How to Start a Small Business in Kuwait

This is a button representing the flag of Kuwait.

Home to a resident population of 2.2-million, Kuwait is a Middle Eastern country that borders Saudi Arabia and Iraq.The official language of Kuwait is Arabic, however English is widely spoken---particularly in business. Depending on the industry, a small business is defined as a business with a maximum of 500 to 1,500 employees. Starting a small business is essentially a uniform procedure globally---with minor procedure and fee variances. The process involved in establishing a new small business in Kuwait is fairly straightforward.

Instructions

1. Due your due diligence, and become familiar with the Kuwait business environment and culture. The fact that Kuwait is one of the world's smallest countries, and yet the fourth richest country per capita, speaks to the income potential for new business owners in Kuwait. Once you meet with current Kuwaiti business owners about the business climate, and investigate the area needs, determine what product or service is best to provide. Brainstorm, and write down all of the details and proposed establishment costs for your small business.

2. Register your business. The process of registering a Kuwaiti business includes: submission of registration application with the Ministry of Commerce; registration of the business name with the Commercial Register; securing of instruction letters from the Department of Partnerships (DOP) addressed to the Criminal Investigation Division (CID), the bank, and the Kuwait municipality; and the deposit of legally required capital into a business bank account---per calculations by the DOP.

3. Obtain the memorandum of association for your company. Once the letters are issued by the DOP for the municipality, the CID, and the bank, the business bank account is opened; a criminal records check is done on the company founders; and an inspection of the premises is done by the municipality. If the inspection is successful and the background check comes back clean, secure and sign the "memorandum of association" from the DOP---fee of KWD$20 is charged at the signing (KWD$1=USD$3.4825). You must also purchase a license to commence activity from the DOP at this point---KWD$40 fee. The "memorandum" and license issuance makes official the establishment of your company, but there are some additional minor requirements left to meet.

4. Complete additional registration requirements: registration with the Commercial Registry, signature sample certification at the Chamber of Industry and Commerce---KWD$70 initial registration and KWD$60 annual membership fee; registration with the Ministry of Labour and Social Affairs; and Civil Department of Data registration. Once you complete these final registrations, you are all set and ready for business.

Tips & Warnings

• The Kuwaiti culture is ancient and the customs are stricter than in the west, so be sure to study the culture and etiquette practices of Kuwait before attempting to conduct business there.

References

• Kwintessential: Kuwait -- Language, Culture, Customs, Etiquette
• Start-up Overseas: Why Start a Business in Kuwait
• Small Business Adminsitration: Summary of Size Standards By Industry
• Doing Business: Starting a Business in Kuwait

Resources

• Start-up Overseas: Kuwait: Company Formation