Kuwait: Operating a Business

Setting Up a Company

Shareholding company: Number of partners: Minimum 5 partners, with no maximum.
Capital (max/min): The minimum capital for a Closed Shareholding Company is KWD 10,000 and for a Public Shareholding Company KWD 25,000.
Shareholders and liability: Partners' liability is limited to the amount contributed.
Limited Liability Company: Number of partners: Minimum 2 partners.
Capital (max/min): KWD 1,000 minimum capital.
Shareholders and liability: Partners' liability is limited to the amount contributed.
Joint Venture (majority owned by a Kuwaiti): Number of partners: Minimum 2 partners. Maximum 30 partners.
Capital (max/min): Minimum capital of KWD 7,000. 51% of the capital must be Kuwaiti.
Shareholders and liability: Partners' liability is limited to the amount contributed.
General Partnership: Number of partners: Minimum 2 partners.
Capital (max/min): KWD 1,000 minimum capital.
Shareholders and liability: Partners' liability is limited to the amount contributed.
Limited Partnership: Number of partners: Minimum 2 partners. Two types of partners: dormant partners and active partners.
Capital (max/min): KWD 1,000 minimum capital.
Shareholders and liability: Liability of active partners is unlimited. The liability of dormant partners is limited to the amount contributed.

The Competent Organisation: The Ministry of Commerce (in Arabic) 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.

Setting Up a Company	Kuwait	Middle East & North Africa
Procedures (number)	5.0	6.3
Time (days)	19.4	19.5

Source: Doing Business.

Business Setup Procedures: Consult Doing Business Website, to know about procedures to start a Business in Kuwait.
Business in Kuwait

	2018	2019	2020
Labour Force	2,386,269	2,428,518	2,386,040

Source: International Labour Organization, ILOSTAT database

Source: International Labour Organization, ILOSTAT database

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.
Labour Laws: Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Minimum Wage: According to the ILO, the minimum wage was KWD 75 per month in 2019 for the private and oil sector (latest available data).
Average Wage: In Kuwait, the average wage fluctuates significantly between different sectors of activity but also between workers of Kuwaiti nationality and expatriates.
The ILO does not have data on the average wage in Kuwait.
The average salary is estimated at 1,761 KWD per month in 2019 (according to surveys done by various companies, latest data available).
Social Contributions: Social Security Contributions Paid By Employers: 11.5% of salaries. For the foreign labor, there is no obligation of employer contribution.
Social Security Contributions Paid By Employees: 10.5% of the gross wage for Kuwaiti workers.

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.
Labour Unions: Kuwait Trade Union Federation
Unionisation Rate: 5 % of the active population is affiliated to a syndicate (union).
Labour Regulation Bodies: Ministry of Labor and Social Affairs & Electricity and Water

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