GENAERAL INFORMATION ABOUT QATAR
Qatar is a peninsular Arab country whose terrain comprises arid desert and a long Persian (Arab) Gulf shoreline of beaches and dunes. Also on the coast is the capital, Doha, known for its futuristic skyscrapers and other ultramodern architecture inspired by ancient Islamic design, such as the limestone Museum of Islamic Art. The museum sits on the city’s Corniche waterfront promenade.
Dialing code: +974
Currency: Qatari riyal
Qatar ranks fifth in the world by nominal GDP per capita (60,787 US$).
BUSINESS SETUP IN QATAR
MARAMIYA provides professional assistance in company formation in Qatar. Before starting business in Qatar, you should aware about the current situation with your dream country. Qatar is one of the smallest Gulf Countries in terms of population and regional area but the second biggest gas supplies on the globe comprising more than 5% around the globe’s total. The success of natural sources in addition to the increasing and expanding economic system means tremendous access to investment opportunities and rewards. The Qatari govt switched into a policy seeking at expanding income sources and creating economic facilities. The Qatari economic system is one of the most increasing financial systems on the globe offering the worldwide community a variety of world-class and cutting-edge goods and services.
The investor should know the economic law before moving for set-up Qatar Company or Qatar business setup. The government’s economic development strategy has been very successful and the investment incentives, infrastructure, banking services, insurances and political and social stability are contributing factors in creating an excellent business climate for business startups.
Qatar welcomes foreign participation to invest in all the various sectors of national economy with 51% Qatari participation. To promote foreign investment in Qatar Government has enacted new Foreign Investment Laws permitting 100 % foreign ownership in business sectors including agriculture, manufacturing, health, education, tourism power and projects which develop and utilize the State’s natural resources. However the law does not allow a non-Qatari to participate in banking, insurance, commercial agency or real estate trading activities. Full foreign ownership is also viable for companies registering under different zones
MARAMIYA offers following services in the field of Business Setup in Qatar,
- Renewal of Trade License/New Registration/ Renewal of Municipality License
- Tenancy contract/assistance for Business Site
- Processing documents in Labor / Immigration / Economic and other government departments
- Approvals from Changing Trade Name/Adding or cancelling activity/appointing Manager
- L.L. License – increasing Capital / withdrawal of Partners / Adding Partners
- Attestation of Import, Export and company license documents
There are a number of different ways for company registration in Qatar, and the requirements vary depending on the nature of business and capital investment. Foreign Direct Investment is encouraged and developed by the Ministry of Economy and Commerce with the help of its subsidiary The Qatar Investment Promotion Department (IPD). IPD directs the company incorporation and other services related to business services in Qatar.
Types of companies in Qatar;
- 100 Percent Foreign Investment
- Limited Liability Company
- Commercial Agencies
- Representative Trade Offices
- General Partnership Company
- Limited Share Partnership Company
- Holding Company
- Public Share Holding Company
- Joint Venture
100 Percent Foreign Investment
The Foreign Investment Law allows foreign firms 100 percent ownership of the share capital of companies developing projects in the fields of agriculture, industry, health, education, tourism, IT, exploitation of natural resources and mining. Each application is reviewed on a case-by-case basis, by the Ministry of Business and Trade in the process of company registration in Qatar. Although there is paperwork to be filed, approvals to be obtained and registration fees to be assessed during this process, the mode of registration offers the opportunity for foreign companies to operate separately.
LIMITED LIABILITY COMPANY
This type of company is the most commonly used business entities by company registration in Qatar. The general rule in company formation in Qatar is that non-Qataris may invest only through the medium of a joint venture company incorporated in Qatar in which one or more Qatari persons or 100 percent Qatari-owned entities hold no less than 51% of the share capital. Joint venture companies with Qatari partners are allowed in all sectors of the economy excluding commercial agencies and real estate. Foreign partners in partnerships must pay the full amount of their contribution of share capital to an authorized financial institution in cash prior to obtaining the Companies’ Commercial Registration. The minimum share capital for a Limited Liability Company is Qrs 200, 000 for company registration in Qatar. It will change according to the time beings. The Company is required to set aside 10 percent of its net profits until the reserve stands at 50 percent of the share capital. The party’s profit shares do not necessarily have to reflect their shareholdings.
