First steps to close a Kuwait branch or company

The situation

A clean exit needs final accounts and tax declarations, completion of inspections, a tax clearance certificate, closure of PIFSS and staff matters, and deregistration with MOCI.

The law

• Companies Law No. 1 of 2016 (as amended, including Decree-Law 106 of 2024): Governs company forms, WLL partner meetings, accounts and liquidation; Decree-Law 106 of 2024 eased WLL extraordinary meeting quorums
• Income Tax Law and Executive Bylaws: declaration and payment: Declaration due by the 15th day of the 4th month after year end; 60 day extension possible; tax paid with the return or in four instalments on the 15th of the 4th, 6th, 9th and 12th months
• Income Tax Law Executive Bylaws: 5% tax retention: Public and private contract owners retain 5% of each payment to contractors and suppliers until a tax clearance certificate is shown; final payment at least 5% of contract value

What it means for you

Tax clearance usually sets the timeline, because every open year must be filed and inspected first. Start by listing open tax years, retentions held by customers, staff indemnities and contracts. Then plan the order: finish projects, final audit, final return, inspection, clearance, deregistration.

What to do

1. List open tax years and inspections.
2. List retentions held by customers.
3. Plan staff exits and indemnities.
4. Set the sequence to clearance and deregistration.

Related

• Kuwait tax claims after closing
• Staff end-of-service on closing in Kuwait
• Keeping a Kuwait company dormant instead
• Final tax declaration on exit
• Recovering retention after leaving Kuwait
• Closing while a tax objection is pending