Abdul Rasheed Purayil - Qatar Financial Centre

1. Abdul Rasheed KP
Companies Registration Office Manager
Prepared for:
COMPANIES REGISTRATION OFFICE,
QATAR FINANCIAL CENTRE

2. QATAR
One of The
World’s
Fastest Growing
Economies
Leading
Exporter
of LNG
One of the
Highest
GDP per Capita
Multi-Billion
Dollar
Projects
Underway

3. 18TH MOST COMPETITIVE
ECONOMY WORLDWIDE
Most Peaceful
in the
Middle East
34th Worldwide
Global Peace Index 2016
Top 5 Financial Centre in the
Middle East
40th Worldwide
GFCI
September 2016
2nd Most Competitive in the
Middle East
18th Most Competitive
Economy Worldwide
Global Competitiveness
2016-2017 (WEF)
3rd Most Innovative
in the MENA Region
50th Worldwide
Global Innovation
Index 2015
Strongest Economic Growth
in the GCC in 2016
Moody’s Investors Services Outlook
2nd Most Network Ready
in the Middle East
27th Worldwide
Network Readiness Index 2016

4. MAJOR INFRASTRUCTURE INVESTMENTS
Lusail City
Target Investments US$ 45Bn
Estimated population 450,000
Doha Metro
Target Investments US$ 21Bn
212km of metro network across Doha
Expressways Programme
Target Investments US$ 20Bn
900km of new roads
Source: MEED Projects Database, March 2016; Standard & Poor's Ratings Services
Hamad Port
Target Investments
US$ 7.4Bn
One of the world’s largest
port developments

5. 2022 FIFA WORLD CUP
Stadiums (US$ 4Bn)
Source: MEED Projects Database and Qatar Megaprojects 2015 Report
Accommodation (US$ 12.4Bn)
Transportation (US$ 71.1Bn)

6. QFC OVERVIEW
QFC legal platform6
LEGAL AND TAX
• Manages and maintains
the QFC legal and tax
environment
• Licenses firms to conduct
business in or from the
QFC
• Regulates, authorises and
supervises QFC firms
conducting financial
services
REGULATORY
 QFC Civil And Commercial
Court
 QFC Regulatory Tribunal
 ADR Centre
DISPUTE RESOLUTIONCRO
 Incorporates/Registers
entities
 Maintains public register
 Processes filings from QFC
firms
QFC

7. WHY QFC?
Date of
Presentation
7
Legal &
Judicial
Framework
Onshore
Environment
Full
Ownership
Ease of Setup
Client
Community
Tax
Environment

8. • Transparent, accessible and predictable operating environment
based on English common law
• Consultative process that enables all stakeholders, including QFC
firms, to voice their opinions on QFC legislation
• Access to an independent judiciary (QICDRC)
• Continuous review and enhancement legislative framework
COMPETITIVE LEGAL REGIME
`
QFC LEGAL
REGIME

9. • Tax rate of 10% on locally sourced profits only
• No withholding tax on payments out of Qatar
• DTA with 60+ countries
• No personal income tax or wealth tax
• Cash reimbursement for tax losses
• Advance ruling service
• Several Exemptions
COMPETITIVE LEGAL AND TAX REGIME
`
QFC TAX
REGIME

10. BROADENED PERMITTED ACTIVITIES
Company
HQs
Management
Offices
Treasury
Operations
Company &
Trust
Administrati
on Services
Professional & Business ServicesSFOs
SPCs
Holding
Company
Trust
Services
Banking
Islamic
Finance
(Re)Insurance/
Broking
Captive
Insurance
Asset
Management
Fiduciary
Businesses
LLC(G)s
REGULATED ACTIVITIES NON-REGULATED ACTIVITIES

11. COMPANIES REGISTRATION OFFICE
Presentation title in
footer
1
1
The Companies Registration Office (CRO) was created pursuant to Article 7 of Law no. 7 of 2005 (QFC Law)
as a separate legal entity, within the QFC Authority.

