Limited Liability Company (LLC) is also known as “With Limited Liability” (WLL). Limited Liability Company is a form of business of two directors and two shareholders with a local business partner with a 51% share in the business. In spite of deregulations, a foreign entity can still not own major shares. Kuwaiti partner can serve the company as a secretary as well as the manager or both. Limited Liability Company (LLC) is the most simple and convenient business form which can be formed and completed within 3 months.

This business form also has the tax benefit as LLC is non- taxable because of the involvement of Kuwaiti partner. In Kuwait corporate tax is only taken applicable to foreign business. In Kuwait LLC with a foreign partner is considered as a Kuwaiti business because of the majority of shares is with the local partner. An individual need minimum of 1,000 KWS as share capital for establishing a Limited Liability Company in Kuwait.

A Limited Liability Company is not permitted to deal in the business related with insurance, banking or investment business. In LLC form of business structure, there are some relaxations provided to those who are following FDI Law of 2013. An individual can have 100% control on LLC (full ownership) after getting approval via the Kuwaiti Investment Promotion Agency (KDIPA). Companies registered under KDIPA have different regulations depending on the nature of the business.

In Kuwait, it is mandatory for all LLC to get registered under the law with a unique name. LLC’s are supposed to pay yearly tax returns and it is essential for them to submit audited annual financial statements. However, a company registered under KDIPA might avail the corporate tax waving benefit granted during the registration process.