Qatar

Company Formation in Qatar

Qatar is ideally located to cater to the fast growing market with a large population in Asia. YourGlobalPro can assist in Qatar for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval and Trademark Registration.

About the Country

The State of Qatar is a sovereign country located in Western Asia, occupying the small Qatar Peninsula on the northeastern coast of the Arabian Peninsula and sharing border with Saudi Arabia to the south, with the rest of its territory surrounded by the Persian Gulf. The below content will explain you in detail about the requirements for the company formation in Qatar, know more about the process of trademark registration in Qatar and understand the Qatar Legal Compliance requirements.

Qatar

Doing Business Introduction

Qatar remains one of the fastest growing economies in the world and presents a wide variety of investment opportunities. The major economic sectors in Qatar are oil, gas and related industries. Qatar’s liquefied natural gas, or (LNG), industry attracting huge foreign investment. The Qatar Government encourages international investment and promotes innovation in the Country.

As per Doing business report of The World Bank –Qatar ranks 83 for 2017 survey. YourGlobalPro professionals are able to assist client with any type of company formation in Qatar, trademark registration in Qatar and other recurring services for your business in Qatar.

Incorporation - Types of Business Entities

There are several types of entities that can be incorporated in Qatar are as mentioned below:

  • Partnership company
  • Limited partnership company
  • Particular partnership company
  • Shareholding company
  • Limited share partnership company
  • Limited liability company
  • Single person company
  • Holding company

Time Frame for Incorporation of Company in Qatar varies from depending on the type of entity selected and sometimes unforeseen hurdles can arise. Each business type has its own advantages and disadvantages. YourGlobalPro professionals estimate the time required for the process of Company formation in Qatar to be completed is 8-10 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Qatar:

  • One of the highest per-capita income countries
  • Least demanding tax framework in the world
  • Free trade – grants investors the opportunity to make good profits
  • Open competition and access to the resources
  • Government initiatives to attract the flow of foreign capital
  • Equity capital, loan capital, interest, dividends, branch profits, royalties and management fees are freely remittable
  • Qatar Financial Centre (“QFC”) established in Doha, attract international and domestic financial services institutions.

Tax Registration and Filing

Foreign companies, including partnerships and joint ventures, carrying on business activities in Qatar are subject to tax.

Corporate Income Tax Rate General tax rate is 10%. A 35% tax rate applies to companies operating in the Oil and Gas sector.
Capital Gains Tax Rate 0%
Branch Tax Rate 10%
Value-Added Tax 0%
Dividends 0%
Interest 7%
Royalties 5%
Management Service Fees 5%
Technical Fees 5%
Branch Remittance Tax 10%
Fiscal Year and Tax Year 1 January to 31 December
Exempt from Tax Qatar tax resident companies wholly owned by Qataris and citizens of the other Gulf Cooperation Council (GCC) countries (Bahrain, Kuwait, Oman, Saudi Arabia and United Arab Emirates) are exempt from tax.
Tax Card Within 30 days after beginning a taxable activity in Qatar or registering with the Ministry of Business and Trade, a taxpayer must register with the PRTD and obtain a tax card.
Filing Tax Declarations All companies, including tax-exempt companies, must file tax declarations within four months after the end of the accounting period.

Double Tax Treaty

Double Tax Agreements regulates the tax treatment of income or capital gains in situations where the same taxpayer is taxed twice in two countries for the same subject. Qatar has double taxation treaties with about 50 countries.

Trademark registration

For trademark registration in Qatar, an application needs to be made to the Ministry of Economy and Commerce of the State of Qatar (MEC). It takes approximately 14-16 months’ timeframe to complete the trademark registration process in Qatar. A Trademark Registration in Qatar is valid for 10 years from the application date and can be renewed twelve months before the trademark right expires by payment of renewal fees for 10 years indefinitely. After expiry date, there is a grace period of six (6) months during which the trademark can still be renewed, upon payment of a late renewal fee.

YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in Qatar for your business. For assistance or advice in the matter of the trademark registration in Qatar or intellectual property – please feel free to write or contact us.

