Setting up a new company in Qatar, the world’s most successful business arena is not as simple as one may think. Company formation requires a list of very important steps that cannot be avoided. For one that is unfamiliar with the market there, it can be challenging to say the least.
Many choose to hire a company consultant to help with company formation in this desirable market. Regardless, below are the steps listed out. Take a look and consider how a consultant can help.
Step One: Company Name
A completely unique company name must be chosen as the first step to company formation. If the name is already registered at the MBT or Ministry of Business and Trade it cannot be used. An in person visit to the Commercial Registration area of the MBT is required in order to do a search and then register the name.
Step Two: Open a Temporary Bank Account
Once a letter is obtained from the MBT, one can take this letter that is addressed to a bank in Qatar and open an account with the amount of capital approved by the MBT. There are no fees associated with this step.
Step Three: Approval for Articles of Association
The business owner must obtain approval for the Articles of Association. This also comes from the Ministry of Business and Trade. These meet the standards set forth by MBT and include the name of the company, home address, and objectives.
Further they contain the fixed term of duration, capital amount, any restrictions upon transfer of shares, shareholder names, capital structure, profit and loss distribution plans, and names of management. Company formation in Qatar depends on this step and the previous three, all of which take at least a day each.
Step Four: Deposit Required Capital
The business professional must then deposit the capital as set forth in the agreement at the bank they’ve opened the account with. The bank must give them a letter as proof that the deposit was made. The bank will need the letter from MBT listed in the second stop, and copies of the shareholders’ ID’s. This step can take up to a week.
Step Five: Obtain Other Necessary Documents
There may be several other documents necessary for commercial business registration. Tourism and engineering sectors require extra documents, as well as others. The Industrial Project License from the Ministry of Energy and Industry is necessary for all industrial businesses. These are just a few examples.
Step Six: Approval for Incorporation
These documents are obtained from the Ministry and are easily obtained by a law office. The Articles of Association are an example, this step can be skipped by establishments as it is not required.
The articles are then authenticated by the Ministry of Justice which should take no more than one day.
Step Eight: Commercial Registration
• There are a variety of documents needed for this step at the Commercial Registry of the MBT. The step takes at least a day. Owners will need:
• The application signed by the GM and owner for the company.
• ID card copies for the general manager, owners, shareholders and partners if any.
• The deposit bank letter from step four
• Receipt for proof of payment for review of Articles of Association from the MBT
• A signed declaration form by Qatari shareholder (if necessary)
• Approval of the new company’s name
Company formation then depends on registration with the Qatari Chamber of Commerce and Industry. The fee for this is 560 QR to 5510 QR in 2015, or dependent upon the amount of capital and company objectives. The final steps include the company seal, trade license and signage license. So as anyone can see, this process will take at least two weeks. Obtaining a consultant in Qatar that is skilled in company formation can save anyone a huge headache.