Explore Countries for Living & Doing Business
Find and compare the best jurisdictions for your business
Find and compare the best jurisdictions for your business
Compare with other jurisdictions or get in touch for expert guidance.
Oil-rich Gulf state with no personal income tax
Region
MIDDLE EAST
Corporate Tax
15%
Setup Time
3 weeks
Currency
KWD
Kuwait, a small but wealthy Gulf nation, offers access to substantial oil-based prosperity. Company registration involves navigating specific ownership requirements, with business setup options for those meeting local partnership criteria.
With a population of 4.3 million (majority expatriate), Kuwait offers Gulf living with significant wealth. Arabic is the official language, with English common in business. The climate is hot desert with extreme summer temperatures.
Healthcare is good through public and private facilities. Safety is excellent with very low crime. The cost of living is moderate for the Gulf, supported by subsidized services.
The conservative society maintains Islamic traditions more strictly than some Gulf neighbors.
Corporate tax applies only to foreign companies at 15%. Kuwaiti and GCC-owned companies pay no corporate tax. Zakat obligations apply. No personal income tax exists.
The Kuwaiti dinar is one of the world's highest-valued currencies. The economy depends heavily on oil. Foreign investment outside designated zones typically requires Kuwaiti majority ownership.
Company registration through the Ministry of Commerce involves Kuwaiti sponsorship for most structures. WLL companies require 51% Kuwaiti ownership traditionally, though reforms allow 100% foreign ownership in certain sectors and free zones.
Company formation takes approximately 4-8 weeks. Capital requirements vary by activity. Annual compliance involves commercial registration renewal.
Kuwait has not established crypto license frameworks and the Central Bank has issued warnings about cryptocurrency. The regulatory environment does not support crypto businesses.
Gambling is prohibited under Kuwaiti law consistent with Islamic principles. No gambling license framework exists.
The 51% local ownership requirement for many structures affects foreign business models. The small domestic market limits opportunities beyond serving local consumption or regional trade.
Banking access is available through Kuwaiti banks. Professional services exist for business formation. The conservative social environment requires cultural sensitivity.
Kuwait suits businesses meeting local ownership requirements or free zone operations targeting Gulf regional markets for their business setup.
Local: WLL
Local: KSC
Local: Branch
| Corporate Tax Rate | 15% |
| Personal Income Tax Rate | 0% |
| VAT / Sales Tax | 0% |
| Capital Gains Tax | 0% |
| Withholding Tax | 0% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | HIGH |
| Financial Privacy | LOW |
| Currency Controls | NONE |
| Local Bank Account Required | Yes |
| Non-Resident Bank Account Allowed | No |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | Yes |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | Yes |
Crypto activities prohibited since July 2023; no licensing framework available
All gambling activities prohibited under Sharia-influenced law
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $50,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant |
| Business Plan Required | Detailed business plan with 3-year financial projections, risk management policies, IT security framework |
| Personnel Required | Directors and senior management subject to CBK fit-and-proper assessment, Compliance Officer, MLRO, Internal Auditor |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | No |
| Min. Shareholders | 2 |
| Min. Directors | 2 |
| Shareholder/Director Same Person | No |
| Registry Public | Yes |
| Registry Access | Central Bank of Kuwait publishes list of licensed financial institutions |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Central Bank of Kuwait (CBK) |
| Licensing Fee Details | Application fees plus annual supervision fees vary by license category; Minimum capital: KD 50,000 (Investment Fund Managers), KD 2,000,000 (Finance Companies), KD 5,000,000 (Banks) |
| Permitted Business Models | Bank, Finance Company, Investment Company, Investment Fund Manager, Exchange House |
| Permitted Activities | Banking services, investment fund management, securities trading, foreign exchange, money transfer |
| Restricted Activities | Full banking license for non-GCC entities extremely difficult; insurance requires separate Insurance Regulatory Unit license |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |