Business Setup in Doha, Qatar Simplified for Businesses

• Aug 08, 2024

• Posted by: admin_perfect

• Categories: Business, Uncategorized

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Starting a business in Doha, Qatar is a great opportunity for those willing to invest in one of the rapidly developing economies in the Middle East region. Qatar has developed as the most viable location to start a business with its geographic position, robust and proven infrastructure, and the overall business-friendly atmosphere. However, if you’re planning to open a small-scale business or heading for a multinational company, it is essential to be aware of the details of company formation in Qatar in order to have a successful business venture. This blog is aimed at helping to understand the process behind business set up in Doha, Qatar, a rapidly growing business hub.

Types of Business Structure for Company Formation in Qatar

Before heading to the process of company formation in Qatar, it is crucial to know about the types of business structures in the country.

• Limited Liability Company (LLC)
  This is the most commonly used business structure by foreign investors. An LLC shall have a minimum of two and a maximum of fifty members. While the foreign shareholders can own up to 49%, the remaining 51% should be owned by a Qatari resident.
• Joint Venture
  The legal connection of two or more business entities or individuals for the goal of implementing a specific project or business venture, in which the losses, profits, and management responsibilities are divided between the business partners.
• Public Shareholding Company
  A business organization that has offered its shares on the stock exchange for sale, thus extending ownership to the public while at the same time using the capital markets to fund its operations.
• Private Shareholding Company
  A company being managed by a limited number of individuals or organizations, where the stock is not publicly available, provides a higher level of ownership in the management and governance.
• Branch Office
  The legal ability to do business in Qatar For foreign companies, they can open a branch and commence business in Qatar. However, this entity can only engage in contractual relationships under what has been termed a ‘governmental contract.'
• Free Zone Company
  An organization established and doing its business in a specific free zone enjoys certain exclusive privileges, including the ability to pay a low amount of tax and operate within a relatively simple legal framework to entice foreign capital.

Steps involved in Company Formation in Qatar

Company formation in Qatar has become an easy process for every entrepreneur and business owner looking to establish their business in Qatar with its strategic location and economic stability.

• Choose the right business structure
  Choose the right legal structure for your business venture depending on the firm’s objectives and ownership arrangements. An LLC is preferred by the majority of foreign investors because it is more versatile and easy to establish.
• Reserve a Company Name
  Submit your application with the Ministry of Commerce and Industry (MOCI) to register the company's name. Ensure that the name is unique and does not violate any kind of rules or regulations.
• Prepare the Required Documents
  
  Completed Application Form
  Copies of shareholders passports
  Articles of Association (AOA)
  Memorandum of Association (MOA)
  Lease agreement for the office premises
• Get Initial Approval
  Apply at either the Qatar Financial Centre (QFC) or the Qatar Chamber of Commerce to get the initial approval. It helps to certify your business activity as legal and compliant with the legislation of the country.
• Draft and Notarize the Memorandum of Association (MOA)
  Draft and notarize the Memorandum of Association, which contains the objectives and objects of the company along with capital and shareholders. All the shareholders must sign and affix their seal to the copy of this document.
• Register the Company
  Once you have gotten preliminary permission and signed the MOA, the next thing to do is to go and register your company with the Ministry of Commerce and Industry (MOCI). This involves making your documents, paying the prescribed fees, and obtaining your commercial registration certificate.
• Obtain Commercial Registration Certificate
  After registration, you will get a Commercial Registration Certificate, which is the legal document that allows organizations to operate legally in the nation of Qatar. This certificate is renewable annually.
• Apply for Business License
  Obtain a business license from the MOCI or other relevant free zone that the business will be conducted in. The type of license would depend on your business activities. There is also the need to follow all the licensing requirements.
• Register with Qatar Chamber of Commerce
  Businesses looking to set up their companies must first obtain membership with the Qatar Chamber of Commerce. This registration is mandatory for all companies in Qatar, and it grants the companies’ access to different business services.
• Open Corporate Bank Account
  Obtain a corporate bank account for the company in the state of Qatar. Select any local bank by preparing documents like a commercial registration certificate, a MOA, and identification of the company's representatives.
• Hire Employees and Get Work Permit
  If you plan to hire employees, you need to obtain work permits and residency visas for them. Follow the regulations for hiring both local and foreign staff.
• Setup Accounting & Tax Compliances
  Set up a system for your accounting so you can track financial transactions, comply with tax laws, and learn about Qatar's tax regulations, including VAT, if they are relevant.
• Comply with Local Regulations
  Always make sure your business is up-to-date on all local regulations and industry standards, with respect to health and safety, respect for the environment, and any specific requirements that your industry mandates.
• Launch Your Business
  Once all legal and administrative steps have taken place, your business is officially launched, and you’re able to begin promoting your company and start operating it.

Setting up a company in Doha, Qatar involves multiple steps, ranging from choosing the right business entity to complying with local regulations. For further assistance or specific advice on company formation in Qatar, consult with our business advisors, who can help you with the company establishment process in Qatar.