Kuwait has one of the largest stock exchanges in the Middle East by gross national volume and continues to diversify its domestic business activities away from fossil fuels. Legislation has been enacted by the local government to encourage foreign investment across a broad spectrum of sectors to provide for a diversified economy as part of a strategic long-term strategy being implemented by the government.
Whilst foreign investment is a stated goal of the Kuwaiti leadership, foreign investors have limited options to establish a local entity in Kuwait, with the most popular approach being the establishment of a Limited Liability Company (LLC / WLL).
Limited liability companies, usually referred to in Kuwait as a ‘With Limited Liability (WLL)’ companies, are the most commonly used form of corporate entity in Kuwait. A With Limited Liability Company (WLL) is a legal entity incorporated and licensed under the Ministry of Commerce and Industry in Kuwait.
WLL companies can carry on business throughout Kuwait as long as they possess the relevant licensed activity and retain any mandatory governmental approvals.
A minimum 51% of the ownership of the WLL must be held by a Kuwaiti national either as an individual or as a company which is wholly owned by Kuwaiti nationals as a corporate shareholder. The remaining 49% of shares may be held by the foreign party by a corporate shareholder or natural persons.
GCC Solutions ensures that the ultimate beneficial ownership and control remains with our clients. Our structure provides a framework where GCC acts as the corporate shareholder holding 51% of the company’s but will not be commercially active in the daily operations of the company and will not be party to any of the clients’ commercial or operational activities accordingly.
Our suite of corporate nominee agreements are structured to ensure that our clients’ interests are protected. Our clients maintain financial, operational and managerial control of their commercial interests in Kuwait.