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Qatar company registration

Healy Consultants Group PLC
31 March, 2014

Qatar is a small country boasting i) the third largest natural gas reserves in the world and ii) the highest GDP per capita in the world and iii) natural growth of 11 % per annum. Consequently, the Qatar Government enjoys limitless cash reserves and is hungry to hire international firms to develop their economy. Qatar company registration has the following advantages:

·        Foreign companies setting up in industrial plants in Qatar enjoy i) natural gas priced at US$0.60 – US$0.75 per million Btu ii) electricity at US$ 0.0178 per Kwh iii) industrial land at a nominal rent starting at one Qatari Riyal per square meter per year iv) no custom duties on imports of machinery, equipment and spare parts;

·        There are no income tax or social security deductions payable on wages and salaries. Consequently, Qatar is an attractive location for expatriate employees;

·        Cheap labour and easy recruitment procedures are additional advantages to take into account when considering a Qatar business setup;

·        To aid imports and exports, Qatar boasts 5 modern sea ports, 2 international airports, and modern roads connecting Saudi Arabia and the UAE - a major causeway connecting to Bahrain has been planned for 2015;

·        English is spoken by 60% of the population and is the primary business language. Foreign investors interested in doing business in Qatar can easily communicate with employees, customers and suppliers;

·        Qatar is an excellent way to book global profits while legally minimizing international tax. While there is company tax of 10%, there is no personal tax, nor VAT, nor export taxes, not capital gains tax for Qatar company;

·        Doha is one of the most livable cities in the MEA comprising a cosmopolitan, multi-cultural population. A developed infrastructure for tourism, banking, entertainment, and business. High quality office residential accommodation. Reliable power and utilities, first class hotels, hospitals, and schools;

For your Qatari company to operate legally, the following compliance regulations should be taken into account:

·        The Commercial Companies Law was established in 2002 and covers establishment structure, and governance of private businesses in Qatar;

·        Qatar is a civil code jurisdiction although common law principles have some influence given Qatar was a British protectorate. The legal system and its key laws are modeled on those of Egypt which, in turn, was modelled on the Napoleonic Codes of France, as is the case in most civil jurisdictions, courts in Qatar do not rely on a formal system of precedent and there is no formal reporting of court decisions, which lead to unpredictability in litigious matters. All laws issued in Qatar are issued in Arabic and formal translations are generally not made available by the Qatari authorities. Also, proceedings before the Qatari courts take place in Arabic;

·        A Qatar LLC is required to submit an annual tax return. If annual profits exceed QR100,000, the declaration should be accompanied by audited financial statements prepared by an auditor registered in Qatar;

·        Qatar has acceded to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 – the New York Convention). Therefore, arbitration awards made in countries that are party to this convention should be enforceable in Qatar according to the provisions of the convention;

·        Qatar company directors are appointed, replaced, and dismissed by the shareholders. Only the directors have the power to manage the day to day operations of the company. The identities of shareholders and directors are on the public register;

·        Each Qatar Company must appoint a manager. The manager is appointed by the memorandum of association or by a separate management contract. Unless otherwise stated in the MOA< the company manager shall enjoy full powers of administration, and his acts shall be binding to the company, provided that it is supported with sating the capacity he enjoys;

·        A Qatar company is required to transfer 10% of net profits each year to a legal reserve until such reserve reaches a level of 50% of the paid-up share capital;

Along with Dubai, Qatar will be a financial capital of the Middle East and Africa. The Qatar Financial Center has hundreds of financial companies, banks, and asset management companies. In addition, most cities in the Middle East and Africa (MEA) do not view foreign companies in a positive light. By contrast, Qatar boasts favorable laws for foreign entrepreneurs interested in setting up company in Qatar, protecting investors' interests. 



About the Author


Healy Consultants Group PLC

Since 2003, Healy Consultants assists international Clients with company incorporation services worldwide. Our services include: company registration, opening of corporate bank account, accounting and tax services, legal services, jurisdiction comparisons...more.

To inquire more information about global business set up; call us on +65 6735 0120 or email us at email@healyconsultants.com

 

Thank you for sharing your wonderful information about company registration in Qatar. It is very informative.

almisnad2 years ago.

 

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