If you are a business owner or an investor who is putting in a lot of mental stress to chose in the correct the designation to invest to start a small business then mark my words friend, Qatar is surly to be the best choice for you.
Well this article of mine will eventually help you t know why Qatar and what it really takes to start a business in Qatar.
One can find answers to commonly asked questions of many regarding incorporating or registering a business entity in Qatar at the end part of my article.
Let’s start our journey by known Qatar and its government a bit deeper then before. In today’s date Qatar is said to be one of the wealthiest countries in the world with its substantial oil and gas kept reserved for future use, extraordinary infrastructure system and free zone economic business policies.
Qatar being a member of the World Trade Organization (WTO) and other related international financial bodies offers foreign investors and business owners a highly mature and sophisticated banking environment. You will be amazed to know that Qatar is also known for its drastic and stable growth of economy.
It is said that that in recent years Qatar’s economy has been growing steady by around 10% per year.
The Foreign Direct Investment Law No.13 of 2000 which was further redecorated and amended on 1st of February 2010 has surly played a major role in stimulating economic growth of Qatar.
The new law conducted has permitted 100% foreign ownership for the first time in the business sectors of the country related to agriculture, manufacturing, professional services, It sectors, healthcare, education, manufacturing and tourism.
The new law amended has also offered the foreign investors a number of substantial incentives that is highly treasured and praised, the freedom to repatriate all sort of company profits and capital to the investor’s own country of origin.
Let me now point out some of the key benefits that one can obtain his/her own business, Starting a small business in Qatar:
One can not just move in to Qatar and start of with his business right away. Surly there are several guidelines ands steps to follow which includes acquiring a number of licenses and permits, submission of many legal documents & related paper works along with financial issues to overcome with.
Qatar allows 7 different business categories or company formats for investors to start of their business operations within the country.
It is highly advised to you to know these company patterns and other benefits and limitation they bring in with them to chose the right business formulation most suitable for you.
It is said and studied from past experiences that many business owners and investors fail to success for choosing the wrong pattern of business entity they incorporated.
The seven categories of business organization or commercial companies that can be incorporated in Qatar are shown below:
|Simple Partnership Company
|Joint Partnership Company
|Joint Venture Company
|Public Shareholding Company
|Limited Share Partnership Company
|Limited Liability Company:
Out of the these seven the most common one and best suitable for foreign investors are considered to be the Limited Liability Company, LLC in Qatar.
Well choosing your right business partner is always important for Qatar Business. One thing to be cleared in mind all these 7 categories of Business Entities mentioned above requires the partnership of a local Qatari partner whose share should not be less than 51% to run in all sort of commercial activities and other business operations.
The first and most important step for incorporation of any new business company in Qatar or Starting a small business in Qatar requires submission of detailed documentation and paper works to the Ministry of Economy and Commerce in Qatar to be enlisted as a legal member at the Qatar Chamber of Commerce and Industry.
One also requires trade license, signage license, immigration card and other necessary facts for business operations. Bank account, capital share submission, vendor office, planning to outfit the company layout, residency permits, registering with Public Revenues and Taxes Departments etc are all considered to be a must do for starting a small business in Qatar. And you can check restaurant business for sale in Qatar to start your business.
Registration and Incorporation Guidelines for Investors and Business Owners:
|Get in contact with a local Qatari partner
|For 100% owned business entity prepare valid documents & other processing application to obtain approval from the Ministry of Business and Trade.
|Acquire Name Approval.
|Activity approval of business operation.
|Open Bank Account (minimum share capital of QAR 200,000.)
|Articles of the Association (AoA)
|Obtain all essential documents for attestations from the Ministry of Justice.
|Accumulating all essential paperwork, documents & other processing Application required for registration with the Chamber of Commerce.
|Accumulating all essential paperwork, documents & other processing Application required for Company Registration with the Ministry of Business & Trade.
|Accumulating all essential paperwork, documents & other processing Application required for Municipality License.
|Accumulating all essential paperwork, documents & other processing Application required for Immigration Card for the Company.
|After successfully going through all these steps and once get the certificate of incorporation your business company is now fully formed and has the legal right to operate in Qatar.
Some Common question asked by fellow investors most related on starting a small business in Qatar:
What timeframe should be considered when incorporating a Qatar company?
Two to three weeks.
What is the minimum number of directors/shareholders required for a Qatar Company?
2 shareholders and 1 director.
Are there any restrictions on ownership of a Qatar Company?
As per the Qatari Government and law in Qatar
foreign investors are only allowed to consume 49% of the company share based upon a (
LLC) Limited liability company in Qatar
The rest 51 percentage is conducted upon a Qatari partner appointed by the company itself. For 100% ownership
valid documents & other processing application send to be submitted to the Ministry of Business and Trade.
Foreign investors can own 100% ownership over business sectors related to agriculture, consultancy
business, manufacturing, health, education, tourism, IT sectors, sports, culture and
entertainment as well as distribution services.
What are the requirements for setting up a LLC in Qatar?
The desire company name needs to be approved from
the Ministry of Economy and Commerce in Doha.
The signed Memorandum of Association and Articles of Association in Arabic has to be submitted to the Ministry of Economy and Commerce in Doha.
Furthermore, the minimum required capital which is about QR 200,000 must be deposited into a local Qatari bank.
Does annual audits require for any Qatar Company?
Of course, if it is a LLC company and if the annual profit of the company exceeds 100,000 QR then the company must submit an annual tax return and declare the profit made upon audited financial statements by a registered auditor in Qatar.
What are the minimum capital requirements for a Qatar Company?
LLC in Qatar requires a minimum capital of 200,000 QR.
What are the tax implications of a Qatar Company formation?
LLC in Qatar is liable to pay a 10% corporate income tax over company profits sourced in Qatar.
What is the governing Law for commercial contracts in Qatar?
Once a business entity has been fully incorporated and established it will surly
need to protect its business interests and policies when coming in contracts with other business entities.
The parties to an international business contract are free to choose the laws, limitations and jurisdiction that is aminly responsible to govern that contract.
Well, in case If they do not choose any appropriate law or jurisdiction, certainly the contract will eventually be governed by the Qatari Civil Code.