Qatar has been at the centre of attention from a plethora of foreign entrepreneurs, and rightfully so. The country's rapidly improving infrastructure, diverse workforce, and business-friendly laws have given rise to a steady influx of investments. As a result, opening a business in Qatar has become a cakewalk for expats.
Many business investors are going down the commercial agency route in Qatar due to the associated advantages. For instance, employing the help of a commercial agent means that you need not worry about any setup costs, and you can kickstart your business as soon as possible.
If you are worried about how to do business in Qatar via a commercial agency, you have come to the right place. Read on to learn more!
What Is a Commercial Agency and a Commercial Agent?
Business investors must familiarize themselves with what makes up a commercial agency under the scope of Qatari law. In this type of company formation in Qatar, a commercial agent acquires the exclusive rights to market and distribute goods and services from foreign countries in Qatar in place of the principal. Thus, a commercial agency rids the foreign entrepreneur of the hassle of setting up an organization under the rules and regulations of the Qatari government.
Qatari law mandates that only a citizen of Qatar can serve as a commercial agent, and the agency should be entirely owned by Qatari citizens. In addition, the agents will have to register with the Ministry of Commerce and Industry (MOCI), and there shall be a valid commercial agent contract.
What Are the Essential Conditions of Becoming a Commercial Agent?
With the help of a licensed importer, foreign enterprises can supply goods and services from their countries through a commercial agent. A commercial agent is equipped with designated clearing agents, warehouses, and an extensive network of contacts about Qatar's specific type of business. Let's have a look at the prerequisites for serving as a commercial agent:
- The Agent shall be a Qatari national, or Qatari citizens shall wholly own the commercial Agent.
- The Agent must be listed on the Ministry of Commerce and Industry's (MOCI) Commercial Register
- There shall be a valid commercial agent contract. The contract must include the following details:
- Name, Address, and Nationality of the Commercial Agent
- The Name of the Principal company and description followed by addresses of head office and branch, and capital amount
- A list of products, commodities, and services that the principal company covers
- The territory covered by the agreement
- The date on which the agreement came into existence
- The duration of the agency and the provisions in the event of a default
What Is the Procedure of Doing Business with the Help of a Commercial Agent or Agency?
When it comes to conducting a business in Qatar requirements, a commercial agent must keep up with the following steps:
- They will have to notarize the commercial agent agreement in Qatar or the country of the principal draft.
- If the agreement has been notarized in the country of the principal draft, then it shall be attested by the Ministry of Foreign Affairs and the Qatar Embassy in the region.
- If notarized in Qatar, the agreement shall be attested by the local Ministry of Foreign Affairs Office.
- The agreement shall be registered with the Ministry of Commerce and Industry (MOCI), followed by submitting the application form and other required documents to the MOCI.
- Payment of Fees
- The Agent or agency will receive a reply from the MOCI within 15 days. If accepted, the Agent can get confirmation of registration in the form of an authenticated certificate.
- The details concerning the commercial agent agreement will be published in the MOCI's commercial bulletin.
- If the MOCI has declined the registration request, the latter will provide reasons for the same.
Qatar is steadily developing into a global business hub, and many foreign entrepreneurs wish to reap the benefits. However, company registration in Qatar under relevant laws and regulations is not required for foreigners who are only interested in importing their products to Qatar for reselling purposes. In addition, the country offers an extensive range of top-quality commercial agents or agencies who can help you in your business pursuits. Get in touch with us today to learn more!