Do you want to start and run a successful business in Kuwait? Read this post to learn the step-by-step process of opening a company!
How to start a business in Kuwait
Kuwait is one of the wealthiest countries in the Middle East, offering extensive business opportunities and higher returns on investments for investors. Although the country has a warm climate, entrepreneurs consider it the best place to start and run a business due to its reliable economic and business environment.
We recommend visiting the government’s official website or portal to learn about planning and starting a business in Kuwait. However, today’s article will explain the entire process and give you a step-by-step approach to creating a successful business in Kuwait. Read on!
Find a Kuwait Partner
You can’t start and run a business without a Kuwaiti partner. You will require a Kuwaiti national to open a business in this country. Hiring a professional service is an excellent way to find an ideal Kuwaiti for your company’s needs.
Although the Kuwaiti national won’t take profit from your business operations, they will charge a fixed amount. Sometimes, it starts from 150 Kuwaiti dinars per month. In addition, the Kuwaiti national will not interfere in your business and financial operations.
Choose a Business Location
Once you have found a Kuwait national for your business, the second step is to start your company and choose a location. For instance, you need an office to run your business operations. Similarly, you will need a dedicated space to run a restaurant, hotel business, or something like that!
You must rent a space to operate your business. Ensure you get a rent agreement of the business location to avoid problems. Remember, you must make the agreement on the Kuwaiti name.
Register Your Company
Once you have completed the rental agreement, you will start the registration process. RUKSA TIJARA is the first license your company will need during the registration process. It is one of the most critical documents to legalize your company in Kuwait.
In addition, you will need RUSKA ALAAN, the board’s license from the governmental authorities, after obtaining RUKSA TIJARA. You must display this license in your office or outside your retail shop, restaurant, etc.
Obtain Legal Documents
ITEMAAD TUQUIA is the next legal document to apply for, which means Signature Paper in English and consists of a signature of the Kuwaiti partner. The purpose of this document is to verify that your Kuwaiti partner has signed all the legal docs.
Moreover, you will need to apply for and obtain an Article of Association Paper, also known as AQAAD TEHSEES. It is another critical document to get 49% of your company and provide 51% to the Kuwaiti partner.
Bear in mind that you can’t have over 49% of the share in your company. Otherwise, you will violate the law and regulations. The good news is that your Kuwaiti partner won’t take a profit share. However, they will take the monthly charges.
In addition to the above steps, we recommend conducting market research to get an idea and write a business plan. Next, funding is critical to streamline your business operations and optimize its structure. Until Next Time!
- Article based on personal opinion, experience and research.
- Photos from Unsplash & canva.