Being highly developed in sectors such as natural gas, petroleum, construction, and having strong economy, geographical location advantages and entrepreneurial friendly perspective, Qatar appears to be a country where investors of many countries have desire to start a business or invest in existing businesses for a long time. Qatar is also a highly preferred location for Turkish investors to start a business or invest in existing businesses, by the help of investment advantages it provides for Turkish investors, its close relationship with the Turkish government and its frequent calls for Turkish investors. Thus, company establishment in Qatar is an issue that Turkish investors are inquisitive about.
Although there are many types of companies, the most preferred type of company by the foreign investors who desire to establish a company in Qatar appears to be limited liability company ("LLC” or "WLL”), which is similar to limited companies in our country. This is because, these companies can be established more easily than other types of companies, they are subject to less restrictions and the partners of company are responsible for company liabilities in terms of their capital shares. In addition, currently there is no minimum capital requirement for the establishment of these companies. (Before 2015, there was a minimum capital requirement of 200,000 Qatari Riyals.)
For all these reasons, general principles of establishing a limited liability company in Qatar will be explained in the following paragraphs.
I. General Principles of Establishing Limited Liability Company in Qatar
Limited liability companies to be established in Qatar by foreign investors can be established with minimum one (1) and maximum fifty (50) partners and maximum 49% of the shares of these companies can be owned by Turkish investors. In this case, at least 51% of the company's shares must belong to natural or legal persons of Qatar. However, there exists an exception to this rule.
Accordingly, foreign investors who will operate in some sectors determined by the Ministry of Economy and Trade of Qatar ("Ministry") can establish a limited company with 100% foreign shareholders by obtaining permission from the Ministry. These sectors are; agriculture, industry, health, education, tourism, natural resources and energy, consultancy, technical services and information services.
However, in practice, it is not always possible to obtain permission for the establishment of a limited liability company with 100% foreign shareholders, since the Ministry does not give permission in this regard or reply the applications too late.
Nevertheless, establishing a company with 100% foreign capital is possible in Qatar Science and Technology Park, which is established as a technology free zone, and in Qatar Financial Center, which is established as a financial free zone. In order to establish a company in these free zones, it is necessary to carry on a business in the fields stipulated by these zones and the application for operating within these zones should be confirmed by the relevant administrations.
In addition to this, 10% of the profits of companies established in Qatar can not be transferred abroad until it reaches 50% of the company's cumulative capital.
Although it may be thought that there are too many restrictions for foreign investors considering the rules explained above, in limited liability companies significant amount of arrangements can be made in favor of foreign investors. Namely, although the shareholding rate cannot exceed 49%, by making some arrangements in the articles of association, the foreign investor can be provided with the authorities to;
II. Principles Regarding Taxation
According to the tax legislation of Qatar, any business activity carried on in Qatar is subject to taxation. In this context, profits from projects undertaken in Qatar, profits from the sale of assets, commission income from Qatar or third countries, rental income, consulting income, the income from sale, lease or franchise of a brand, the income obtained from the payment of the previously deleted debts or the income obtained in case of liquidation are directly taxed. Also, the interest income from banks in third countries that is gained as a result of the taxpayer’s income in Qatar is also subject to taxation.
In terms of tax liability, solely the shares or businesses owned by Qatar citizens or citizens of countries that are members of the Gulf Cooperation Council (“GCC”) are exempt from tax liability. Turkey is not a member of GCC. Therefore, a company established by or company shares owned by Turkish real or legal persons would be taxpayers under Qatar taxation rules.
However, the companies operating in the fields of industry, agriculture, export, mining and petroleum, tourism, communication or the companies that contribute to the national economy of Qatar may be exempted by taxation by the relevant committees.
Finally, salaries and wages obtained in Qatar are exempted from income tax, social security deductions or other deductions.
To sum up, for all the reasons mentioned above, establishing a company in Qatar is regarded as an attractive opportunity for both Turkish investors and investors from other countries. In this context, some rules and procedures to be taken into consideration when establishing a company in Qatar and important issues regarding taxation are explained in this article which we hope to be beneficial for those interested in this subject.
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About the Website
The website www.kavlak.av.tr/ (“Web Site”) was launched by Fırat Barış Kavlak ve Ortağı Aygen Kavlak (hereinafter referred to as “Kavlak Law Firm” or “Kavlak”). All of the natural persons or legal entities (“User”) who access and/or use and/or make use of the Website (“User”) are required to carefully read these Privacy Policy (“Policy”) applicable to any use of the Site.
By reading this Policy, users are informed that the necessary information about the usage and sharing of information within the scope of the Website is made to them in accordance with the Turkish Code of Commerce (Turkish Commercial Code No. 6102, Turkish Code of Obligations No. 6098, Personal Data Protection Law No. 6698) and general ethical principles. Protection and confidentiality of the information you provide to us is very importance for us. Due to the many possibilities and risks offered by the Internet, we would like to inform you about the following issues regarding the protection of your information about the use of our Site.
