Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Qatar. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Apply online for approval of the proposed name with the Ministry of Business and Trade | 1 day | QAR 500 |
| 2 | Submit the Articles of Association for review at the Commercial Companies Inspection Department at the Ministry of Business and Trade | 1 day | QAR 1500 |
| 3 | Open bank account and deposit minimum capital | 1 day | no charge |
| 4 | Sign the Articles of Association before an agent at the Ministry of Justice counter located at the OSS | 1 day | QAR 24 for first 2 shareholders + QAR 9 for each additional shareholder |
| * 5 | Obtain commercial registration from the Ministry of Business and Trade and register with the Chamber of Commerce and Industry at the single counter located at the OSS | 1 day (simultaneous with previous procedure) | QAR 2,200 (Chamber of Commerce) + QAR 500-5,000 (Commercial Registration) |
| * 6 | Obtain trade license and signage license from the municipality counter located at the OSS | 1 day (simultaneous with previous procedure) | QAR 10,020 (Trade license) +QAR 50-150 (signage license) |
| 7 | Register for taxes and obtain Tax Identification number | 1 day | no charge |
| 8 | Obtain a company seal | 2 days | QAR 150 |