Actually fees vary business to business, yet, we are trying to give a picture of limited company registration fees in Qatar. The peninsular Arabian nation of 4,468 mi² area is rich in Petroleum and Gas. With Gross Domestic Product [GDP] per capita of USD 59,330.86, it is one of the six members GCC [Gulf Cooperation Council] country with 2.57 million inhabitants. Investors from around the world consider Qatar as hot spot owing to its friendly and rich business infrastructure.
Qatar well placed itself in the 2nd position of the third Global Infrastructure Investment Index 2016 following Singapore out of 41 world’s nations. It ranked 83rd out of 119 countries of the world in World Bank’s Ease of Doing Business Report 2017. This report show difficulty and ease way of business in Qatar as non-residents. The currency is Qatari Riyal. One US Dollar equals to 3.67 Qatari Riyal. The bustling metropolis Doha is the capital on the Doha bay.
The Law and the legal forms of Companies
There are 7 [seven] forms of companies available in Qatar and is governed and regulated by the Commercial Companies Law [CCL, 11/2015] of the land. The Foreign Investment Law [FIL] is also applicable side by side with the Commercial Companies Law in case of shares in a company hold by foreign nationals.
- Limited Liability Company
- Joint Partnership Company
- Specific Partnership Company
- Public Shareholding Company
- Private Shareholding Company
- Equities Partnership Company and
- Limited Partnership Company
The most visible and purposive business vehicle is the Limited Liability Company [LLC]
The Limited Liability Company [LLC]
A limited liability foreign company registration conditions to have minimum 2 and maximum 50 shareholders. The amendment of the Commercial Companies Law, CCL in 2015 prescribes no minimum share capital requirement to form an LLC in Qatar. The registered companies are subject to set aside 10% of their profits each year in a statutory reserve till it equal to 50 percent of the authorized capital of the venture. A registered limited liability foreign Company is required to pay a corporate income tax to the tune of 10% along with the annual tax return [ITR].
The Limited Liability Company [LLC] Registration Processes and Fees
There are as many as 8 [Eight] processes with or without any fees or charges to register a Limited Liability Company [LLC] in Qatar. The Ministry of Economy and Commerce is the authority to register companies.
Reservation of the Limited Liability Company [LLC] name
The entrepreneurs of Joint Ventures are required to apply to the Commercial Registry and Trademark Department under the Ministry of Economy and Commerce, Qatar to check the availability of a name and to have the same reserved.
This process requiring company registration fees in Qatar are QAR 1,000 for an Arabic name and QAR 1,500 for a non-Arabic name.
Opening of the bank account
The investors would, at this stage, open a bank account and deposit he paid up capital as determined by the share holders.
No fees or charges require opening the account.
Getting the approval of the Articles of Association AoA
At this stage, the investors are required to get an approval of the AoA of their company from the Authentication Department at the Ministry of Justice as well as from the Commercial Companies Control Department of the Ministry of Economy and Commerce.
The processing would cost QAR 1500, part of company registration fees in Qatar
Authentication and Signing of the Articles of Association AoA.
All the authorized signatories to the AoA of the proposed Joint Venture then would proceed to the notary public of the Ministry of Justice to authenticate and sign the AoA.
This process would require QAR 24 for first 2 shareholders, rests all QAR 9 per each share holder.
Registering with the Commercial Registry and the Chamber of Commerce and Industry
The Joint Venture company’s shareholders now perform the registration of the company with the Commercial Registry and the Chamber of Commerce and Industry at the one-stop-shop of the Ministry of Economy and Commerce. Well, no certificate certifying the registration will be issued by the Chamber of Commerce, although the same will be maintained in the records of the authority.
The completion of the process would require QAR2,200 for the registration with the Chamber of Commerce and QAR 500-5,000 for the registration with the Commercial Registry.
Getting the Trade and Signage licenses from the Municipality of Doha
The one-stop-shop of the Ministry of Economy and Commerce would now require to be approached for the Trade and Signage license from the Municipality of Doha or else as required depending upon the location of the proposed company. Upon submission of the application along with documents required and payment of the fees for the same, it will be issued in 1 working day.
The issuance of the Trade License requires QAR 10,020 and for Signage QAR 50-150 per square meter being the fees.
Registering for the TIN with the Public Revenues and Tax department
With the following documents, the Public Revenues and Tax department under the Ministry of Finance has to be approached for the Tax Identification Number or TIN.
- Articles of Association
- Copies of the ID cards of the company founders and partners
- The Commercial Registration of the company (CR)
- Trade License
- Certificate of the company premises’ registration (and registration number) at the Water and Electricity Authority
- Certificate of appointment of the company auditors
The registration with the tax authority requires n no fee or charge.