The Foreign Investment Law contains provisions that, subject to an exemption from the Minister of Business & Trade, a branch of a foreign company can be registered in Qatar if that foreign company has a contract in Qatar which is performing a specific project, which “facilitates the performance of a public service or utility”. This type of commercial registration in Qatar does not allow for the foreign company to conduct commercial activity that is not related to the specific contract for which it is registered. Foreign companies registered under this category do not need a sponsor or Service agent. The Branch Office will be fully taxable unless it is granted a special exemption which allowed at the time of Company Registration in Qatar or Company Formation in Qatar.
This is yet another method in Registering a Company in Qatar. The foreign company does not establish a presence in Qatar, instead an agent is appointed to market goods and services within Qatar. A commercial agent generally acts as the exclusive provider of services of the foreign principal or the exclusive seller in Qatar for foreign produced goods. Those companies planning to have agency agreements with Qatari firms are encouraged to review Law No. 8/2002 (‘the Commercial Agents Law’). Under a registered agency, commission is payable on all sales of products in Qatar, even if the sales are not due to the activities of the agent. If you working with this way for your Qatar business setup, should be noted that it is difficult to terminate an agency agreement even if that agreement was for a fixed term period.
REPRESENTATIVE TRADE OFFICES
The Decision of the Minister of Business and Trade No142/2006 provides that foreign firms may open a representational office without a local partner. In this method of industrial business set up in Qatar may not conduct any financial transactions related to the company’s commercial activities in Qatar and are therefore not subject to taxation. Though the representational office may be registered in the Commercial Registry and employ staff in its own name, it really is a ‘shop window’ used to promote a foreign company in Qatar and introduce its products to Qatari companies.
GENERAL PARTNERSHIP COMPANY
This is the most basic form of commercial arrangement for two or more individuals to combine together for the purpose of commercial activity in company setup in Qatar. The partners have unlimited liability and the trade name of the partnership company will reflect the names of the partners.
LIMITED SHARE PARTNERSHIP COMPANY
This type of company has at least one or more joint partner and at least four trustee shareholding partners. In this method of Company Registration in Qatar or Company Formation in Qatar, the minimum share capital of the company is 1,000,000 QR. (Read Law (5) of the year 2002 articles (206) – (224).
A holding company must be a shareholding company or limited liability company which has financial and management control on the companies by owning at least 51% of that company. This type of company setup in Qatar requires minimum capital should be 10 million QR. (Law (5) of the year 2002 articles (261)-(266).
PUBLIC SHARE HOLDING COMPANY
Public Shareholding Company also known as a joint stock company or Qatari share holding company. The law recognizes different variants of the public shareholding company including:
- Public shareholding company-open.
- Private or closed public shareholding company. (Read Law (5) of the year 2002 articles (61)-(205).
An entity comprised of two or more persons that combine to carry out a project. The joint venture company registration in Qatar provided for in the law is an unincorporated entity without legal personality. (Read Law (5) of the year 2002 articles (52)-(60).
Taxation is covered by Law 11 of 1993 and Law 9 of 1989 Companies owned by foreign nationals must pay tax on their activities. Qatar companies do not pay tax, but foreign partners must pay tax on their share of the business. GCC citizens and companies are treated as Qatari Nationals for the purpose of tax and therefore do not pay tax on their business activities.
Tax declarations have to be made within four months of the end of the financial year. Companies with profits exceeding QAR100,000 have to submit audited financial statements certified by a registered Qatar accountant to support their declaration. You should have better knowledge tax policies before registering a company in Qatar or setting up a business in Qatar
RATES OF TAX IN QATAR
Qatar Tax rates start at 10% at profits between 100,000 and 500,000 riyals and rise to a total of 35% for profit above 5,000,000 riyals. Income Tax
There is currently no taxation for employees on income tax.
Industrial Licenses in Qatar
The State of Qatar is making every effort to provide the appropriate environment with adequate incentive to attract private sector investments in all fields of industries. Government has been developing the necessary legislative tools that may attract and encourage partnership and contribution to the overall development of the country.
We can do professional and accurate service for obtaining industrial license in Qatar. We expand our service with respect to its principles: by integrating the finest local business partners to offer large companies, proper public entities or individual entrepreneurs’ in-depth knowledge and experience of regional regulations in the fields of accounting, audit, tax and business advisory services in Qatar.
MARAMIYA works together with our fully trusted partners. We had long relationships, to deliver the highest quality and genuine service to our clients. And allow a full coverage of this region and part of the Middle East region. We have developed a complete range of services offered to both regional and international clients who need an industrial license in Qatar.
