Qatar is a rapidly growing industrial country in the world with the highest per capita income. Because of Qatar good financial and stable political condition, foreign investor prefers Qatar to set up their business. Besides, the government of Qatar provides lots of business opportunities to attract more Foreign Direct Investments (FDI). The government allows foreign investors to have 100% foreign owned company in some sector like- health, agriculture, education, etc.
If you are thinking of foreign investments, then Qatar is a good choice. However, to set up a business in Qatar, you need to follow some rules & regulation and obtain the necessary business license and approval to conduct your business legally in the country. However, this article will discuss the process of Limited Liability Company (LLC) setup in Qatar.
LLC Setup Condition
Limited Liability Company is one of the most common forms of the company in Qatar. In most of the case, the LLC company are owned by the Qatari national. However, foreigners are allowed to have a 49 % share of LLC and rest Qatari nationals must hold 51%. You must have an office space to obtain a trade license for your business. To operate any LLC company, the minimum shared capital of QR 200000 are required. Limited Liability Company must pay a 10% tax from the profits of the company. However, to set up LLC in Qatar you need to —
- Find a Qatari partner.
- Obtain Commercial Resident (CR) license.
- Obtain the approval of Article of Association.
- Issue the CR
Find a Qatari Partner
To obtain the fundamental license of the company you must have a shared partnership with one or more Qatari partner. Not only LLC but there are many other businesses in Qatar that need the same requirement to set up their business. However, if you need any Qatari partners, we can provide you with an ideal individual.
Commercial Resident (CR)
This is the first piece of document that is necessary to setup Limited Liability Company. CR is a piece of documents that states– This legal entity with name X is owned by these persons or shareholders. This document can only be issued by the Ministry of Economy and Commerce. However, this is one of the documents that you can obtain very fast. To obtain CR, you need to do the followings –
Trade Name Registration
You must obtain a unique trade name of your business. It is good to choose a trade name that has Arabic meaning. You need to pay extra QAR of 1000 if your name doesn’t have any Arabic meaning. You can book the trade name through the ministry’s application or by visiting www.moci.gov.qa. Booking a trade name for six months will cost you 1000 QR.
Articles of Association Approval
Once you receive your trade name, you must now get the approval of Articles of Association. The association form is available at the Ministry of Justice. It is necessary to complete the form with appropriate information about the shareholders, their rights, ownership, etc. The Article of the Association will be approved upon verification of the documents. The whole process can be completed within one business day with QAR 1500 as a registration fee.
Issue of CR
Once you obtain trade name and article of association approval, you can now submit it for your company to be issued a CR. They will be asked about your business activity and charge you accordingly (charges are depending on your business activity). It ranges from QAR 1500 to 7000 per year.
Moreover, you have to tell them everything that your business intends to do. Remember there is various type of business that needs pre-approval. For example, if you want to start a pharmacy business, you need approval from the Ministry of Health. On the other hand, there is no need for approval if you are starting an e-commerce business.
Once you add your business activities, pay respective fees for business activity and have your shareholders to verify their identity. Once everything is done, you will then be issued your CR. If you want to set up business in Qatar from UK then need to check how to get a UK visa from Qatar.
Qatar has its specific guidelines and requirements for foreign company registration. The requirements and guidelines depend on the type of business that you want to set up. The company registration procedure in Qatar is not completed; the new adjustment of the system makes the registration procedure even easier.
However, if you face any difficulties in registering a foreign-owned or local company in Qatar, contact S & F Consulting Firm. S & F have experienced professional who will guide and help you to complete all the registration process to establish your business as a legal entity.