Qatar is one of the fastest developing cities that provides several business opportunities for investors and entrepreneurs and helps them abundantly with their company formation in Qatar.
The country has consistently pushed itself to become a multi-investment and economic center. Qatar enables the establishment of all types of corporate companies. A Limited Liability Company is one of the most frequently built business organizations.
All About Limited Liability Company - Qatar
A Limited Liability Company - Qatar, is one of the primary corporate forms financial investors accept when establishing a company in Qatar (LLC). The members of the corporate organization are not personally accountable for the debts and liabilities.
It is a hybrid entity with sole proprietorship and partnership characteristics. Let's have a look at the points below to acquire a better knowledge of LLCs in Qatar.
Highlights of a Limited Liability Company in Qatar
Starting a Limited Liability Company (LLC), in Qatar involves considerations. Here are some key points you should know before proceeding;
1. An LLC in Qatar must have a minimum of two shareholders and can have a maximum of fifty.
2. A minimum share capital of QAR 200,000 is required for the formation of an LLC.
3. The company name should end with "Limited Liability Company" to comply with regulations.
4. Shares in an LLC are not easily transferable.
5. The corporate tax rate for an LLC is set at 10% of profits earned.
6. Prior to obtaining a company license it is mandatory for an LLC to have an office location.
7. All partners involved must sign the Memorandum and Articles of Association.
8. It's important to note that operating within the insurance or investment funds (BFSI) industry is not permitted for an LLC.
Now lets move on to the procedures involved in forming an LLC in Qatar
Process for LLC Registration in Qatar
The steps for registering a Limited Liability Company in Qatar is as follows:
Step 1 Registering your Business Name
Your first step is to register your company name ensuring it is unique and not already registered with the Company Registrar. Additionally it's necessary for the name to have a meaning in Arabic; otherwise there may be a fine of QAR 1,000.
Step 2 Drafting the Articles of Incorporation
You will need to create and write the Articles of Incorporation as part of the formation process.
Please let me know if there's anything you'd like assistance, with!An Article of Association (AOA) is a document of a company that outlines the rights, obligations, ownership and privileges of its shareholders.
Step 3 Obtain the Company Registration Certificate
Following this you need to submit all the required documents to obtain the Company Registration Certificate. There is a registration fee that needs to be paid before proceeding. The annual cost ranges from QAR 1,500 to 7,000. Once you have completed these steps and made the payment you will receive your Company Registration Certificate.
Step 4 Acquire a Business License
The next step, in the process is obtaining a trade license. This license authorizes your company to carry out activities and requires approval from the Ministry of Economy and Commerce. To obtain it you simply need to visit the MEC website fill out the application form and submit copies of the documents.
Once your documentation is complete an official from MEC will conduct an inspection. Upon confirmation you can obtain your trade license by paying a fee of QAR510 along with a QAR10, for inspection.
Step 5 Obtain a Computer Card
The final step is obtaining a computer card to commence your companys operations. Before proceeding with this step make sure you have obtained an official company stamp that will be used on all business papers.
The Immigration Department will provide you with a computer card once you submit the documents. You need to complete an application form that includes professional information well as your companys seal. Additionally you should include copies of the registration certificate trade license and shareholders ID cards. Once you have these documents your business organization is ready to start its operations. Whether its setting up a company in a Qatar zone or, on the mainland both processes are relatively straightforward, for business and finance investors when they approach Business Setup Worldwide. If you need assistance feel free to contact us.