Real Beneficiary

These questions and answers aim to provide a general glimpse about the requirements of declaring the real beneficiary of commercial companies only. Yet, the frequently asked questions are not considered a legal explanation about the real beneficiary, nor a substitute of law no. (1) of 2020 about integrated economic record and its legislative list.

 

What is the declaration of real beneficiary?

A legal procedure commercial companies are committed to, to determine the identity of the normal person who practices an actual and total control over a company. The declaration of a real beneficiary transaction is submitted through MOCI’s investor services online via:  https://services.moci.gov.qa

How long to complete a declaration of a real beneficiary transaction?

The transaction may take not less than 5 minutes through the services portal if all required data and documents are submitted by the applicant.

What are the documents required to declare a real beneficiary of a company?

The name of the real beneficiary according to an official identification document: ID card or passport

Date and place of birth of the real beneficiary

Nationality of the real beneficiary, or nationalities if multiple

The address as stated in the official identification document

Number of Qatari ID card for citizens and residents

Number of passport for non-Qataris and non-residents in Qatar

Issue and expiry date of ID card or passport

Date a person has become a real beneficiary

Determination of how a real beneficiary controls a company

A copy of an official document of proof of the company’s real beneficiary and legal representative (manager)

Fill the declaration of a real beneficiary form, signed by one of the managers of the company if the application is submitted manually

 

Why it is required to declare the real beneficiary?

As of law no. (1) of 2020 about the integrated economic record, the declaration of a real beneficiary is a mandatory procedure that registered companies are committed to. Declaring the real beneficiary is applied upon the request to register a commercial record, modify it, or renew it, so any of these requests will not be accepted unless the real beneficiary is declared.

Who is obligated to declare the real beneficiary?

All companies registered in the country are committed to declare their real beneficiary. The following establishments are exempted from declaring the real beneficiary:

  1. A company listed in the stock exchange, which is obligated to disclosure requirements that guarantees the verification of a real beneficiary in sufficient transparency, or a subsidiary that it owns a share in.
  2. A company fully or partially (controlling share) owned by the government, general authorities, or corporations
  3. A sole proprietorship company since it is not considered a moral person and doesn’t have a financial liability independent from its owner.

What is the purpose of declaring the real beneficiary?

Ensure the transparency of financial and business transactions, take necessary measures to provide information to law enforcing entities, judiciary powers, and regulatory authorities.

 

What are the types of companies obligated to declare its real beneficiary?

  1. General partnership company
  2. Simple partnership company
  3. Private shareholding company
  4. Stocks partnership company
  5. Limited liability company

Who is the real beneficiary?

A normal person who actually owns or controls a company, or the person all transactions are made on his/her behalf. It also describes a normal person who practices an actual and absolute control over a moral person.

What are the procedures to declare a real beneficiary?

  1. Login e-services portal on MOCI’s website.
  2. Click “investor services” icon
  3. Sign in or sign up in case you are not registered yet.
  4. Click “modify business data” from e-services list, then select “declare a real beneficiary” and complete the declaration procedure

Kindly observe “Process to apply a declaration of a real beneficiary form online” published on Invest in Qatar portal

Is it possible to declare the real beneficiary through the Single Window?

It is not activated yet through the Single Window unless for a business comprehensive establishment. The declaration of a real beneficiary can be applied online through investor e-services on MOCI’s website through: https://services.moci.gov.qa

Are there any fees on declaring a real beneficiary request?

No, there isn’t any fees imposed on declaring a real beneficiary request

 

Is it possible to modify or change data after applying the declaration transaction?

Yes, it is possible by reapplying the declaration transaction

Is it possible to declare a real beneficiary who is a normal person unlisted in the commercial record?

Yes, it is possible in addition to clarifying the basis on which this beneficiary is determined as the person with full control

Is there a legal age for a real beneficiary?

The law has not stated a legal age for a real beneficiary. Hence, a real beneficiary shall be a person who actually controls a company, or transactions are held on his/her behalf.

What are the documents required when applying “declaration of a real beneficiary” request online?

A copy of passport for people who are not citizens or residents of Qatar. Whereas Qataris and residents are not required to attach any documents.

What are the standards to determine the ways a real beneficiary controls a company?

