What is Kuwait Direct Investment Promotion Authority (KDIPA)?
KDIPA was established in accordance with Law No. 116 of 2013 regarding the promotion of direct investment in the State of Kuwait, as a specialized public authority with financial and administrative independence. It is one of the economic implementing arms of the country performing developmental, promotional, regulatory, and advocacy roles.
Under the KDIPA law, foreign investors can establish companies in Kuwait with 100% foreign ownership as well as avail of several incentives and guarantees on fulfilling the required conditions laid down by the authority.
What are the main incentives provided under the KDIPA law?
Exemptions from Taxes
Exemption from all taxes for a licensed investment entity for a period not exceeding ten years from the date of the actual commencement of operations.
Exemptions from Taxes for Expanded Investment Entities
Exemption from all taxes for a period no less than the duration of the exemption granted to the original Investment Entity as of the date of commencement of production or actual operation of the expansion.
Exemptions on taxes, duties on certain items imported for Direct Investment purposes
Whole or partial exemption from taxes, customs duties, or any other fees that may be payable on imports required for the purposes of Direct Investment such as:
- Machinery, tools, and equipment and means of transport, and other technological devices.
- Spare parts and necessary maintenance supplies for what has been described in the previous subsection.
- Merchandise, raw materials, partially manufactured goods, wrapping materials, and packaging.
Employment of Foreign Labor
Employment of foreign labor is required for the investment so long as the employed labor meets the minimum proportion of national employment that should be provided.
Utilization of land or real estate
Land or real estate allocated to KDIPA or that is subject to its supervision can be provided for investors to set up operations in accordance with the principles and rules established by the KDIPA Board of Directors.
Incentives and exemptions for Public Private Partnership (PPP) Projects
All advantages, incentives, and exemptions from the law shall apply to PPP projects established for direct investment purposes so long as they are approved by the KDIPA Board of Directors.
How should foreign investors apply to KDIPA?
Foreign investors seeking to invest in Kuwait are mandated to prepare and submit an application to the KDIPA in accordance to their laws and regulations. Foreign investors may liaise with consulting firms registered with the KDIPA who are specialized in assisting them in the application process.
Baker Tilly is a consulting firm that is registered with KDIPA and can provide the required support and assistance to foreign investors in establishing their presence in Kuwait.
The application includes two main parts:
- Key information and legal documents required by KDIPA
- A business plan in accordance with the procedural manual prescribed by KDIPA
Is Baker Tilly Kuwait registered to prepare and submit applications for establishing foreign companies in the state of Kuwait under KDIPA law?
Yes, Baker Tilly Kuwait is registered to submit applications on behalf of investors to Kuwait Direct Investment Authority (KDIPA).
Find below the registration certificate copy.
Why do you choose Baker Tilly Kuwait?
- A global consulting firm operating in the State of Kuwait
- Registered in KDIPA as an approved consulting firm for assisting foreign investors in the application process
- Local experience under an umbrella of a global network
- Professional team with in-depth experience in providing investment consultancy service
- Bilingual team