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The Ultimate Guide To
Employment in Kuwait

Kuwait Facts

Population size: 4,007,146
Currency: KWD (Approx. 3.3 USD)
Capital city: Kuwait City
Languages spoken: Arabic
Ease of Doing Business: 102

Employing in Kuwait: What You Need to Know

The most notable legislative sources in Kuwait is Law n. 6/2010 (Private Sector Kuwait Labor Law). Article 10 of Law 6/2010 states that “The employer shall be prohibited from employing foreign manpower unless the competent authority has granted them a permit to work for him. The Minister shall issue a resolution setting forth the procedures, documents and fees that shall be paid by the employer. In the event of refusal, such refusal shall be justified by stating the reason thereof, and the reason for such refusal shall not be related to the amount of the capital, otherwise the decision shall be absolutely null and void”.

Key Factors to Consider When Employing in Kuwait

There are several key areas to be aware of within the Kuwait employment regulatory framework, especially for companies that plan to initiate a full local office and human resources department.  These challenges can be mitigated by use of a locally sourced payroll provider who is familiar with all of the local laws and rules for both local employees as well as foreign nationals.

Employee Entitlements

Information Explanation
Working on Sundays ?

Whenever a Worker is made to work in an official public holiday due to work conditions, such Worker shall be entitled to a double wage for that day.

Employee Protection and Anti-discrimination Rights ?

The Constitution prohibits discrimination based on race, national origin, language, and religion; however, in practice, the Government did not uniformly or consistently enforce laws against discrimination.

Time Off Work ?

The Worker shall be entitled to a weekly period of rest not less than one day without pay, and in case the Worker is made to work in the weekly rest, he/she shall be entitled to a wage in return for that day equaling the original wage per day plus 50% at least.

Medical Leave ?

The Worker whose sickness is recorded in a medical certificate issued by a physician appointed by the Employer or by the attending physician of any government health unit shall be entitled to sick leaves during the year. The sick leaves shall be computed as follows:

  • Six days with full pay;
  • Then six days with three quarters of the pay;
  • Then six days with half of the pay;
  • Then six days with quarter of the pay;
  • Then six days without pay.

Employment Termination

Information Explanation
Severance / Redundancy Pay ?

The party terminating the contract may pay to the other party compensation in return for the notification equaling the wage due to the Worker for the period determined for the notification.

If the labor contract concluded with a definite period and is terminated by one party and the contract fails to mention anything dealing with such case, the party terminating the contract shall compensate the other party for damages. If such termination is initiated by the Employer and for reasons other than those prescribed, the Employer shall be obliged to compensate the Worker for any damage in accordance with the customary practices and work nature, the period of the contract, and in general the conditions where the damage is made certain and the scope of such damage, provided that the amount of compensation shall not by any means exceed the value of the remainder of the wage due to the Worker for the remaining period of the contract. If the termination is initiated by the Worker, the Worker shall be obliged to compensate the Employer for the loss that the Employer incurred as a result of the termination of the contract.

Termination of Employment ?

If the labor contract is for an indefinite period, each of the two parties may terminate it on condition of notifying the other party in writing of such termination.

The notification shall be provided as follows:

  • in the case of workers appointed on monthly wage basis, the notification shall be delivered at least fifteen days before the contract is terminated;
  • In the case of other workers, the notification shall be delivered at least seven days before the contract is terminated.

GEO Solutions or DIY Employment in Kuwait?

Companies entering Kuwait must make a decision whether to use their own resources for a Do-It-Yourself (DIY) approach, or to use a Global Employment Organization to handle payroll and employment responsibilities.  A GEO or Kuwait Employer of Record solution makes it faster, easier and cheaper to deploy staff if they don’t have a Kuwait entity established that can run payroll.

A DIY approach will typically take 6-9 months until there is a properly incorporated WFOE ready to run payroll and cost up to 6 figures if registered capital is required. Shield GEO can deploy foreign staff in 4-6 weeks and local staff in 48 hours. Additionally, Shield GEO is responsible for all compliance issues related to the employment.

