Qatar is one of the wealthiest countries in the world with the highest GDP per capita. As Qatar has a massive source of petroleum and natural gas, therefore the government earns huge amount of revenue through exporting its natural resource. The government of Qatar is working continuously to improve its business environments. Qatar has come across several strategic implants to make its business sectors economically profitable and advantageous to the business owners and foreign investors.
This is why most of the business owner wants to start their business or move their business in Qatar. But most of the foreign entrepreneurs don’t know how to start a business in Qatar. However, this article is going to explain some important facts and steps required to start a business in Qatar.
Types of Business Structure in Qatar
- Simple Partnership Company.
- Joint Partnership Company.
- Joint Venture Company.
- Public Shareholding Company.
- Limited Share Partnership Company.
- Limited Liability Company.
- Holding Companies.
Advantage of Doing Business in Qatar
- No income tax charged over wages.
- No taxation on exports.
- Ability to transfer entire company profits to own country.
- Low corporate tax rates that is 10%.
- Highly developed business infrastructure.
- Highly educated workforce (workforce is not expensive).
- Supportive banking services.
Most Common Business Structure in Qatar
Limited Liability Company is one of the most common business structures in Qatar. Incorporation of an LLC requires a minimum capital of QR 200,000 along with a Qatari official partner. The Qatari partners must hold at least 51% of the company’s shares. Qatar government does not permit LLC to perform activities like banking, financing, insurance, or other investment-related business. Limited Liability Companies (LLC) need to pay a corporate tax rate of 10% over the total profit made during its fiscal year. More information about LLC–
- Limited Liability Company is permitted to carry out an unlimited number of contracts simultaneously.
- To obtain a trade license, LLC must have a suitable office space.
- The share of profit for the company should not reflect that of the shareholding.
About Qatar Business Zone
Before starting a company in Qatar, it is necessary to know about Qatar business Zone. You must decide where you want to establish your company —free zone or outside the free zone. The two zones differ entirely from each other in terms of business policies, laws, regulations and obligations. Starting a business in the free zone of Qatar comes up with fascinating facilities like –
- 100% foreign ownership of company shares.
- There is no foreign currency restriction.
- There is no personal income tax.
- No corporate tax.
- 100% tax exemption on import and export business.
Crucial Steps and Guidelines to Start a Business in Qatar
Foreign investors are highly recommended to do market research and gather as much knowledge as possible about the strength and weakness of the competitors. Culture study of the people living in different parts or cities of Qatar also plays a significant role in the long race of doing successful business. Nevertheless, it is also essential to have a solid idea about the services and products that these business owners and investors bring in to the country.
Choosing the Right Partner
Choosing the right partners for your business is essential if you want to start a business in Qatar. According to the law of the Ministry of Economy and Commerce, Qatari partners must hold at least 51 % of the company shares. Choose a partner who has similar ideas, values, and ambition like you.
Incorporation Procedures in Qatar
Incorporation of a business company in Qatar requires detailed documentation and appropriate submission of these documents to the Ministry of Economy and Commerce. Along with these documentations, one would also have to collect appropriate trade license, signage license, an immigration card and other necessary licenses that required for operations. Also, you need to get an experience certificate. Other essential requirements needed for starting a business in Qatar are —
- Valid bank account in the company’s name under any Qatari Corporate Bank,
- Share capital of minimum QAR 200,000.
- Residency permits
- Registering with the local Public Revenues and Taxes Departments.
- Registering employee contracts as company workers under the Ministry of Labor of Qatar.
Frequently Asked Question
Resident permit is required to open a corporate bank account in Qatar. You must also provide a xerox copy of your passport, residence visa, two photos and a letter from your employer stating the amount that will be transferred to your account per month.
The trade name can reserve via online at Qatar government website – www.moci.gov.qa
Qatar is among the top 10 economic countries in the world. Current is GDP per capita is 61,024 US$.