Qatar, one of the established Arabian countries, possesses a business stimulating environment that instigates the foreign investors to invest in different business entities. Setting up a business in Qatar is not only restricted to any specific kind of business entity. The region has expanded itself to encourage different company incorporations in Qatar. The annual economic growth of Qatar can be seen accelerating continuously and is projected to grow at 3% by 2020. This article focuses on the establishment process of an LLC in Qatar, and all the necessary details that you need to know before making a concrete investment decision.
We have now understood that Qatar has a lot of business opportunities and a setting up an LLC in Qatar is the way to go ahead. But before we proceed ahead, let’s have a look at the standard guidelines that you need to follow while incorporating an LLC in Qatar.
Few Guidelines for an LLC in Qatar
- A minimum share capital of QR 2,00,000 must be available
- An LLC in Qatar possess the flexibility to carry out unlimited contracts
- Before obtaining a Trade License, it is a mandate to have an office premise booked
- The minimum corporate tax to be charged is 10%
Now, let’s proceed ahead towards understanding why one must invest in Qatar with and form an LLC there.
Limited Liability Company Formation in Qatar
A Limited Liability Company (LLC) is the most common business entity option that an investor opts for in Qatar. The minimum participants required to set up an LLC in Qatar are two and can get stretched to 50 with at least one Qatari shareholder. This business entity in Qatar is formed under 51%-49% relationship where the foreign partners have the flexibility to own 49% of the entire shareholding whereas the remaining 51% needs to be held by the Qatari shareholder(s). The essential documents required to start a company in Qatar are:
1. Commercial Residence (CR)
This is the first piece of document that needs to be obtained from the Ministry of Economy and Commerce. This document helps the business entity to open a corporate bank account, accept invoice payments, buy company assets etc. To obtain the CR, one needs to go through the following steps:
- Get the Trade Name of your business- It is to be kept in mind that it should be a unique name. Also note that, if your desired name does not have any meaning in Arabic, you will have to pay extra QAR 1,000.
- Articles of Association (AOA) must to be drafted- The next step is to get your AoA typed, mentioning all the details of the shareholders and the company. Ministry of Justice in Qatar is your go-to place for this step
Now that you have your trade name and Articles of Association ready, you can submit them for your business to receive the CR. At this point you will be asked about the type of activity your business is conducting and depending on the same a price will be fixed. The price to obtain ranges between QR 1,500-7,000 per year.
Here are a few things that you can do with your CR:
- You can open a corporate bank account.
- You can invoice and accept payments from your customers
- You can buy and own assets under your company’s name.
- You cannot yet get an office space for your business.
- You cannot yet hire someone, and issue him or her Residence Permit (RP) under your newly minted company.
2. Trade License
It is the next essential document that needs to be obtained in order to have an office space. In order to obtain this, one needs to go submit the following essentials:
- ID card of the authorized person in the business
- Copy of the CR
- Copy of AOA
- Photo of the office building that highlights the office address
- Building completion certificate and ID of the building owner
- Rental acknowledgement, ownership instrument and Civil Defense approval.
- Authorization letter in real estate rents (in case of subcontracts).
3. Computer Card
The next step is to collect the Computer Card that is issued by the Immigration. It is a document that states who is signing on behalf of your company. The following documents are to be submitted to obtain a Computer Card:
- Copy of CR
- Copy of Trade License
- ID copies of all the shareholders
- ID copies of individuals who need to be on the Computer Card
You will have to go to the Immigration and Passport Control Office to apply for the Computer Card. Here are a few things that you can do after you get the Computer Card:
- Hire employees and issue them RPs.
- Issue exit permits for your employees.
Legal Procedure of Setting up an LLC in Qatar
- Draft the Articles of Association (AOA) of the company
- Submit a request for Company Registration of a new company
- Choose a Trade Name that needs to be authorized by the Commercial Registration Officer
- Obtain the authenticated MOA by the Ministry of Justice
- Make a deposit of QR 20,000 at the bank
- Obtain a permission to commence a commercial activity from the authority
- Subscription is to be made at the Chamber of Commerce and Industry
- Obtain the Commercial Registration and License
All the above-mentioned procedures are essential and need to be taken care of to initiate the procedure and complete it in a hassle-free way. Next, let’s have a look at the benefits that you would derive by making an investment in Qatar.
Benefits of Setting up a Company in Qatar
Qatar provides the following benefits to its investors:
- Easy filing of corporate tax
- No income tax or social security deductions
- No taxation on exports
- Inexpensive Labor force
- Best International exhibitions and conference venues
- Excellent infrastructure
We can say that Qatar is one of the fastest-growing investment and business platforms. If you are a foreign investor and is planning to invest in Qatar, the best recommendation would be to invest in an LLC. Qatar not only provides you with a wide platform for multiple businesses but can also help your company to grow at a rapid speed and leverage its potential. Wondering how to initiate? We at Business Setup Worldwide offers a broad spectrum of company incorporation services that also covers in settling the core departments like accounting, taxation, legal services, intellectual property services, visa services, etc. To know more, do contact us. We’d be glad to assist.