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How to Start a Business in Kuwait? A Step-by-Step Guide

How to Start a Business in Kuwait? A Step-by-Step Guide
How to Start a Business in Kuwait
ByKhaled Updated

Business can be started in Kuwait after testing the nature of the work by obtaining the appropriate license, then opening a company headquarters and starting to practice the work. The State of Kuwait provides many fields for investment, including the oil field, the tourism field, the construction and buildings field, and others.

How to Start a Business in Kuwait

To Start a Business in Kuwait, follow these simple steps:

  • Step 1: Decide on the business structure.
  • Step 2: Choose a company name.
  • Step 3: Obtaining a sponsor if the investor is a foreigner.
  • Step 4: Obtaining the required licenses according to the type of work.
  • Step 5: Register your business with the Kuwaiti Ministry of Commerce and Industry.
  • Step 6: Open a bank account and provide a suitable location.
  • Step 7: Starting a business according to the type of company.

See More: How to Register a Company in Kuwait

Who can start a business in Kuwait

Businesses can be started in Kuwait by all citizens who hold citizenship, in addition to residents who have a valid official residence permit that allows them to start businesses. The conditions of citizenship or residence must be met, in addition to providing the minimum amount of money according to the type of work required for the investor to start practicing it in Kuwait without facing any difficulties.

Things to consider before opening a business in Kuwait

Here are several things to consider before opening a business in Kuwait:

  • Good research: All those wishing to start a business in Kuwait must search well to find the right opportunities for them. They can search through the Chamber of Commerce and Industry and other electronic resources and others.
  • Communicating with business owners: It is good to communicate with business owners in Kuwait to inquire about the business environment in the country and to learn about the appropriate opportunities according to the investor’s experience and skills.
  • Obtaining legal advice: It is necessary to obtain legal advice to ensure starting a business in Kuwait without any violations of the laws and decisions in force.
  • Benefiting from electronic platforms: All those wishing to start a business in Kuwait can benefit from electronic platforms to learn about the business environment in Kuwait and the opportunities available in various fields.

Types of companies available for business in Kuwait

The following list shows the types of companies available for business in Kuwait:

  • One-person company (for a free micro license) – for profit.
  • Limited liability company – for profit.
  • One-person company – for profit.
  • Joint venture – for profit.
  • Limited partnership – for profit.
  • Limited liability company – not-for-profit.
  • One-person company – not-for-profit.
  • Joint venture – not-for-profit.
  • Limited partnership – not-for-profit.
  • Limited Liability Company Holding.
  • One-person company holding.
  • Mobile commercial vehicle company.

Legal requirements for business registration in Kuwait

Below is a table showing the legal requirements for business registration in Kuwait by company type:

