How to Register a Sole Proprietorship in Kuwait
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The State of Kuwait is located in Western Asia. Kuwait has an oil-based economy, with oil being the primary fare item. The Kuwaiti dinar is the most noteworthy esteemed unit of money in the world. As per the World Bank, Kuwait is the seventh most extravagant nation on the planet per capita.
Disclaimer: This article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
Sole proprietorship in Kuwait
The sole proprietorship is a type of business where the operations and ownership are run by the same person. The minimum capital of the sole proprietorship is stated within the Executive Bylaws. The sole proprietor is qualified to arrange their parts in the capital by any means, including guaranteeing parts. Nevertheless, a change of ownership of any number of parts in the company's capital will require changing the company's legal status from a sole proprietorship to a limited liability company.
How to register a sole proprietorship in Kuwait
If you decide to register a sole proprietorship in Kuwait, the first thing to do is to apply for the license to the Ministry of Commerce and Industry (MOCI). The process of applying could be done both online and in person. You will need to provide the following in the application:
- The address of the business and the trade name
- The purpose of establishing the company
- Company term, if applicable
- The method of managing the company and those responsible for the management
- The company's capital
Obtaining a trading license in Kuwait
- Agreement Registration of your company within the Commercial Agencies Register at the Ministry of Commerce and Industry
- Trademark, Patent, Engineering Design and products
- It is essential to note that various Ministries issue licenses to control the corresponding business in Kuwait.
The taxation system in Kuwait
From April 2021, the Value Added Tax (VAT) rate will be 5%, and it applies to all goods and services. If you want to obtain a tax number, you should sign up for it on the Ministry of Finances' website.
The corporate tax applies to all foreigners that operate a business in Kuwait. Income from operating in Kuwait will be taxable if it is Kuwait-sourced income. The corporate income tax rate is at 15%.
If you're looking to hire independent contractors in Kuwait, learn how to do it compliantly.