What is Kuwait Direct Investment Promotion Authority (KDIPA)?
Kuwait Direct Investment Promotion Authority (KDIPA) established in accordance with Law No. 116 of 2013 regarding the promotion of direct investment in the State of Kuwait.
Main Objective is to attract foreign investment in Kuwait by providing them income tax and custom duties exemptions in addition to other non-tax benefits.
Under KDIPA the major benefits are:
You can own Your company in the state of Kuwait 100%;
You get custom duties and tax exemptions;
You are able to freely transfer capital and earnings.
What are the available guarantees and incentives for the investor in Kuwait?
Law No. 116 of 2013 regarding the promotion of direct investment in the State of Kuwait provides a number of guarantees to the investment entity which includes:
No investment entity shall be confiscated nor be deprived of its property except in the public interest and only in accordance with the applicable laws and against compensation equivalent to the true economic value of the expropriated project at the time of expropriation, estimated in accordance with the economic situation prior to any threat of expropriation.
The Investor shall have the right to transfer abroad his profits, capital or proceeds resulting from the disposal over his shares or participation in the Investment Entity or the compensation set forth in this Law. Moreover, employees in the Investment Entity shall have the right to transfer their savings and entitlements abroad.
The Investor is entitled to the basic principles of confidentiality in respect of the technical, economic and financial information relevant to his investment and to safeguard initiatives.
Taking advantage of all international agreements and conventions in force in the country related to investments and benefiting of the avoidance of double taxation.
Exemption from income tax or any other taxes for a period not exceeding ten years from the date of the actual commencement of operations of the licensed investment entity.
The use of land and real estate allocated to the Authority or that is subject to its supervision or management, in accordance with the principles and rules established by the Board in this regard.
The employment of foreign labor required for the investment, in accordance with the principles and restrictions established by decision of the Council of Ministers in respect of the minimum proportion of national employment that must be provided.
The Council of Ministers may decide to grant some cases and groups certain advantages and exemptions, which are not mentioned in this article.
Here are the names of the companies which are already licensed and approved under KDIPA:
IBM KUWAIT, HUAWEI TECHNOLOGIES KUWAIT, GE TECHNOLOGIES CENTER KUWAIT,NTG CLARITY NETWORKS INC IT,MALKA COMMUNCATIONS GROUP, TSK ELECTRONICA,BERKELEY RESEARCH GROUP, TECNICAS REUNIDAS, SELEX ES, TRINIDAD DRILLING, etc
Arsan provides a full service for foreign companies to get registered under KDIPA (Kuwait Direct Investment Promotion Authority).