Kuwait Company Formations

In Kuwait the most common type of company established by foreign companies is the WLL (Limited Liability Company).

You need to be aware of the requirement that 51% of the company’s shares will be have to be held by a Kuwaiti, we can provide assistance in identifying and reaching an agreement with a local partner.

Investment License in Kuwait

The company's economic activity must have an ISIC Code and these activities must not appear on the negative activity list. We will submit a Concept Paper with the intended activity of your Kuwaiti company, the result of which is received within 3 days.

We will then process the application for the license and obtain the government approval required for the company. Official approval is granted to the company within 30 days from the date of submission.

Company Establishment WLL

The incorporation of a newly established WLL company, which is ready to operate includes:

  • The legal incorporation of the company in conjunction with a law firm
  • preparation of legal documentation between principal and silent shareholder (shareholders agreement, power of attorney, etc)
  • Opening of the bank account
  • The first director will have to be Kuwaiti, we can make available the resident director of Kuwaiti nationality during the incorporation period
  • Securing the necessary licenses - Commercial License, Ministry of Social Affairs, Labor File, Ministry of Commerce & Industry, Public Authority for Manpower, Public Authority for Civil Information, Municipality, and the Ministry of Interior.
  • Sourcing adequate office space - office rental is a requirement during the incorporation process

Documents required for Kuwait Company Formation

Foreign Companies and Directors will need to provide the following documents:

  • Passport copies of the Directors and Shareholders
  • Clean criminal record validated by the Ministry of Foreign affairs
  • Bank certificate affirming availability of the share capital
  • Appointment of a manager with a Kuwaiti nationality
  • Rental contract in the name of the company and a rental receipt valid for 3 months
  • Certificate from the Public Authority for Civil Information for the rented address
  • Letter from the local sponsor notarised by the Kuwait Chamber of Commerce and Industry and Signature Certificate for the local sponsor and work permission certificate
  • Company’s existing business license or trading certificate from the original country of origin
  • Original Articles of Association
  • A Power of attorney for the Director for the person authorised to sign on behalf of the company for company formation purposes
  • Original resolution by the Board of Directors or the General Assembly

Company 51% Silent Shareholder fee

Our agent is a 100% Kuwaiti owned company and they fulfil the obligation as an appointed National Service Agent with the 51% share holding as required under Kuwaiti Company Law.

They will not be involved in the daily operations of the company, you enjoy full beneficial rights of the shares and we will provide you with a power of attorney for full operational control of the company.

An annual fee for the silent shareholder services is payable, this is either a fixed fee or a percentage of the annual turnover of the company. This fee is payable in advance following incorporation and then annually.

The silent shareholder holds a 51% share in the Kuwait company on behalf of the principal, and will enter into a binding shareholders’ agreement with the principal pursuant to which they:

  • Cannot transfer the shares except as instructed
  • Perform all actions in regard to the company as instructed by the principal
  • To vote in the shareholders’ meetings as instructed by the principal.
  • The principal will receive a Power of Attorney, giving you all the powers to represent the company in regard to the shares in the company

We ensure that these arrangements allow the principal to operate freely in Kuwait.

In addition, and more importantly, we ensure that the principal has the freedom to exit this relationship at any time.

Share Capital

The amount to be paid as share capital is KD1,000, for the avoidance of doubt, the amount to be paid as capital is not included.

Registered Office

Prior to starting the incorporation process the company is required to secure an office lease that is registered with the Public Authority for Civil Information.

We suggest the option of obtaining a temporary lease for the purpose of incorporation at a cost of 250-350 KWD/month.

Please note that this is an additional cost not covered under our fee estimate.

You must have a Registered Office in the Kuwait and we provide this service.

Registration fees Issuance of the Commercial License
Government fees Fees related to MOCI extracts, registration certificate, filing etc.
Notary Issuance of three notarised copies of the Articles
Legalisation Legalisation of the Power of Attorney and constitutional documents with the foreign embassy in Kuwait and the Ministry of Exterior Affairs, fees may vary depending on the number of documents and the embassy costs
Chamber of Commerce registration Registration of the company and the authorised signatory with the Chamber of Commerce
MOSAL authorised Signatory Certificate Without a MOSAL certificate, the manager’s signature will not be accepted by government authorities

Kuwait Company Formation Timescale

It takes approximately four to six weeks to receive the trade license.

Kuwait - Ready Made Company

Unfortunately, ready made companies are not permitted in Kuwait.

Ask System Day
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Kuwait Key Points
  • Time - around 6 weeks to incorporate your company
  • Director - one director must be of Kuwaiti nationality - we can provide you with a Resident Director
  • only 49% foreign ownership of companies is allowed
  • Support - using our 20 years experience we guide you throughout every step of the company formation process