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flag Kuwait Kuwait: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company


The close shareholding company (KSC)
Number of partners: Minimum 5 partners, with no maximum.
Capital (max/min): KWD 250,000 minimum capital.
Shareholders and liability: Partners' liability is limited to the amount contributed.
Limited Liability Company (WLL)
Number of partners: Minimum 2 partners with no maximum.
Capital (max/min): KWD 7,000 minimum capital. 51% of the Capital must be Kuwaiti.
Shareholders and liability:
Partners' liability is limited to the amount contributed.
General Partnership
Number of partners: Minimum 2 partners - Kuwaiti.
Capital (max/min): KWD 7,000 minimum capital.
Shareholders and liability: Partners' liability is unlimited.
Limited Partnership
Number of partners: Minimum 2 partners. Two types of partners: dormant partners and active partners.
Capital (max/min): KWD 7,000 minimum capital.
Shareholders and liability: Liability of active partners is unlimited. The liability of dormant partners is limited to the amount contributed.
The Competent Organization
The Ministry of Commerce (in Arabic) issues the commercial license required to perform any commercial activity.  For certain activities, a license must be obtained from other ministry departments as well such as health, communications, etc.
 
Setting Up a Company Kuwait Middle East & North Africa
Procedures (number) 12.0 8.0
Time (days) 32.0 23.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Kuwait.
Business in Kuwait

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The Active Population in Figures

20112013
Labor force 2,227,0002,380,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -68.50%67.70%
Men activity rate 82.50%82.20%82.30%
Women activity rate 45.40%43.30%43.40%

Source: UN - United Nations

 

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Working Conditions

Legal Weekly Duration
8 hours per day, 48 hours per week.
Retirement Age
60 years old.
Working Contracts
The private sector has two types of contracts:  Contract for unlimited time and contract for limited time which cannot exceed five years.  It is mandatory that  all contracts have to be written in Arabic, but they can be translated if the employee does not speak Arabic.
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
KWD 60 per month (source: ILO, 2011).
Average Wage
The average salary of a Kuwaiti is about KWD 1,000 per month (3,749 USD).
Social contributions
Social Security Contributions Paid By Employers: Employers are not  required to contribute for the foreign labor force they recruit.
Social Security Contributions Paid By Employees: For foreign labor force, this system is not mandatory.

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Social Partners

Social Dialogue and Involvement of Social Partners
Creation of syndicates (unions) is limited.  All syndicates (about 15) are regrouped under the Kuwaiti Federation of Syndicates.  Foreign domestic workers, who represent one third of the active population, do not have the right to be affiliated to a syndicate.
Unions
Kuwait Trade Union Federation
Unionization Rate
5 % of the active population is affiliated to a syndicate (union).
Labor Regulation Bodies
Ministry of Labor and Social Affairs & Electricity and Water

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Last Updates: January 2015