How to start a business in Kuwait?

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How to start a business in Kuwait?

Post by Badraneforum on Wed Dec 07, 2016 4:42 pm

There are three major considerations for those thinking of starting a business in Kuwait:



Inevitable first step is the good knowledge of the region. 
Moreover, You must have a viable business plan, which includes a study of the market conditions, the competition and your forecast results. You must be prepared to find the necessary investment from your own resources. 

The law in Kuwait requires that you have a local partner who holds the majority interest and therefore controls the business. Important to know is that the local partner, is not obliged to contribute to the start-up investment or participate financially at all. As with self-employment, there are various ways that a partner can be remunerated. The local partner requirement is currently under review in some states, however, in order to encourage foreign investment.

When the business is registered, you must show the Ministry of Commerce that you have a substantial sum of money to invest. The process itself is complex and financially risky, meaning that local knowledge is crucial. Therefore You must consult a good lawyer from the outset who will guide you through the registration process and who will beprotecting your interests. This applies whether you’re opening a modest shop or a major enterprise. 

Legal perspective before starting a business?
It is crucial to obtain local legal advice and guidance about registration formalities.
Commercial laws in Kuwait have taken a major leap in the past two years and will continue to change now due to some difficult economic reform. 

Each business has its different needs:
1)    The type of company you want to establish should be the first thing you consider. There are multiple options under Kuwaiti law and each type has its own responsibilities and consequences depending on the partnership that you would like to create.
2)    When you submit your papers to obtain a permit, you will need to also register your company’s trademark including the logo. So I advise that you finalize those issues internally before submitting your documents.
3)    A general partnership agreement can be found at the Ministry of Commerce, also the general draft for the articles of association of the company (should your company need one). I advise you to read and review them carefully even if they are general and are commonly used in Kuwait. Internal policies are also things that you should consider.

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