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 Wll 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.
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 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. You need to remember, WLL means LLC. This zone spreads about 4-kilometer square of area and located near the famous Hamad International Airport in Qatar.
In order to start a company in Qatari free zones, an entrepreneur needs to go through several company formation steps and Qatar currency. Below are the documents needed and procedural steps that have to be considered if business need to be operated in 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:
You have to fill up the registration forms and other documents for company formation based on either of these above-mentioned business categories.
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 and experience certificate in Qatar. This list didn’t include travel charges that an investor also needs to keep in mind and income tax in Qatar.
Following are the key differences between Qatar free zone company and economic zone company
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:
1. Port Free Zone: Um Ahoul
2. 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.