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Registering your company in Qatar costs about $15,000 for the setup and license to get into the Free Zone.
The Qatar Financial Centre (QFC) is an international business and financial center with an independent legal and regulatory infrastructure. It was established by the Qatar Financial Centre Law, which also gave the QFC Authority the power to produce the Rules and Regulations.
Why register your company in Qatar Financial Centre ?
The Qatar Financial Centre operates under its own legislative and regulatory framework established on English Common Law. It is considered neither an offshore center nor a free zone. This implies that businesses registered with Qatar Financial Centre can be situated anywhere on the mainland and have maximum access to the domestic and foreign markets.
The legal entities permitted within the QFC
The QFC permits a wide variety of business types such as limited liability companies (LLCs), Holding Companies, partnerships, and special purpose companies (SPCs), and they are subject to oversight by the QFCA.
Limited Liability Company In the QFC
An LLC is the most popular business entity option investors opt for in Qatar. The minimum number of participants needed to set up an LLC in Qatar is two and can go as much as 50 with at least one Qatari shareholder.
This business structure in Qatar is established under a 51%-49% relationship where the foreign partners have the right to own 49% of the entire shareholding whereas the remaining 51% needs to be held by the Qatari shareholder.
However, if you register your company in Qatar Financial Centre, you can own 100% of the shares of your company.
And, your company will not pay any tax.
Key Features of the Qatar LLC
- It’s a separate legal entity with limited liability
- There shall be a minimum number of one member
- There are no minimum share capital requirements for an LLC performing Non-Regulated Permitted Activities
- It must have a Director, and a Secretary.
- An LLC shall at all times have a registered office positioned in a QFC-approved premises
- An LLC must submit their audited accounts with the CRO (Companies Registration Office) if not exempted particularly by any regulation.
- The accounts of an LLC are to be audited by a QFC-authorized auditor and approved by a general meeting of the members of the LLC, and documented with the CRO
In addition to the regular LLCs, the following types of companies are also essentially incorporated as LLCs, with differing features and laws in accordance with the provisions of the respective regulations and rules:
Special Purpose Companies
A Special Purpose Company is a company included under the Companies Regulations and registered by the CRO as a Special Purpose Company. A Special Purpose Company may only be founded for the purpose of a Transaction being formulated as an individual transaction or a series of transactions.
Key Features
- It’s a separate legal entity with limited liability
- No minimum share capital requirement for a Special Purpose Company, which can be structured in both formal and Sharia-compliant forms.
- it requires one or more members who are a candidate, financial transaction initiators or another Special Purpose Company
- It can hold assets on behalf of third parties
- No requirement to have an audit with the CRO and there is no requirement to hold annual general meetings
- Most Special Purpose Companies are not subject to tax and advance decisions are available on their tax-exempt status.
- They have the flexibility of accomplishing a wide range of activities to support the enactment of different transactions.
Holding Companies
Whereas a Special Purpose Company can handle assets as part of a wider transaction, a holding company is constructed to hold assets for itself or its shareholders. A QFC holding company must have one or more subsidiaries, which it must govern, and is licensed only to carry on certain holding activities.
Key Features:
- It’s a separate legal entity with limited liability
- It should have at least 1 member
- No minimum share capital requirement for Holding Companies
- It is needed to file annual returns.
- There are no limitations on the types of activities or businesses run by the subsidiaries of a Holding Company
- The other operations run by the Holding Company group don’t necessarily have to be located in Qatar.
Single Family Office
A Single Family Office is a body corporate created in the QFC for the single purpose of providing services to and performing activities about a Single Family” according to the Single Family Office Regulations.
Key Features
A Single Family must have minimum investable assets of USD 5 million under the management of a single family.
For the goal of determining investable assets, only those assets which are realizable in 180 days can be considered.
A Single Family Office must have a registered office positioned in the QFC and carry on its main business activity at or from the registered office.
- Each Single Family Office must authorize a designated representative as the point of contact for the QFCA and
- Single Family Office and to carry out specific registered functions and guarantee compliance with the Single Family Office Regulations.
- The appointed representative must file an annual report with the QFCA.
- A Single Family Office must have strategies and procedures in place regarding anti-money laundering and battling the financing of terrorism.
Limited Liability Company (Investment Club)
LLCs (IC) are incorporated under the provisions of the QFC Investment Clubs Regulations and are in conjunction with QFC Companies Regulations. An LLC(IC) is a simple legal entity not accountable to the usual level of financial regulation which enables groups of friends to invest together, as the Investment Club’s activities are not being performed by way of business.
Key Features
- An LLC(IC) must have a minimum of two and a maximum of fifteen Members
- An LLC(IC) pools the contributions of its members for investment in assets and securities, monitors and evaluates the accomplishment of the portfolio of the LLC (IC), and allows Members to make recommendations at the periodic Members’ meetings about the portfolio.
Conclusion
Economic diversification and a growing economy imply that there are various opportunities for investment in Qatar. And companies and individuals looking to expand their business opportunities will find a legal environment that is available and relatively well-regulated.
Are you looking to register your company in Qatar? -Let’s go ahead and contact your Damalion expert now.
