In this article, our colleague, Att. Abdel Hamid Soliman from Gurcan Partners Kuwait Office will mention Company Formation in Kuwait after changing of Foreign Direct Investment Law of Kuwait.
Company Formation in Kuwait
FDI Law – Timeline, Capital Required to Start your Business and Excluded Activities
The foreign investor, during the establishment of his business, in Kuwait will deal with two main authorities:
- The Kuwait Direct Investment Promotion Authority (KDIPA) and
- Ministry of Commerce and Industry (MOCI).
Timeline to get your licenses:
KDIPA grants the investment license to the foreign entity which allows for 100% foreign ownership of the Kuwaiti company within 30 days from the date of the application.
The MOCI grants the applicant the commercial license to operate within a maximum of 60 days. This timeframe may be extended if the applicant’s activity is subject to the regulations and supervision of another ministry or authority such as the Capital Market Authority (CMA) or Ministry of Information.
Minimum Capital Required:
In the pursuit of its continuous developments and facilitating investments in Kuwait, the Ministry of Industry and Commerce (MOCI) in Kuwait has unified the minimum capital required for all activities carried out under its supervision.
Determining the company’s capital is currently based on the company’s type, as opposed to its objectives as was the case in the past. However, the below minimum capital required may be increased in the event that the company’s objectives fall under the scope of the regulations or supervision of another authority other than MOCI (e.g. Capital Market Authority or Ministry of Information):
- Limited Liability Company – minimum capital required is KWD 1,000 (Appx. $ 3.320)
- Closed Joint Stock Company – minimum capital required is KWD 10,000 (Appx. $ 30.320)
- Public Joint Stock Company – minimum capital 25,000 K.D. (Appx. $ 83.100)
The Law grants foreign investors the right to carry out most commercial activities without restrictions, although some specific activities are excluded from direct investments in accordance with the Ministerial Decree no. 75 of the year 2015 regarding the List of Excluded activities from provisions of FDI Law no. 116 of 2013 and International Standard Industrial Classification (ISIC) which enable the foreign investor to easily identify the excluded activities from those permitted for direct investment inside the State of Kuwait as follows:
- Extraction of crude petroleum (Class 0610)
- Extraction of natural gas (Class 0620)
- Manufacture of coke oven products (Class 1910)
- Manufacture of fertilizers and nitrogen compounds (Class 2012)
- Manufacture of gas, distribution of gaseous fuels through mains (Class 3520)
- Real estate (Level L) excluding privately operated building developments projects
- Security and investigation activities (Division 80)
- Public administration and defense compulsory social security (Level O)
- Activities of membership organizations (Division 94)
- Activities of hiring labor including domestic labor.
Finally, I hope our efforts will succeed in raising awareness and disseminating knowledge that is truly informative about Government developmental goals.
Gurcan Partners International Law Firm provides company formation services in 9 countries. Our multinational team is ready to help you to during the whole process of Company Formation in Kuwait.
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Also, you can have a check our other articles:
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- Company Formation in the Czech Republic
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During the process, our international team is ready to help you. You can have a check our professional team from here.
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Att. Abdel Hamid Soliman
Gurcan Partners Kuwait Office
All rights reserved. All rights of Company Formation in Kuwait article belong to Gürcan Partners. The author has no responsibilities from the information of this article. This article is prepared just to inform.