Qatar is one of the best business-oriented nations in the Middle East. Though Qatar is a small country in terms of area, it has a strong economy, which makes it one of the best places for doing business than many other countries. The government of Qatar brings numbers of lucrative business investment policies, corporate banking service, attractive infrastructure and many other business facilities to build up a better business environment.
There are huge number of foreign investors who are looking forward to set up business in Qatar. Keeping this in mind the Qatar government introduce various format of business which differs in terms of law regulatory affairs, licenses, permits, infrastructure and many more.
General Laws for Setting Up A Business in Qatar
According to the law of commercial companies, the company/business needs to have headquarters in Qatar. The company can take different forms between its size, participating organizations, required structure – as part of a larger group, or a holding company. There are various types of company a foreigner can establish in Qatar. Let’s now look at the kinds of company that available for incorporation in Qatar–Limited Partnership Company–
- Limited Liability Company
- Shareholder Companies
- Joint Venture Company
- Public Shareholding Company
- Limited Shares Partnership Company
Details About Limited Liability Company Formation
Limited Liability Company is one of the most common business entities in Qatar. Most of the foreign investors want to set up a limited liabilities company instead of others. According to the law of commercial companies, a Limited Liability Company must have at least one or more local Qatari partners. The local partners must hold at least 51% shares of the company.
The LLC in Qatar is allowed to do business in all sector excluding real estate and commercial agencies. Remember for company formation in Qatar; a non-Qatari can only invest through a joint partnership/venture company. The local partners must have one or more resident in Qatar. Some relevant information about limited liability company are –
- LLC is allowed to carry out several numbers of contracts simultaneously.
- To obtain a trade license, LLC must have suitable office space.
- 10% of profits must be kept within the company unless it reaches 50% of the share capital.
- For operating a limited liability company, you must have a minimum share capital of 200, 000 Qatari Riyal.
Steps of Limited Liability Company Registration
Let us now look into the steps that are required for incorporating Limited Liability Company in Qatar:
|Steps 1||Reservation of company name and other activities at the Ministry of Economy & Commerce.|
|Steps 2||Signing of all Articles of Association and Memorandum of Association to obtain the commercial registration of the company|
|Steps 3||Deposition of the company share capital into a corporate bank of Qatar within 15 days of obtaining the commercial registration.|
|Steps 4||Obtaining trade license and other permits for the company along with a 12-month lease purpose commercial office space is required.|
|Steps 5||Obtaining the company computer card which is also called immigration card.|
|Steps 6||Obtaining the company labor Quota.|
|Steps 7||Obtaining the General manager’s Residence permit.|
After successfully completing all these steps, the company is now fully formed and has the legal right to operate in Qatar.
Documents Required for Limited Liability Company Registration
- Authorized Letter of support.
- Copy of the contract with any local company associated with.
- Letter of Authorization from the Ministry of Economy and Commerce.
- The Certificate of Incorporation, Memorandum of Association (MoA) and Articles of Association (AoA) of the company. Each of the document has to be notarized and authenticated by the respective consular section of the Qatari Embassy.
- Power of Attorney to the company manager that is even duly notarized and authenticated by respective consular section of the Qatari Embassy.
- Membership certificate of the Qatar Chamber of Commerce
Most of the foreign investors want to set up business in Qatar because it has the lowest corporate tax in the world. Besides, the government of Qatar makes the company registration procedure much easier and provides many business opportunities to bring more foreign direct investment in the country. Though the company registration procedure is much easier, as a foreigner, you may not know everything in detail. Before setting up the company you need to get idea by checking the types of companies in Qatar.
If you want to register a company by yourself, you may face lots of complication. However, it is necessary to take help from an expert. If you finally decide to set up a business in Qatar contact S & F Consulting Firm. S & F will help you complete all the documented procedures to set up your business and incorporate it legally in Qatar.