The transaction requirements
Establishing a one-person company
  • The applicant must be a person who holds the capacity of owner or manager of the company.
  • The owner of the company must be only one person (a natural person or a legal person).
  • The manager must be 21 years of age or older and not work in the government sector.
  • The Gulf citizen is treated as a Kuwaiti citizen.
  • The company’s activity must be among the activities permitted to be practiced within the State of Kuwait in accordance with the terms and conditions of Ministerial Resolution No. 330 of 2017.
  • The criminal record of the company’s owner and manager must be free of criminal convictions (commercial cases) stipulated in accordance with the laws of the Ministry of Commerce and Industry.
Establishing a limited liability company
  • The applicant must be a person who holds the capacity of owner or manager of the company.
  • The number of partners must not be less than (2) and the percentage of Kuwaiti ownership must be more than 51%.
  • The manager must be 21 years of age or older and not work in the government sector.
  • The Gulf citizen is treated as a Kuwaiti citizen.
  • The company’s activity must be among the activities permitted to be practiced within the State of Kuwait in accordance with the terms and conditions of Ministerial Resolution No. 330 of 2017.
  • The criminal record of the company’s owner and manager must be free of criminal convictions (commercial cases) stipulated in accordance with the laws of the Ministry of Commerce and Industry.
Establishing a simple limited partnership
  • The applicant must be a person who holds the capacity of the owner of the company or its manager or his representative.
  • The number of partners must not be less than (2) and the percentage of Kuwaiti ownership must be more than 51%.
  • The manager must be 21 years of age or older and not work in the government sector.
  • The Gulf citizen is treated as a Kuwaiti citizen.
  • The company must have a commercial address.
  • The partners are divided into: General partners (must be Kuwaiti or Gulf) Limited partners (foreigners may enter).
  • The company’s activity must be among the activities permitted to be practiced within the State of Kuwait in accordance with the terms and conditions of Ministerial Resolution No. 330 of 2017.
  • The criminal record of the company’s owner and manager must be free of criminal convictions (commercial cases) stipulated in accordance with the laws of the Ministry of Commerce and Industry.
Establishing a joint-stock company
  • The applicant must be a person who holds the capacity of the owner of the company, its manager or his representative.
  • The number of partners must not be less than (2) and the percentage of Kuwaiti ownership must be more than 51%.
  • The manager must be 21 years of age or older and not work in the government sector.
  • The Gulf citizen is treated as a Kuwaiti citizen.
  • The company must have a commercial address.
  • The company’s activity must be among the activities permitted to be practiced within the State of Kuwait in accordance with the terms and conditions of Ministerial Resolution No. 330 of 2017.
  • The criminal record of the company’s owner and manager must be free of criminal convictions (commercial cases) stipulated in accordance with the laws of the Ministry of Commerce and Industry.
Establishing a one-person company (micro-free)
  • The applicant must be a person who holds the capacity of owner and manager of the company.
  • The owner of the company must be only one natural person.
  • The person must be a Kuwaiti national, 21 years of age or older, and not working in the government sector.
  • The company’s activity must be one of the activities permitted to be practiced within the State of Kuwait in accordance with the terms and conditions of Ministerial Resolution No. 330 of 2017.
  • The criminal record of the company’s owner and manager must be free of criminal convictions (commercial cases) stipulated in accordance with the laws of the Ministry of Commerce and Industry.
Establishing a one-person company (private)
  • The applicant must be a person who holds the capacity of owner and manager of the company.
  • The owner of the company must be only one natural person.
  • The person must be a Kuwaiti national, 21 years of age or older, and not working in the government sector.
  • The company’s activity must be one of the activities permitted to be practiced within the State of Kuwait in accordance with the terms and conditions of Ministerial Resolution No. 330 of 2017.
  • The criminal record of the company’s owner and manager must be free of criminal convictions (commercial cases) stipulated in accordance with the laws of the Ministry of Commerce and Industry.
Establishing a sports club company
  • The applicant must be a person holding the position of the company manager or his representative.
  • The company owner must be a sports club.
  • The manager must be 21 years of age or older and not work in the government sector.
  • The trade name of the company must be the name of the sports club.
  • The company’s activity must be one activity, either advertising and marketing sports clubs (single person) or playing football (limited liability).
  • The criminal record of the company’s managers must be free of criminal convictions (commercial cases) stipulated in accordance with the laws of the Ministry of Commerce and Industry.

Documents required to start a business in Kuwait

Below is a table showing the documents required to register a business in Kuwait according to the type of company:

The transaction Documents required
Establishing a one-person company No documents are required, except in the following cases:

  • If the director works within the teaching staff of the Public Authority for Applied Education for the consulting activity, he shall attach an official approval from the Public Authority for Applied Education for him to assume the management item in the application submitted to establish the company.
  • If the director works for a company with the same activity, he shall attach a general assembly report approving his assumption of the management item for another company with the same activity.
Establishing a limited liability company No documents are required, except in the following cases:

  • If the director works within the teaching staff of the Public Authority for Applied Education for the consulting activity, he shall attach an official approval from the Public Authority for Applied Education for him to assume the management item in the application submitted to establish the company.
  • If the director works for a company with the same activity, he shall attach a general assembly report approving his assumption of the management item for another company with the same activity.
Establishing a simple limited partnership No documents are required, except in the following cases:

  • If the director works within the teaching staff of the Public Authority for Applied Education for the consulting activity, he shall attach an official approval from the Public Authority for Applied Education for him to assume the management item in the application submitted to establish the company.
  • If the director works for a company with the same activity, he shall attach a general assembly report approving his assumption of the management item for another company with the same activity.
Establishing a joint-stock company No documents are required, except in the following cases:

