Are you looking to establish a holding company in Kuwait but concerned about the various procedures involved? Our team provides the best specialized lawyers in this and other commercial fields, backed by extensive experience.
What Is a Holding Company in Kuwait?
Before setting up a holding company in Kuwait, it is important to understand its nature:
- A holding company owns shares in one or more other companies and controls their management.
- It is structured as a limited liability company whose sole purpose is to hold and manage equity stakes.
- The holding company acts as a parent entity overseeing subsidiary companies, whether they operate in the same sector or across diverse activities.
- Its goal is to own shares rather than engage directly in the subsidiaries’ operational or production processes.
Conditions for Establishing a Holding Company
To found a holding company in Kuwait, the following conditions must be met:
- The company’s manager must be at least 21 years old.
- The manager must hold Kuwaiti nationality or be a citizen of a GCC country.
- The manager must not work in any governmental sector.
- No partner may have a criminal record or final court judgment against them.
- Kuwaiti partners must hold a majority of the share capital; non-Kuwaitis may not exceed 49%.
- Any foreign partner must hold a valid residence permit in Kuwait.
- Each partner must submit proof of payment of their capital contribution.
- A company cannot be formed solely by spouses unless there is a third partner.
- All partners’ and managers’ criminal records must be clear of commercial judgments.
Permissible Activities for a Holding Company
A holding company in Kuwait may engage in the following activities:
- Managing or financing contracting and transportation firms in which it owns shares.
- Lending to, guaranteeing, or financing subsidiary companies.
- Participating in the formation and management of collective investment funds.
- Holding intellectual property rights, such as trademarks.
- Investing in bonds, securities, and trading in stocks.
- Operating open or closed-ended investment funds.
Documents Required for Incorporation
When establishing a holding company, you must prepare:
- A copy of the civil ID for each manager and partner.
- A certificate from the Public Institution for Social Security for each manager.
- A capital‐deposit certificate showing the partners’ reserved capital throughout incorporation.
- A tenancy contract or lease receipt for the company’s headquarters.
- A certificate issued by the Public Authority for Civil Information containing the company’s automated number.
- If a partner is foreign, a sponsor’s approval letter for participation.
- A power of attorney with the agent’s signature and a notarized certificate from the Kuwait Chamber of Commerce and Industry.
- A work permit from the relevant authority allowing the foreign partner to conduct this activity and transfer of the manager’s residence to the company.
We handle all steps to streamline the process. Contact Abdulaziz Saud Al-Subaie Law Firm & Legal Consultancy Group by clicking here to book your appointment.
Frequently Asked Questions
What are the conditions for setting up a closed joint-stock company in Kuwait? Our firm guides you through every requirement to establish your company swiftly and efficiently.
How do I form a holding company?
- Identify suitable investment sectors.
- Determine the financing mechanism to achieve your goals.
- Develop a growth and profit-enhancement plan.
- Analyze competitors’ strengths and weaknesses.
- Continuously evaluate the company’s financial position for optimal performance.
What are the key requirements for a holding company? A holding company must not be a single-member entity; none of its partners may be government employees. Meeting all establishment criteria ensures smooth incorporation.
We have covered all procedures, conditions, and documentation needed to establish a holding company in Kuwait. Abdulaziz Saud Al-Subaie Law Firm & Legal Consultancy Group is ready to facilitate your incorporation process. Click here to schedule your consultation today.