We have expert professionals to help you for Setting up a Business in Qatar.
Welcome to start a successful business in Qatar.
GENERAL INFORMATION ABOUT UAE
The United Arab Emirates is an Arabian Peninsula nation settled mainly along the Persian (Arabian) Gulf. The country is a federation of 7 emirates. Abu Dhabi, the island capital, is home to Sheikh Zayed Grand Mosque, with crystal chandeliers and room for 40,000 worshipers. Dubai is the site of ultramodern Burj Khalifa tower, enormous shopping centers and extravagant entertainment attractions.
Capital: Abu Dhabi
Dialing code: +971
Currency: United Arab Emirates dirham
Population: 9.27 million (2016) World Bank
Ethnic groups: 27.15% Indian; 12.53% Pakistani; 11.32% Emirati; 7.31% Bangladeshi; 3.13% Sri Lankan; 38.56% others
United Arab Emirates has the fifth-largest aluminium production (2,400 thousands of tonnes) in the world .
COMPANY REGISTRATION IN UAE
There are a number of different ways of creating an establishment in Dubai, depending upon the function to be carried out. A Limited Liability Company is the most common way of registering in Dubai and is recommended where the purpose of the entity is to make sales within the region. It should be noted, however, that 100% foreign ownership of such an entity is not permitted. A professional license will enable the provision of professional services, while a branch or representative office will be suitable where there is no requirement to actually conduct sales or manufacturing, only to provide information and negotiate sales
COMPANY FROMATION IN UAE
There are a number of different ways of creating an establishment in UAE, depending upon the function to be carried out. A Limited Liability Company is the most common way of registering in UAE and is recommended where the purpose of the entity is to make sales within the region. It should be noted, however, that 100% foreign ownership of such an entity is not permitted. A professional license will enable the provision of professional services, while a branch or representative office will be suitable where there is no requirement to actually conduct sales or manufacturing, only to provide information and negotiate sales.
The Federal Law stipulates a total local equity of not less than 51% in any commercial company and defines seven categories of business organization, which can be established in the UAE. It sets out the requirements in terms of shareholders, directors, minimum capital levels and incorporation procedures.
The seven categories of business organization defined by the Law are:
PUBLIC AND PRIVATE SHAREHOLDING COMPANIES
Limited Liability Company (LLC)
General partnership companies are limited to UAE nationals only. The Dubai government does not presently encourage the establishment of partnership and share partnership companies.
A joint venture is a contractual agreement between a foreign party and a local party licensed to engage in the desired activity. The local equity participation in the joint venture must be at least 51%, but the profit and loss distribution can be mutually agreed. Joint ventures are suitable for companies working together on specific projects.
PUBLIC AND PRIVATE SHAREHOLDING COMPANIES
The Law stipulates that companies engaging in banking, insurance, or financial activities should be run as public shareholding companies. Foreign banks, insurance and financial companies, however, can establish a presence in Dubai by opening a branch or representative office.
Shareholding companies are suitable primarily for large projects or operations, since the minimum capital required is Dh. 10 million (US$ 2.725 million) for a public company, and Dh. 2 million (US$ 0.545 million) for a private shareholding company. The chairman and majority of directors must be UAE nationals and there is less flexibility of profit distribution than is permissible in the case of limited liability companies.
LIMITED LIABILITY COMPANY (LLC)
This type of company allows for a joint venture between national and foreign partners. Non-national partners are permitted to hold shares not exceeding 49% of the capital, with the national partner holding the remaining 51%. The law provides that the minimum share capital required is different in the emirates of UAE. Share capital must be fully paid up and deposited with a local bank (can be transferred out once the company is registered). The shares of such companies are not open for subscription by the public. Despite the split in shareholdings, profits may be divided in other ratios agreed upon taking into consideration efforts of non-national partners in management, provision of technology or expertise. The expatriate partner may undertake management of the company.
BRANCHES AND REPRESENTATIVE OFFICES OF FORIEGN COMMERCIAL COMPNAIES
The Commercial Companies Law also covers the formation and regulation of branches and representative offices of foreign companies in the UAE and stipulates that they may be 100% foreign owned, provided a local agent is appointed.
Some categories of businesses require approval from ministries also: for example, banks and financial institutions from the Central Bank of the UAE; manufacturing from the Ministry of Finance and Industry; and pharmaceutical and medical products from the Ministry of Health; branch of foreign company from the ministry of Economy and Commerce. More detailed procedures apply to businesses engaged in oil or gas production and related industries.
