Yes, government approval is a mandatory step in setting up a company in Kuwait. Under Article 5 of Kuwait Commercial Law No. 68 of 1980, the Ministry of Commerce and Industry must notify the incorporators of the company's approval within three working days from the date of application. This approval is a required step before a company can be legally established and operate.
In addition to Ministry approval, Article 6 requires that companies operating in regulated sectors — such as banking or financial services — must also obtain the approval of the Central Bank of Kuwait or the relevant supervisory authority before incorporation. This adds an extra layer of regulatory oversight for expats looking to operate in these industries.
For expats, the practical implication is that there is no shortcut around official government approval — operating without it exposes you to serious legal liability. The process typically involves submitting the authenticated Company Contract, proof of capital, and details of the company's objectives. Engaging a local business setup consultant or legal advisor familiar with the Ministry's procedures is highly recommended to avoid delays.
This is general legal information, not legal advice. For advice on your specific situation, consult a lawyer licensed in Kuwait.