Qatar is one of the leading economic countries in the world. It has the highest GDP per capita. The corporate tax rate of Qatar is comparatively lower than other countries i.e.10 %. Even in some specific areas of business, the tax is free. These are some of the main reason why most of the foreign investors want to set up business in the country.
You may think business registration in Qatar is complicated, but actually, it’s not. The appropriate guideline of S & F Consulting Firm will ease the process of company registration in Qatar. The necessary steps of company registration in Qatar describe below.
Company Name Search
The first steps of establishing a company require a trade name search. Choosing a unique name of your company or business is essential. It is necessary to conduct research and plan well before selecting the name. However, the availability and booking of a trade name can be done through the Qatar government website- www.moci.gov.qa
However, the name can also be book through the ministry’s application (moic_qatar) or by visiting the ministry’s main building or its branch office. Remember, the name should be unique, and it should not be misleading or in the violation of public ethics. The booking of the trade name for three days is free but requires QAR 1000 if you book it for six months.
Opening a Bank Account
The second step of establishing a company in Qatar is to open a bank account. To set up a foreign-owned business, you must obtain a letter from the Ministry of Commerce and Industry. The letter will be addressing the permission of opening a bank account in Qatar. The account will be activated as soon as the amount corresponding to the capital of the company is deposited. It takes around 1 to 2 business class days to activate your bank account.
Articles of Association
Once the bank account is opened, the foreign owned-company has to get an approval on the Articles of Association. This approval can be received from the Ministry of Business and trade. It takes just one day to complete the process. However, you need to collect the application form of Article of Association from the Ministry of Business and Trade office.
It is necessary to fill up the FORM of AoA with required information’s –Include the name of the company–
- Include the address of company’s headquarters.
- Include terms and purpose of company.
- Share capital and description of actions in kind.
- Restrictions on the transfer of shares (only for companies).
- Names, nationalities and place of residence of shareholders (only for companies).
- Methods of distribution of losses and profits between the partners.
- The names of the people who run the business.
Submitting Additional Documents
Depending on the type of business you may need some additional documents to incorporate a business legally. In this situation, the company will have to provide provisional documents. This is largely in the case of commercial activities in which the company may need to obtain a specific business license for a given business. For example, if foreign investment is made in the industrial sector, a license is required for the industrial project. However, the necessary license can be requested from the Ministry of Energy and Industry.
Registration with the Qatar Chamber of Commerce
Though most of the people skip this process of registration because it is not mandatory. But registering with Qatar “Chamber of Commerce” can be beneficial for your business. To register your company with Qatar chamber of commerce, you need to file an application. The general manager of the company must sign the application and it should include —
- FORM of commercial registration.
- ID card copies of company owner, shareholders or partners.
- General manager ID card copy.
- Certificate of commercial registration.
- Authentic Certificate of Incorporation of the foreign companies.
It is another vital part of registering a company in Qatar is to guarantee that the foreign entity has its organization stamp arranged. The government authority will not provide the seal; private companies need to manufacture their seal. The MBT will check if the foreign company has its organization stamp prepared or not. It doesn’t cost more than 100 QR to make a company seal/stamp.
You need to get a trade license once you get CR. A trade license is essential to have office space and business activities. The Ministry of Economy and Trade approves the trade license. Obtaining this license is one of the most challenging parts of the company registration. To obtain this license, you need to fill up and submit the requisite application that is available within the MEC website. Click here to find more details about trade license registration requirements.
Depending on the type of business, the process of registration may vary. The steps above discussed are the general process of company registration (not applied for all company).
Frequently Asked Question
Q: What are the rules and condition of choosing a trade name?
- The trade name should be unique that is it should not match with any existing company. Moreover, the name can not be misleading and it should not violate any public ethics.
Q: What is the procedure of booking a trade name?
- The trade name can be book through the ministry’s application (moci_qatar) or through its website– www.moci.gov.qa
Q: How much it cost to book a trade name?
- It cost about QR 100 to book a trade name for 6 months.
Q: How much time it took to register a trade license?
- It just takes one day to obtain trade license (if all the document are submitted
Q: How much fees it requires for establishing a company with foreign capital?
- It required about QR 30,000.