  • If the director works within the teaching staff of the Public Authority for Applied Education for the consulting activity, he shall attach an official approval from the Public Authority for Applied Education for him to assume the management item in the application submitted to establish the company.
  • If the director works for a company with the same activity, he shall attach a general assembly report approving his assumption of the management item for another company with the same activity.
Establishing a one-person company (micro-free) No documents are required, except in the following cases:

  • If the director works within the teaching staff of the Public Authority for Applied Education for the consulting activity, he shall attach an official approval from the Public Authority for Applied Education for him to assume the management item in the application submitted to establish the company.
  • If the director works for a company with the same activity, he shall attach a general assembly report approving his assumption of the management item for another company with the same activity.
Establishing a one-person company (private) No documents are required, except in the following cases:

  • If the director works within the teaching staff of the Public Authority for Applied Education for the consulting activity, he shall attach an official approval from the Public Authority for Applied Education for him to assume the management item in the application submitted to establish the company.
  • If the director works for a company with the same activity, he shall attach a general assembly report approving his assumption of the management item for another company with the same activity.
Establishing a sports club company
  • A certificate from the General Sports Authority to whom it may concern, as the legal representative of the sports club.

How much does it cost to register a business in Kuwait

The business establishment fees in Kuwait reach 80 Kuwaiti Dinars for some types of companies, but the total fees may exceed that; there is a lot of additional money that must be paid to provide a headquarters for the company in addition to hiring a work team and conducting the required studies, and the total value cannot be determined until the nature of the company is determined.

How long does it take to register a new business in Kuwait

Starting a new business in Kuwait may take up to a whole month sometimes. The duration depends on the licenses, permits, and papers that must be provided in addition to the nature of the company or institution that the investor wants to establish, because some companies require longer time compared to others.

Business and investment opportunities available in Kuwait

Below is a table showing the best business and investment opportunities in Kuwait: [1]

  • Infrastructure & Construction.
  • Renewable Energy.
  • Education & Training.
  • Industrial Oil & Gas.
  • Healthcare.
  • Integrated Housing Projects & Urban Development.
  • Banking, Financial Services & Insurance.
  • Storage & Logistics Services.
  • Air, Maritime & Rail Passenger Transport.
  • Tourism, Hotel & Entertainment.
  • Media & Marketing.
  • IT, Software Development & Technology Sector.

Important factors when selecting a business partner in Kuwait

Here are several important factors when choosing a business partner in Kuwait:

  • Having common goals: When choosing a business partner in Kuwait, it is important to consider having common goals and values ​​so that the company or institution can achieve its goals without facing any conflicts.
  • Ease of communication: It is essential to choose a business partner who can be easily communicated with in the State of Kuwait, to ensure that all problems are solved easily and without taking a long time.
  • Mutual Trust: Without mutual trust between the two parties, no business will succeed, so it is necessary to choose a reliable business partner in Kuwait when you want to start a business.
  • Knowledge in the field of work: The business partner in Kuwait should be knowledgeable in the field of work so that he can participate in the development and achieve the desired goals and objectives of the company.

Conclusion

The State of Kuwait provides many facilities for investors who wish to open new businesses. All those wishing to start work in Kuwait must issue the required permits and consult a specialist in this matter to ensure that they do not violate any of the applicable laws and decisions.

Questions & Answers

Can a foreigner start a business in Kuwait?

Yes, a foreigner can start a business in Kuwait according to the laws and decisions in force after obtaining the official residency that entitles him to do so.

Can a business be started in Kuwait online?

A business can be started in Kuwait online, but those wishing to work in this field must obtain the required license.

Does the State of Kuwait provide facilities for investors?

Yes, the State of Kuwait does provide facilities for investors.

What are the best sectors for business in Kuwait?

There are many distinct sectors for investment in Kuwait, including: the education sector, the information and technology sector, and the construction and buildings sector.

How can a business be started in Kuwait?

A business can be started in Kuwait by determining the type of company required, then obtaining permits and licenses and choosing the workplace, after which the investor can start practicing the work directly.

References

[1]kdipa.gov.kwInvestment Opportunities30 Mar 2025
Khaled

I have a Bachelor's degree in Engineering, and have extensive experience in writing SEO-friendly content in the technical field, educational field and service content in the Kuwait and other Gulf countries.

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