Outsourcing Employment Through a GEO Employer of Record Service

Using Shield GEO Employer of Record Services in Kuwait

Compliance with local employment requirements is just one of the issues foreign companies face when employing staff in Kuwait. For companies, which intend to employ their staff directly through their incorporated Kuwait entity, professional legal advice is recommended. Shield GEO provides an alternative path for companies to outsource the employment of their staff in Kuwait.

As a Global Employer Organization (GEO), Shield GEO acts as the Employer of Record and ensures the employment is compliant with host country regulations regarding employment. In addition Shield GEO will handle payroll processing, tax and immigration. Using Shield GEO is the fastest and most cost effective way to deploy local and foreign workers into Kuwait.

The Shield GEO solution is an attractive alternative where

– the company is looking to employ staff quickly

– the company doesn’t have an appropriately incorporated entity in Kuwait

– the company wants to work within a defined budget

– the company wants to limit its initial commitment in Kuwait

– the company needs help with tax, employment, immigration and payroll compliance in Kuwait

Shield GEO can contract directly with the company to employ and payroll their staff in Kuwait. Shield GEO supplies local employment contracts for the staff which ensure that local statutory requirements are met covering issues such as termination, probation periods, leave entitlements and statutory benefits.  Shield GEO is able to advise companies how to cover local employment regulations whilst still providing consistent global employment policies. Understand more about outsourced employment through Shield GEO.

Payroll

Payroll Kuwait
Management Fee for Employer of Record Services / Monthly Payroll Costs

We personalise our solution to your exact needs, please contact us for a quote.

Notes

Shield GEO pays the employee on a monthly basis, typically on the last working day of the month although we can adapt to your preferred schedule. Income tax and social security (where applicable) are deducted at source and paid to the local tax authorities.

Currency ? KWD (Approx. 3.3 USD)
Tax Returns Supplied

Yes, Shield GEO can organise tax returns in Kuwait.

Employers Social Security and statutory contributions

11.5% calculated on gross salary

Employees Social Security and statutory contributions

8% calculated on gross salary

Payroll and Tax in Kuwait

Kuwait applies a ‘source’ method to taxation, which means that, whilst tax is imposed only on the Kuwaiti-source income, a taxation liability can arise from activities not considered taxable in many jurisdictions.

The source of income is considered to be in Kuwait if the place of performance of services is within Kuwait. This includes, work carried out outside the country under a contract that also involves activity in Kuwait. Any significant presence of employees or short-term visits to Kuwait by representatives of a company may render the entire revenue from the transactions as taxable in Kuwait.

Your Payroll Options in Kuwait

Information Explanation
Remote Payroll ?

A remote payroll system is where a foreign company, i.e. a non-resident company, payrolls a resident employee in Kuwait. Under Kuwait Law, companies registered in other countries are allowed to obtain a license to do business and have employees in the country.

Local Payroll Administration ?

In some cases, a company will register their business in Kuwait under one of the forms available: Limited liability company, Shareholding companies and Partnerships; but prefer to have another company administering its payroll.  This can be accomplished through a payroll provider. It is important to note that the company, as the Employer of Record, is still fully responsible for compliance with employment, immigration, tax and payroll regulations. But the payroll calculations, payments and filings can all be outsourced to the payroll provider.

Internal Payroll ?

Larger companies with a commitment to Kuwait may wish to run their own local payroll for all employees, foreign and local. In order to accomplish this, they will have to complete incorporation, register the business and then hire the necessary staff.  There will be a need for in country human resources personnel who have the background needed to manage a Kuwait payroll, and can fulfil all tax, withholding, and payroll requirements.

This approach carries significant cost and requires some knowledge of local employment and payroll regulations. The company will need a local accounting firm and potentially legal counsel to ensure full compliance with Kuwait employment laws.

