Kuwait company capital rate reduced
The Ministry of Commerce and Industry is expected to release a decision soon that sets the minimum rates for capitals of Kuwaiti companies which varies depending on a firm’s classification, a local daily reported yesterday quoting sources with knowledge of the news. The decision gives a unified rate for companies’ minimum capitals and also allows new companies to reduce their capitals’ minimum, reported al Rai. Under the proposed decision, the minimum capital for shareholding companies will be set at KD25,000, whereas the minimum for closed companies will be set at KD10,000.
Meanwhile, the minimum capital for partnership companies and those with limited responsibilities will be set at KD1,000, whereas the minimum for holding companies is likely to be kept open depending on the company’s proposed business or industry. “The decision comes in line with the World Bank’s recommendations to improve Kuwait’s business environment and facilitate money transfer procedures,” reported the newspaper quoting unnamed sources. The new procedures help small project owners to develop their ideas through companies capable of meeting the minimum capital rate.