How to Start a Taxi Service Business with 10 to 15 Cars in Kuwait?

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Kuwait, like most countries in the Arabian Gulf, welcomes ex-pats and expat-owned businesses. The small country's strong economy and high-income levels offer a plethora of opportunities for enterprising ex-pats. Another factor that makes Kuwait appealing is the low corporate income tax rate for foreign-owned businesses.

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About Starting a Taxi Business in Kuwait

Steps to Start a Taxi Service Business With 10 to 15 Cars in Kuwait?

Start Carefully

Choose the Most-Suitable Legal Entity

Take Care of Legal Matters

Line Up Your Team

Get Customized Taxi Booking App

The Bottom Line

Let Us Get Started !

About Starting a Taxi Business in Kuwait

Kuwait is a perfect location for starting a taxi service with 10 to 15 cars. However, just like any other country, there are some rules you must follow, especially if you are a foreigner. If you want to move there and start a new life, you should probably hire international movers in Kuwait. Of course, taking the first step is not easy. You must learn, analyze, and pay attention to it. What do you need to know to start a taxi service in Kuwait? These are the rules that apply to foreigners.

Regional Knowledge

Prepare by conducting research. It is a good idea to have an advisor. Kuwait is not a large country but, if you plan to relocate or start a taxi business in Kuwait, you must be familiar with the region. First, make a business plan. It includes the analysis of the current and future market conditions, the competition, and your expected outcomes.

A Local Partner

The law requires you to have a local partner who will own the majority of the company and thus have complete control over it. However, a local partner is not required to contribute to the start-up investment or participate financially. A partner must have at least a 51% stake in the company.


You must show that you have a substantial sum of money to invest in the Ministry of Commerce. The required sum varies by state and is considered a guarantee against liabilities, and you can withdraw the amount shortly afterward!

As the process is complex and financially risky, local knowledge is essential. You should also contact a good lawyer immediately. An experienced lawyer will help you navigate the complexities of registration, and his advice will be critical in protecting your interests.

Without cutting-edge technology, no business can function properly, and the same applies to the taxi industry. There are numerous advantages to incorporating taxi dispatch software into the taxi industry. However, before you go any further, you should do extensive research on the features of the taxi dispatch system. Always select the best product for your company's requirements.

Let's setup your taxi business with modern technology? Then take a free demo to check the dispatch system process

Steps to Start a Taxi Service Business With 10 to 15 Cars in Kuwait?

Just follow these below-given steps to get started!

Start Carefully

Start your taxi business with 10 to 15 cars and a few drivers, and once your profits grow, you can gradually expand your business. It is essential to ensure that the area where you plan to establish your office has sufficient demand for cars and daily commuters.

Several people find public transportation inconvenient to use daily, especially when the distances to be traveled are so long. A taxi service comes in handy in situations like these because it allows up to four commuters to travel in the same car and split the cost of daily travel. It is not only convenient, but it can also save money for passengers.

Choose the Most-Suitable Legal Entity

The next step is to determine the type of legal entity you wish to set up. Anyone wishing to conduct business in Kuwait has a range of options. They are as follows:

A limited liability company

A joint-stock company

A limited liability partnership

A branch office

An agreement with a local commercial agent

It's important to remember that foreigners aren't allowed to possess 100% of the shares of a company incorporated in Kuwait. If you're an ex-pat who wants to create a taxi company in Kuwait, you'll need to find a local partner who holds at least a 51 percent stake in the company.

Take Care of Legal Matters

Before you begin operations, you must obtain business permits and proper insurance coverage because regulating bodies conduct inspections, sometimes randomly. However, to avoid paying unnecessary fines, have these two ready and updated. Any business that wishes to operate legally must obtain a permit. Before you begin, find out the requirements and get a business license from the relevant government office in your area. A business license is necessary to identify your company, as well as for tax and accounting purposes.

Ensure that your vehicles are registered and insured. Insurance policies are costly, but they are required before you begin operating. Check with your agent or those who are already in the taxi business for referrals and other concerns.

Line Up Your Team

The next step is to build your team. Make sure you hire the right people and make informed decisions. Recruit drivers and office personnel. When hiring new drivers, keep in mind that passenger safety and convenience should be your top priorities.

Before hiring drivers, ensure that they are licensed, professional drivers. You can also request prior documents and, if possible, run background checks. When one of your full-time drivers is not available to work, you may want to consider hiring additional drivers, even if only on an as-needed basis. Get people to work as dispatchers for your office staff, and such a person should be efficient and prepared to handle requests made via SMS, online accounts, and smartphone.

Get Customized Taxi Booking App

With a drastic shift in traditional business methods toward modern business solutions, developing an app like Uber for your taxi business is one change you can make to help you climb the success ladder. If you do not already have a taxi booking software solution, you can immediately contact a mobile app development company. Allow your customers to have access to your service at any time.

Every taxi operation requires automation. So, to reach new heights, every taxi company must develop an automated taxi dispatch system. Taxi dispatch systems are a great way to get started in the taxi business because they offer exciting features like low pricing, quick time to market, and post-development support. Taxi companies can expand at their own pace to meet rising demand because these solutions are flexible and scalable.

Are you planning to setup a taxi business with 10 to 15 cars initially?

Once you have completed all of these stages and got all the necessary certificates, you will be an official business owner in Kuwait.

The Bottom Line

Every start-up is tricky, but with the right business plan and team, it has the potential to be successful. Starting a taxi service in Kuwait is not as challenging as it may sound. You'd be surprised at how welcoming the business community is to newbies and how helpful the people are. There's also plenty of space for innovation and expansion.

Take a chance, start your own taxi service business, and go ahead. Good luck!

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