12. TYPE OF LEGAL ENTITIES
Presentation title in
footer
1
2

13. Single window registration, authorisation and licensing
SETTING UP IN THE QFC
Standard Articles of Association available for most type of entities
Minimum and hassle free documentation requirements
All applications and filings are online
English is the official language
QFC firms to have their offices and place of principal activities to be conducted from
QFC designated premises
No minimum capital requirement

14. QFCRA
Companies Registration
Office
• Internal processes of the
QFCRA
Incorporated/
Registered,
Authorised
and Licensed
Ready to do
business
• CRO
Incorporate/Register
entities within the QFC
1
4
• CRO has incorporated firms within ½ business day
QFC registration
process
• QFCRA authorizes the firm
to conduct regulated
activities.
• QFCA Licensing
Department
Issue License to the firm to
conduct the authorized
activities
QFC REGISTRATION PROCESS – REGULATED FIRMS

15. Business Development
Team
Licensing & Company
Registration Team
• Introduce QFC environment
• Understand applicant
business and its match with
QFC objectives
• Explain application process
• Request applicant business
case
Licensed &
Incorporated/
Registered
Ready to do
business
• Licensing
Conduct detailed evaluation
of proposed QFC business
including fitness and
propriety
• CRO
Incorporate/Register
entities within the QFC
1
5
• Turn around time for licensing and incorporation/registration: 5 working Days
• CRO has incorporated firms within ½ business day
QFC registration
process
QFC REGISTRATION PROCESS – NON REGULATED FIRMS

16. FEES

17. ANNUAL FILINGS (TIME-DRIVEN)

18. EVENT-DRIVEN FILINGS (AD HOC)
EVENT-DRIVEN FILINGS VARIES FROM ENTITY TO ENTITY AND GENERALLY
INCLUDES:
 Submission by: QFC E-service Portal
 Time limit: Varies (Mostly 21 days)
 Fees: Varies (Mostly US$200)
Change of name
Amendment of Articles of
Association
Change of Directors, Secretary,
Significant Shareholders
Change of Office
Change of Financial Year End Appointment of Auditor

19. Compliance – On
time filings
1
9
64%
79%
90% 98% 98%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Average 2012 Average 2013 Average 2014 2015 2016
ON-TIME FILING OVER THE YEARS
THE PERCENTAGE OF FIRMS FILING ON-TIME HAS SIGNIFICANTLY INCREASED

20. 2
0
CRO FACILITATES THE FOLLOWING ACTIONS TO MAINTAIN THE PUBLIC REGISTRY:
 Financial penalties for late submissions and non-compliances
 The maximum fine is set out in the Regulations
 Normally 20% of the maximum fine for a breach with an additional 10% for each
additional month of delay (up to the maximum fine provided for in the applicable
regulations)
 Orientation session for newly registered firms
 In-depth help-guides on compliance requirements
 Designated Helpdesk
 Periodical “Town Hall” presentations on compliance requirements
 Penalty Guidance Note
 Waivers/Modifications can be requested
 Objections to Penalty
ENSURING ACCURACY OF THE PUBLIC REGISTER

21.  QFC Investment Clubs Regulations and Rules were issued in 2016
 Investment Clubs are LLCs by nature
 No authorisation is required from the QFCRA
 Its main function is to pool contributions of members to invest and manage portfolios
of Assets and Securities.
 It allows groups of friends to jointly pool and invest their assets though this needs
to be done “not by way of business”
2
1
RECENT DEVELOPMENTS: INTRODUCTION OF
QFC INVESTMENT CLUBS

22. 2
2
NATURE OF INVESTMENT CLUBS
MAIN DIFFERENCES BETWEEN A REGULAR QFC LLC AND AN INVESTMENT CLUB
LLC Investment Club
Shareholders
Minimum: 1
No maximum
Minimum: 2
Maximum: 15
General
Meetings
Minimum 1 in a year Minimum 4 in a year
Share Transfers Require no approval from QFCA Require QFCA’s approval

23. THANK YOU