Company Registration in Qatar in 2023-24
Qatar is among the richest nations on earth and its growth is driven by its natural gas and oil industries. The fossil and natural gas oil industries rule the terms of the economy.
Qatar administration constantly works to enhance the working environment in the country, which makes it a profitable place for investors and business owners.
However, it has a per-capita GDP of as at $94,000, which places the country within the top 5 highest GDP per capita in the world.
But, the business landscape of Qatar has changed recently and has seen various players from different industries opening their businesses in Qatar. These include tourism technology, construction, manufacturing and health care, information technology agriculture, education media, consultancy, and service.
While establishing a business in Qatar can be lucrative, it could be a lengthy and complicated process for foreigners who don’t know the rules and regulations for business.
To register a company in Qatar, you should be familiar with the different types of business entities as well as the government’s rules and regulations that may apply to your company registration in Qatar.
Procedure for Qatar Company Registration
The procedure for Qatar company registration generally includes the necessary steps:
- Step 1:- Choose a company name and check its availability
- Step 2:- Choose the type of company that best fits your business needs, such as a limited liability company (LLC), a branch office, or a representative office.
- Step 3:- Obtain any necessary initial approvals or licenses from relevant authorities, such as the Ministry of Commerce and Industry or the Ministry of Energy and Industry.
- Step 4:- Draft and sign the Memorandum of Association (MOA)
- Step 5:- Register the company with the Ministry of Commerce and Industry
- Step 6:- Obtaining a commercial license is required for all commercial activities in Qatar.
- Step 7:- Open a corporate bank account in the name of the company.
- Step 8:- Register the company for taxes with the General Tax Authority.
- Step 9:- Register the company with the Ministry of Labor and Social Affairs to get a work permit for foreign workers.
The process of Qatar company registration could take around 4 to 12 weeks to complete.
Documents Expected for Company Registration in Qatar
The following documents are typically required for company registration in Qatar:
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Passport and residency copies of all shareholders
- Commercial License application form
- Proof of share capital payment
- Notarized power of attorney for authorized signatory
- No Objection Certificate (NOC) from the sponsor (if applicable)
- Commercial Register extract from the home country
- Trade name reservation certificate
- Approval from the relevant government authorities (if required)
Types of Business Entities For Company Registration in Qatar
In Qatar, the following types of business entities are available for registration:
Sole Proprietorship
A sole proprietorship is an enterprise owned and run by a single person. This type of business entity is not commonly used in Qatar.
Limited Liability Company (LLC)
An LLC is a form of company entity that limits the debts of the owners to their contributions to the company. The member of an LLC is likened to shareholders.
Joint Stock Company (JSC)
A JSC is a type of business entity that has shares that are publicly traded on the Qatar Stock Exchange. The owners of a JSC are referred to as shareholders.
Branch Office
A foreign company may establish a branch office in Qatar, which operates under the name of the parent company and is subject to the regulations and laws of the parent company’s home country.
Representative Office
A representative office is a type of business entity that is used by foreign companies to explore business opportunities in Qatar without engaging in commercial activities. A representative office may not generate income or sign contracts.
Eligibility for Qatar Company Registration
To be equipped for company registration in Qatar, the following criteria must be met:
- Ownership: The firm must be owned by Qatari citizens or foreign nationals who have obtained residency in Qatar. Foreign ownership of a company is restricted to a maximum of 49% unless specific permission has been granted by the government.
- Type of Business: Only certain types of businesses are eligible for registration in Qatar. For example, businesses that engage in activities that are harmful to the public, such as the production of alcohol, are not permitted.
- Share Capital: The minimum share capital requirement for company registration in Qatar varies depending on the type of business. For a limited liability company (LLC), the minimum share capital is QR 200,000. For a joint stock company (JSC), the minimum share capital is QR 2 million.
- Legal Requirements: The company must comply with all relevant laws and regulations in Qatar, containing labor laws, tax laws, and health and security laws.
- Documentation: The company must provide the required documentation, such as a business plan, memorandum of association (MOA), articles of association (AOA), passport and residency copies of all shareholders, and a commercial license application form.
It is significant to point out that the eligibility criteria for company registration in Qatar may vary depending on the specific requirements of the relevant authorities.
Various Taxes on Qatar Company Registration
In Qatar, it is very essential to be aware of business taxes, before company registration:
- Corporate Income Tax: Companies are subject to a corporate income tax of 10% on their taxable profits.
