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Ease of Doing Business in

Kuwait

Kuwait Download Profile (1811.6KB, pdf)
Region Middle East & North Africa
Income Category High income
Population 3,892,115
GNI Per Capita (US$) 40,930
City covered Kuwait City

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

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Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 102 98 down
4
59.55 60.12 down
0.57
Starting a Business 173 149 down
24
66.77 74.51 down
7.74
Dealing with Construction Permits 144 141 down
3
60.72 60.82 down
0.10
Getting Electricity 115 113 down
2
61.47 61.51 down
0.04
Registering Property 67 66 down
1
68.37 68.38 down
0.01
Getting Credit 118 109 down
9
40.00 40.00
-
Protecting Minority Investors 81 78 down
3
55.00 55.00
-
Paying Taxes 6 6
-
92.48 92.48
-
Trading across Borders 157 159 up
2
50.57 48.90 up
1.67
Enforcing Contracts 66 65 down
1
60.51 60.51
-
Resolving Insolvency 108 108
-
39.58 39.08 up
0.50

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 173

DB 2016 Rank: 149

Change in Rank: down24

DB 2017 DTF (% points): 66.77

DB 2016 DTF (% points): 74.51

Change in DTF (% points): down7.74

Standardized Company
Legal form: Limited Liability company (WLL)
Paid-in minimum capital requirement: KWD 1,000
City: Kuwait City
Indicator Kuwait Middle East & North Africa OECD high income
Procedure – Men (number) info_outline 12.0 7.8 4.8
Time – Men (days) info_outline 61.0 20.1 8.3
Cost – Men (% of income per capita) info_outline 2.8 26.3 3.1
Procedure – Women (number) info_outline 13.0 8.6 4.8
Time – Women (days) info_outline 62.0 20.9 8.3
Cost – Women (% of income per capita) info_outline 2.8 26.3 3.1
Paid-in min. capital (% of income per capita) info_outline 10.2 11.2 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Obtain permission to leave the home

    Agency: Home

    Article 89 of the Personal Status Law, 1984 stipulates that a wife leaving her home for a legitimate reason shall not be considered insubordinate if she does so for a logically permitted purpose, provided it is not detrimental to the
    welfare of the family.
    1 day no charge
    2

    Register at the Department of Companies of the Ministry of Commerce and Industry (MOCI)

    Agency: Department of Companies

    To register, the entrepreneur must submit a completed standard application form to the Department of Companies of the Ministry of Commerce and Industry (MOCI), accompanied by the following documents:
    1. Copy of the entrepreneur's identity card (ID)
    2. Certificate issued by the Social Security Authority attesting that the Kuwaiti partners are not civil servants
    3. Lease contract, a receipt of rent payment, and a certificate from the Public Authority for Civil Information (PACI) confirming that the premises are registered with PACI

    The completed application must include the names of the founding partners and their respective shares; the capital, scope and objective of the company; and the name of the manager. The applicant submits the paperwork online and then schedules a time to visit the MOCI in person to submit the official documents
    Once the application is approved, it is stamped and signed by the Department of Companies, and allocated a reference number. The MOCI electronically sends an inspection request to the Municipality to proceed with the inspection of the company premises at the relevant point of incorporation process. The MOCI also sends a request to the Ministry of Interior to run background checks verifying that the founding partners do not have a criminal record.
    1 day + 10 days wait for the appointment to go in person to MOCI no charge
    3

    Reserve a unique company name

    Agency: Commercial Register

    The entrepreneur submits a company name reservation application to the Commercial Registry. The Commercial Registry searches the computer database to ensure that the proposed company name(s) does not already exist or resemble other reserved names. The Commercial Registry has certain guidelines to follow with respect to the company name selection, such as: the chosen name must not be in breach of "public morals." Once approved, the Commercial Registry issues a letter confirming the proposed name and reserves it for 3 months.
    1 day no charge
    4

    Retrieve the letter addressed to the bank from the Department of Companies

    Agency: Department of Companies

    The entrepreneur must return to the Department of Companies to retrieve the necessary letter addressed to the commercial bank of choice where the paid-in capital of the company will be deposited.
    The Department of Companies may further issue additional letters addressed to different government authorities depending on the scope and activity of the company in order to obtain their approval of the company formation. For example, for restaurants and food establishments, a letter addressed to the Ministry of Health is issued; for the oil industry, a letter addressed to the Ministry of Oil and Energy is issued, and so forth.
    1 day no charge
    5

