Qatar is one of the world’s third biggest natural gas reserves and oil reserves. It is a popular and attractive destination for entrepreneurs and investors who want to start businesses in the region not only due to its abundant oil resources but also for businesses seeking expansion opportunities.
The place is great for company formation in Qatar with its low tax rates and business-friendly atmosphere. It provides opportunities for growth in a thriving economy with a high GDP and excellent quality of life.
Qatar is becoming a desirable place for investors and entrepreneurs because of the government’s ongoing efforts to improve the business environment. There are several advantages of doing business in Qatar.
You will find guidance on how to establish a company in Qatar in this comprehensive guide. We’ll guide you through the essential steps and factors that come with starting a business so that you can confidently start on your entrepreneurial journey.
Benefits of Starting a Business in Qatar
In Qatar, there are two main areas for starting a business, the Qatar Business Zone and the free business zone. These zones have significant differences in their rules and advantages for businesses. The free business zone has attractive benefits such as full foreign ownership rights, no restrictions on foreign currency, no income tax, corporate tax, or taxation on foreign trade.
Most business owners in Qatar decide to start their businesses in the free business zone. It’s a hub for diverse industries like technology, logistics, maritime, manufacturing, and petrochemicals. Establishing a company in Qatar offers numerous advantages apart from access to the free business zone.
Let's explore the benefits of doing business in Qatar:
Qatar offers a well-developed business infrastructure and a skilled yet cost-effective workforce.
- No income tax on wages.
- No taxation on revenue from exports.
- Low corporate tax rate at 10%.
- Foreign business owners can transfer all profits to their home countries.
- Banks that are aware of the needs of business owners can provide supportive services.
How to Establish a Company in Qatar?
Establishing a company in a foreign country can be challenging. In Qatar, there are lots of opportunities, but navigating out how to set up a company can be confusing. Sheen Incorporation will assist you set up your company in Qatar and make sure it follows all the legal rules there.
Get in touch with us to learn more about starting a business in Qatar. Our team will get back to you within 24 hours.
In essence, your engagement will have 4 main phases:
- Planning and strategy
- Incorporation
- Bank account opening
Step 1: Planning and Strategy
The first step in opening a business in Qatar is to choose the most suitable type of business entity. Sheen Incorporation will suggest the best option based on your business goals and activities. The most common choice is the Qatar limited liability but it requires a foreign shareholder.
Once we agree on the company type, we will guide you on the required share capital, regulations, and whether there is a need for licences for the intended business activity.
You’ll need three primary, essential and mandatory documents to attain a Commercial Residence, Trade License, and Computer Card. With our help, investors can swiftly secure the documents as mentioned above making the process smoother for you and ensuring easy incorporation into Qatar.
Step 2: Incorporation
Once you’ve decided to start a business in Qatar, we will proceed to reserve your preferred company name with the Qatar Ministry of Commerce and Industry. Usually, this reservation is valid for up to six months.
Our legal team will create the Articles of Incorporation for your new Qatar company as per the requirements set out by the Qatar Ministry of Business and Trade Office. These articles will include various details such as:
- Company building address.
- Outline of planned business activities.
- Rules regarding share transfers.
- Identification details of authorized shareholders.
- Methods of distribution for profit and loss among partners.
Step 3: Bank Account Opening
After successful Qatar company incorporation, we will help you open a corporate bank account. Our banking team will support you throughout the process, ensuring a smooth experience without any language barriers. They’ll prepare a detailed business proposal with necessary documents and present it to your chosen bank.
Here are the requirements to be submitted to the bank:
- Bank application form.
- Original Articles of Incorporation.
- Company Trade License.
- Company Computer Card.
- Personal identification and passports of each authorized business partner.
- Signatures of the authorized business partners.
- Authorization letter from the company , stating account management rights, signed by authorized business partners.
Different Kinds of Businesses in Qatar
Qatar offers different types of business structures for companies:
- General partnership company
- Limited share partnership company
- Joint partnership company
- Public shareholding company
- Holding company
- Joint venture
- Limited liability company
- Branch office of a foreign company
- Representative trade office
- Real estate
- Commercial agency
The most common business structure chosen by most business owners in Qatar is the limited liability company (LLC). Here are some key points about LLCs in Qatar:
- An LLC in Qatar needs a minimum capital of QAR 200,000, with Qatari nationals owning 51% of the shares.
- The profits in the company cannot solely reflect its shareholding.
- An LLC must have suitable office space to obtain a trade licence.
- It cannot engage in investment activities like banking or government financing.
- An LLC is subject to a 10% corporate tax on its total profits annually.
- It can handle multiple contracts simultaneously.
List of Free Zones where you can register your company
Similar to other Gulf nations like the UAE and Bahrain Qatar also has free zones that allow business investors to carry out business entities at a low cost.
Qatar Financial Centre (Q.F.C.)
Finance plays a pivotal role in determining business and economic growth. To meet the growing demand for financial opportunities, the Qatari government established the Qatar Financial Centre (QFC) in 2005, aiming to provide excellent financial infrastructure to support company development.
The Qatar Science and Technology Park (QSTP)
The Qatar Science and Technology Park, located in Qatar’s Education City, was established in 2009 to support technology-based enterprises. This zone offers various incentives and satisfies the needs of commercial companies.
Some activities at QSTP include:
- Advancements in technology.
- Education and training.
- Creating new companies.
- Research and development, and more.
This free zone focuses entirely on technological areas to provide a developing platform for corporate organizations to grow.