Company Formation: LLC Registration in Qatar
Qatar is well-known for being a great place to do business.A well-developed business infrastructure and a skilled yet affordable workforce. Notably, there are no taxes on wages or revenue from exports, and the corporate tax rate stands as low as 10%, fostering financial prosperity for businesses. Moreover, foreign business owners have the flexibility to transfer all profits back to their home countries. Additionally, Qatar also offers supportive banking services tailored to the needs of entrepreneurs, further enhancing the business environment.
Limited Liability Company (LLC)
Liability Company (LLC) is the most common form of business setup in Qatar. It requires a local Qatari partner who will own 51% of the company’s shares, while the foreign partner will own the remaining 49%. But sometimes, the Ministry of Economy and Commerce can allow foreign investors to own 100% of the company, though this only depends on activity.
Under the Foreign Investment Law, foreign investors may obtain an exemption from the general 49% shareholding restriction. Many companies, including a number of publicly-traded companies listed on the Qatar Stock Exchange, have obtained this exemption and allow for up to 100% foreign ownership.
Before proceeding with registering a company in Qatar, it is highly advisable to determine whether all the company’s activities are open to foreign investors or if a joint venture is required.
Requirement to set up an LLC in Qatar
Setting up an LLC in Qatar involves several steps, but it requires coordination with various government departments. Ensuring completion of each step is crucial to avoid any delays.
1: Reserve a Trade Name – Begin by applying to reserve your business name through the Commercial Registration and Licenses Department. The fee is typically QAR 1,000, but non-Arabic names may incur an additional QAR 1,000.
2: Prepare Articles of Association – Draft a document outlining shareholders, company details, addresses, purpose of company establishment, Amount of Capital and share of each partner, business activities,Names of supervisory board members, (if any),Duration of the company,Distribution method of profits and losses, Conditions governing assignment of shares and management rules. This must be in Arabic and submitted to the Ministry of Justice for approval.
3: Open a Bank Account – Deposit the required minimum share capital of QAR 200,000 into a bank account.
4: Obtain a Commercial Registration – Apply for a commercial registration (CR) at the Ministry of Commerce and Industry (MOCI). The CR, valid for one year and allows you to open a bank account.
5: Apply for a Trade Licence – Obtain a trade license from the MOCI. You will need copies of your CR, QID of shareholders, Articles of Association, and documentation of your office location, photograph of the office building (outside & inside), ID of building owner, Approval from Civil Defense. Before issuing the commercial permit, the Civil Defense Department conducts site inspections to verify compliance with all essential security and safety standards, ensuring alignment with the type and scope of activities intended to be undertaken.
6: Additionally, register with the Tax Department, Chamber of Commerce and Industry, and Ministry of Labor and Social Affairs to obtain relevant labor cards and registration.
How can Pan Global Consultancy assist you?
When it comes to forming a 100% ownership company in Qatar, it’s wise to seek expert guidance for the latest and most accurate information.
At Pan Global Consultancy Qatar, we have extensive knowledge of business practices and incorporation regulations in Qatar. We can guide you through the company formation process smoothly and provide ongoing support to ensure compliance with local laws. Our services are tailored to meet your specific needs, offering personalized guidance every step of the way.
