Qatar is recognized as one of the fastest growing economies in the world. GDP per capita stands at USD 63,505.81. The new liberalized policy of Qatar opens the door to foreign investors, allowing them to open 100% of foreign-owned companies in some sectors including: education, agriculture, health, tourism and many others.
Successful development strategy, insurance, investment incentives, policies, banking services, infrastructure, social & political stability help to create an outstanding business environment to set-up a business in Qatar. These types of factors work as stimuli to set up a business in Qatar or Qatar company registry.
Ministry of Business and Trade determine the type of company that a foreigner can establish in Qatar. They will examine each application of business registration case by case before registering any company. There are various types of company that a business entrepreneur could consider forming in Qatar such as: –
This is one of the most picked business entities in Qatar. It’s a typically a joint venture where one or more local Qatari citizen should hold a minimum 51% shares. Companies holding 51% share or more are permitted to conduct business in all sector. According to the government requirement, it takes around QR. 10 Million to Setup LLC Company.
According to the Ministry of Business & Trade (MBT), foreign company or firms can open a representative trade office without having any Qatari partner. However, the representation office can obtain a commercial registration and recruit staff on its name, it can only conduct as a “Shop Window” for promoting the foreign company, its product or service.
According to the Foreign Investment Law (FIL), a foreign company can register its branch in Qatar (applicable terms and conditions). The branches of any company or business organization can be registered only if the company has contacts to carry out a specific project that facilitates the performance of the public service and the unit. This type of company cannot conduct activities that are not registered in their contract. However, the branch may be fully taxed unless the foreign investment department grant a special exemption.
This is a type of company that is comprised of two or more person. In a joint partnership, company foreigner can have only 49% shares & Qatari partners should have at least 51% shares. A joint venture company usually consists of joint partners and trustee partners. The joint partners will bear the unlimited liabilities of the company liabilities, and the trusty partners will take the liabilities of the company.
Besides all the above-mention company, many other companies can be registered in Qatar. Such as: -
Qatar is one of the top-ranked economies in the world. It welcomes foreign investors for setting up their business in Qatar. All the foreigners who decide to set up business in Qatar should have sound knowledge about the economic laws and local business setup process in the country. People who are looking for commercial business registration needs be aware of the categories of business. In Qatar, the Limited Liability Company is one of the common business categories for foreigners.
If you want to set up business in Qatar, the support of Qatari partners is necessary to obtain the fundamental license for the company. Various types of business require local partners to complete the business/company registration process. However, if you need any Qatari partners, we can provide you with an ideal individual.
The Commercial Resident (CR) is the 1st piece of document that you need to obtain. The Ministry of Economy and Commerce issues this document. CR is a piece of documents that states– This legal entity with name X is owned by these persons or shareholders. However, this is one of the documents that are very quickest to get. To obtain CR, you need to do the followings.
Trade Name: it is essential to obtain a trade name for your business. The name should be unique and it should not match with others. Remember, if the trade name does not have any Arabic meaning you need to pay extra QAR of 1000.
Articles of Association Approval: Once you obtain your company trade name, you now need to get Articles of Association. The article of association FORM is available with the Ministry of justice. You need to fill up the FORM with appropriate information of shareholders, their rights, ownership, etc. After filling up the FORM submit it to the Ministry of Justice. The article of Association will be approved if everything is everything is done maintaining rules and regulation. The whole process can be done in 1 working day with QAR 1500 as a registration fee.
Issue the CR: Once you obtain the trade name and AoA approval, you can now submit them for your enterprise to be issued a Commercial Resident. At the stage of issuing CR, you will be asked about the activities of your business. Depending on the business activities you will be charged between QAR 1500 to 7000 per year.
Remember, CR is valid for one year and you need to renew it every year. The renewal process is straightforward as you can renew it via online. The table below shows things you can and can’t do with CR.
|Things You Can Do With CR||Things You Cannot Do With CR|
|Corporate bank account opening||You cannot get office space to incorporate your business|
|Invoice and also can accept payment||You cannot hire any employee from foreign nation|
|Buy own and buy assets under your company name||You cannot issue any resident permit|
You need to obtain a Trade License after receiving your CR. Trade license is essential in order to have an office space and to conduct business activities. Trade license is approved by the Ministry of Economy and Commerce.
Obtaining this license is one of the hardest parts of company registration. In order to obtain this license, you need to fill out the requisite application that are available within MEC website and submit it the MEC with the following documents –
Once you submit all the required paper, you will get a confirmation message. The representative from MEC will visit your office for inspecting purpose. The inspector will take around one to four weeks to visit the office.
Once the inspection is completed successfully, you will get a message saying your trade license is ready to collect. To obtain a trade license, you need to pay fees around QAR 520 (includes inspecting fees).
Read Also: Required license for doing business or company registration in Qatar
Computer card is necessary to hire an employee under your company. If you don’t have a computer card, you cannot issue anyone with a residence permit. Note: The Immigration Department can only issue the computer card. In order to apply for this card, you will require an official company stamp. The printing companies requires Trade license, CR and ID of shareholders for making an official company stamp. (It takes just one day to make the stamp).
However, to apply for the computer card, you need the following documents: Application form of computer card.
The law of Qatar state that all the companies that are owned by the foreign nation need to pay tax to run their business in Qatar. Companies that are owned by locals need not need to pay tax. However, all foreign partners need to pay tax on their shares.
In Qatar, the company that exceeds profits amount of QR 100000 are subjected to submit a financial statement that is certified by a registered accountant in Qatar. Depending on the type of business and profits the tax rate may vary from 10 percent to 35 percent.
The Qatar company registration fees/cost is below:
|Particular of license and registration fees||Type of fees||Fees in Rial|
|Commercial registration fees||Government fess||QAR 1500 - 7500 per year|
|For municipality license||Government Fees||QAR 2,000 - 10,000 per year|
|Immigration Approval||Government Fees||QAR 200 per year|
|Trade license||Government Fees||QAR 520 per year|
|Trade Name||Government Fees||QAR 1000 per year|
|Articles of Association Approval||Government Fees||QAR 1500 per year|
|Issue of CR||Government Fees||QAR 1500 -7000 per year|
|Consultancy fees for complete business setup in Qatar||Consultancy fees||QAR 2000-5000|
|Accounting service||Consultancy fees||QAR 1000 – 3000 (depends on certain factors)|
Qatar is one of the top-ranked economies in the world; this is why most of the foreign investors want to set up business in Qatar. The government of Qatar allowed a foreigner to set up various types of business which include – Limited Liability Company, Joint venture, Representative Office any many other.
Many foreign investors want to set up business in Qatar but do know the complete procedures of business registration. Do no Worry! S&F Consulting Firm is always there to help you out with any kind of business registration in Qatar.
How much it costs for reserving a trade name?
Booking trade name for 3 days is free but if you book it for period od three month it will cost around QR-1000.
What is the procedure for reserving a trade name?
The trade name can be reserved through the website -www.moci.gov.qa (most easy way)
What are the rules of choosing trade name?
The trade name should be unique and it should not be misleading.
What is the minimum capital requirement for to establish a company?
There is no limit of capital requirement to establish a company.
What are the required papers needed for renewing commercial license?
A copy of ID card of business owner and commercial registration copy.
How much times it requires to obtain article of association approval?
It takes just 1 business day to obtain article of association.