Servcorp News 2013 | The Basics of setting up a business in Kuwait :: Kuwait City, Kuwait

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The Basics of setting up a business in Kuwait

November 2013 | Servcorp

The 11th richest country in the world per capita (Global Investment), Kuwait's high levels of consumer demand, abundantly disposable incomes and a growing number of working women make it the ideal place to launch a new business. In fact, private consumption activity has remained so constant so far this decade that the forecast for 2014 growth is 3.0%. Moreover, according to the Kuwait Real Estate Report Q4 2013 by Business Monitor International, low taxes benefit the country's investment and business potential.

Business Plan

To start a business in Kuwait, outline a business plan, conduct market research to fully understand the market and your competitors and a well-thought out budget forecast. Recent history illustrates that companies that maintained a ‘conservative' business model have succeeded best and for the near future, those that keep their interests diversified will have the strongest prospects. Once a solid set of strengths, weaknesses and opportunities have been identified, it is time to focus on how to put the idea into action and make your business proposition a reality.
 
Registration

The initial phase of the business registration process in Kuwait takes approximately 31 days. The entrepreneur should file an application with the Ministry of Commerce and Industry, listing founder(s), available capital and business objectives; this is free of charge and takes a single day. Next, the Commercial Register must be notified of the company's name (1 day, also free). A few more steps and instructions from the Ministry's Department of Partnerships are issued to the bank about the company account and required capital (1 day, free) (Source:World Bank Group).
 
Financing

If collecting capital is an obstacle in set up, the Kuwaiti National Assembly recently passed the KWD 2 billion National Fund for the Welfare of Small and Medium-Sized Enterprises and Development, but only local citizens are eligible to apply, for projects that cost up to KWD 500,000 (Al-Monitor). Good news for foreigners is that repatriation of investors' profits is guaranteed by the Kuwaiti Foreign Investment Bureau and another recent incentive is the corporate tax rate cut from 55% to 15%.

Office Setup

It is important to note that any foreign company in Kuwait must open a file with the Ministry of Labor, which takes15 days and can be done at no charge (World Bank Group). However, the recruitment process can be tedious and time-consuming. You have to plan the office setup taking into account telephone line approvals, IT network setup, obtaining electricity and water plans, hiring cleaners and purchasing your furniture and stationary supplies. It becomes apparent that introducing your business here could command a lot of valuable time and attention. To resolve the somewhat lengthy processes involved in setting up a business in Kuwait, enter the solution of a Serviced office. There is no need to go through the hiring process or setup your business and connections. A serviced office provides you with a fully furnished office suite complete with internet and phone connections, a receptionist to manage your calls, a support team on hand to assist you with all your admin requirements and fully equipped boardrooms and meeting rooms.

The economical advantage and comfort of a Serviced Office can eliminate extra expenses and provides you with flexible agreements with no long term commitments or contracts.