Qatar is often classified as one of the world’s most competitive and innovative economies. The country’s vibrant economy provides many opportunities for businesses to succeed.
Some of the unique aspects of Qatar’s business landscape are the Qatar Free Zones and Qatar Financial Centre (QFC). Qatar’s free zone has advantages such as full foreign ownership of shares, no restriction on foreign currency, no income or corporate tax, or taxation on foreign trade.
Also, Qatar Financial Centre (QFC) allows up to 100% foreign ownership, 100% repatriation of profits, and charges a low rate of corporate tax on locally sourced profits.
As a nation with some of the most compelling projects in the world and a truly talented global workforce, the opportunities for growth in Qatar are endless.
A foreign investor can register a holding company in Qatar Financial Centre (QFC)
Qatar Financial Centre (QFC) has recently opened its doors to more non-regulated companies, enabling them to establish a 100% foreign-owned company. The QFC now provides not only a choice to have a local Qatari partner but also offers an easier and more affordable alternative.
QFC Professional And Business Services
A wide range of corporations and entities are now active in the QFC under the permitted Non- Regulated Activity of “professional and business services”.
Professional and business service providers are corporations that actively provide business-to-business services. Professional and business services are a vast concept and are not limited to “auditing, tax, and legal services” as referred to mainly in the QFC Law, but extend to and comprise the following types of activities:
- Advisory and consulting
- Holding company
- Audit and accounting
- Public relations
- Media
- Tax consulting
- Media representation services
- Advertising agencies
- Legal services
- Estate planning and will writing
- IT consulting
- Architectural activities
- Engineering-related activities
- Environmental consulting activities
- Logistics
- Translation activities
- Other business-to-business services.
This is not, however, an all-out list of the professional and business activities. As of the time of writing, the QFCA (Qatar Financial Centre Authority) considers that any “qualified business-to-business services” can fall within this sector and are, therefore, permissible.
Qatar Limited Liability Company (LLC) vs Foreign Branch
Qatar Limited Liability Company
Any one or more individuals may apply for the incorporation of an LLC in Qatar for the objective of carrying on business activities permitted by the Qatar Law.
Key Features of a Qatar LLC:
- There shall be at least one member, which can be of any nationality;
- There is no minimum share capital for a Qatar LLC performing Non- Regulated Permitted Activities and the share capital may be in any denominated currency;
- A Qatar limited liability company incorporated imposes a minimum of QAR 200,000 capital, with Qatari nationals owning 51% of the shares in the company.
- The percentage of profits in the company cannot reflect its shareholding.
- A Qatar LLC can only acquire a trade license if it has adequate office space.
- A Qatar LLC cannot carry out investment-related activities such as banking or financing by the government.
- A Qatar LLC is charged a 10% corporate tax over its total profits in a fiscal year.
- A Qatar LLC can simultaneously carry out infinite contracts.
A Branch Office in Qatar
A Branch Office in Qatar is a registered company that does not need a sponsor, thus enabling the foreign business to maintain 100% ownership.
Features of a Qatar Branch Office
- Qatar regulation permits a foreign company to set up a branch in Qatar when that company has a legal Government contract for conducting a specific project.
- It is not regarded as a permanent establishment by the Qatari Government
- A Qatar Branch Office must be authorized by the Ministry of Economy and Commerce
- Qatar Branch Offices are taxable unless given a special exemption
- There are no share capital requirements for a Qatar Branch Office
- Branch Offices cannot conduct any other commercial activity in Qatar outside the spectrum of the contract and the life of the branch is in effect, associated with the life of the contract.
The law states that branches are not to be regarded as a separate legal entity from the main company.
Register a company in Qatar
In Qatar, starting a company is relatively straightforward but can be a lengthy and complicated procedure without the right information or firm by your side.
Generally, the steps involved in setting up a Qatar company involve the following:
- Select a name: the trade name is an important part of the legal process. The name is usually reserved through the Ministry of Economy and Commerce.
- The Next step is Drafting the Memorandum of Association (MOA) or Articles of Association (AOA). Once completed, the MOA or AOA will need to be verified by the applicable authority under the Ministry of Justice.
- After the verification of the MOA or AOA, the following step is applying for the trade license and tax certificate.
- After acquiring the trade license, you then can apply for an establishment card from the Ministry of the Interior.
- Next is getting your Tax Identification Number (TIN) registered with the Public Revenue and Tax Authority.
- Finally, you have to get a company seal.
It is assigned for all mainland companies to have a commercial office address provided with their name.
Are you ready to start your company in Qatar? -Let’s go ahead and contact your Damalion now.