Fully Outsourced Payroll & Employment ?

Companies can outsource the employment and payroll of their staff in Kuwait to a GEO, like Shield GEO. This is possible for both foreign workers and Kuwait nationals. This is the easiest, fastest and safest way to payroll staff in Kuwait.

Shield GEO manages all aspects of payroll for workers in Kuwait, including taxes, withholding, social security payments and other statutory requirements. Shield GEO becomes the Employer of Record and employs the staff on behalf of the client.

Staff are paid monthly with tax and social security deducted at source and paid to local authorities. Shield GEO will invoice the client monthly in advance of the payroll date. The invoice consists of the Total Cost of Employment (Base salary + Employers Statutory Contributions + Additional statutory contributions) and a Management Fee. Shield GEO provides the employees with payslips.

Read more about outsourced payroll and employment through Shield GEO.

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Setting up payroll in Kuwait

Information Explanation
Employee Information Required ?

a) Copy of nationality certificate.

b) Copy of birth certificate or age assessment certificate.

c) Copy of the appointment decision, for governmental authorities.

d) Copy of Civil Identity Card.

Social Security Registration ?

The Social Security System requires the employer to provide the registration forms of the Kuwaiti employees who are working for him within ten days as from the date of joining the work, duly accompanied with the following documents:

a) Copy of nationality certificate;

b) Copy of birth certificate or age assessment certificate;

c) Copy of the appointment decision, for governmental authorities;

d) Copy of Civil Identity Card.

Documentation Required for New Employees ?

The Worker shall be employed by virtue of a Contract, verbal or in writing, comprising in particular the start date of appointment, wage agreed upon, term of the contract, if it is a fixed-term contract, and the nature of work. In case the Contract is concluded in a verbal form, the Employer and/or the Worker may by whatever means admissible prove the rights thereof.

Tax Figures

Information Explanation
Corporate Income Tax ?

15% on taxable profits

Income Tax Rate ?
Grossed income Tax Rate (%)

Liability for income tax

Kuwait does not impose income taxes on income earned by individuals.

Tax trigger points

There is no personal tax in the state of Kuwait. However, there is corporate tax applicable to foreign corporations in Kuwait. The Kuwaiti tax law does not define the concept of resident/nonresident and permanent establishment. As a result, there may be corporate tax implications where representatives/employees of the supplying/invoicing foreign entities are present in the country.

In practice, the Kuwait Tax Authority (KTA) considers even a single day’s visit in Kuwait to create a taxable presence in the absence of a double tax treaty between the corporation’s country of tax residence and Kuwait.

Types of taxable income

Sales Tax ?

Currently not implemented

Withholding Tax ?

The rate of withholding tax on dividends is 15%.

Income Tax (Personal Allowance) ?

There is no personal income tax (employment tax) in Kuwait.

Time to prepare and Pay Taxes ?

98 hours

Time required to start a Business ?

61 days

Payments

Information Explanation
Payment Mode ?

The payment of contributions and other due funds for the Public Institution for Social Security shall be made as follows:-

By virtue of a checks in the name of the Public Institution for Social Security;

Payment in cash to the Public Institution for Social Security treasury; or

Under a deposit advice for the Public Institution for Social Security`s account

Frequency of Salary Payment ?

Wages may be determined per hour, per day, per week, per month, or per piece. Wages shall be paid in one of official work days and at the workplace of the workers in the currency legally in circulation, subject to the following provisions:

  • a worker appointed on a monthly pay shall be paid the wage thereof at least once per month;
  • a worker paid per hour, day laborer, worker with a weekly wage, or worker paid on the piece-rate basis shall be paid the wage thereof at least once every two weeks;
  • The Employer shall be prohibited to transfer a monthly paid worker to the category of day laborers or to category of workers appointed with a weekly wage or on a piece-rate basis except with the approval of the worker on transferring thereof.
Minimum Wage ?

