Qatar is ready for business and welcomes investors from all over the world. The energy industry is among the appealing sectors in which investors activate, considering that Qatar is rich in oil reserves and natural gas. Moreover, the authorities have improved the business environment, letting investors easily establish their presence in varied fields of interest.
Frequently asked questions
1. Why open a business in Qatar?
Qatar is one of the wealthiest countries in the world. The reason for this is because of the governmental policies which have proven to be extremely successful. The country presents a favorable business environment due to the investment incentives, banking services, political and social stability, as well as infrastructure.
2. What are the types of business entities in Qatar?
The business entity types in Qatar are:
• partnership company;
• limited partnership company;
• single person company;
• holding company;
• particular partnership company;
• shareholding company;
• limited share partnership company.
Our Qatar company formation advisors can provide all the necessary information on these types of business entities, as well as assistance related to setting up a company in Qatar.
3. What is the most popular business entity for foreign investors here?
The most popular form of business entity established by foreign investors in Qatar is the limited liability company (LLC). Most of the times, a foreign entrepreneur requires one or several local partners to get involved in the business and to act as the majority shareholder. We can help you with business setup in Qatar.
4. What are the main characteristics of an LLC in Qatar?
The main characteristics of an LLC in Qatar are:
• A minimum share capital of QR 200,000;
• An office space is necessary for at least one year lease to obtain the trade license;
• At least 51% of the company has to be owned by a local citizen, except if an exemption was issued;
• 10% of the yearly net profits have to be kept inside the business until the legal reserve attains 50% of the share capital.
5. Can I open a branch in Qatar?
Branches in Qatar are utilized to effectuate specific governmental contracts. They must be authorized by the Ministry of Economy and Commerce to establish if the contract is “government qualified”. The branch in Qatar does not require a local partner. Our company registration agents in Qatar can provide more details related to this form of business.
6. What is a trade representative office in Qatar?
This business entity, usually named a “shop window”, is set up by foreign investors without having to present a local partner. However, the trade representative office cannot effectuate commercial activities in Qatar. Its sole purpose is to display its products or services.
7. What is the company taxation in this country?
Companies in Qatar which are owned by foreign citizens have to pay taxes on their profits. Local companies do not pay taxes, however, foreign partners must do so on their share of the company.
The tax rates start at 10% at profits between QR 100,000 and QR 500,000 and can reach up to 35% for income above QR 5,000,000.
8. How can a foreign company do business in Qatar?
A direct legal presence can be achieved in the country by setting up a branch of a foreign company.
9. What financial reports have to be filed yearly?
All taxpayers in Qatar have to submit accounts in maximum four months from the end of the financial year. We can also help you with business setup in Qatar.
10. Can foreigners acquire property in Qatar?
Ownership of property in Qatar is restricted to local citizens. Citizens from the Gulf Cooperation Council countries can own land without restrictions in three special areas managed by Qatar Diar.
Please feel free to contact our team of consultants for assistance during opening a company in Qatar, regardless of the business structure you choose.