Qatar is one of the fastest developing cities that provides several business opportunities for investors and entrepreneurs and helps them abundantly with their company formation in Qatar.
The country has consistently pushed itself to become a multi-investment and economic center. Qatar enables the establishment of all types of corporate companies. A Limited Liability Company is one of the most frequently built business organizations.
All About Limited Liability Company - Qatar
A Limited Liability Company - Qatar, is one of the primary corporate forms financial investors accept when establishing a company in Qatar (LLC). The members of the corporate organization are not personally accountable for the debts and liabilities.
It is a hybrid entity with sole proprietorship and partnership characteristics. Let's have a look at the points below to acquire a better knowledge of LLCs in Qatar.
Highlights of a Limited Liability Company in Qatar
Limited Liability Company in Qatar has many characteristics, and it's important to know about them before planning to start one.
- An LLC is formed with at least two shareholders and a maximum of fifty.
- The minimum share capital required is QAR 200,000.
- The name of the company should conclude with "Limited Liability Company."
- An LLC's shares are not easily transferable.
- The corporate tax rate is set at 10% of profits earned.
- Before getting a company license, an LLC is required to maintain an office location.
- All partners must sign the Memorandum and Articles of Association.
- May not operate in the insurance or investment funds (BFSI) industry.
Procedure for LLC Company Formation in Qatar
LLC company formation in Qatar requires certain procedures to be followed, and they are as follows.
1. Registration of a Business Name
The very first thing you should do is register your company name. It should be noted that the name should be distinctive and should not be registered with the Company Registrar. It is important to highlight here that the name should have a clear meaning in Arabic. Otherwise, a fine of QAR 1,000 will be imposed.
2. Plan and write the Articles of Incorporation
You have to draft the Articles of Incorporation. An AOA is a company's internal document that provides the shareholders' rights, obligations, ownership, and rights.
3. Get Company Registration Certificate
Following that, all of the paperwork listed above must be presented to acquire the Company Registration Certificate. A registration fee must be paid before going to get the same. The annual cost ranges from QAR 1,500 to 7,000. You may obtain the Company Registration Certificate after adding the business operations and making the payment.
4. Get a Business License
The fourth step you must complete is to get a trade license. This is required to obtain authorization from the Ministry of Economy and Commerce to conduct commercial operations. All you have to do is go to the MEC website, fill out the necessary application, and send copies of the papers mentioned above.
Once the documentation is completed, one of the MEC officials will arrive for the inspection. After confirmation, the trade license can be obtained by paying a charge of QAR510 plus a fee of QAR10 for inspection.
5. Get the Computer Card
The final step is to secure a computer card to begin company operations. Before continuing with the process, an official company stamp must be obtained, which will be used on all business papers. The Immigration Department issues a computer card when the following documents are submitted:
- An application form must be completed with personal and professional information.
- It should also include your company's seal.
- A copy of the registration certificate
- Copy of Trade License
- Copy of shareholders’ ID cards
Once acquired, your business organization is ready to begin commercial operations.
Be it a company formation in Qatar free zone or the mainland. Both turn out to be an easy process for business and finance investors once they approach a business consultant. Contact us for further assistance.
Is forming an LLC company in Qatar easy?
Yes, to make it more hassle-free, reach out to a business setup consultant.
What is the minimum required shareholder for an LLC company formation in Qatar?
A minimum of 2 shareholders is required.
What is the maximum number of shareholders allowed for LLC company formation in Qatar?
A maximum of 50 shareholders are allowed.
What is the corporate tax of an LLC company in Qatar?
It is 10% of the profit earned.
Is office location necessary to get an LLC company license?
Yes, before getting the license, you need to look for an office space.