In Kuwait, minimum wages vary depending on the job role and the job designation as on visa. On average, the monthly salary compensation is 100 KWD (Approx. USD 332).

Immigration and Work Permits in Kuwait

Foreign workers are required to have the proper visas and work permits in Kuwait, as established by immigration laws.  Work permits must be secured for employees, and sponsored by a locally licensed and incorporated entity, which can be a problem for companies just entering the Kuwait market.  If you have yet to complete the incorporation process you can use an outsourced management company or GEO Employer of Record to sponsor the employee for the necessary permits.

Have Your Own Business?

According to the Private Sector Kuwait Labor Law, each employer shall maintain a file for each worker wherein shall be kept copies of the worker’s work permit, work contract, civil ID, documents relevant to annual leaves and sick leaves, overtime hours, work injuries and occupational diseases, penalties imposed on the worker, end of service date and reasons behind, copy of receipts proving that documents he submitted to the employer such as documents, tools, certificates have been returned to him after the end of his service.

In order to live and work in Kuwait, expatriates shall obtain a residency visa (iqama), which can only be issued on the basis of a valid employment offer from a private company or a Kuwaiti government organization. The Kuwaiti employer then applies for the iqama on behalf of the expatriate employee.

The employee is then issued a so-called “No Objection Certificate” (NOC) with which he/she can enter Kuwait. The employee will be issued the actual residency visa once he/she have entered Kuwait. In order for the residency visa to be issued, an extensive medical certificate is necessary, including testing for HIV/AIDS, hepatitis, and tuberculosis.

Once the residency visa is issued, the employee can apply for a Kuwaiti Civil ID (bitaqa-almadaniyah). This application has to be submitted within 30 days of receiving the residency visa.

Documents required in order to get a Work Visa are:

– Valid Passport with a minimum of six (6) months prior to expiration date.

– One completed current visa application form as issued by Kuwait Ministry of Foreign Affairs

– One passport-size photo.

– HIV test (AIDS test).

– Health Certificate:  Obtained from the local doctor certifying that the patient is in good health and free from contagious diseases. Lab test results for the following: Hepatitis B & C, Malaria, Filariasis, Syphilis and Chest X-Ray for Tuberculosis

– Police Clearance of No Criminal Record obtained from the:  Federal Bureau of Investigation – FBI, and should be dated after the issuance date of the Work Permit.The Police Clearance has to be certified first by the U.S. State Department in Washington, DC (Tel: (202) 647-5002 or (800) 688-9889), then legalized by the Embassy with a $25.00 Authentication fee. The Authenticated Police Clearance should be presented to the Kuwaiti Authorities for residency purposes.

– The work permit.

FEES: Visa fee USD 175.00 along with USD 25.00 for the authentication of the Police Clearance.

Use the Shield GEO Employer of Record Solution?

Once you get in touch with us, one of our consultants will take all the work off your hand, co-ordinate with our local partners to get all the required permits organised, provide the processing time, costs, document-checklist and keep you informed through the process. Contact us to know more.

Types of visas in Kuwait

Category Description of Visa
Business Visitors

General Requirements

– Valid passport with a minimum of six (6) months prior to expiration date.

– Two completed current visa application forms.

– Two photographs.

– Letter from the national firm requesting the issuance of a visa and guaranteeing the applicant while in Kuwait.

Fee: Approx USD 150.00 for single entry and USD 175.00 for multiple entries.

Persons Going for Employment

General Requirements

– Valid passport with a minimum of six (6) months prior to expiration date.

– Two completed current visa application forms.

– Two photographs.

If Government Contract: copy of Letter of Appointment from Kuwait.

If Private Sector: Work Permit issued by the General Department of Immigration Affairs in Kuwait. (If spouse or family members are accompanying applicant, Work permit, No Objection Certificate or Letter of Appointment must indicate that.)

Fee: Approx USD 150.00 for single entry and USD 175.00 for multiple entries.  Contact the Embassy for other nationalities.

