If you are passionate about turning your Kuwait business ideas into profitable ventures then you need a guide on how to register a new business and get all the licenses and permits you need to get started.
Encouraging entrepreneurship and making it easier for businesses to start and succeed has been top priorities for the Kuwaiti government. As the Organization for Economic Cooperation and Development (OECD) reported, the government has been making efforts to simplify regulations around business registration in addition to creating industrial zones.
Therefore, if red tape has been the hindrance discouraging you from starting your entrepreneurial journey, be encouraged by this commitment to simplification.
In what follows, we will highlight what you need to get your business started in Kuwait and the steps you can take to make the process as effortless as possible.
1.Decide on business structure
You can choose any of the following business structures depending on the type of business you want to start:
- Sole proprietorship: A sole proprietorship is a business owned and managed by one individual.
- Partnership: As the name implies, it is owned by at least two people who can decide to manage it together or put the bulk of management duties on the active partner (who may be paid a salary in addition to the share of profit).
- Limited liability company (W.L.L): A limited liability company is owned by many shareholders and they cannot become liable for more than the amount they contribute to the business. That is, they cannot be required to sell their personal assets to meet the company’s debts.
WLL is commonly used in Kuwait for trading and manufacturing businesses.
- Kuwait joint venture: Joint ventures occur when two or more legal persons come together to form an entity. The partners in a joint venture are severally and also jointly liable. That is, transactions made by one party may or may not be binding on the other.
- Joint stock company: A joint stock company is owned by many shareholders with percentage of ownership determined by initial contribution. A joint stock company can be closed (not listed on the stock exchange market) or public (listed on the stock exchange market)
2.Choose a business name
Your business name must be catchy and it must be a good description of the business you are into.
Once you have chosen a name, check with the Kuwaiti Commercial Register to be sure the name is available.
3.Register the business
Having decided on business structure and chosen a business name, you can proceed to register your business with the Kuwaiti Ministry of Commerce and Industry.
Below are the following documents needed for business registration:
- A copy of your passport
- A copy of your Kuwaiti residency permit
- The Articles of Association (AOA)
- The Memorandum of Association (MOA)
- A letter of approval from the Ministry of Commerce and Industry
- Proof of capital deposit in a Kuwaiti bank
You should also consider registering with the Chamber of Commerce to increase local exposure and recognition.
4.Get a license and other approvals and permits
Once you register with the Ministry of Commerce and Industry, you will get a business license that will permit you to carry out your business activities in Kuwait.
Depending on the nature of your business, you may be required to obtain extra licenses and permits.
Businesses who operate from their homes can also get a home business license from Kuwait Business Center, which operates under the Ministry of Commerce.
5.Register for tax
You should also understand how the tax regulations apply to the business structure you are opening. And once you have gained this clarity, you can proceed to register with the tax authorities.
6.Open bank accounts
With your business license, you can open a business account with any of the banks you desire.
7.Marketing
Now that you have registered your business, it is time to start marketing your brand to get the customers rolling in.
Depending on the type of business, online (social media, content marketing, etc.) or offline (flyers, billboards, radio, TV), or a combination of both can be appropriate.
Most importantly, start with word of mouth advertisement. Let your friends and family know you have started and let them be your ambassadors and evangelists even as you work on a solid marketing strategy.
8.Setting up payments
You will also need a system to collect payments from your customers. A platform like Kem can help you easily and quickly collect real-time payments online and offline through QR codes.
In conclusion, starting a business in Kuwait is not as complicated as it seems. Take the first step and in no time, you will be thinking about how to expand your business instead of how to start it.
