Company registration in Qatar is a process facilitated by the authorities for those who meet the required conditions. Therefore, foreign investment, due to the favorable conditions and multiple business options. Furthermore, you will find that in Qatar you can create your company with one of the different types of business allowed.
In this article, we will show you how to register a company in Qatar detailing each of the steps to follow. Likewise, you will see the requirements that you need to meet for this, as well as the established criteria.
Procedure for Company Registration for Qatar
The procedure for company registration in Qatar consists of a series of simple but time-consuming steps. However, the local government allows foreigners to establish their businesses in the country as long as they meet the established conditions. Below you will see the company establishment process in its entirety:
Choose a name for your company
To begin a new company registration in Qatar, you must find a name for your business. In this case, you should not only look for a representative name but a unique one for your company. However, the reservation process can be done through the website of the Ministry of Commerce and Industry (www.moci.gov.qa).
In the same way, you can do it through the mobile application of said Ministry or in person (at the Ministry or a branch). Additionally, the name must not have been registered or be misleading or violate public laws.
Open a bank account
Foreign company registration in Qatar also includes the creation of a bank account in the country. In this case, you need a letter from the Ministry of Commerce and Industry permitting the opening of the aforementioned account. Additionally, the account will be active once you deposit the required capital, which will take 1-2 business days.
Company Articles of Association
The next step to establish the company is to present the statutes for their respective approval by the authorities. The authority in charge of approving them is the Ministry of Business and Trade, which can do so in 1 day. In this case, you must collect the Articles of Association (AoA) application form from the office of the said ministry.
Additionally, this document must contain essential information about your company, including the following:
- Company name
- Address of the business headquarters
- Terms and purposes of the company
- Social capital
- Details of shares in kind
- Restrictions on the transfer of shares
- Shareholder data (names, nationality, place of residence)
- Sharing of profits between partners and the loses also
- Names of company officers
Regarding company registration in Qatar, you may need additional documentation depending on the type of business. In this case, you will require them if your company is involved in activities that require a special license. Therefore, you need to go to the corresponding ministry to obtain the aforementioned license.
Registration with the Chamber of Commerce
Many companies do not carry out this step because they are not obliged to do so but it should be done for the small business registration in Qatar. This is because registration with the Chamber of Commerce can be beneficial for your business. Thus, to make the request, which must be signed by the General Director, you must include the following:
- Format of the commercial registration of the business
- Copy of Qatar ID of the CEO of the company
- Copies of the identities of the owner, shareholders, and partners of the business
- Commercial registration certificate
- Certificate of incorporation of foreign companies
Obtain the company seal
To register a business in Qatar, you must obtain the seal of your business. In addition, the authorities do not issue stamps for companies, so you must have them manufactured. Additionally, the Ministry of Business and Commerce is in charge of verifying that you have the seal, which will not cost you more than QR 100.
Obtain business license
After obtaining commercial registration (CR), you must obtain the commercial license that corresponds to your business. This is a crucial process for company registration in Qatar as it allows you to get an office and carry out your activities. However, this is one of the processes that entail a greater challenge and it is the Ministry of Economy and Commerce that delivers it.
In this case, you can find the application that you must complete and send on the website of said Ministry. However, depending on the nature of your business, the application process may vary. To complete the entire process legally and efficiently, you can seek the assistance of a company registration service provider in Qatar.
Documents required for company registration in Qatar
As we mentioned in the previous section, to company registration in Qatar you must submit the required documentation. Next, we will show you which documents are essential for this purpose:
- Copy of passport and residence of each of the shareholders
- Business License Application Form
- Certificate of payment of the share capital of the company
- Power of attorney authorizing a person to sign
- Memorandum of Association ( MoA )
- Articles of Association ( AoA )
- Name reservation certificate
- If applicable, No Objection Certificate or NOC from the sponsor
- Commercial Registry from the country of the company
- Approval by authorities
Types of Entities for Company Registration in Qatar
The authorities allow company registration in Qatar incorporated in various types of businesses in the country. Below we will show you the types of legal entities you can establish in Qatar:
This type of company is one in which all the activity and share capital are in the hands of a single person (natural or legal). In this case, the name of the company must be associated with its owner followed by the phrase Sole Proprietorship or OPC. Furthermore, the capital must be QR 200,000, although part of the amount may be in shares in kind.
On the other hand, although the owner manages the company, he can appoint one or more administrators to represent his company. However, in Qatar, this type of business entity is not very common.
Limited Liability Company (LLC)
For new company registration in Qatar, you can opt for a Limited Liability Company or LLC. This is one of the most established entities due to low corporate taxes, among other benefits. In addition, it allows you to have control of your operations and decision-making despite needing the sponsorship of a Qatari citizen.
