Includes steps involved in establishing a local office.

Any Kuwaiti citizen over the age of 21 may engage in commercial activity in Kuwait. Foreign companies may not engage in commercial activity in Kuwait unless the Kuwaiti share of the business or joint venture equals or exceeds 51 percent of the total capital of the enterprise (60 percent for banks, investment brokerages, and insurance companies), unless they are established under PDISK; Law No. 116 of 2013 (see below). The U.S. Commercial Service does not recommend hiring a non-Kuwaiti national as a local representative, since sales in Kuwait are highly relationship-driven.
 
In order to establish a business, the Kuwaiti firm or joint venture needs to apply for a business license with the Ministry of Commerce and Industry. Application documents must be completed in Arabic. For commercial activity in sectors including telecommunications, health services, and pharmaceuticals, the relevant ministry, department, or regulatory agency may require additional permits or licenses.
 
Business enterprises may be established in several forms, including as a Kuwait Shareholding Company (KSC), a company with limited liability (WLL), or a general partnership. The cost and time required to register and open a business will vary depending on the company structure. Reputable Kuwaiti companies have a business license, and are registered with the Kuwait Chamber of Commerce and Industry (KCCI).
 
Under the Law for the Promotion of Direct Investment in the State of Kuwait (PDISK; Law No. 116 of 2013) an investor can establish a 100% foreign-owned Kuwaiti company, a licensed branch, or  a representative office of a foreign entity. The Law is applicable for all sectors except those listed below, which are included in the “negative list” and therefore not eligible:

  • Extraction of crude petroleum
  • Extraction of natural gas
  • Manufacture of coke oven products
  • Manufacture of fertilizers and nitrogen compounds
  • Manufacture of gas: distribution of gaseous fuels through mains
  • Activities of membership organizations
  • Security and investigation activities
  • Public administration and defense; compulsory social security
  • Real estate activities
  • Activities of hiring labor including domestic labor
 
The incentives for investors under this Law include, but are not limited to, the following:
  • Tax exemptions for a maximum period of 10 years from the date of commencement of the licensed entity
  • Customs duty exemptions for the importation of materials and equipment if the material and equipment is held for a period of five years from the date of obtaining the incentive
  • Allocation of land and real estate to investors

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.