- Qatar is one of the wealthiest countries in the globe with its economic development and infrastructure growth majorly depending on the oil, and natural gas industry. The presence of natural resources and a strategic legislative framework resulted in one of the highest per capita incomes which is $94,000 which is top 5th in the world. Thus, it attracts many investors and businessmen to shift or commence their business in Qatar. The government of Qatar always put its best efforts upfront in its business environment so that it can become much more favorable and create a lucrative arena for business owners to register company in Qatar.
- Foreign company registration in Qatar has numerous advantages for that company. The company can take advantage of free business zones which include various factors such as stable politics, no restrictions regarding foreign currencies, full foreign ownership of shares, no taxation on foreign trade, and many more ancillary advantages which are important for business growth and expansion. New company registration in Qatar might be lucrative, hard, and a tedious process for foreigners who are not aware of the legislative laws of Qatar but Tetra Consultants can help you with it.
- New company registration in Qatar can associate various advantages and benefits for the foreign company apart from those advantages which are provided by free business zones. The advantages which a foreign company can enjoy are the developed infrastructure of the country, inexpensive workforce, no income tax on wages, no tax implied on the exports, corporate tax amounts to 10% which is one of the lowest tax rates, and authority to foreigners that they can transfer all their revenues and profits to their home country. These advantages are not only attractive and preferred by the business owner but are also feasible for many businesses.
Types of business structures available in Qatar:
For foreign companies registration in Qatar commercial companies law of Qatar has identified eight types of company structure which can be incorporated. Those structures are as follows:
Limited liability companies:
- The minimum capital requirement for new company registration in Qatar under this structure is QR200,000 which is divided into equal shares not less than QR10. The company shareholders have to also sign the Memorandum of Association and Article of Association which specifies the shareholding pattern, rules, and regulations to abide by the company, objectives, vision and mission, and various other details of the company. The Qatari ownership for foreign company registration under this structure is 51%. A Qatar company requires a minimum of 2 shareholders and 1 director. The shareholders need to be a Qatar resident but the director does not have to a resident. In addition, the director can be a legal entity or any corporate directors are also permitted to be the director.
- The liability under it is joint and several and there is no requirement of any minimum capital to be fulfilled. The company is a mix of joint partners and trustee partners who helps in administering the business and contribute to the company’s capital respectively. The joint partner does all the work regarding the business and thus has the responsibility of company liability but the trustee partner is more of a silent partner who does not contribute to the working of the company and thus has liability limited to their share of capital. The Qatari ownership for foreign company registration under this structure is not required.
Simple limited partnership:
- There is no minimum requirement for the formation of this business structure. The company incorporation is done on the name of all partners or the name of one partner continuing with ‘and partners’. Under this, the partners must be Qatari nationals only. The Qatari ownership for foreign company registration under this structure is not applicable.
Limited partnership with shares:
- It requires a minimum capital of QR1m. This type of local entity contains two groups which are joint partners and trustee partners similar to the general partnership. In this case, all the joint partners must be Qatari nationals. As trustee partners are concerned the Qatari nationals must hold 51% of the shareholdings of the company. The company must also organize General Assembly where joint and trustee shareholding partners can meet and take decisions regarding the company.
Unincorporated joint venture:
- There is no minimum requirement for the capital but it can be formed by two or more people Who are willing to form an unincorporated joint venture the liability between the joint venture parties is mentioned in the company memorandum. The Qatari ownership for foreign company registration under this structure is 51%.
Joint stock company:
- For the formation of a new company in Qatar, the company requires QR10M for the formation of a public joint stock company and QR2 M for the formation of a private joint stock company. The liabilities of the partners are limited to their share in the shareholding pattern and the foreign investors are also restricted from owning between the maximum of 25% of the company. The Qatari ownership for foreign company registration under this structure is 75%
- These companies require QR200,000 of the minimum capital requirement. The liability is limited to a single person and that single person is wholly responsible for the share capital, management, representation, and all the working of the company. Upon the death of that person, the company is transferred to his heir who may decide to continue the company by restructuring it. The Qatari ownership for foreign company registration under this structure is 100%.
- For the formation of a new company, the minimum requirement is not less than QR10,000,000. The holding company controls and administers the finances and managerial work of more than one company. There must be 51% of shares in each subsidiary company in which the holding company is the shareholder to control the subsidiary company. The Qatari ownership for foreign company registration under this structure is not required.
Requirements for new company registration in Qatar:
There are several requirements that are prescribed by the commercial companies law of Qatar. These requirements include:
- A Qatari founding partner
- Commercial registration with the Ministry of Commerce and Industry(MOCI)
- The legal documents must be documented in English or Arabic only.
- The minimum share capital requirement to be fulfilled is QR200,000
- There must present more than two or more shareholders with Qatari shareholding must be 51% or more of the company.
- Residency permit for foreign business owners
- Valid bank account associated with the Qatari corporate bank under the business name.
- Registration of workers under the Ministry of Labor.
- Registration with the public taxes and revenues department of Qatar.
Process of a foreign company registration in Qatar:
The incorporation of a new company in Qatar is definitely a long, complex, and detailed process. But you can choose an easy way by consulting Tetra Consultants which can help you with your business services. The documentation required by the authorities is very detailed and has to abide by strict rules and regulations. The Foreign company registration in Qatar process is as follows:
Obtain necessary documents:
- These documents include a valid bank account, residency permit, and compliance with the authorities of Qatar.
Obtain a letter of permission:
- For Foreign-owned businesses, a letter of permission is issued by the MOCI which permits the company to start their company in Qatar.
- The foreign company must submit the application to the MOCI along with two softcopies of the contract signed between the company and the Qatar government, 2 copies of the MoA and AoA, and approved power of attorney to the Qatari manager or head. Further copies of company financial statements are also required.
Register the foreign company:
- After the submission of documents and obtaining permissions from the appropriate authority the company must be registered by MOIC. The registration process is a lengthy process due to the requirements of the detailed documents with strict deadlines.
Opening corporate bank account:
- After the incorporation of the company the company will be needed to open a corporate bank account. The bank account will help the incorporated company to manage their financial activity.
- 100% ownership is strictly not allowed in Qatar law and it also requires a lot of permissions and documents for foreign companies to register in Qatar. The approvals from MOCI and various other authorities are needed to be incorporated and traded in the industry. Thus, to protect you from the harsh, complex, and long registration process Tetra Consultants can help you with a variety of services one of them being the offshore incorporation of companies.
- contact us to know more about how to register a company in Qatar and our team of experts will revert within the next 24 hours.. We are the provider of various ancillary services such as corporate bank account opening, nominee director and shareholder services, offshore financial licenses, and many more services. Our dedicated and experienced staff team can help you with variety of business services.