Difference between the Qatar Financial Centre and Ministry Of Commerce and Industry
Alex felt like he was in a lot of trouble. After years of hard work and dedication, his dreams seem to crash and burn right before his eyes. His aim of setting up an innovative oil refining business in Qatar seemed like the ideal break he had needed in finally setting up a fortune. He had also worked in the country for the past several years. While he worked, he spent a lot of time making sure to network and connect with the right people, all the while gathering necessary information about the sector in which he was interested. However, a critical piece of information was shared by one of his associates. This had seemingly ended all his plans, dreams and efforts over the years. This acquaintance informed him how the Ministry of Commerce and Industry (MOCI) recently changed to rules and restricted his field from being 100% foreign-owned. This meant that he had to form a company that was 51% owned by a Qatari or 100% Qatari company. This was not what Alex was looking forward to. This meant that unless there was a 51% share capital held by a Qatari, he could not start his company. After deliberating several alternatives, Alex's research showed him a few specialists that could help him in starting his company. He finally decided he should reach out to and contact BBMS, a company formation specialist, to help him out in some way.
As per their conversation, Alex was invited to visit the BBMS office and where he met with a senior analyst assigned to his case. Their discussion was long, but it was very informative and detailed. He gained answers to every question that he could think of, even the nagging ones. Although he was utterly frustrated with himself, he could see the light at the end of the tunnel and a way his dream could become a reality.
Alex had several reasons not to partner with anyone. These included the fact that he did not want someone who was not invested in his idea to tell him how to run his company. This meant that he did not want anyone else investing in his company.
The consultant from BBMS explained to Alex that while there was no minimum share capital requirement to start a company in Qatar, an LLC was the best and most comfortable option for Alex to set up a company to do business in the country, where he would put down a share capital to kick start the business. Alternatives were present, continued the consultant, and there were two specific options. Evidently, the MOCI of Qatar had made exceptions to the rule in the past, and Alex could capitalise on it. However, this was an exception, and the consultant with BBMS did not see any exception to Alex’s case, especially since he was starting out with a business directly originating in Qatar.
Although there are limitations to Alex if he decided to register his company under the MOCI, they had made provisions under Law No. (25) in the Harbouring of Non-Qatari Commercial, Economical and Professional Activities Contrary to the Law, or the Proxy Law of 2004. The provisions involved restricting the rights of the Qatari shareholder in question involving profit share and voting rights. Alex said that it wouldn't be possible while starting the company as the intellectual rights of his company need to be protected. So, the BBMS consultant related to him the final and best alternative he had in his mind. He explained to Alex that he need not be registered and be governed by the MOCI at all, as he could do that with Qatar Financial Center (QFC). It's a government entity that specifically engages in foreign investments coming in and going out of Qatar, and they had no such restriction regarding the ownership of any private LLC.
The BBMS consultant explained how the QFC was initially formed, explicitly to attract foreign investments, and as a result, regulated under the international trading laws along with the country's own. Alex could even repatriate any resources or earnings back to his country of origin without any possible restriction. Basically, Alex could conduct business as if he was home, but with all the advantages Qatar had strategically to offer. In the end, Alex was able to set his company up under the QFC with a little direction from BBMS and they are doing well.
If you've got problems like Alex on your mind, make sure to give BBMS a call for a consultation at +974 40 120 333 and get world-class assistance, alternatively, you can email them at email@example.com