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.