Being recognized among one of the fastest growing cities, Qatar opens multiple business gateways for investors and entrepreneurs to come forward and establish a business in Qatar. The nation with its capital Doha has been continuously stretching its limits to stand as a multiple investment and business hub. Qatar facilitates the business setup process for all kinds of corporate entities. One of the most common business entities turns out to be a Limited Liability Company. The composition will give you the necessary details so as to get a clear idea in terms of setting up an LLC in Qatar. Let’s start with understanding the basics of what an LLC is all about.
What is a Limited Liability Company in Qatar?
One of the prominent corporate structures that are accepted by financial investors while setting up a company in Qatar is a Limited Liability Company (LLC). In this type of business structure, the members are not directly liable for the company’s debts. It turns out to be a hybrid form that infuses the characteristics of sole proprietorship and partnership. To get a clear understanding regarding LLC in Qatar let’s have a glance at the below points.
Highlights of a Limited Liability Company in Qatar
- An LLC is formed with at least 2 partners and a maximum number of 50
- Minimum share capital requirement turns out to be QAR 200,000
- The business entity name should end with "Limited Liability Company"
- Shares of an LLC are not easily transferrable
- Corporate tax is set at 10% on the profits gained
- Prior to obtaining a business license, it turns out to be a mandate for an LLC to hold office premise
- The Memorandum and Articles of Association are to be signed by all the partners
- May not engage in the business of insurance, investment of funds (BFSI) industry
In order to take the next step forward, you need to understand that opening a business in Qatar needs to undergo a documentation process.
Documents Required to Set Up a Limited Liability Company in Qatar
The essentials required for forming an LLC include:
- Copy of ID of each authorized persons
- Photo of the building stating the business name and address
- Financial Statements
- Business License Certificate
- Regulatory License
- Business Plan
- Authorization letter in real estate rents (in case of sub-contracts)
- Lease Agreement
- Copy of Company Registration
- Memorandum and Articles of Association
The above-stated documents need to be in-hand before proceeding towards the registration process.
How to Set Up an LLC in Qatar?
Qatar LLC Company Formation process involves the following steps:
1.Company Name Registration
The very first step that you need to proceed with is company name registration. It is to be kept in mind that the name should be a unique one and is not registered with the Company Registrar. An importing thing to be noted here is that the name should have a well-defined meaning in Arabic. If not, a fine of QAR 1,000 will be penalized. Once decided, get it registered
2.Structure and Draft the Articles of Incorporation
The next move to be focused on is drafting the Articles of Incorporation. An AOA is an internal document of a company that contains the rights, duties, ownership, rights of the shareholders.
3.Collect Company Registration Certificate
Next, all the above-stated documents need to be submitted to obtain the Company Registration Certificate. At the time of proceeding ahead to obtain the same, registration fee needs to be paid. The fee payment ranges from QAR 1,500-7,000/ year. Once the business activities are added, and the payment is made, you can collect the Company Registration Certificate.
4.Obtain the Trade License
The fourth step you need to focus on is to obtain the trade license. This is essential so as to get approval from the Ministry of Economy and Commerce to carry out the business activities. All you need to do is visit the MEC website, fill out the requisite application and submit the copies of the documents stated above.
Once done with the documentation part, one of the MEC representatives will come forward for the inspection process. After confirmed, the trade license can be obtained by paying a fee of QAR510 along with QAR10 as an inspection fee
5.Obtain the Computer Card
A computer card is to be obtained at the final step to commence the business activities. Now, before proceeding ahead to obtain the same, an official company stamp is to be obtained that will be used for all the business paperwork. A computer card is issued by the Immigration Department once the following documents are submitted:
- An application form needs to be duly filled with personal and professional details. It should also contain your company seal
- Copy of Certificate of Registration
- Copy of Trade License
- Copy of ID cards of Shareholders
- Copy of ID cards of individuals which needs to be on the computer card
Once obtained, your business entity is ready to commence the commercial activities.
Forming an LLC in Qatar turns out to be an easy process for business and finance investors once they approach a business consultant. These steps turn out to be beneficial because business consultants are well-versed with the legal activities and can easily tackle if any constraint comes in between. At Commitbiz, we are dedicated to providing the same comfort to our clients. Our business experts are well-versed with Qatari laws. They will initiate the process by understanding your business needs and cater solutions accordingly. To have a word, do contact us-we’d be glad to assist.