Vertical Tabs

Qatar

One of the most emerging grounds in the Arabian Gulf countries, Qatar has been emerging as the golden business ground for global business investors. Over the years, there has been a positive inclination towards the company setup process in Qatar. As per the reports published by the World Bank, the region of Qatar holds the worth of 201 Billion USD.

Qatar has enormous potential business investors who are at the initial and experienced stage. Ranging from startups to SMEs, Qatar is one of the perfect investment destinations, holding Doha as the capital. With the increasing growth of business establishments, the government has implied multiple flexibilities to provide the best business incorporation experience.

This guide highlights all the essentials that are required for a business investor to know before proceeding towards setting up a business in Qatar. If you are severe regarding incorporating your business in the Kingdom of Qatar, then you are in the right place. Let’s start by understanding the economic outlook of the region.

Qatar Economic Outlook

Backed by petroleum and natural gas, Qatar is one of the emerging grounds that stands as the world’s third-largest gas reserve. Over the years, the Qatari government has been eyeing to leverage the non-oil segment to enhance the nation’s revenue. By the end of 2021, the Qatar Economic Growth is projected to hold a growth count of 2.5%.

Business Opportunities in Qatar

The region of Qatar welcomes the newbies as well as the experienced business players in the market. Some of the booming business opportunities that are prevailing in Qatar are:

  • Tourism
  • Hospitality
  • Retail
  • Import-Export
  • Manufacturing etc.

Apart from the business mentioned above opportunities, here’s more on the top business opportunities in Qatar.

How to Start a Business in Qatar?

Starting a business in Qatar involves numerous steps that an investor needs to take care of. Some of the essential steps required are:

1.Understanding Your Business Needs

Understanding the business activity is the first and foremost task of any business. The business owners need to be clear regarding the target market and the business activities that need to be carried out effectively.

2.Choosing a Strategic Location

Qatar provides multiple flexibilities to the business investors to proceed ahead with the location options. Several free zones have been established to focus on dedicated business sectors. Make sure to select the best business location after analyzing the pros and cons of the same.

3.Select a Business Name

This stands as one of the crucial and essential tasks at the same time. While choosing a trading name in Qatar, the investors need to keep an eye on the following:

  • The selected business name shouldn’t be the same as competitors
  • The trade name shouldn’t sound offensive
  • It shouldn’t include the name of God

4. Get the Required Documents and Proceed towards Commercial Registration

It is important to note that documentation plays a crucial role when it comes to the business setup in Qatar. To complete the business registration process, an investor needs to provide a set of stated documents which includes:

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

All the documents submitted by the investor undergo an in-depth verification process by the Qatar Company Registry, which involves the document attestation process in Qatar.

5. Open a Bank Account

A bank account is an essential part of business incorporation in Qatar. Holding a corporate bank account helps the customers and the business owners/ investors to carry out business transactions in a smooth way. Also, it helps the owners to distinguish personal and professional finances. Here’s a guide on how to open a corporate bank account in Qatar, which will help you to understand every step in a detailed way.

6.Hire the Manpower

Selecting the right candidate for the right job is very important for any business. It is to be kept in mind that once the company incorporation tasks get done, it requires an adequate number of people to manage it. An employer needs to onboard the employees by providing an employee visa. Here’s a guide on proceeding towards the visa services in Qatar.

7.Proceed with Post Incorporation Process

Once the company gets established, maintaining the same is a big challenge. One of the easiest ways to maintain it safely is to implement the post-incorporation services that are necessary for any business for performing smooth operations. Some of the services include the following:

Implementing these fundamentals will help you to keep a track on your business growth, and take the necessary steps accordingly.

Types of Business Entities in Qatar

A business investor in Qatar can select any one of the business entities:

1.One Person Company

    As the name suggests, a One-Person Company in Qatar is owned by a single natural person or corporate entity, that is to say, the company’s entire share capital and economic bearing are held by that one person or corporate entity. The company’s owner is responsible for company obligations from one’s own assets unless he/she separates one’s interests from that of the company.

   The minimum share capital required to start a One-Person Company in Qatar is QR 200,000 (approximately 54,000 USD). Also, the name of the company should be linked with the name of its sole proprietor, followed by the phrase “One Person Company (O.P.C.)”

2.Simple Partnership

   A Simple Partnership in Qatar is a company formed by 2 or more natural persons who are personally and jointly responsible for the liabilities of the company, i.e., they bear unlimited liability.

     The name of the partnership should be composed by reference to the name of all its partners, or one partner, followed by the phrase “And Partners”. It can have a special commercial name, provided that name is connected with the fact that it is a simple partnership company.

3.Joint Partnership

     A Joint Partnership in Qatar is similar to a simple partnership, except here, it has two types of partners:

(1) Joint Partners

The one who bear unlimited liability for the company’s liabilities, and

(2) Trustee Partners

These partners bear the responsibilities of the company only to the extent of the respective value of their shares in the capital. A trustee partner may not indulge in the management affairs of the company.

4.Limited Liability Company (L.L.C.)

Limited Liability Company (L.L.C.) in Qatar can have between 2 to 50 partners, whose respective liabilities are limited to the value of shares they hold severally in the company. The name of such a company should be succeeded by the phrase “Limited Liability Company”. The shares of an L.L.C. in Qatar are not freely transferable. The minimum capital required to start an L.L.C. in Qatar is QR 200,000, divided into equal-value shares of not less than QR 10 each. In Qatar, an L.L.C. is not allowed to engage in the Banking, Financial Services & Insurance (BFSI) industry.