Making of the company seal
Finally, the making of the company seal to put an end to the registration processes. In doing so the seals maker would ask for following documents. Usually, it would take 2 working days to deliver a seal.
- Letter requesting to make the seal signed by authorize signatory of the company along with the ID or copies of the passport of the authorized signatory.
- Copy of the Certificate of Registration or Incorporation of the company.
The making of a Company seal would cost QAR 150 that is another company registration fees in Qatar.
How To Register A Company In Qatar?
Qatar is one of the leading economic countries in the world. It has the highest GDP per capita. The corporate tax rate of Qatar is comparatively lower than other countries i.e.10 %. Even in some specific areas of business, the tax is free. These are some of the main reason why most of the foreign investors want to set up business in the country.
You may think business registration in Qatar is complicated, but actually, it’s not. The appropriate guideline of S & F Consulting Firm will ease the process of company registration in Qatar. The necessary steps of company registration in Qatar describe below.
Company Name Search
The first steps of establishing a company require a trade name search. Choosing a unique name of your company or business is essential. It is necessary to conduct research and plan well before selecting the name. However, the availability and booking of a trade name can be done through the Qatar government website- www.moci.gov.qa
However, the name can also be book through the ministry’s application (moic_qatar) or by visiting the ministry’s main building or its branch office. Remember, the name should be unique, and it should not be misleading or in the violation of public ethics. The booking of the trade name for three days is free but requires QAR 1000 if you book it for six months.
Opening a Bank Account
The second step of establishing a company in Qatar is to open a bank account. To set up a foreign-owned business, you must obtain a letter from the Ministry of Commerce and Industry. The letter will be addressing the permission of opening a bank account in Qatar. The account will be activated as soon as the amount corresponding to the capital of the company is deposited. It takes around 1 to 2 business class days to activate your bank account.
Articles of Association
Once the bank account is opened, the foreign owned-company has to get an approval on the Articles of Association. This approval can be received from the Ministry of Business and trade. It takes just one day to complete the process. However, you need to collect the application form of Article of Association from the Ministry of Business and Trade office.
It is necessary to fill up the FORM of AoA with required information’s –Include the name of the company–
- Include the address of company’s headquarters.
- Include terms and purpose of company.
- Share capital and description of actions in kind.
- Restrictions on the transfer of shares (only for companies).
- Names, nationalities and place of residence of shareholders (only for companies).
- Methods of distribution of losses and profits between the partners.
- The names of the people who run the business.
Submitting Additional Documents
Depending on the type of business you may need some additional documents to incorporate a business legally. In this situation, the company will have to provide provisional documents. This is largely in the case of commercial activities in which the company may need to obtain a specific business license for a given business. For example, if foreign investment is made in the industrial sector, a license is required for the industrial project. However, the necessary license can be requested from the Ministry of Energy and Industry.
Registration with the Qatar Chamber of Commerce
Though most of the people skip this process of registration because it is not mandatory. But registering with Qatar “Chamber of Commerce” can be beneficial for your business. To register your company with Qatar chamber of commerce, you need to file an application. The general manager of the company must sign the application and it should include —
- FORM of commercial registration.
- ID card copies of company owner, shareholders or partners.
- General manager ID card copy.
- Certificate of commercial registration.
- Authentic Certificate of Incorporation of the foreign companies.
It is another vital part of registering a company in Qatar is to guarantee that the foreign entity has its organization stamp arranged. The government authority will not provide the seal; private companies need to manufacture their seal. The MBT will check if the foreign company has its organization stamp prepared or not. It doesn’t cost more than 100 QR to make a company seal/stamp.
You need to get a trade license once you get CR. A trade license is essential to have office space and business activities. The Ministry of Economy and Trade approves the trade license. Obtaining this license is one of the most challenging parts of the company registration. To obtain this license, you need to fill up and submit the requisite application that is available within the MEC website. Click here to find more details about trade license registration requirements.
Depending on the type of business, the process of registration may vary. The steps above discussed are the general process of company registration (not applied for all company).
Frequently Asked Question
Q: What are the rules and condition of choosing a trade name?
- The trade name should be unique that is it should not match with any existing company. Moreover, the name can not be misleading and it should not violate any public ethics.
Q: What is the procedure of booking a trade name?
- The trade name can be book through the ministry’s application (moci_qatar) or through its website– www.moci.gov.qa
Q: How much it cost to book a trade name?
- It cost about QR 100 to book a trade name for 6 months.
Q: How much time it took to register a trade license?
- It just takes one day to obtain trade license (if all the document are submitted in correct manner).
Q: How much fees it requires for establishing a company with foreign capital?
- It required about QR 30,000.