Qatar, home to over 85 different nationalities, is often rated as one of the world’s most competitive and innovative economies. The country’s dynamic economy presents many opportunities for businesses to succeed.
Setting up a company in one of Qatar’s Free zones is simple if you work with a company formation specialist like Creative Zone, who can quickly get you up and running. This helpful guide will look at what that encompasses, and by the end, you will have a good understanding of how you can proceed with your company formation in Qatar. We will cover the following topics:
- • Benefits of starting a business in Qatar
- • Types of company setup options in Qatar
- • Register your company in Qatar in eight easy steps
- • Working with Creative Zone
Benefits of starting a business in Qatar
There are several reasons why Qatar is an excellent location for business. Among them are:
Zero taxes: Companies in Qatar are exempt from paying any taxes on income, royalties, and capital gains.
100% foreign ownership: Typical foreign direct investment restrictions limit foreign corporate investment at 49% of the enterprise, while the local partner retains 51% ownership. Foreign business owners may hold 100% of their company in free zones using a variety of corporate arrangements.
Range of business activities: Qatar has approved a broad range of activities that entities wishing to establish in the Free Zone may engage in, including logistics and warehousing, industrial products and services, food and beverages and consumer goods, information technology services, leisure and hospitality, professional and business services, and marine activities and services.
Highly-developed and extensive infrastructure: Qatar has expanded its infrastructure while developing its oil and gas riches. This has created a vast network of about 1,230 kilometers of roadways connecting the country’s oil and industrial sectors. Additionally, Qatar has four airports and seven ports and harbours to cater to the ever-growing market demands.
Types of company setup options in Qatar
Numerous free zones, including the Qatar Free Zone, the Qatar Science and Technology Park (QSTP), Qatar Media City, and Qatar Financial Center, provide various options to international companies and investors looking to establish a presence in Qatar. Generally, you can choose any of the following types of companies to operate in the country:
Limited Liability Company (LLC)
This structure consists of a minimum of two and a maximum of 50 partners, each of whom is only accountable for the value of the company’s shares owned. Foreign shareholders may employ management and establish a limited liability corporation. You need QAR 200,000 as it is the minimum capital requirement to get started.
Limited Partnership Company
Here, the company consists of two or more Qatari citizens who are joint partners liable for the firm’s debt they represent. The government limits foreign ownership to 49%. Unlike an LLC, there is no minimum amount of money you need to form the company.
Equities Partnership Company
An equity partnership firm comprises two teams: the first is with one or more partners who are jointly accountable for the company’s obligations in all of its assets, and the second includes shareholders.
This type of company comprises two partners: joint and trustee partners. The joint partners are in charge of the company’s administration and are accountable for the company’s obligations. The trustee partners contribute to the company’s capital, and their responsibilities are limited to their value in share capital. To start a joint company, you require a minimum financial commitment of QAR 200,000.
The Ministry of Commerce and Industry must authorize a shareholding structure before this firm may be incorporated. You need at least five Qatari shareholders to start a company. Additionally, an elected board of directors will manage the shareholder company. The minimum capital requirement to start a shareholding company is QAR 10,000,000.
Freelancer or self-employed
If you want to work as a freelancer in Qatar, you require a local sponsor. Independent freelancing is illegal in the country; however, you can sign short-term contracts with a sponsoring organization. There are two ways to get sponsorship: from a legally-registered company or an individual. You can apply for sponsorship as a self-employed person who works for a company as a subcontractor.
Register your company in Qatar in eight easy steps
In Qatar, starting a company may be a lengthy and complicated procedure, and it requires expert and qualified professionals to handle all government-related work and documentation. Starting a company with the help of a business formation expert, such as Creative Zone, can be fast, straightforward, and cost-effective. We can simplify the process into the eight steps listed below:
1. Your trade name is an essential part of the legal process. Unless a company is a subsidiary, the name should ideally represent the business. The name is usually reserved via the Ministry of Economy and Commerce.
2. Next, you will need to Draft the Memorandum of Association (MOA) or Articles of Association (AOA). This document is critical because it lists vital information about the company and its goals. It is prepared with the help of a lawyer and presented as a case study for a business strategy.
3. Once completed, the MOA or AOA will need to be attested by the relevant authority under the Ministry of Justice.
4. Post the verification of the MOA or AOA; you can apply for the trade license and tax certificate.
5. It is required for all mainland companies to have a commercial office address provided with their name.
6. As soon as the company gets a trade license, you can apply for an establishment card from the Ministry of the Interior.
7. You will then need to get your Tax Identification Number (TIN) registered with the Public Revenue and Tax Authority.
8. Finally, you will need to get a company seal.
Working with Creative Zone
While starting a business in Qatar appears forthright, setting it up requires qualified and expert professionals to handle all government-related work. With the assistance of a business formation specialist like Creative Zone, starting your business can be quick, simple, and economical.
Creative Zone is UAE’s oldest and most trusted business setup expert, having assisted over 44,000 entrepreneurs in successfully establishing their businesses since our inception in 2010.
We specialize in delivering solutions that best fit your needs when starting a business by providing quick, dependable, hassle-free, and experienced assistance.
In addition to the UAE, we also help assist in business setup in Qatar. We also provide a wide range of services, including tax preparation, legal advice, and human resources management.
The benefits don’t end there. When you become a client of Creative Zone, through our networking tool, CZ Connect, every client gets access to a thriving community of fellow entrepreneurs. This allows you to interact, network, and develop significant relationships with the region’s larger business community.
Take advantage of our free consultations today and get unbiased advice on UAE business formation, with the sole goal of finding the best possible fit for your needs.