Starting a business in Kuwait: foreigner's guide (2026)

Under the standard Companies Law, foreign investors are limited to 49% of a WLL or other commercial entity; a Kuwaiti national or wholly Kuwaiti-owned entity must hold the remaining 51% majority.

Law No. 116 of 2013 authorises KDIPA to issue investment licences granting up to 100% foreign equity in approved sectors including IT/software, infrastructure, healthcare, insurance, tourism, and freight. KDIPA targets a 30-day approval decision on completed applications. Excluded sectors include petroleum extraction, natural gas, real estate, security, and public administration.

Since January 2024, foreign companies may open wholly-owned branch offices in Kuwait without a local agent, and such branches may bid directly on government tenders and execute contracts through that branch.

The most common vehicle is the WLL (Limited Liability Company), requiring at least 2 and no more than 50 shareholders. Minimum statutory share capital is KWD 1,000 (approx. USD 3,300), calculated cumulatively at KWD 100 per licensed activity object; MOCI may require higher capital depending on the business activity.

Core steps: (1) reserve trade name with MOCI; (2) select company structure and secure Kuwaiti partner or KDIPA licence; (3) notarise Memorandum and Articles of Association; (4) deposit minimum capital; (5) submit full application to MOCI Commercial Registry. Online filing via the Kuwait Business Center takes approximately 1–2 weeks; offline processing takes 3–5 weeks.

Kuwait introduced a 15% Business Profits Tax (BPT) applicable to all businesses, local and foreign, effective from 2025, replacing the prior framework under which only foreign-owned firms were subject to corporate income tax.