Kuwait Country Profile business trade issues

Kuwait

DOING BUSINESS

Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

Programmes have been implemented to attract foreign investors. Kuwait is considered as a very attractive country because of the opportunities granted (especially in the oil sector), the very good infrastructures and a very flexible tax system.
To get further information on the different programmes, the Treasury's Offset Programme and the ministry of finance should be consulted.

Legal forms of companies

Form	Number of partners/shareholders	Minimum and/or maximum capital	Liability	Registration fee	Release of financial documents
The close shareholding company	Minimum 5 partners.	KWD 7,500 minimum capital.	Partners' liability is limited to the amount contributed.	About KWD 3,000.	Yes
Limited Liability Company (WLL's)	Minimum 2 partners. Maximum 30 partners.	KWD 7,500 minimum capital.	Partners' liability is limited to the amount contributed.	About KWD 1,500.	Yes
General Partnership	Minimum 2 partners.	No minimum capital.	Partners' liability is limited to the amount contributed.	About KWD 500.	No
Limited Partnership	Minimum 2 partners Two types of partners: sleeping partners and active partners.	No minimum capital.	Liability of active partners is unlimited. The liability of sleeping partners is limited to the amount contributed.	About KWD 500.	No

Registration and licensing procedures
Companies must contact the Ministry of Trade for all registration formalities.

Foreign exchange control

Regulations concerning equity investment
As for the Private Limited Company, at least 51% holding interest in the capital must be held by national Kuwaiti. They are not allowed in the insurances and bank sector.

Foreign Direct Investment inflows in Kuwait

FDI inflows	2003	2004	2005	World rank (*) 2005
FDI inflows (USD million)	67	24	250	132/141

Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

Last modified in 2006 - ongoing update