  • A normal person who owns an actual controlling share not less than (20%) directly or indirectly of the company’s capital or voting rights.
  • In case the first criterion is not fulfilled, the real beneficiary is a normal person who practices an actual or legal censorship or control directly or indirectly on the company’s executive bodies or general assembly, by identifying the content of decisions taken by the general assembly due to voting rights he/she acts upon, or as a partner who enjoys power of appointing or dismissing the majority of the board members, or other censorship tools.
  • In case the above two elements are not fulfilled, a real beneficiary is a normal person who has the status of a legal representation

 

How can I identify a real beneficiary correctly?

First, final normal people shall be identified directly or indirectly. In addition to identifying normal people who practice actual or legal censorship or control (manager/s) directly or indirectly over a company.

Then, determine the base and tools through which a real beneficiary controls a company absolutely, according to the standards mentioned in the “declaration of a real beneficiary” form by choosing the criteria according to its priority.

Are there any proofs that a company has applied the “declaration of a real beneficiary” request?

Yes, you will receive an SMS stating that the transaction has been submitted through MOCI’s e-services portal.

Knowing that the declaration of real beneficiary is a mandatory procedure prior to enrollment transaction (upon establishment), amendment, or renewal of a commercial record.

Is it possible to apply a declaration of a real beneficiary form manually in one of the services complexes across the country?

It is not possible currently, but you can apply by filling the declaration form manually or electronically with a handwritten signature, and hand it to the department of registration and commercial licenses, 2nd floor (MOCI headquarters in Lusail).

Is it required that a real beneficiary should own a capital share or voting rights in the company?

No not necessarily, it is possible that a real beneficiary practices actual or legal censorship or control, whether directly or indirectly, or represents the company legally.

Is it possible to apply for a declaration of a real beneficiary for one of the company’s branches?

A declaration of a real beneficiary shall be applied for the commercial record registered as a company’s main office.

IS declaring a real beneficiary who is a normal person not registered in a commercial record against the law of combating concealment of non-Qatari practice of commercial activities?

It is not necessarily a violation of law no. (25) of 2004 about combating concealment of non-Qatari practice of commercial, economic, and professional activities.

In this case, a company shall clarify the legal means through which a person is considered a real beneficiary, keep all proofs of identity, and determine the basic lines through which he/she totally controls the company, based on the forementioned standards in the “declaration of a real beneficiary” form.

A company shall commit to establishing and keeping a “real beneficiaries information” log and keep it in a safe place to be present upon request.

Is it considered a violation if a normal person’s data were submitted after the real beneficiary transaction is completed?

No, not necessarily. It is not considered a violation if a normal person who is not registered in the commercial record is considered a real beneficiary after the completion of the transaction due to legal means that grants a real beneficiary’s direct or indirect control on a company.

A company shall keep all proofs of real beneficiary’s identity and determine the basic lines through which he/she totally controls the company.

If the declaration transaction contained incomplete or incorrect information about the real beneficiary’s identity, the company shall bear all the administrative and financial sanctions provided stipulated in law no. (1) of 2020 about the integrated economic record, unless another law provides a more severe penalty.

Is it possible to declare a foreign person who hasn’t been to Qatar before as a real beneficiary?

Yes, it is crucial to reach the identity of normal people directly or indirectly and determine how they practice actual or legal control or censorship over the company established in Qatar, in accordance with the standards mentioned in the “declaration of real beneficiary” form.

When determining the way, a real beneficiary controls a company, the standards applied shall be selected according to priority.

Are foreign companies branches and commercial representation offices registered in Qatar obligated to declare a real beneficiary?

Yes, required information about the real beneficiary shall be available in Qatar before a registration, renewal, or amendment in the commercial record.

When declaring a real beneficiary of a foreign company’s branch in Qatar, shall it be the manager registered in the commercial record? Or the real beneficiary in the country of origin?

The real beneficiary is the normal person who actually owns or controls the company, whether in the country of origin or in Qatar.

Is it required to declare a real beneficiary of a moral person, a partner in the commercial record?

A moral person is obligated to declare a real beneficiary, and a real beneficiary’s identity shall be reached whether a manager or a partner, and how the real beneficiary controls the company.

Are there any fines to be imposed a real beneficiary is not declared? Or false information was presented?

