Company Formation Services 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.

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.

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.

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.

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.

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.

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.

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.