1. What is Personal Data?
In the KVKK, personal data is defined as any kind of information related to a natural person who is either identified or identifiable. In this regard, your name, last name, e-mail address, and phone number that you share with us are defined as personal data.
2. What Personal Data Are We Collecting?
During your visit to the Website, two types of data can be collected;
Users of the Website accept and declare that all commercial and/or personal information (“Information”) they share with us within the Website or in any other way with their express consent is correct and up-to-date. In the event that such information belongs to another third party (“Third Parties”), Kavlak shall accept that the user shares such third party information with Kavlak as required as a result of the necessary information and consent in accordance with the relevant Law and legal arrangements and we, as Kavlak shall not assume and accept any legal and/or criminal liability thereof.
Kavlak, within the scope of your information collected through the website, we will provide you gradual information, in accordance with the relevant Law and legal regulations and we will provide detailed information about our legal reason in keeping your information, the purposes for which we use your information, and the persons and/or organizations that we transfer your information to.
3. What is the consequence of not providing personal data to Kavlak?
You do not have to provide all personal data contained in this Privacy Policy in order to use the Website or to contact us in any other way, but if certain personal data are not provided, you may not be able to fully respond to your requests or use legal services.
You may end your e-bulletin subscription or any other subscriptions you have started by using the Web Site at any time by using the methods specified in the relevant messages.
4. What is the purpose of personal data collection by Kavlak?
As Kavlak, we collect your personal data with an aim to provide you with services, fulfill our legal obligations, make the Website more functional, sent you our e-bulletin via e-mail in case you subscribe to our e-bulletin service, and inform you on new services, and recent developments within Kavlak and we process your personal information in this regard.
5. Why and to whom do we transfer your personal data?
We may share your personal data with our affiliates based in Turkey that we collaborate to improve our advisory services as well as institutions and organizations collectively representing us during the period of our business relationship with them and/or our business partners that we cooperate to conduct our activities. In addition, we may share your personal data with courts and other public institutions to fulfill our legal obligations provided that such personal data sharing shall be limited thereof.
6. How do we keep your personal data?
Your personal data shared with Kavlak are kept with proportionate administrative and technical measures taken in compliance with the applicable legal regulations, provisions of the KVKK, and Kavlak Law Firms standards.
However, even though we have taken necessary information security measures, if personal data is damaged or if it gets received by third parties as a result of attacks to the Website and/or Kavlak, the institutions and organizations required by the law and you will be immediately notified and and necessary measures will be taken.
7. How long do we keep your personal data?
As Kavlak, we keep your personal data in compliance with the KVKK. We will delete or destroy your personal data, or otherwise make your personal data anonymous to continue to use when the purpose of processing personal data is no longer in effect as per Article 7/f.1 of the KVKK and/or upon expiry of the period of limitation under which we are obliged to process your personal data as per the applicable legislation.
8. What are your rights pursuant to the KVKK?
Pursuant to Article 11 of the KVKK, you are entitled to make the requests listed below by submitting an application to us via our application form regarding your personal data:
– Request to learn about whether your personal data are processed,
– Request for information on your personal data if such personal data are processed,
– Request to learn about the purpose for processing your personal data and whether such personal data are used in compliance with their intended purpose,
– Request to learn about third parties to which such personal data are transferred in Turkey or abroad,
– Request for correction of your personal data in case of incomplete or inaccurate processing of such personal data,
– Request for deletion or destruction of personal data,
– Request for notification to third parties, to which such personal data are transferred, of the processes for correction and/or deletion or destruction of your personal data in case such personal data are processed in an incomplete or an inaccurate manner,
– Raise an objection to any result against the person arising out of any analysis of such personal data exclusively by means of automated systems, and
– Claim for compensation of damages in case of damage arising out of any illegal processing of such personal data thereof.
As Kavlak Law Firm, we will reply to your requests free of charge as soon as possible within 30 days based on the nature of such requests. However, in case such requests require for any additional costs, the fee stipulated in the tariff determined by the Board shall be payable.
9. What is consequence of processing personal data of children?
This Website is designed for use by people who are over the age of 18 by Kavlak and our Website is not intended for children. In the event that parents or guardians suspect that children under their supervision share their personal data through our Website, we ask that they contact us regarding their requests regarding this data. In such a case, the data shall be deleted immediately.
10. What is the scope of the Privacy Policy?
The legal owner of this Website is Kavlak Law Firm and the legal rights of the content and/or various items within the Website belong to Kavlak and in some cases to other third parties. Any copying, unauthorized copying or imitation of the contents or elements of the Website is prohibited on the basis of the applicable legislations and is subject to the permission of the respective legal right holder.
