Registration of a company in Qatar Financial Centre. Service offer

Qatar Financial Centre (QFC) is a business and financial centre located in Doha and established by Law No. 7 of 2005 of the State of Qatar. QFC offers its own legal, regulatory, tax and business environment, contributing to the decisive economic development and diversification prescribed by Qatar National Vision 2030.

QFC covers 4 areas of regulation:

• Qatar Financial Centre – licenses firms to conduct business in or from the QFC, manages and maintains the QFC legal and tax environment;
• QFC Regulatory Authority – regulates, authorises and supervises QFC firms conducting regulated activities;
• Civil & Commercial Court – hears civil and commercial disputes between QFC firms and their counterparts;
• Regulatory Tribunal – hears appeals relating to decisions made by the QFC authorities or institutions.

QFC’s business-friendly ecosystem operates in line with international best practice to ensure clients receive optimal operational, regulatory, and judicial support.

QFC offers a wide range of activities, both regulated and non-regulated.

Regulated activities include financial activities:

1. Banking;
2. Asset management;
3. Insurance and reinsurance;
4. Islamic banking.

Non-regulated activities include:

1. Professional and business services (such as provision of information, consulting, accounting, and audit services, marketing, software development, etc.);
2. Funds, holding companies, family capital management (“family office”).

QFC provides for the registration of the following types of companies:

1. Limited Liability Companies (LLCs), Special Purpose Companies (SPCs), Holding Companies, Single Family Offices (SFOs), Investment Clubs (LLC(IC)s);
2. Companies Limited by Guarantee (LLC(G)s);
3. Limited Partnerships;
4. General Partnerships;
5. Foundations;
6. Trusts.

In QFC, investors most commonly register limited liability companies (LLCs) for providing business services and as special purpose companies or holding companies.

1) It is necessary to select:

• company name to be checked for availability (at least two names), which name:
  • must not be identical or similar to the name of an existing company;
  • must contain an indication of the legal form (Limited Liability Company or LLC);
  • must be in the English language;
• company structure (shareholders, directors*);
• end of the financial year.

*A company director can only be an individual over 18 years of age (there are exceptions where a corporate director can be appointed). A company may also appoint a secretary, but this is not a requirement for the company registration.

2) Paying fees.

3) It is necessary to provide documents for the directors / members / attorneys (originals or notarized copies):

• passport or ID card;
• proof of address;
• CV.

The shareholders need to additionally provide personal data in the form of a letter: phone number, email, residential address, country of residence, mother’s name, marital status, religion, and nationality.

The shareholders will also need to sign a contract for administration and a client information form (for compliance check).

4) Applying for company registration and licence by filling in a single dynamic online form.

The persons in the company structure must sign a declaration. The beneficial owner of the company must sign declarations and provide their certified copies when filling in the application form.

5) After assessment of the application, QFC will register the company and issue a licence within 1 to 2 weeks. The company registration procedure is carried out remotely.

Upon registration, the free zone authority issues the following documents:

• Company Registration certificate stating the registration number and date – in original;
• Company register extract – in original;
• Licence for the company’s declared business activity (the licence is issued for 1 year) – in original;
• Office lease agreement (for 1 year, depending on the selected office package) – in original;
• Articles and Memorandum of Association – in electronic form.

Qatar does not have such a concept as permanent residence. Qatar’s migration rules require obtaining a residence permit, which in practice is similar to a permanent residence document.

A visa can be obtained by making an employment contract with a company – work visa.

The application for a residence visa includes the following steps (a visa can only be applied for after the company is registered):

1. Making a Computer Card

When submitting an application for a Computer Card, the authorized signatory must be in Qatar (on a business visa, family visa or visa on arrival). The application will need to be accompanied by a copy of the Company Registration certificate, a copy of the licence and a copy of the authorized person’s passport (with a copy of the visa). The application will also require a company seal.

The card is necessary for the company to be able to apply for work visas and residence permits for its employees in the future. The card is issued in 10 working days (there is an expedited procedure that takes 5 working days).

Once the employee receives a work visa and Qatar ID (QID), it will be possible to make changes to and update the Computer Card.

2. Obtaining a work visa and residence permit (RP)

A work visa is made in 10 days (there is an expedited procedure that takes 2 working days).

Some professions (such as engineering, accounting, and legal professions) require the provision of proof of the relevant education (a diploma need not be certified).

The applicant needs to:

• install Metrash2 application to update his/her home address;
• undergo a medical examination;
• submit biometrics (fingerprints);
• have 2 passport-format photos (against a blue background).

After completion of the second stage, a Qatar ID is issued to the applicant for a period of 1 to 2 years and can subsequently be renewed. The card is ready in 10 working days.

The Ministry of Interior must also be notified about the issued QID.

A company is required to annually renew its licence by paying the relevant fee, and its lease agreement. If a company does not pay the licence renewal fee, QFC may revoke the licence.

A company is also required to annually file an Annual Return. The Annual Return must contain the following information:

• in respect of each class of members, the name and address of each member of the LLC holding more than 1% in nominal value of all the issued shares of that class;
• the name, address, nationality, date of birth and business occupation of each of the directors and the secretary of the LLC;
• the registered office of the LLC;
• the authorised and issued share capital of the LLC;
• the principal business activities of the LLC in the year in question;
• the name and address of the auditor of the LLC.

The Annual Return must be delivered annually on the anniversary of the incorporation of the company and is not published in the register.

A company is required to file annual Ultimate Beneficial Owner (UBO) reports containing details of all its beneficial owners, as well as of nominee shareholders, nominee directors and corporate directors.

A company must annually submit the Compliance Checklist in January via the electronic company portal on the QFC website.

The company’s Computer Card is also renewable annually. The card is renewed in 3 days.

Commercial Companies Law No. 11 requires companies registered in Qatar to prepare their financial statements in accordance with International Financial Reporting Standards (IFRS).

The first financial period (coincides with the tax period) may last more than 12 months or less, but it must not be less than 6 months or more than 18 months from the company’s incorporation date.

The tax return and supporting audited financial statements must be made in QAR (Qatari riyal).

Generally, all companies must file tax returns within 4 months of the end of the accounting period.

Companies wholly owned by Qatari residents or other Gulf country nationals are exempt from corporate income tax, but are required to file tax returns and audited financial statements with the tax authorities if their capital is QAR 2 000 000 or more or if their annual income is QAR 10 000 000 or more.

LLCs are required to keep accounting records at their registered office for 6 years.

Qatar does not levy personal income tax on wages or benefits of individuals, regardless of nationality or residence.

A flat corporate income tax rate is 10%.

Companies wholly owned by nationals of Qatar or other Gulf Cooperation Council (GCC) countries are not required to pay corporate income tax. However, companies that are wholly or partly owned by foreigners and have sources of income in Qatar must pay tax at a rate of 10% in proportion to the foreigner’s shareholding.

Companies operating in the oil and gas sector are taxed at a rate of 35%.

A unified 5% withholding tax applies to all services provided in Qatar even if they are fully or partly performed outside the country. This provision extends to interest, royalties, technical fees, commission fees, brokerage fees, and other payments for services. The general withholding tax rate (dividends, interest, royalties) is 0%, 5% and 5% respectively.

The general rate of corporate tax for capital gains is 10%.

There are no inheritance, property or gift taxes in Qatar.

Currently, Qatar does not impose VAT, but this is expected to change in the near future.

[1] The fees are valid as of July 2024.

[2] The fees for preparing financial statements and conducting an audit are charged based on the time spent at hourly rates ranging from USD 100 to USD 400 (depending on the type of work and qualification of a specialist involved).