Qatar has positioned itself as a leading destination for international investment and economic activity. The government enables the establishment of all types of company formation in Qatar. A Limited Liability Company is one of the most frequently used business structures in Oman.
All About Limited Liability Company Formation in Qatar
A Limited Liability Company (LLC) is one of the primary corporate structures that financial investors accept when registering a company in Qatar. In this business structure, the members are personally accountable for their debts and liabilities.
LLCs can be understood as hybrid entities with characteristics of both sole proprietorship and partnership. Let's examine the points below to better understand LLCs in Qatar.
Highlights of a Limited Liability Company in Qatar
When setting up a Limited liability Company (LLC) in Qatar, the following points need to be considered:
- Shares in an LLC have transfer restrictions.
- The corporate tax rate for an LLC is set at 10% of profits earned.
- All partners must sign the Memorandum and Articles of Association.
- A minimum share capital of QAR 200,000 is required for the formation of an LLC.
- An LLC must have an office location before obtaining a company license.
- The company name should end with "Limited Liability Company" to comply with regulations.
- An LLC in Qatar must have a minimum of two shareholders and can have a maximum of fifty shareholders.
- An LLC is not permitted to operate with the insurance or investment funds (BFSI) industry.
Now that you have considered the key factors, let's move on to the procedure for forming an LLC in Qatar.
Process for LLC Registration in Qatar
The steps for registering a Limited Liability Company in Qatar are as follows:
Step 1- Registering your Business Name
When registering a name for your company set up in Qatar, make sure it is unique and not already registered with the Company Registrar. Additionally, the name must be written in Arabic and English alphabets. In case any Arabic is written in Latin alphabets, an additional amout of 500 QAR will be fined.
Step 2 - Drafting the Articles of Incorporation
Writing an Articles of Incorporation (AOA) is a mandatory part of the company formation process. An AOA is a company document that outlines the shareholders' rights, obligations, ownership, and privileges.
Step 3 - Obtain the Company Registration Certificate
To obtain a company registration certificate, you must submit all the required documents and pay a registration fee before proceeding. Once you have completed these steps and made the payment, you will receive your Company Registration Certificate.
Step 4 - Acquire a Business License
A business license authorizes your company to legally operate in the country. To obtain it, you simply need to visit The Ministry of Commerce and Industry (MOCI) website, fill out the application form, and submit copies of the documents mentioned there.
Once you have submitted the documents, an official from the authority will conduct an inspection. After the official confirms, you can obtain your trade license by paying a fee for the inspection.
Step 5 - Obtain a Computer Card
The next step is obtaining a computer card so your company can commence operations. Before proceeding with this step, make sure you have obtained an official company stamp which will be used on all business documents.
The Ministry of Interior (MOI) will provide you with a computer card once you submit the documents.
Whether it's a Qatar company registration on the mainland or free zones, both processes are relatively straightforward for business and finance investors when they approach Business Setup Worldwide. Feel free to contact us to avail company formation services in Qatar if you need assistance.