As with the sole proprietorship company, you need a minimum share capital of QR 200000. Likewise, as we mentioned, you need a Qatari partner who must own 51% of the shares of the business. However, this type of entity cannot participate in certain investment activities, such as banking or government-funded activities.
On the other hand, Limited Liability companies must pay a 10% corporate tax on annual profits.
Joint Stock Company (JSC)
Joint-stock companies or JSCs are those in which the capital is divided equally. Additionally, it is possible to transfer the traded shares of this type of entity. Likewise, they can establish a JSC for a certain period and record it in the AoA and the articles of incorporation.
However, JSCs must only have Qatari partners, although there are some exceptions that we will detail below:
- Citizens of another Arab country that have agreements with Qatar
- When requiring foreign investment or experience, prior approval of the license by the Ministry of Economy and Trade
- Through a special decree that allows foreign participation in the company
For foreign company registration in Qatar, you can choose to establish a branch of your business. However, you will only be able to do so if you have received a government contract to provide public services in the nation. Furthermore, this type of entity can only last as long as the contract, unless the authorities renew it.
Local clients of said branch must withhold corporate and other taxes from their payments to the entity. However, clients can claim these amounts when the contract ends, as well as the final declaration by the branch.
An also viable option is a representative office as a legal entity in the country. However, these offices must only promote the interests of the original company, so they cannot carry out activities that bring those profits. Likewise, they must apply for approval at the Ministry of Business and Commerce.
Qatar Company Registration Eligibility
The Company registration in Qatar requires investors to meet a series of essential requirements. Here we show you the said criteria:
- Type of company. Qatar is strict regarding the type of companies that can be incorporated in its territory.
- Social capital. Share capital requirements depend on the type of entity, for example, LLCs need a capital of QR 200000. Meanwhile, a JSC requires a much larger capital, QR 2 million.
- A company can be owned by Qatari citizens or expatriates residing in the country. However, a foreigner can own 49% of a company, although he or she may receive special permission from the government.
- Legal compliance. Business registration in Qatar requires compliance with all established laws (labor, tax, health, and safety).
- You must comply with all the documents required by the authorities to delay or prevent the incorporation process.
However, the criteria may vary depending on the authorities involved in the steps for establishing the business.
Company registration cost in Qatar
Affordable company registration in Qatar is possible, although there are costs involved in various parts of the process. Next, we will present a breakdown of each of these costs:
- Minimum capital of QR 200000
- QR 1000 in case the name of the business does not mean anything in Arabic
- The constitution during the first year can cost about QR 30,000
- The cost of commercial residence can reach up to QR 1,500 and QR 7,000 per year.
- The average recruitment fee can cost up to QR 100,000
Additionally, business licenses have various costs, which depend on the type of business entity. Next, you will see the various costs of the license according to the kind of business you want to establish:
- Subsidiary limited liability company QR 125,950
- Foreign-owned business QR 133,330
- Free zone businesses QR 122,280
- Temporary branch of a foreign company QR 126,706
- Representative office QR 126.690
- Tax resident limited liability company QR 112,557
- Limited liability company with work visa QR 124,950
- Joint project QR 104.128
Advantages of company registration in Qatar
There are numerous reasons why you must register a company in Qatar, including:
- Economic stability. Qatar is a country with multiple natural resources available, including gas and oil, which grow the economy. In addition, the government facilitates business formation, which has created a favorable business environment for foreign investment.
- Located in a strategic area. This facilitates business expansion into international markets, due to the privileged location of the country. Companies incorporated in Qatar can easily expand their businesses to Asia, Europe, and Africa. Additionally, this Middle Eastern nation has a modern transportation infrastructure.
- Investment incentives. One of them is the possibility of 100% foreign ownership in certain business sectors. It also has free zones, in which there are additional benefits for companies. Two of the most popular free zones in Qatar are the Qatar Financial Center (QFC) and Qatar Science and Technology Park (QSTP).
- Strong financial sector. Finding financial and investment opportunities in the country is very simple, as they are quite developed. In addition, the country has an important institution such as the Qatar Investment Authority (QIA) for partnerships and investment opportunities.
After analyzing each of the points presented, you will realize that company registration in Qatar is simple. However, it is a long process but in the end, it will give you the best profits and advantages like nowhere else. Nevertheless, the characteristics of the business environment will make you not doubt establishing your company in Qatar.
If you want to know more and receive complete advice in this regard, you just have to contact us without hesitation. Also, with our company, you will have the best business procedure experience, taking advantage of the greatest opportunities.