Starting Up A Business In Qatar

In Qatar, starting and running a business is widely recognized as a long, confusing, expensive, and difficult process. There are times when the information supplied is unclear and confusing, and to make matters worse, one frequently receives contradictory pieces of advice from several sources.

The registration of a Limited Liability Company LLC or WLL in Qatar is the main topic of this article. In Qatar, it is the most typical and often used type of corporation. In an LLC, Qatari nationals must own 51% or more of the corporation, making up the majority of the ownership. The majority must be owned by Qataris, regardless of whether there are multiple Qataris or just one stakeholder that holds 51% of the shares. Furthermore, foreigners can only own 49% of a corporation in particular sectors. Therefore, this will be a useful guide if you intend to establish your firm yourself. Otherwise, you can hire RCH that provide incorporation services to handle everything from A-Z for you.

Qatar’s Business Startup Requirements

Establishing a business in Qatar involves a lengthy and complicated process.

A business owner must first fulfill a number of conditions set by the Commercial Companies Law in order to conduct business in Qatar. These specifications include:

A Qatari founding partner;
Appropriate commercial registration with the Ministry of commerce and industry (MOCI);
Arabic and English must both be used in legal contracts;
A minimum share capital of QAR 200,000;
A minimum of two or more owners, with 51% of the corporation owned by Qatari shareholders.

Documents Needed to Establish a Company in Qatar

To get things going, you must first obtain the following three documents, in the sequence shown below, in order to be completely established and carry out all tasks required to run and expand your business in Qatar.

Commercial Residence – Commonly known as the CR.
Trade License, which refers to a legal office space under your CR.
Computer Card – Also known as Signature Card or Khaid Munshiah (to issue Resident Permits (RP) for your employees

1. Commercial Residence (CR)

The first document produced while registering a corporation is the CR. The Ministry of Commerce and Industry (MoCI) is the one who issued it. A CR is a document which certifies that your company is a legally recognized company with the name “X,” owned by “these” owners, and having a share capital of “y.”

You need to do the following steps in order to get a CR:

Step 1 – Trade Name

Choose a name for your company.
For registration in English, businesses whose names cannot be translated into Arabic will need to pay an additional QAR1,000.

Step 2 – Articles of Association

Prepare the Articles of Association, identifying your shareholders and their ownership stakes, after choosing the trade name.
It is a typical document that includes each shareholder’s ownership, rights, and other information. You have a choice between using the primary government-issued template and hiring a consultant like RCH to write an AOA that the government will register. Please be aware that Arabic is the only language that would be recognized in a court of law and that it is also the official language spoken.

Step 3 – Issue the CR

After completing the first two steps, submit the two documents to receive a CR for your startup.
You can submit your trade name (business name) selection and articles of association so that a CR can be given after submitting them.
They will inquire about your business operations because each has its own fees. The costs could range from QAR 500 to QAR 10,000 annually.
Describe the work that the company does. Pick the closest description if the exact one is not on the form. The company is capable of operating in various business sectors.
See if the type of business activity you engage in needs any prior approvals. Speak with MoCI directly to confirm these specifications.
Select your company activities, pay the associated costs for each of them as well as the processing fees. Also, make sure your shareholders are present so their identities can be verified.
The issued CR will only be good for a year and must be renewed every year. This can be done online.

There are some things one CAN and CAN NOT do with the CR. They are –

CAN:

Open a corporate bank account
Hire an office space
Buy and own assets under the company name

CAN NOT:

Accept invoices and payments from customers
Hire anyone or issue them a Resident Permit (RP)

2. Trade License

You require a trade license in order to invoice after receiving the CR. To obtain it, complete the necessary application form found on the MoIC website, and send it along with the following documents to the MoIC:-

A copy of the ID of each of the authorized signatories and shareholders in your business as per CR.
A copy of your CR.
A copy of your Articles of Association.
A photo of your office building from the outside, which shows the blue plate that has the address information.
A photo of your office inside the above building, showing signage with the name of your business on the door to your office.
The building completion certificate and a copy of the ID of the building owner.
Rental acknowledgement, ownership instrument and Civil Defence approval.
Authorization letter in real estate rents (in case of subcontracts).

Your application should be received and a MoCI representative should visit your office for an inspection as soon as the documents have been successfully submitted, according to an SMS you should get. This inspector may visit your office in one to four weeks, and they will call you before they do so.

You should receive a second SMS from the MEC within 24 hours informing you that the trade license is prepared for collection once the inspection has been completed and is declared to be successful. The Govt Services counter will then print out your trade license and provide it to you when you pay the required payments.

3. Computer Card

A computer card basically acts as a statement of who has signing authority on your company’s behalf. The non-Qatari member of your company can still be included even though they are not obliged to be mentioned on the Computer Card like the Qatari partner in your business must be. You must obtain an official company stamp to be used on all of your official documents before you can apply for your computer card. To do this, place an order for an official business stamp at any major printing facility. They will request copies of your certificate of registration, trade license, and shareholder IDs. It normally takes a day to complete this.

Next, you will have to go to Immigration and Passport control office to apply for the Computer Card.

You need the following:

The required application form, which has been filled. The names of the people who want to serve as the signing authority on the computer card will be requested. The form will also have a place for you to stamp it with the logo of your company.
A copy of your CR.
A copy of Trade License.
ID copies of all the shareholders in the company
ID copies of individuals who needs be on the computer card.

When you have everything listed above, you can pay the fees and receive your computer card. You can now hire employees and provide them RPs.

See our contact details below for further information on this subject as well as other business-related information and blogs.

Visit RCH website for more information or call us at +974 4464 9507 or email us at contact@rchbs.qa to get in touch. RCH professionals will be delighted to assist you.

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