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Registering your company in Qatar costs about $15,000 for the setup and license to get into the Free Zone.
Since Qatar is one of the fastest-growing countries in the world, a strategy for attracting investments has been approved by it, leading to bold decisions and procedures. The Qatar National Vision 2030, a development plan initiated in 2008 spearheading the country’s economic diversification in non-oil sectors, is part of this strategy.
Being a nation with some of the most compelling projects in the world and a truly talented international workforce, the opportunities for growth in Qatar are infinite.
Who can start a business in Qatar?
According to Qatar’s business laws, a foreigner can only start a business in Qatar if they have at least one Qatari partner and meet the requirements set by the Commercial Companies Law. These requirements includes the following:
- A Qatari founding partner need.
- Proper commercial registration with the Ministry of commerce and industry
- All legal contracts must be in English and Arabic
- A minimum share capital of QAR 200,000.
- A minimum of two shareholders, with the Qatari shareholders owning 51% of the company.
Business Structures in Qatar
Like most countries, Qatar has different business structures and companies allowed. These are:
- General partnership
- Limited share partnership
- Joint partnership
- Public shareholding
- Holding company
- Joint venture
- Limited liability company
- Branch office
- Representative office
The most common business structure chosen by most business owners in Qatar is the limited liability company (LLC) and a branch office.
E-commerce business in Qatar
Qatar’s e-commerce section provides a lot of opportunities for those wishing to start or develop existing e-commerce businesses.
Presently, the e-commerce penetration in the country is only 20% but, a high level of disposable income, a favorable business climate, and a connected community make it an incredible opportunity for any possible e-commerce business.
Also, you don’t need a permanent residence to be a partner in an online business Qatrty, and can even start an online business while on a business visa. What you have to do is get your business registered with the Ministry of Commerce and Industry, the Qatar Financial Centre, or Qatar Science and Technology Park.
Why Qatar Free Zones (QFZ)?
The Qatar Free Zones Authority (QFZA) is an independent authority established in 2018 to supervise and regulate world-class free zones in Qatar, providing excellent opportunities and advantages for businesses seeking to expand globally.
The Qatar Free Zone Authority (QFZA), Qatar Science & Technology Park (QSTP), and Qatar Financial Center (QFC) are the three regulatory bodies assigned with the general administration, management, and control of the Qatar Free Zone (QFZ) L
Companies incorporated in the QFZ have the following advantages:
- No customs charge
- No corporation taxes
- 100% foreign ownership
- No individual income taxes.
- Renewable 20-year tax holiday.
Also, the QFZA has authorized a wide range of activities that entities wishing to incorporate in the Free Zone may engage in. L
How to Register a Company in Qatar:
A Limited Liability Company (LLC)
The LLC Company Formation in Qatar has greatly benefitted customers in pursuing better avenues as well as opportunities.
Some of the steps involved in incorporating one are as follows:
- Assign a reasonable and unique company name
- Provide a temporary bank account
- Provide Articles of Association
- Deposit Capital share
- Authentication of Articles of association
- Register with the Qatar Chamber of Commerce and Industry
- Procure a Company Seal
- Attain a Trade License
Branch Office in Qatar
A branch office in Qatar represents one of the most important forms of business through which foreign companies undertake their activities.
A branch office can have 100% ownership and is not considered a separate legal entity and a permanent establishment. It is only authorized if you have a legal contract to accomplish. A state project needs to be authorized by the Ministry of Economy and Commerce and is fully taxable. The process for establishing a branch office is nearly similar to an LLC with an extra requirement of permanent tax card application within a month from the receipt of commercial registration.
Taxation for businesses in Qatar
Unless particularly exempt from tax, an entity will be taxable in Qatar if it has yielded Qatar-source income, irrespective of the place of its incorporation. Taxable income normally is subject to a flat (Corporate Income Tax) rate of 10%, with specific exceptions available.
Any payments made to non-resident entities without any permanent establishment in Qatar attract withholding tax for the companies at a 5% unified rate and include interest, royalties, commissions, etc.
Companies owned by Qatari nationals are tax-exempt but must file tax and audited financial statements if the capital surpasses QAR 2 million.
Staff Employment staff when setting up a business in Qatar
The hiring of employees can start only after the business is set up and a Computer Card is acquired. It is important to note that all employees must have a residence visa and work permit given by the employer. Employers should also provide foreign workers with a contract of employment.
In addition, foreign employees must receive prior authorization from the Ministry of Labor and the Ministry of Interior before they can sign local employment contracts.
Starting a business in Qatar might seem a bit challenging, but it’s not. Just contact your Damalion expert now to register your company in Qatar.