The Website contains links to the web sites of third parties. Kavlak declares that it does not accept any liability or obligations for any third-party sites and/or contents and that the user cannot be held liable for any damages incurred by them. Users are encouraged to review privacy policies on the third party websites they visit via the links included.
11. May changes occur in the Website or this Policy?
Kavlak may at any time modify and change this Policy, any legal and/or other texts, any technical elements, contents or features contained within the website. Any such changes shall be deemed to be valid upon the publication of the same on the Website and it is the personal responsibility of you as the users to carry out the necessary examinations and readings regarding such changes and Kavlak shall not have any legal and/or criminal liability in this context.
12. How users may contact with Kavlak?
You may contact with us, Kavlak Law Firm, directly by sending an e-mail to [email protected] to share any comments and suggestions or to ask your questions regarding this Privacy Policy.
We are kindly requesting you to read carefully of the below given Clarification Text on Protection of Personal Data and learn about our purpose of processing your personal data and your associated rights within this scope.
a) Data Controller
Your personal data shall be processed by Fırat Barış Kavlak ve Ortağı Aygen Kavlak (“Kavlak Law Firm”), as a data controller, according to the below explained scope, pursuant to Law No. 6698 on the Protection of Personal Data (“KVKK”).
b) Purpose of processing personal data
The personal data of our estimable online visitors to be obtained under the E-Mail Subscription shall be processed by Kavlak Law Firm with a limited manner to send you latest affairs of Kavlak Law Firm and inform you any events and/or conferences organized by Kavlak Law Firm and/or in cooperation with Kavlak Law Firm; and to communicate with you for promotion or other similar purposes.
c) Method and legal reasons for collecting personal data
The personal data to be collected from you shall be automatically processed on an electronic environment by basing explicit consent to be obtained from you as specified in Article 5 of the KVKK.
d) Personal Data Categories and Types
Within the scope of the E-Mail Subscription, the below-mentioned personal data shall be obtained from you:
e) Transferring Personal Data
Your personal data as specified in (d) sub-clause of this Clarification Text shall be transferred by Kavlak Law Firm to our business partners and service providers residing within country, in line with accomplishment of the purposes as specified in (c) sub-clause and with a limited manner for the data processing conditions as specified in Article 8 of KVKK and purposes of specified above.
f) Your rights concerning protection of personal data as a data subject
You may communicate your requests in writing, regarding the rights of data subject regulated by Article 11 of the KVKK according to the Communiqué on Application Methods and Principles to the Fata Controller to the below given address of Kavlak Law Firm: Nispetiye Cad. Seher Yıldızı Sok. No:23/11 Etiler, İstanbul or by e-mail to the following e-mail address: [email protected] over your personal e-mail address that is provided in E-Mail Subscription.
We are kindly requesting you to read carefully of the below given Clarification Text on Protection of Personal Data and learn about our purpose of processing your personal data and your associated rights within this scope.
a) Data Controller
Your personal data shall be processed by Fırat Barış Kavlak ve Ortağı Aygen Kavlak (“Kavlak Law Firm”), as a data controller, according to the below explained scope, pursuant to Law No. 6698 on the Protection of Personal Data (“KVKK”).
b) Purpose of processing personal data
The personal data of our estimable online visitors to be obtained under the E-Mail Subscription shall be processed by Kavlak Law Firm with a limited manner, in order to inform you and communicate with you regarding the current national and global legal regulations, up-to-date legislation and the latest publications of Kavlak Law Firm.
c) Method and legal reasons for collecting personal data
The personal data to be collected from you shall be automatically processed on an electronic environment by basing on the legal ground as specified in Article 5 of the KVKK, which reads as follows: “It is necessary for the legitimate interests of the data controller, provided that the fundamental rights and freedoms of the data subject are not harmed.”
d) Personal Data Categories and Types
Within the scope of the E-Mail Subscription, the below-mentioned personal data shall be obtained from you:
e) Transferring Personal Data
Your personal data as specified in (d) sub-clause of this Clarification Text shall be transferred by Kavlak Law Firm to our business partners and service providers residing within country, in line with accomplishment of the purposes as specified in (c) sub-clause and with a limited manner for the data processing conditions as specified in Article 8 of KVKK and purposes of specified above.
f) Your rights concerning protection of personal data as a data subject
You may communicate your requests in writing, regarding the rights of data subject regulated by Article 11 of the KVKK according to the Communiqué on Application Methods and Principles to the Fata Controller to the below given address of Kavlak Law Firm: Nispetiye Cad. Seher Yıldızı Sok. No:23/11 Etiler, İstanbul or by e-mail to the following e-mail address: [email protected] over your personal e-mail address that is provided in E-Mail Subscription.