TaxSavvyKW

Keeping a Kuwait company dormant instead

We may come back to Kuwait in two years. Keep the company dormant or close it?

The situation

A Kuwait company keeps its legal obligations, including licence renewals and annual audits, while it exists.

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
  • Companies Law: annual statutory audit: Companies have their accounts audited each year by an independent auditor licensed and registered with MOCI

What it means for you

Dormancy means yearly audit and filing costs and keeping partner arrangements alive. Closing releases retentions and ends costs, but re-entry means a new setup. Compare two years of upkeep against setup cost.

What to do

  1. Estimate yearly upkeep.
  2. Estimate re-entry cost.
  3. Consider partner relations.
  4. Decide and plan.

We can do this for youLiquidation, tax clearance, retention release and deregistration: KWD 1,800

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