Kuwait

Operating a Business in Kuwait

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
The close shareholding company KWD 7,500 minimum capital.	Minimum 5 partners. Partners' liability is limited to the amount contributed.	About KWD 3,000.
Limited Liability Company (WLL's) KWD 7,500 minimum capital.	Minimum 2 partners. Maximum 30 partners. Partners' liability is limited to the amount contributed.	About KWD 1,500.
General Partnership No minimum capital.	Minimum 2 partners. Partners' liability is limited to the amount contributed.	About KWD 500.
Limited Partnership No minimum capital.	Minimum 2 partners. Two types of partners: dormant partners and active partners. Liability of active partners is unlimited. The liability of dormant partners is limited to the amount contributed.	About KWD 500.

Business setup procedures: According to the law No. 36 of 1964 amended by the commercial law No. 68 of 1980, all foreign companies wishing to establish an office, a business branch or a company in Kuwait, have to do it through a Kuwaiti agent or a citizen of one of the countries members of the Cooperation Council of the Gulf. The total capital participation of the foreign company cannot exceed 49%. In certain sectors, such as banking, finance and insurance, this participation cannot exceed 40%. In order to establish a company in Kuwait, the Kuwaiti partner must request a commercial license issued by the Ministry of Commerce. This request must be written in Arabic. For certain activities, considered 'sensitive', such as telecommunications, pharmaceuticals and health services, additional authorizations might be required from the ministries of each sector and their subsidiaries.
The competent organization: The Ministry of Commerce 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.

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.

Minimum wage: There is not a legal minimum wage in the private sector. However, in the public sector, the minimum wage is approximately 200 dinars (USD690) per month for Kuwaiti citizens.
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.

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