Any application for registration in a commercial record shall not be accepted (upon company’s establishment), amendment or renewal until the real beneficiary is declared.

Whoever presented deliberately and intentionally false information about a real beneficiary, or helped with it, shall be punished with imprisonment not exceeding 3 years, and a fine not exceeding (500.000) five hundred thousand riyals, or one of those penalties. (In application of article 87 of law no. (20) of 2019 about the law of Anti-money laundering and combating financing of terrorism)

What is direct and indirect control of a company?

Directly: a normal person who is registered in a commercial record as one of the owners and partners, with explicit statement of ownership percentage, as well as a normal person who has a legal representation as a manager or a chairman, a member of the higher management.

Indirectly: A normal person who is not registered in a commercial record, for example and not a limitation:

A company established in Qatar, 100% owned by a foreign company, 100% of the capital controlled by a normal person. This means there is a real beneficiary who owns a controlling share indirectly, on condition, he/she doesn’t appear as the interface or a fictious owner on behalf of an invisible real beneficiary.

A normal person who practices actual censorship or control by proxy that gives authorization to control the administration, conduct, or censorship. The proxy is certified by the local and foreign authorities and allows the influence on the decisions content of the company’s executive bodies or general assembly. This person’s name is not registered in the commercial record.

 

 

If a real beneficiary owns direct capital shares and it appeared that he/she owns more capital shares indirectly, through shares in companies that own the company to be declaring the real beneficiary. Is it enough to determine the percentage of the real beneficiary’s controlling shares mentioned in the commercial record?

Direct and indirect controlling ownership that a real beneficiary has of a company shall be calculated, by examining the companies’ ownership structure that have capital shares in the company established in Qatar, for example:

Company (A) a Qatari establishment, the following contributes to:

Mr. (A) a 20% share

Company (B) an 80% share

Knowing that Mr. (A) is the sole owner of company (B)

SO, it turns out that Mr. (A) gains real beneficiary characteristics because of the 20% capital share he owns, where actually MR. (A) is the real beneficiary of company (A) 100%.

It is possible that there are other real beneficiaries of company (A), when a normal person who is a member of the company’s higher management, in case a real beneficiary cannot be defined as of the forementioned standards in the declaration of a real beneficiary form.

Are the companies that own a company listed in the stock exchange is committed to applying a real beneficiary declaration?

Companies listed in the stock exchange are not obligated to the commitments of the declaration of a real beneficiary, or any subsidiary company that it owns a controlling share in. It is obligated to disclosure requirements that guarantees verifying the beneficiary with enough transparency.

Article 287 of law no. (11) of 2015 about the law of commercial companies, determined the forms of controlling shares.

In case a company benefits from the declaration exception and couldn’t renew a commercial record, it shall complete the transaction at the Department of Registration and Commercial Licenses.

Why can’t I move to the next step of the declaration of a real beneficiary transaction because os a message that says, “incomplete data”?

 

The declaration transaction consists of several steps, you can’t proceed to the next step until you enter all required information of the current step. If there is any mistake, a message will appear staing the requirements.

The steps of declaring the real beneficiary:

  • Approve the general instructions
  • Determine the companies for which a real beneficiary is to be declared (headquarters only)
  • Update the real beneficiaries list by selecting “new”, “modify”, or “delete”
  • Upload required documents in case a passport data presented
  • Revise and acknowledge the data are correct
  • Submit the application

In case a note appears in “Update the real beneficiaries list”, kindly check all the information of each real beneficiary, and delete repeated names if any. People who are not real beneficiaries shall be deleted as well, after it is done you will proceed to the next page.

What if a person who is a member of the higher management or is a legal representative, is not a real beneficiary of a company, shall he/she be declared?

A real beneficiary is a normal person who owns or controls a company, or the normal person for whom transactions are made. It includes a normal person who practices an actual and absolute control over a company. The declaration and selecting the real beneficiary are the company’s responsibility.

Upon opening the declaration page, and looking for the company to be declared, the name of the company may not be present within the list?

In case multiple commercial records exist, you can move to the next page by clicking the arrow on the top of page, or you can search by the record number.

It may also happen due to applicant’s detained account, e-service portal can be used with another account (for a person registered in the commercial record) to apply for a declaration of a real beneficiary.