5.Public Shareholding Company (P.S.C.)

Public Shareholding Company, also known as a Joint Stock Company, in Qatar is a company whose capital is distributed into transferable shares of equal value. Such a company must have at least 5 shareholders. The minimum capital required to form a Public Shareholding Company in Qatar is QR 10 million and the name of the company should be followed by the phrase “Qatari Public Shareholding Company”.

6.Limited Share Partnership

A Limited Share Partnership in Qatar is a company formed between 1 or more joint partners (who must be Qatari citizens) and at least 4 trustee partners. The trustee partners bear limited liability for the company, while the joint partners are responsible for the debts and obligations of the company in a personal capacity. The minimum capital required to start a Limited Share Partnership in Qatar is QR 1 million, divided into equal-value shares that are transferable.

7.Joint Venture

A Joint Venture Company in Qatar is an unincorporated entity without legal personality. However, it has to specify its objectives as well as rights and obligations of the partners, and how profits and losses would be distributed between its partners, who are required to be 2 or more in number. Foreigners may be partners of a joint venture; in which case the company can only carry out those activities permitted for non-Qataris under the country’s laws.

8.Holding Company

A Holding Company in Qatar is a company that has financial and management control over other companies by owning at least 51% of one or more Shareholding, Limited Liability or One-Person companies. The minimum capital required to form a holding company is QR 10 million. The name of such a company should be followed by the phrase “Holding Company”.

9.Branch of a Foreign Company

Branch of a Foreign Company in Qatar is an offshoot of a company abroad, facilitating the performance of a public service or utility. Such an office does not call for a Qatari partner to be set up, is entitled to carry out only certain activities specified in its registration contract, and are required to be authorized by the Ministry of Economy and Commerce. A Branch Office of a Foreign Company in Qatar is fully taxable unless granted any special exemption.

10.Representative Trade Office

A foreign company can register its Representative Trade Office in Qatar to market and promote its business in the country. A representative office is required to be registered in the Commercial Registry, and is not permitted to export, import or sell goods/services.

List of Free Zones in Qatar

Just like the other Gulf nations like U.A.E. and Bahrain, Qatar also has got free zones that allow the business investors to carry out the business entities at a low cost.

1.Qatar Financial Centre (Q.F.C.)

Finance is the driving force of any business that determines the growth of the business and the economy. With the growth of business entities in Qatar, the demand for financial opportunities has also leveraged to a great extent. Focusing this, the Qatari government has launched the Qatar Financial Centre (Q.F.C.) in the year 2005, intending to provide the best financial infrastructure for the companies to grow.

2.Qatar Science and Technology Park (QSTP)

Science and technology have left an unforgettable footprint in the lives of human beings. With the advancement of science and tech, the business entities have been adopting the tech at a faster pace. The Qatar Science and Technology Park free zone has been built to provide flexible business investment opportunities to business investors who want to start a business in Qatar.

Tax Scenario in Qatar

According to the Ministry of Finance, Qatar, the region has wiped off the income tax, which means that the earning individuals are free of paying tax. When it comes to the corporate structures, the business entities are required to pay the corporate tax at 10%.

As a part of the G.C.C. countries, Qatar has implemented the V.A.T. scenario in the region on 1st Jan 2009, which is fixed at a rate of 5%.

Also, to bring in more favourable business opportunities for business investors, Qatar holds the Double Taxation Treaties (D.T.A.s) with more than 60 countries across the globe. This paves out multiple opportunities for business investors to carry out free business trade with all the possible locations.

Why Invest in Qatar?

Investment in Qatar is one of the profitable moves that any business investor can make. It is one of the easiest ways to make the user move or available business finance and leverage business profits. Some of the core reasons for investing in Qatar include:

  • A business-focused and growing economy
  • Huge investment opportunities
  • Easily accessible to other GCC nations
  • Suitable for newbies as well as experienced business professionals

Here’s a guide on why invest in Qatar, which will help you to understand the investment scenario more clearly.

Qatar Government Initiatives

Over the years, the government has been implementing multiple business strategies to uplift the economy to a great extent. Qatar National Vision 2030 is one such initiative that has been implemented. The core idea behind this is to strengthen the economy of Qatar, widen the business scope for global investors and develop a favourable climate to fetch-in more FDI.

Thus, you have got a clear idea regarding the economy of the region of Qatar along with the business establishment process. It turns out to be smart if one decides to proceed ahead with the help of business experts, as dealing individually might turn out to be troublesome.

Why Business Setup Worldwide?

Business Setup Worldwide has been one of the best business consultants in the UAE, which has been focusing on providing hassle-free business operations.

Our team of experts are well-versed with the business incorporation process and includes business setup solutions exclusive to your business. If you are looking forward to setting up a business in Qatar, feel free to have a word with our experts. Contact us today-we’d be glad to assist.

Types of Company Formation in Qatar

Qatar Free Zones

Qatar Free Zones

Intending to provide a dedicated zone to each business industry, the Government has taken the initiatives...

Locations

Doha

Doha

The capital and most populous city of Qatar, Doha is the administrative, financial and cultural centre of the country.

Frequently Asked Questions