Overview
Law No. 116 of 2013 on the Promotion of Direct Investment in the State of Kuwait allows foreign investors to own up to 100% of a company's capital in permitted sectors, by obtaining an investment licence from the competent authority — replacing the traditional requirement of a majority Kuwaiti partner.
Key Licensing Steps
- Identify the target activity and confirm it falls within sectors permitted for direct foreign investment.
- Submit the licence application together with a feasibility study and investor details.
- Obtain approval and form the legal entity in accordance with Companies Law No. 1 of 2016.
- Complete commercial registration and the operating licences required for the activity.
Incentives Granted
The law grants incentives that may include tax exemptions for a specified period, customs exemptions on equipment and machinery required for the project, and facilitated real estate ownership for the activity's needs, as determined by the competent authority for each project.
Practical Advice
Each investment project is assessed differently depending on sector and scale; an initial legal assessment of the activity's eligibility under the law before applying for a licence is therefore advisable, to avoid delay or procedural rejection.