Qatar, a dazzling middle-east nation, famous for its fabulous malls, hotels and other infrastructures. The nation, other than eye-catchy, shiny structures, is also getting great attention of business investors all around the world. Thanks to Qatar’s two free trade zones the nation is offering for various business establishments. Free zones are rapidly gaining popularity, as these particular areas offer big advantages to business owners and initiators when intended to begin their trade venture in Qatar.
However, in order to enjoy those advantages, one needs to understand various rules and regulations of Qatar free zone company formation.
Before moving into the cost evaluation of company formation in Qatar you must need to know some useful details about free zones available in Qatar and their targeted business establishments in each zone.
Free Zone areas in Qatar
Two major free zones are operating in Qatar. Each of these zones are operated by Free Zone Authority or FZA, who works independently for the benefit and regulation of these free trade areas. These two free zone areas in Qatar are:
- Port Free Zone: Um Ahoul
- Airport Free Zone: Ras Bufontas
Port Free Zone is a massive 30.3-kilometer square located near Mesaieed industrial zone and Hamad port. Whereas Airport zone is rather smaller, meant for smaller business establishments. This zone spreads about 4-kilometer square of area and located near the famous Hamad International Airport in Qatar.
Documents and steps needed to register a company in free zone
In order to start a company in Qatari free zones, an entrepreneur needs to go through several company formation steps. Below are the documents needed and procedural steps that have to be considered if business need to be operated in Qatar:
Recommended documents you need to come up with
- Details business plan description
- Detail information of the company
- Bank statements
- Detail information about shareholders
Steps of company formation in free zone
- Company name has to be reserved and needs to be registered accordingly.
- Once the company name is reserved, a paid-up capital must be submitted through the bank. This calls for a proper bank account which must be opened during the registry process.
- Draft and submit AoA and MoA.
- Get recommended trade and other relevant licenses from the respected free zone authority.
- Collect Trade Identification Number (TIN) which needs to be registered with the Authority of taxation and revenue body.
- Order for a company seal for business usage.
Types of company eligible in free zone of Qatar
You can choose to establish any one type of company among two categories to roll on in Qatar free zone. These two categories of business are:
- Limited Liability Company or LLC
- Local or Foreign company’s branch office
You have to fill up the registration forms and other documents for company formation based on either of these above-mentioned business categories.
Costs for Qatar free zone company formation
The maximum limit for how much you can spend during company formation entirely depends on you. However, on average you are expected to march forward with a minimum capital range between the US $ 50,000 to $60,000. The amount depends on the company niche and one of these two free zones that have different expenses to set a company.
So, with that in consideration, below is a rough costing table that charts out the expenses you have to take in account for Qatar free zone company formation.
|Required Services for company formation in Free zone||Cost / Year (US$)|
|1.||Trade name proposal||1,000|
|1||Company registration fees at Qatar free zone||13,000|
|2||Government license, approval fees||10,000|
|3||Opening a bank account at Qatar corporate bank||5,000|
|4||Arranging office premises in free zone||1,500|
|5||Project Management fees per two months||4,500|
The table above gives an approximate cost list of required company formation services. These expenses often fluctuate depends on company niche, location, company establishment radius and several other factors in Qatar. This list didn’t include travel charges that an investor also needs to keep in mind.
Difference between Qatar Free Zones and Economic Zones
Following are the key differences between Qatar free zone company and economic zone company
- The key difference lies in the corporate taxation process for economic zone companies and free Zone companies. As soon as you proceed for Qatar free zone company process, you are exempted to the full free tax process for the first fifty years of incorporation, which otherwise has to be paid at a rate of 10% per annum in the typical economic zone.
- The foreign ownership can not be so much liberal if you choose to open your business in an economic business zone, but once the company has been established in a free trade zone, you have full ownership on it.
- You are exposed to certain charges per year when conducting import export business in the economic zone of Qatar. However, it is free to carry out relevant trade when you have started your company in Qatar’s free zone.
What is Qatar Free Zone?
Free zones are selected areas of Qatar that has special authorities’ rules and regulations imposed by respected FZA or free zone authority. For this, these areas offer special facilities for foreign investors who set their company in this area. The facilities often result absolute exemptions of yearly tax on trade, import export facilities and many more.
What is Free Zone company?
Free zone companies are particular businesses that has been established in one of the two free trade zones of Qatar.
How much does it cost to register a company in Qatar?
In an average an investor has to come up with US $50,000 approximately to carry out all registration process of a company in Qatar
What is commercial registration in Qatar?
Typical company registration that has been carried out with an aim to establish commercial businesses in Qatar, whether in economic or free trade zone.
What are the benefits of a free zone?
Following are some common facilities that Qatar free zone company formation can offer to an investor:
- 100% Tax exemption
- Absolute foreign ownership
- Free Import export
- Exemptions of currency restrictions
- Directors, shareholders and company members can obtain residency visa in Qatar.
- Low cost energy and resources supply such as electricity and fuel.
- Top class office services
- Low setup cost
- The rapid company setup process
- Flexibility in obtaining various licenses to enjoy immense corporate and social facilities.
- It is not necessary for a business owner to be physically present during business incorporation.
And many more.
What is the most famous free trade zone in Qatar?
There are only two free zones that are open for business in Qatar; these are:
- Port Free Zone: Um Ahoul
- Airport Free Zone: Ras Bufontas
Port free zone is comparatively more established and popular if your company niche is big, for instance, mega factories and giant industries. Airport free zone, on the other hand, is relatively smaller and is chosen by investors for establishing small to medium sized private limited companies.
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