    Deposit the capital at the bank and obtain proof thereof

    Agency: Bank

    In deference to the Department of Companies' letter, the bank open an account in the name of the company with the term "under formation" annexed to the account. The deposited capital remains frozen until the bank receives the notarized deed of incorporation and the commercial license of the company, following which the term "under formation" is removed and the account is activated. The bank issues a deposit certificate in the name of the company addressed to the Ministry of Commerce and Industry, detailing the amount deposited by each partner against his/her share in the company.
    1 day no charge
    6

    Receive inspection of the company premises by the Municipality

    Agency: Municipality

    Once the municipality receives the request for inspection of the company premises from the Ministry of Commerce and Industry, it contacts the entrepreneur to schedule an inspection date in order to verify that the premises comply with municipal health and safety regulations. This includes an inspection by the Fire Department to check for compliance with fire regulations. If the company premises successfully pass inspection, the municipality issues a certificate of no objection in the name of the company, allowing the use of the indicated premises as the company location. This process usually takes 5 to 14 days.
    5 days on average no charge
    7

    Obtain the approval of the memorandum of association from the Department of Companies

    Agency: Department of Companies

    The applicant submits the paperwork online and then schedules a time to visit the MOCI in person to submit the official documents.
    The entrepreneur proceeds to the Department of Companies to submit the draft memorandum of association. If the entrepreneur does not use the standard form of the memorandum of association, the amendments or additions to the standard memorandum must be accepted by the MOCI before it approves the company incorporation.
    Once the final draft is signed, the Department of Companies issues a letter addressed to the Ministry of Justice (MOJ) requesting the authentication of the company incorporation, accompanied by the draft memorandum of association.
    1 day + 10 days wait for the appointment to go in person to MOCI no charge
    8

    Notarize the memorandum of association before a public notary

    Agency: Notary

    The entrepreneur submits the draft memorandum of association along with Department of Companies' letter and the bank capital deposit certificate to the Notary Public Department at the Ministry of Justice. The officer verifies that the required documents are complete and schedules an appointment for signing before the notary public at the Company Formation Department of the Ministry of Justice, during which the memorandum of association is signed by the founding partners and notarized on the set date in 3 originals: one for the company, one for the Ministry of Justice, and one to be field with the Ministry of Commerce and Industry.
    1 day KWD 2 for the first page of the Memorandum and KWD 1 for every subsequent page
    9

    Register with the Commercial Registry

    Agency: Commercial Registry

    The entrepreneur files a signed and notarized copy of the memorandum of association at the Department of Companies of the Ministry of Commerce and Industry. The applicant submits the paperwork online and then schedules a time to visit the MOCI in person to submit the official documents A copy thereof is then submitted to the Commercial Registry and a certificate of registration is obtained. The certificate of registration includes the company's full name and commercial registration number.
    1 day + 10 days wait for the appointment to go in person to MOCI KWD 7
    10

    Obtain the commercial license from the Department of Companies

    Agency: Department of Companies

    Once the commercial registration certificate is issued, the entrepreneur obtains the commercial license from the Department of Companies.
    1-2 days KWD 150
    11

    Register with the Kuwait Chamber of Commerce and Industry

    Agency: Chamber of Commerce

    The company must apply for membership at the Chamber of Commerce and Industry by submitting copies of its commercial license and memorandum of association, and filling out a specimen signature form signed by the company's authorized signatories. The membership is a pre-requisite to dealing with other government authorities, banks and participation in public tenders.
    1 day KWD 82 for registration and KWD 55 for annual renewal
    12

    Register with Public Authority for Civil Information (PACI)

    Agency: Public Authority for Civil Information (PACI)

    The company must register with the Public Authority for Civil Information (PACI) in order to obtain a civil number, which is required in dealing with other governmental bodies.
    15 days KWD 1
    * 13

    Register at the Ministry of Labor and Social Affairs

    Agency: Ministry of Labor and Social Affairs

    The Ministry of Labor may inspect the premises to determine whether the size of the company premises and its business scope are commensurate with the number of employees declared at the Ministry.
    15 days (simultaneous with procedure 11) KWD 25

    * Takes place simultaneously with previous procedure.

    Applies to women only.