Setting up a company in Kuwait

When setting up a company you may want to consider these factors:

  1. Business Factors

    From 2014 to 2015, Kuwait made starting a business more difficult by increasing the minimum capital requirement and by increasing the commercial license fee. On the other hand, in 2016 Kuwait made starting a business easier by reducing the minimum capital requirement.

    Kuwaitis characterised by a complex business environment, which requires flexibility, patience, and persistence. Many exporters and investors in Kuwait are challenged by inconsistent, sometimes contradictory policies, lack of transparency in decision-making, reversal of tenders once awarded, and a judiciary that heavily favors the local population.

    On top of that, the government does not implement anti-corruption laws effectively, and public officials reportedly engage in corrupt activities with impunity.

    The State of Kuwait, however, is undergoing significant expansion in the building and construction industry and the traditional import sectors of automotive, oil and gas, computers/ICT, telecommunications equipment and construction equipment remain strong.

  2. Religion

    Islam is practiced by the majority of Kuwaitis and governs their personal, political, economic and legal lives. Despite over 95% of the population are Muslim, Kuwait is known for its religious tolerance.

  3. Ethnicity

    There are different types of ethnicities in Kuwait that must be considered while doing business, such as Kuwaiti 45%, other Arab 35%, South Asian 9%, Iranian 4%, other 7%.

In 2012, the companies law in Kuwait, was updated providing a more realistic and practical perspective than the previous companies law.

In addition, the Companies Law provides more types of companies that can be established in Kuwait, such as:

  • company with limited liability;
  • shareholding company (public and closed);
  • limited partnership or;

Each of these business forms has distinct advantages and disadvantages, as well as differing scope of business activities, registration requirements and minimum capital requirements.  In most cases it will depend on the degree of commitment a company has to Kuwait and the planned business activity.

Limited Liability Company

This is the most common corporate entity in Kuwait, and the main route adopted by foreign companies or investors to enter the market.

Register at the Department of Companies of the Ministry of Commerce and Industry (MOCI)

To register, the entrepreneur must submit a completed standard application form to the Department of Companies of the Ministry of Commerce and Industry (MOCI), accompanied by the following documents:

– Copy of the entrepreneur’s identity card (ID)

– Certificate issued by the Social Security Authority attesting that the Kuwaiti partners are not civil servants

– Lease contract, a receipt of rent payment, and a certificate from the Public Authority for Civil Information (PACI) confirming that the premises are registered with PACI.

The completed application have to include the following:

  • names of the founding partners and their respective shares;
  • the capital, scope and objective of the company; and
  • the name of the manager.

Once the application is approved, it is stamped and signed by the Department of Companies, and allocated a reference number. The MOCI electronically sends an inspection request to the Municipality to proceed with the inspection of the company premises at the relevant point of incorporation process and a request to the Ministry of Interior to run background checks verifying that the founding partners do not have a criminal record.

Reserve a unique company name  

The entrepreneur submits a company name reservation application to the Commercial Registry. The Commercial Registry searches the computer database to ensure that the proposed company name does not already exist or resemble other reserved names.

The Commercial Registry has certain guidelines to follow with respect to the company name selection, such as: the chosen name must not be in breach of “public morals.” Once approved, the Commercial Registry issues a letter confirming the proposed name and reserves it for 3 months.

Retrieve the letter addressed to the bank from the Department of Companies

The entrepreneur must return to the Department of Companies to retrieve the necessary letter addressed to the commercial bank of choice where the paid-in capital of the company will be deposited.

The Department of Companies may further issue additional letters addressed to different government authorities depending on the scope and activity of the company in order to obtain their approval of the company formation. For example, for restaurants and food establishments, a letter addressed to the Ministry of Health is issued; for the oil industry, a letter addressed to the Ministry of Oil and Energy is issued, and so forth.