- Value Added Tax (VAT): As of January 1, 2018, VAT has been implemented in Qatar at a rate of 5%. VAT is imposed on the allowance of goods and services, including imports and exports.
- Excise Tax: Excise tax is levied on certain products, such as tobacco commodities, carbonated drinks, and energy beverages, at a rate of 100%.
- Withholding Tax: Withholding tax may be applicable on certain types of payments, such as dividends and interest payments, at a rate of 10%.
It is important to note that the tax laws and regulations in Qatar are subject to change, and it is advisable to consult with a tax professional for the most up-to-date information on the taxes applicable to your business.
Cost to Register a Company in Qatar
The cost to register a company in Qatar can vary depending on the type of business, but generally the fees for registering a new company with the Ministry of Commerce and Industry range from QR 10,000 to QR 20,000.
This fee includes the cost of obtaining a commercial license, registering the company with the Chamber of Commerce, and obtaining a visa for the company owner. Additionally, there may be legal fees and other miscellaneous costs associated with setting up a business in Qatar.
It is advised to get quotes from several service providers to ensure that you are getting the best value for your money when registering a company in Qatar.
Why Register a Company in Qatar?
There are multiple reasons why entrepreneurs may prefer to register a company in Qatar, including:
- The country has a modern and well-developed infrastructure, including ports, airports, and transportation systems, making it easy to do business.
- Qatar offers various investment opportunities in industries such as construction, oil and gas, finance, and tourism.
- The nation possesses business-friendly laws and limitations, making it easy to start and operate a company in Qatar.
- Qatar is a concurrently located country in the Middle East, offering a straightforward entry to markets in the region.
- Qatar has a stable political and economic atmosphere, making it an impressive destination for foreign entrepreneurs.
- Qatar has a tax-friendly environment with no corporate or particular income taxes.
Advantages of Qatar Company Registration
There are numerous benefits of Qatar company registration a company including:
Stable Political Environment
Qatar has a stable political climate and a commendable economic performance as demonstrated by the country’s most GDP per capita by the PPP model.
Economic
Companies located in Qatar are subject to the lowest tax rate for corporations anywhere in the world, at 10%. In addition, companies that are owned 100% by Qatari citizens and the Gulf Cooperation Council (GCC) members are not subject to any tax on corporate income (CIT).
Social
Qatar has an estimated literacy rate of 93% for those of 15 and over. If you establish an enterprise in Qatar investors from abroad will have access to an extremely competent and productive workforce.
Technological
The Qatari government has Special Economic Zones (SEZ) in Qatar where commercial and exchange laws are more flexible than the other countries. They are located close to international transport hubs, which aid in the smooth running of business operations in these special zones.
Legal
Foreign investors can enjoy relaxed rules and laws for investment in the Qatari authorities trying to diversify the economy of Qatar away from natural gas. Recently, the Qatari authorities have relaxed laws regarding foreign investments, including the full ownership of foreign capital to the share capital of a company.
Environmental
Qatar was ranked 32nd of 180 nations that were evaluated in the Environment Performance Index. The Qatari government is aware that it is essential to balance the growth of the economy and the preservation of its environment.
Conclusion
Qatar is one of the fastest-growing economies worldwide, with per-capita GDP that is at $94,000, and is a great place for foreign investors to establish businesses in Qatar. With an attractive nature of economic profitability, presenting Qatar is a magnet that pulls investors from both Asian and African continents. Not just a stable business environment but also a dominance in the sector of hydrocarbon energy production makes Qatar a country to eye for.
This and a lot more could be catered to you while you seek the help of our in-house business expansion specialist. Odint Consulting and its team of specialists make sure that no information is unturned.
FAQ’s
To begin a business in Qatar you must have an initial capital investment of at least QAR200,000.
Your firm can be enrolled in Qatar via the Single Window portal governed by the Ministry of Commerce and Industry in Qatar.
Yes, you can start your own business with a company in Qatar as a non-native is permitted. The majority of sectors permit foreigners to completely own a business in Qatar.
Qatar is blessed with the benefits of a stable economy and a currency that is stable which ensures the financial viability of foreign investors.
Qatar has taxation in a territorial manner which means that a person is tax-paying in Qatar in the event of generating an income that qualifies as Qatar-sourced regardless of residency in the tax system.
