Branch of a Foreign Company in Qatar

Qatar has time and again proven to be one of the most successful countries in the world, both economically and financially. Their economic development strategies have proven to be very effective due to which the country has emerged to be one of the richest globally. The investment incentives, banking services, infrastructure, political, and social stability all contribute to creating an excellent environment for business. Foreign investors find it very useful that English is the main business language in Qatar which improves easiness in further business communication. Company formation in Qatar proves to be more beneficial to foreign investors due to good access to low cost skilled and unskilled labor available.

A foreign business can set up its branch in Qatar given they follow all the regulations set by the Ministry. If the project of the branch office facilitates the performance of the public service or utility and the company is performing a specific contract for a government client then there is no need to have a Qatari partner, but the branch office will be fully taxable in Qatar, and is limited to only perform the specific contract for which it is registered.

Features of a Branch Office in Qatar

  • Qatar regulation allows a foreign company to set up a branch in Qatar only when the company has got a government contract for the provision of public service
  • A branch office must be initially authorized by the Ministry of Economy and Commerce
  • Branch offices are fully taxable unless granted a special exemption
  • There are no share capital requirements for a branch office
  • Domicile migration is allowed

How to Set Up a Branch Office in Qatar?

A branch in Qatar is not considered a permanent establishment by the Qatari government. The company needs to take the permission of MEC before establishing a business there and once the project is completed the branch is usually closed and the operations are ceased. Consequently, the formation of Branch Offices is not that common and only suits a small number of ventures. Many foreign investors do not want the restriction of only trading within the confines of a given contract.

The activities of the branch are limited to carrying out just specific contracts on which the registration is not based, and further approval is required to add or renew contracts. While it is possible to establish an LLC once all the relevant legal requirements are complied with, branch registration requires the approval of the Minister of Economy and Commerce, and the Minister's approval is entirely discretionary. To set up a branch of a foreign company in Qatar, following steps are to be followed:

  • Fill out an application form mentioning the complete details of the company and its shareholders to open a branch in Qatar
  • Draft a Memorandum of Association (MOA) and obtain a preliminary approval from the Minatory of Economy and Commerce
  • Obtain a Commercial Residence (CR) after you get the approval from Ministry
  • Register for a Computer Card so that you can employ for a full-time until the project gets over with

It takes around 4 weeks to open a branch office in Qatar.

Why Set Up a Foreign Company Branch in Qatar?

Investors from around the world consider Qatar as hotspot owing to its friendly and rich business infrastructure. Setting up a branch in Qatar is an attractive prospect for clients as it can be completely foreign owned. If you are a foreign company executing a specific contract in Qatar, you can choose to establish a Branch Office.

It can be often difficult to set up a business in a foreign land since one is not aware of the various regulations of that particular country. We at Business Setup Worldwide will make this process hassle-free by helping you in company or branch registration in Qatar. We offer services right from company registration and incorporation to accounting, bookkeeping, and company secretarial services. Contact us, even if it is just for a friendly advice.