Secretarial Compliance

Below are some of the important points in relation to Company Secretarial Compliance in Qatar:

  • LLC can be incorporated with a single shareholder (maximum fifty shareholders) – though special approval for a wholly foreign owned LLC must be obtained.
  • Shareholders in an LLC are held liable in respect of the operations of the LLC up to the amount of share capital contributed
  • No prescribed minimum share capital
  • Requirement to transfer 10% of the net profits of the company to a legal reserve until the amount of the legal reserve equals or exceeds half of the value of the capital of the company.
  • Appointment or remove of directors must be registered in the commercial registry
  • General Meetings of Shareholders must be convened at least once a year, within four months from the end of the fiscal year
  • To keep and maintain records and documentation pertaining to their activities in Qatar for a period of 10 years following the end of the taxable year to which the records and documentation relate

Accounting Services

The Entities in Qatar are required to prepare Accounts in accordance with International Financial Reporting Standards; however, a taxpayer may make an application to the QTD to use another accounting method.

YourGlobalPro professionals assist you with the entire bookkeeping and accounting services for your Qatar Business Setup as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

In Qatar, the businesses that are wholly or partially foreign (non-GCC) owned are required to submit audited financial statements signed by a locally registered auditor together with the tax declaration to the Qatar Tax Department (QTD). Therefore, Audit is mandatory.

Based on the size of the business – the companies are required to prepare and file financial statements with the Authority. YourGlobalPro professionals provide you auditing services as required by your business.

Banking

The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening.  The major banks in Qatar are The Commercial Bank of Qatar, Ahli Bank Qatar,

International Bank of Qatar, Qatar Development Bank, Qatar Islamic Bank, Qatar National Bank, DOHA BANK, Al Khaliji BANK, QIIB and HSBC. All banks are stable, reliable and offer the same level of services.

YourGlobalPro professionals facilitates all the paper work in relation to banking need and can assist you in opening bank account for your business plan in Qatar.

Legal and Compliance

In Qatar, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various Qatar legal and compliance requirement to be followed by incorporated entities:

  • Those subject to tax in Qatar are required to submit an income tax declaration and pay any tax due to the Qatar Tax Department (QTD) within four months of the end of the accounting period.
  • The tax declaration must be certified by an accountant in practice in Qatar who is registered with the Ministry of Economy and Finance.
  • Approval of the Minister of Finance is required for departure from the tax depreciation
  • Qatar does not impose foreign-exchange controls.
  • All goods entering Qatar should be accompanied by commercial invoices, packing lists, shipping document, and Certificate of Origin.
  • Qatar Chamber of Commerce Registration (issued simultaneously with the Commercial Registration Certificate which will confirm Chamber membership)
  • All transactions which establish, transfer, alter, cancel or terminate property rights or other rights attached to land must be registered.
  • The parties to an international contract are free to choose the law and jurisdiction which will govern that contract as Qatar has acceded to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) (the New York Convention).

YourGlobalPro professionals can assist you in Qatar Legal and compliance requirements.

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR & employment law in Qatar:

  • Total working week varies between 40 and 48 hours and Friday is the Muslim rest day.
  • Employers should provide their staff with a briefing on local culture and customs.
  • Foreign individual who wish to work in Qatar for the medium to long term must have a valid Work Permit/ Residence Permit.
  • The sponsoring company is legally responsible for the actions of employees under their sponsorship.
  • Mandatory to have a local employment contract in order to apply for a work/ residence permit in Qatar.
  • Wage Protection System (WPS), is now a requirement for employers to ensure that employees with a local employment contract or Residence Permit are paid in Qatari Riyals and into a bank account of the employee in Qatar
  • Removal of the two-year restriction period before an expatriate worker can return to Qatar to work for a different employer.
  • A “Qatarisation” initiative is in place which aims to increase the number of Qatari nationals in the public-sector workforce.
  • Companies established in Qatar Financial Center (QFC) have their own different employment regulations governing the relationship between the QFC employer and the QFC employees.

Country Statistics

Capital Doha
Largest City Doha
Total Area 11,586 Sq. Km.
Population 2,675,522
Density 176 / Sq. Km.
Currency Riyal (QAR)
Government Unitary Constitutional Monarchy
Official Language Arabic
Religion Islam
Government Offices Hours Sunday to Thursday u2013 6 am and 2 pm
Business Offices Hours Sunday to Thursday u2013 From 8.30 or 9.00 am to 5.30 or 6.00 pm. In the month of Ramadan, the working day is reduced to six hours and legally this should apply to all staff.
Banks and Exchange Houses Hours Sunday to Thursday -7.30 am to 1 pm

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