Setting up an Offshore Company in Qatar 2019

What is an Offshore Company?

An offshore company is a corporation that is registered outside a country in the jurisdiction which offers them business-friendly terms of incorporation. The benefits of starting an offshore company are

  • Low or zero taxes
  • Ease of incorporation
  • Reduced administration and low maintenance
  • Robust legal framework with freedom from state regulation
  • Ease of transferring capital investments and funds
  • Robust banking sector
  • Ease of international operations
  • Full foreign ownership
  • Asset protection and management
  • Anonymity and confidentiality
  • Political stability

The businesspeople, entrepreneurs and investors analyse the points mentioned abosve before selecting a location for setting up their offshore companies.

Characteristics of Offshore Companies

  • Internationalisation of business operations
  • Exemption from local tax regulations
  • Low maintenance cost
  • No legal obligations to have a director
  • Confidentiality and protection of assets for the company owners
  • Advantageous for international trade where the beneficiary of the offshore company controls the supplier company

Why Start an Offshore Company in Qatar?

Starting an offshore company in Qatar allows you to operate the business away from your country while enjoying the tax benefits and support infrastructure offered by the host country where the registered offshore company is taxed based on the offshore taxation policies and protected based on the country’s legal system.

Conducting business in an offshore jurisdiction offers protection from the unnecessary taxation, stringent regulations and accelerates business growth globally. This assists the company in expanding into various international markets while staying at a stable and neutral location with standard laws, effective regulations and state-of-the-art facilities.

An Offshore Company is ideal for

a)Companies that Need Financial Stability

The companies operating in volatile markets (i.e., hyperinflation, political unrest, unstable legal structure etc.) are not in the hands of the business andmight have the need to set up their headquarters at a country with good legal framework, secure economy, and stable location to avoid significant stability issues and market failures that arises in the country of operation.

b)Businesses Looking to Operate Internationally

The businesses that are planning on expanding their operations internationally while buying assets in foreign nations for the company might start an offshore company to maintain a neutral ground while handling company assets between multiple countries. The offshore company in a standardised location offers a secure legal environment and stability while engaging in business with various countries.

Companies that operate from a standardised location have reduced administrative requirements and benefits of convenient reporting, lower taxes, legal protection, lesser legal conflicts as the company can operate in multiple locations with a centralised HQ in the offshore jurisdiction, saving the cost of following a different set of legal requirements in various countries and markets.

c)Startups Looking for International Investments

The startups that operate in niche fields such as advanced biotechnology, the blockchain, cryptocurrency, space research, clean tech,cybersecurity, AI development, medical research etc. might require locations that have the environment to grow and opportunities for startups to gain international investment. Besides, while offering a legal framework that supports the high-tech startup culture the country might have supportive infra for high-tech development.

Certain countries might not have the facilities, or foundation for a high-tech business to grow due to lack of funds. Some countries might not allow certain startups in niche fields to operate because the legal framework does not recognise the business sector or prohibits operation in the area and the functioning of such businesses are highly restricted to governmental organisations.

d)Companies that Need Asset Protection

Some countries lack a robust banking infrastructure and significant asset protection. Besides, it might be difficult for a business to transfer money and assets between divisions of the organisation or to partner companies.

Hence, the business might look forward setting up an offshore company in a country which has stable banking systems, effective banking policies that facilitate international business operations thereby offering significant security to the financial capital held by the company.

Furthermore, setting up an offshore company protects the company’s assets from creditors, plaintiffs, attorneys, family members, ex-spouses, etc.

e)Business Requiring a Strategic Location for Accelerating Growth

Businesses that are concentrating on a region of operation such as Middle East, Europe for example can create an offshore company in these jurisdictions for effortless business operations avail the benefits of low taxes, positional advantage, and access to double-taxation treaties which saves the companies from paying double taxes which significantly saves the business expenditures while allowing the company to offer better services at lower costs.

Businesses that are well-served by Offshore Companies

  • E-commerce
  • Web-based business
  • International trade
  • Consultants
  • Stock and forex traders
  • Foreign investors

Advantages of Starting your Company in Qatar

  • World-class infrastructure supporting business operations
  • Secure business environment
  • Extensive support from the business community (i.e., Qatar Chamber of Commerce)
  • Qatar offers a solid foundation for yourcompany
  • Rapidly-growing economy
  • Transparent regulations and the legal environment
  • Excellent talent pool of employees
  • Immense capital availability throughinternational investment

Limitations of an Offshore Company

  • Offshore companies are not suitable for investment activities
  • International tax planning schemes are necessary for companies to engage in business with countries that reject invoices from the overseas company
  • The offshore company is prohibited from trading or operating within the jurisdiction in which it is registered
  • Starting an offshore company requires significant capital investment

Excellent Locations for Starting your Offshore Company

If you are interested in starting an offshore company contact us, we at Business Setup Worldwide have experienced team of professionals who are expert in incorporating offshore companies in popular offshore destinations in the world.

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About the Author

narayanan@bsworldwide.com's picture

Narayanan has been a ghostwriter for the past 4 years. As an undergrad in Electrical & Electronics Engineering, he has a well-founded interest in developing sustainable solutions with innovative technology. Intellectually curious, he has a wide range of interests ranging from Renewable Energy, Electronics, Technology, Military Science, Geopolitics, International Relations, and world history.