Deposit the capital at the bank and obtain proof thereof

In deference to the Department of Companies’ letter, the bank opens an account in the name of the company with the term “under formation” annexed to the account. The deposited capital remains frozen until the bank receives the notarized deed of incorporation and the commercial license of the company, following which the term “under formation” is removed and the account is activated. The bank issues a deposit certificate in the name of the company addressed to the Ministry of Commerce and Industry, detailing the amount deposited by each partner against his/her share in the company.

Receive inspection of the company premises by the Municipality

Once the municipality receives the request for inspection of the company premises from the Ministry of Commerce and Industry, it contacts the entrepreneur to schedule an inspection date in order to verify that the premises comply with municipal health and safety regulations. This includes an inspection by the Fire Department to check for compliance with fire regulations. If the company premises successfully pass inspection, the municipality issues a certificate of no objection in the name of the company, allowing the use of the indicated premises as the company location. This process usually takes 5 to 14 days.

Obtain the approval of the memorandum of association from the Department of Companies

The entrepreneur proceeds to the Department of Companies to submit the draft memorandum of association. If the entrepreneur does not use the standard form of the memorandum of association, the amendments or additions to the standard memorandum must be accepted by the MOCI before it approves the company incorporation. Once the final draft is signed, the Department of Companies issues a letter addressed to the Ministry of Justice (MOJ) requesting the authentication of the company incorporation, accompanied by the draft memorandum of association.

Notarise the memorandum of association before a public notary

The entrepreneur submits the draft memorandum of association along with Department of Companies’ letter and the bank capital deposit certificate to the Notary Public Department at the Ministry of Justice. The officer verifies that the required documents are complete and schedules an appointment for signing before the notary public at the Company Formation Department of the Ministry of Justice, during which the memorandum of association is signed by the founding partners and notarised on the set date in 3 originals: one for the company, one for the Ministry of Justice, and one to be field with the Ministry of Commerce and Industry.

Register with the Commercial Registry

The entrepreneur files a signed and notarised copy of the memorandum of association at the Department of Companies of the Ministry of Commerce and Industry. A copy thereof is then submitted to the Commercial Registry and a certificate of registration is obtained. The certificate of registration includes the company’s full name and commercial registration number.

Obtain the commercial license from the Department of Companies

Once the commercial registration certificate is issued, the entrepreneur obtains the commercial license from the Department of Companies.

Register with the Kuwait Chamber of Commerce and Industry

The company must apply for membership at the Chamber of Commerce and Industry by submitting copies of its commercial license and memorandum of association, and filling out a specimen signature form signed by the company’s authorised signatories. The membership is a pre-requisite to dealing with other government authorities, banks and participation in public tenders.

Register with Public Authority for Civil Information (PACI)

The company must register with the Public Authority for Civil Information (PACI) in order to obtain a civil number, which is required in dealing with other governmental bodies.

Register at the Ministry of Labor and Social Affairs

The Ministry of Labor may inspect the premises to determine whether the size of the company premises and its business scope are commensurate with the number of employees declared at the Ministry.

Processing Time: Approx. 1 month

Cost: KWD 323 (Approx. USD 1,000)

Shareholding Company

Shareholding companies are either public or closed. They must be composed by at least five shareholders. The Kuwait shareholding company (SAK or KSC) is similar to a common law limited liability company, with a board of directors and share certificates.

It can engage in any form of activity, but has a higher capital requirement of KWD 100,000 or more. Foreigners are allowed to participate in the formation and ownership of public shareholding companies within the 49% limit indicated above, except where 100% ownership is permitted in accordance with the foreign direct investment law. The founders of a public shareholding company are required to subscribe to at least 10% of the capital.

(SAKC or KSCC) are joint stock companies that do not offer their shares to the public. Regulations concerning foreign participation in such companies are broadly similar to those applicable to Kuwait shareholding companies.

On a different note, a closed shareholding company may take the form of a holding company (sharika qabida ) in accordance with law number 117/1992. A holding company may own shares in Kuwaiti and non-Kuwaiti companies, including limited liability companies and may take part in the founding of such companies, provide loans to them and guarantee them against third parties in accordance with limits specified in the law.

