and practices along with all licences and registration and so on.
It is a mandatory requirement for importers to give 5% as import levy to the government. Helpline Group understands the intricate relationships between different practices. Hence, speak to Helpline Group to understand how to set up an import and export business. Helpline Group is also an active player in obtaining licenses and registration for the business. Some of the licensing we offer are:
- Industrial License
- Auditing Company License
- School and Institute License
- Travel and Tourism Agency License
- Shipping Agency License
- Engineering Consultancy License
- Tourism Company License
- Trading Companies
- Contracting Companies License
- Clinic License
- Restaurant License
- Clearing and forwarding license
- Trademark registration
- Product registration
- Classification certificate
- Import Code