| 51% LLC | 100% LLC | PLC | Agency Agreement | Branch Office | Rep Office | |
|---|---|---|---|---|---|---|
| Company Setup Time | 2 months | 5 months | 5 months | 2 months | 5 months | 5 months |
| Bank Account Opening | 1 month | 1 month | 1 month | 1 month | 1 month | 1 month |
| Government Grants Available | Yes | Yes | Yes | Yes | No | No |
| Government Contracts Bidding | Yes | Yes | Yes | Yes | No | No |
| Limited Liability | Yes | Yes | Yes | Yes | No | No |
| Client Required to Travel | No | No | No | No | No | No |
| Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry |
Corporate Structure Explained
Kuwait Joint Venture (WLL)
- An LLC is one of the easiest ways of doing business. Foreign shareholding is allowed up to 49%. One director must be appointed who can be of any nationality. The minimum amount of paid-up share capital is at least $3,300. This amount may vary. We can create an ideal business plan for review by the government.
Wholly Foreign-Owned Kuwait Limited Liability Company (Wholly foreign-owned WLL)
- Kuwait allows 100% ownership of this entity type, to get approval it is required, a business plan, the amount of capital investment and its benefits to the economy of Kuwait.
- The paid-up capital required varies according to the company’s expected size and nature. We suggest our clients a minimum paid up share capital of US$25,000. One director is required, which can be of any nationality.
- Registered companies are required to submit annual tax returns. During the incorporation process, wholly foreign owned limited liability companies can benefit from a corporate income tax waiver
Kuwait Limited Liability Partnership (LLP)
- Foreigners can register an LLP, the authorities require at least one of the partners to be a national citizen, this can be waived with a government authorization. The partnership is a transparent fiscal entity. Earnings are distributed to partners automatically and must be included in income tax declarations. It is mandatory to prepare financial statements on an annual basis.
Kuwait Joint Stock Company (Shareholding Company)
- JSCs in Kuwait can be closed, only subscribed by the entity’s incorporators or open subscribed by the general public. The total foreign shareholding must not exceed 49% unless a waiver from the authorities is granted. A board of directors must be appointed, which includes three members.
- Annual tax returns and audited financial statements are also required for JSCs.
- This business entity is used for larger projects financed by raising capital from third-party investors. This entity is also suitable for IPO as an open JSC and can be listed on the local stock exchange.
Kuwait Branch Offices
- Foreign entities can establish branch offices if they are incorporated in any other Gulf Cooperation Council and are owned by GCC nationals. Another option is to obtain approval from the Kuwait Investment Promotion Agency, with a business plan, capital investment and potential benefits to the local economy;
- Non-GCC branches must submit annual tax returns and audited financial statements. After the incorporation process, this entity can be corporately exempted from taxes for 10 years.
Kuwait Representative Offices
- Representative offices are not allowed to carry out any direct commercial activities, but these can carry out promotional activities for goods/services of the parent company. Moreover, one authorized manager must be appointed, who must be a Kuwait resident.
Kuwait Agency Agreement
- Clients who do not want to appoint local shareholders or do not want to invest substantial capital can choose to work with a commercial agent.
- First, our clients must sign an agreement with a professional commercial agent. It must be registered with the Ministry of Commerce and Industry. The agent will then be responsible for representing our client in Kuwait. It is mandatory to file the annual tax returns and to pay corporate taxes.