Incorporation Process (Public)

  • Prepare and submit an application stating the activities to be performed to the MOCI,
  • MOCI would communicate advice to the:
    • Legislative,
    • Ministry of Councils,
  • Promoter’s would deposit 30% of the capital,
  • Publish the Articles of Incorporation and Articles of Association in the official Kuwait Gazette,
  • Obtain promoters signatures on Articles of Incorporation and Articles of Association,
  • Start public subscription and allotment process,
  • Issue of share certificate,
  • Manage the General Assembly of the newly incorporated company.

Incorporation Process (Closed)

  • Prepare and submit an application stating the activities to be performed to the MOCI,
  • Promoter’s and shareholder’s would deposit capital,
  • Prepare and submit the Articles of Incorporation and Articles of Association to the MOCI,
  • Obtain signatures of promoters and shareholders on the Articles of Incorporation and Articles of Association,
  • Publish the Articles of Incorporation and Articles of Association in the official Kuwait Gazette,
  • Issue of share certificate,
  • Manage the General Assembly of the newly incorporated company.

Processing Time: If a licence is granted, incorporation typically takes six months.

Partnership

The Commercial Companies Law also governs the formation of partnerships, both general and limited. A general partnership is an association of two or more persons formed under a specific name to carry on commercial business. It has a separate legal personality, but its members are jointly and separately liable for its obligations to the extent of their entire personal property.

There are two types of limited partnership: the simple limited partnership and the partnership limited by shares. A simple limited partnership consists of joint liability members (general partners), who are jointly and separately liable for the partnership debts to the extent of all their assets, and sleeping members (limited partners), who are liable only to the extent of their respective contributions. A partnership limited by shares is a limited partnership whose capital is divided into shares. Members are generally subject to the same rules as shareholders in a shareholding company.

Branch

Foreign corporate bodies are not entitled to set up a branch in Kuwait (except in specific cases where the foreign corporate body has obtained an approval from KDIPA). If the foreign corporate bodies do not wish to do business in Kuwait through a participation in a shareholding company or a limited liability company, it can engage in business in Kuwait only through a Kuwaiti commercial agent or a Kuwaiti service agent (as explained below).

Under the CCL a branch is not a recognised legal form for foreign investors. It should be noted however that for the purpose of tax filing and certain other practical purposes, it is convenient to refer to Kuwait operations of foreign corporate bodies as “branch” operations.

Outsourcing Employment Through a GEO Employer of Record Service

Whether to incorporate in Kuwait, and what sort of entity to setup are just two of the many choices companies must make when expanding into a new market.

If the company intends to have staff in Kuwait they must also decide whether they will administer that employment internally or use a Global Employment Organization to handle payroll and Employer of Record responsibilities.  A GEO Employer of Record solution is an attractive alternative where

– the company is looking to setup an office quickly

– the company wants to work within a defined budget

– the company wants to limit its initial commitment in Kuwait

– the company needs help with tax, employment, immigration and payroll compliance in Kuwait

The complexity of employment regulations in Kuwait makes the use of a GEO advisable coupled with local legal counsel to ensure full compliance with employment laws, for example the drafting of local contracts for workers.

Shield GEO provides a comprehensive service in Kuwait allowing companies to deploy their staff quickly with reasonable, clearly stated costs and timeframes. The company contracts directly with Shield to employ and payroll their staff on their behalf in Kuwait.

Shield GEO then becomes the Employer of Record. Shield GEO assumes the legal responsibility for these employees, sponsoring them on work permits, complying with local employment law and running their monthly payroll. Using Shield GEO is the fastest and most cost effective way to deploy local and foreign workers into Kuwait. Read more about outsourced employment through Shield GEO.

  • Kuwait Employer of Record Overview

Kuwait Employer of Record Overview

  • Kuwait Employer of Record Overview

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