FREE ZONE REGISTRATION IN DUBAI AND OTHER EMIRATES
The UAE now boasts many free zones including Jebel Ali Free Zone (which was the first), Dubai International Airport Free Zone, Dubai Internet City, Dubai Media City, Sharjah Airport International Free Zone, Ajman Free Zone and Ras Al Khaimah Free Trade Zone. The main attraction of establishing an entity in one of the free zones is that there is no UAE national shareholding requirement.
A common procedure is to register a branch of an offshore company, but it is also possible to incorporate a Free Zone Establishment or a Free Zone Company. In all cases the following benefits apply:
- Free zone incentives
- 100% foreign ownership
- 100% repatriation of capital and profits
- 100% corporate and personal income tax exemption
- No currency Restriction
- Abundant and inexpensive energy
- Modern efficient communications
- Excellent support services from local authorities
GENERAL INFORMATION ABOUT SAUDI ARABIA
Saudi Arabia is a desert country encompassing most of the Arabian Peninsula, with Red Sea and Persian (Arabian) Gulf coastlines. Known as the birthplace of Islam, it’s home to the religion’s 2 most sacred mosques: Masjid al-Haram, in Mecca, destination of the annual Hajj pilgrimage, and Medina’s Masjid an-Nabawi, burial site of the prophet Muhammad. Riyadh, the capital, is a skyscraper-filled metropolis.
Dialing code: +966
King: Salman of Saudi Arabia
Population: 32.28 million (2016) World Bank
Capital and largest city: Riyadh; 24°39′N 46°46′E / 24.650°N 46.767°E
Saudi Arabia is the fourth-largest foreign-exchange reserve holder in the world (485,200 million US$).
GENERAL INFORMATION ABOUT COMPANY FORMATION IN SAUDI ARABIA
FOREIGN INVESTMENT POLICY Foreign capital is regulated by Foreign Investment Regulations which were issued in April 2000 as part of the government’s foreign investment policy. These regulations controlled the Foreign Capital Investment Code issued in 1979. The Law requires any company in the Kingdom of Saudi Arabia with foreign shareholders to obtain a foreign capital investment license. Licensed companies enjoy all privileges and incentives offered to wholly Saudi owned companies, like ownership of freehold property that is necessary to carry out the licensed activity, the privileges granted by the anti-double taxation treaties to which the Kingdom of Saudi Arabia is a party, a law prohibiting against expropriation or confiscation of investments, rights to repatriate profits, etc.
Branches of foreign companies in the Kingdom of Saudi Arabia are subject to the provisions of the Regulations for Companies and to the laws and regulations applicable to the business set up. A foreign company that opens a branch in the Kingdom of Saud Arabia is required to deposit security amount to a local bank and such amount is blocked until issuance of the certificate of registration for such branch by the Ministry of Commerce and Industry.
STEPS TO OBTAIN AN INDUSTRIAL LICENSE.
- Identify joint venture partner and negotiate a joint venture Agreement
- You just Visit the Industrial License Department at the MIE and establish that licenses are still available in relevant product areas.
- When you obtained provisional approval from the MIE, obtain an application form from the foreign capital investment bureau.
- You have to submit application to FCIB Within six months, in Arabic, but with a copy also in English, together with other documentation
- It may request further information, depending upon the thoroughness of original application
- FCIB submits its report plus original application to the Foreign Capital Investment Committee for a decision.
- Industrial license is issued and is valid for 6 months. It can be renewed for a further 6 months. If an application is rejected, an appeal can be made to MIE and a new application submitted within 3 months of the rejection
- Apply for registration and incorporation of the company at the Ministry of Commerce within one month of license issue Articles approved, published in the official gazette and notarized. Commercial registration certificate given with entry into the commercial registry at the Ministry of Commerce.
- Apply for Funding from SIDF if required. Find a land on an Industrial Estate (MIE).
- On approval of factory plans, lease agreement to be signed within 6 weeks with Manager of Industrial Estate. Possible request for customs duty exemptions for importing equipment/raw materials from the Protection and Encouragement of Industry Department at MIE.
The companies Law recognizes mainly as given below;
- General partnership &
- Limited partnership
General partnership is known as group of company. There will be more than two partners in the management team.
A limited partnership consists of at least one general partner who is liable for the debts of the partnership to the full extent of his assets.