What You Need to Know About Registering a Company in Qatar?

What You Need to Know About Registering a Company in Qatar?

Qatar is considered one of the most rich nations in the world. The two driving industries are the natural gas and oil industries. The administration is imposing several initiatives to make the country a profitable jurisdiction for registering a company in Qatar.

Qatar's Gross Domestic Product (GDP)​​ The official estimate for Qatar's GDP was $267 billion at the end of 2023.

What Taxes Are There in Qatar for Company Formation?

 If you are interested in registering a company in Qatar, then you must be familiar with the tax system in Qatar. Know more about the same in this section: 

  1. Corporate Income Tax

The corporate income tax rate in Qatar is 10%. However, if you are starting a business in petroleum operations or the petrochemical industry, then you have to pay a 35% tax. 

  1. Value Added Tax (VAT)

The standard VAT rate in Qatar is 5%. However, some goods and services are tax-exempted. Education and healthcare services are some of those services. 

  1. Excise Tax

Excise tax is a single-phased tax imposed on the production or import of excisable goods. Check out the list of products where Qatar imposed excise tax:

  • Tobacco and its products – 100%
  • Carbonated drinks – 50% 
  • Energy drinks – 100% 
  1. Withholding Tax

A 5% withholding tax is imposed in Qatar on the gross amount made to the non-resident service providers for royalties and interest.

What are the Eligibility Criteria for Registering a Company in Qatar?

You have to meet particular criteria for a company formation in Qatar. Check out the following aspects to start your company in Qatar. 

  1. Ownership

Qatar free zone allows 100% foreign ownership. The nation has two free zones named Qatar Financial Centre (Q.F.C.) and Qatar Science and Technology Park (QSTP). You can own 100% of foreign ownership in Qatar's mainland for certain types of business activities, such as the following:

  • Agriculture
  • Healthcare
  • Education
  • Minerals. 
  1. Share Capital

Share capital depends on the type of business structure and the type of business you are doing. The minimum share capital is QR 200,000 for an LLC in Qatar. The minimum share capital for a JSC is QR 2 million. 

  1. Legal Requirements

Maintaining all the legal compliances is mandatory for registering a company in Qatar. Check out the following laws:

  • Tax laws
  • Labor laws
  • Health laws
  • Security laws
  1. Business Activities

Qatar allows only certain types of business activities. There are huge business opportunities present in Qatar. You aren't allowed to engage in harmful business activities like the production of alcohol is not permitted. 

  1. Documentation

The company needs to provide the following documents:

  • Business plan
  • Articles of Association (AOA)
  • Memorandum of Association (MOA)
  • Passport copies of the shareholders
  • Commercial License Application Form.

What are the Different Business Entities for Company Formation in Qatar?

You will get a lot of options for company setup in Qatar. Check out your options hereby:

  • Sole Proprietorship

A sole proprietorship company is run by a single person. This is the most common type of company structure in Qatar. A sole proprietorship company is suitable for any small venture.  

  • Limited Liability Company (LLC)

An LLC is a popular company structure where the debts of the owners are restricted to their contributions. The shareholders are the members of an LLC in Qatar.

  • Joint Stock Company (JSC)

The stocks are publicly traded on the Qatar Stock Exchange for a JSC business entity. A JSC also has shareholders in the form of the members. 

  • Branch Office

You can open a branch office in Qatar under the names of the parent company. However, the branch company will follow the rules and regulations of the parent company's home country. 

  • Representative Office

A representative office in Qatar doesn't engage in commercial activities. However, you can explore various business opportunities without generating any income or signing contracts. 

What Documents do I Have to Submit for Company Setup in Qatar?

You have to submit the following documents for registering a company in Qatar:

  • Copy of the Business Plan
  • Address of the commercial premise
  • Duly filled out the company application form
  • Identity and address proof of the shareholder(s)
  • Drafted Memorandum and Articles of Association

How to Set Up a Company in Qatar?

You have to go through a certain process for a company formation in Qatar:

1. Finalize the Company Name

Select a company name for a company setup in Qatar. Ensure you are following all the trade name regulations in Qatar. The selected names should not be offensive and different from the competitors.    

2. Choose a Strategic Location

Qatar has mainland and free zone business options. Each location has different benefits to offer. Align the benefits with your Qatar business needs.  

3. Determine the Company Structure

Choose the company structure according to your business. Qatar has numerous options when it comes to company entities. Check out the options you have in Qatar for company formation in the above-mentioned section.  

4. Obtain the Approval

You have to take the initial approval from relevant authorities like the Ministry of Commerce and Industry or the Ministry of Energy and Industry.

5. Submit the Required Documents

The next step is to obtain a commercial license in Qatar to perform some business activities. Submit all the required documents. 

6. Open a Bank Account

The last step includes opening a bank account in Qatar for your company. This bank will be responsible for holding all the company's financial transactions.

Why BSW?

Choosing a consultancy like Business Setup Worldwide is always a better idea when it comes to registering a company in Qatar. We can guide you through the entire process with the help of our experienced consultant team. 

You just have to contact us by mail at [email protected] or give us a call for inquiry. We will take care of your company formation in Qatar. So don't delay in contacting us.