How to set up a business in Qatar
Although we have been in the market for a number of years, we tend to agree that company formation in Qatar for non-Qataris is a confusing and exhausting process. From a reserved Qatar culture, intense regulatory systems, strict labour laws, to having a Qatari shareholder who holds at least 51% of the share capital of the company, company formation in Qatar can take years and piles of paperwork.
So how do you set up a business in Qatar as a Limited Liability Company LLC or WLL? You will need to acquire the following 3 documents.
- Commercial Registration (CR) Issued by the Ministry of Economy and Commerce Qatar (MEC), the CR is a document that states you are entering a legal entity with your shareholders. Acquiring the CR involves the followingIssued by the Ministry of Economy and Commerce Qatar (MEC), the CR is a document that states you are entering a legal entity with your shareholders. Acquiring the CR involves the following,
- Securing a trade name
- Typing of the Articles of Incorporation. This is a standard document that lists all the shareholders, their rights, ownership etc. To simplify this procedure, it is advisable that you use the template issued by the Ministry of Economy and Commerce Qatar for the CR acquisition, and then have it amended as per your needs by the Ministry of Justice Qatar through your lawyer.
- Issuance of the Commercial Registration (CR) occurs once you have the trade name and articles of incorporation. This process allows you to specify what your business intends to do for instance Restaurant/Cafe, Management Consulting, Marketing Agency etc. Each business activity has its own specific charges and some business activities such as pharmacies and schools require pre-approval from relevant ministries. Also, this phase of the process requires all your shareholders to physically present themselves in order to verify their identity.
- Trade Licence(The legal office space) Once you have your Commercial Registration, you now need to get a Trade Licence which will enable you have a suitable office space that is approved by the Ministry of Economy and Commerce of Qatar. Fold your sleeves because this is the most challenging and time-consuming phase in the process…First you are required to fill out the requisite application available on the Ministry of Economy and Commerce website, and submit it to the MEC, along with the following documents:
- An indoor and outdoor photo of the building where the offices will be located. It should show the blue plate that has the address information.
- A copy of the certificate of ownership of the leased property.
- A copy of the certificate of building completion.
- A copy of the Commercial Registration of the company.
- The ID copy of the person who will sign the application forms.
- A copy of the civil defence certificate: there should be one certificate for the property and another one for the leased office.
- In case the owner of the leased offices is a company, the following documents are required:
A copy of the Commercial Registration certificate of the owner of the leased offices; and
ID copy of the authorized signatory on behalf of the owner of the leased offices.
The following documents should be submitted to issue the signage license:
- The sketch for the signboard where the name of the company should be written in Arabic and English; and
- The signage application form
The charge for obtaining a new trade license is approximately QAR 10,020. The signage fee is QAR 50-150 per square meter. The municipality usually sends inspectors to the contemplated premises of the company prior to granting the Trade License.
- Computer Card /Signature Card Although you have acquired the two documents above, you still cannot hire any full-time employee under your company. This is because you need a computer card which is normally issued by the Ministry of Interior Qatar (MOI) to be in a position to hire and issue your employees with Qatar Resident Permit (RP) and exit permits.
Basically, a Computer Card is a documentation that states the person who has the signing authority on behalf of your company. In most cases, it’s normally the Qatari partner. Before applying for the Computer Card, it is important that you secure an official company stamp as it will be required in your application.
To apply for the Computer Card, you will need the following:
• Duly filled requisite application form.• 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
As humans, every time we move to a new country with the desire to startup a business, we feel some relieve when we have someone who is committed and willing to help us localize our ideas, dive into the local culture, study competition, or even build a new network. Edelweiss Swiss is definitely that someone ready to help you set up a business in Qatar and secure initial partnerships.