Qatar Free Zone Company Registration (QFZ) / Formation
About Qatar Free Zone Company / Business Setup
Qatar, recently ranked by Forbes in the top 40 best countries for business, is fast becoming one of the best places to expand your business.
To set up a company in Qatar Free Zone, there are several key stages to be considered in developing a successful entry strategy to include; in-depth market research, developing a business plan, determining the right commercial structure, understanding the laws & regulations and finally considering the implications of tax in Qatar.
In Qatar there are few legal company formation options including the Free Zones which makes the decision process much simpler than in many other GCC countries.
Qatar Free Zone is a designated area whereby foreign companies can set up businesses, assuring them of a certain degree of autonomy over their enterprise. Free zones are common in Gulf countries and are often grouped for specific industries, such as media or technology.
Free Zone Company
Qatar has main ‘free zones’, Qatar Science and Technology Park (QSTP), Qatar Free Zone Authority (QFZ) and Qatar Financial Centre (QFC). QFC is not a true free zone as, although it offers 100% ownership, corporation tax applies at the same rate for mainland companies. There are also restrictions on activities in QFC, no ‘trading’ (sales and import) for example but you are allowed to do business in Qatar mainland, and this is particularly useful for service-based companies.
QFZ has 100% ownership and a zero-tax regime, however, this free zone appeals to only a small number of specialized businesses. It should be borne in mind that as a general rule, government contracts are not awarded to companies that are not mainland companies with a local Qatari partner.
Benefits Of The Qatar Free Zone
The core advantage of establishing a free zone is 100% foreign ownership. Whilst this is key, there are limitations in accessing the free zones in Qatar and the success of your application will depend on your business activities. There may also be restrictions on where you can operate from and where/whom in Qatar you can conduct business with.
Top 5 things to consider before choosing a Qatar free zone:
- Purpose of the company / business activities
- Activity in mainland Qatar
- Location
- Lease facility requirements
- Number of Visas required
- Budget for setting-up
Qatar freezones represent an excellent option for foreign investors. They are considered separate from the domestic state ‘mainland’ area with regards to legal requirements and customs rules and as such have distinct benefits, including:
- 100% foreign ownership
- 0% Corporate tax
- Full capital repatriation
- Zero customs duties on imports
- Modern digital infrastructure
- Flexible structuring options
- A transparent, business friendly legal environment
- Access to an investment fund for small and medium size enterprises (SMEs)
- Numerous joint venture and partnership opportunities
They are mainly focused on three key sectors: logistics, technology and chemicals, where Qatar can provide unique advantages over other foreign investment destinations.
There are currently three free zones operating under the QFZA and all are within 30 minutes of the country’s capital, Doha.
Documents Required For Your Qatar Free Zone Company Formation
Qatar free zone company formation is hassle-free if you have the right set of documents needed for the incorporation. The required documents are listed below.
- Information regarding the firm
- A detailed description of the business plan
- Research plans to be submitted (in case of QSTP)
- Bank statement for financial stability
- Shareholder’s ID proofs
All you need to do is ensure that the documents mentioned above are with you before proceeding with the basic procedure for Qatar free zone business setup.