On October 17, 2023, the European Union’s Economic and Financial Affairs Council removed Qatar from its list of non-cooperative tax jurisdictions under special monitoring due to tax practices.
This means Qatar now meets EU standards for tax transparency and international cooperation.
As a result, the country has become even more attractive for businesses, thanks to its political and economic stability, high-quality infrastructure, and low corporate tax rate (10%).
Benefits of registering a company in Qatar
Starting a business in this Gulf country offers several significant advantages. Here are the key benefits:
- Tax incentives. A low corporate tax rate of 10%, zero profit tax for companies in Free Economic Zones, a 5% VAT rate, and no fees on profit repatriation make Qatar highly attractive to investors.
- Political and economic stability. The country is known for its stability and predictability, providing a reliable foundation for business operations.
- Developed infrastructure. Modern transportation networks, telecommunications, and energy systems simplify business operations and improve efficiency.
- High GDP per capita and strong purchasing power.
- Government support. The government actively promotes entrepreneurship through various incentive programs and financial support.
- Developed financial system. The presence of major banks and financial institutions ensures convenience and reliability in financial transactions.
- Access to international markets. Its strategic location on the Persian Gulf opens up extensive opportunities for exports and business expansion beyond Qatar.
Thus, registering a company in Qatar allows businesses to take advantage of these benefits. The country’s tax incentives create a favorable and attractive environment for entrepreneurship and investment.
The most in-demand business sectors in Qatar
Qatar is a rapidly developing country with a diversified economy. In addition to the oil and gas sector, several other industries are experiencing significant growth. The most promising sectors include:
- Infrastructure and construction;
- tourism and hospitality;
- financial services;
- healthcare and medical services;
- education and science;
- information technology and digital transformation;
- manufacturing and processing;
- agriculture and food industry;
- retail and service sector.
As a result, Qatar offers numerous opportunities for businesses across various economic sectors. Our consulting agency’s experts will conduct a thorough market analysis and provide professional legal assistance in selecting the most suitable business sector.
Legal requirements for starting a business in Qatar
The requirements for establishing a business may vary depending on the type of company, industry, and other factors. However, there are several general procedures that you must follow:
- Registration. Companies must be registered in compliance with local legislation. This includes choosing the legal structure and name of the company, as well as preparing the necessary registration documents.
- Licenses and permits. Depending on the business activity, specific permits or licenses may be required.
- Capital requirements. Some business types require a minimum initial capital investment. Its amout varies based on the intended activity.
- Taxes. Companies must comply with tax laws and regularly pay all fees according to the established rates.
- Labor Laws. When hiring employees, labor laws must be followed, including regulations on employment relationships, quotas, wages, and working conditions.
- Accounting and reporting. Businesses are required to maintain proper financial records and submit reports in accordance with local regulations.
The information provided here is not legal advice but is for informational purposes only. For professional guidance, we recommend consulting the experts at Dynasty Business Adviser.
Types of companies in Qatar
According to the Commercial Companies Law No. 5 (2002), the following types of companies can be registered in Qatar:
- the most common business structure in Qatar;
- minimum share capital: 300,000 Qatari Riyals (QAR);
- requires a minimum of 2 and a maximum of 50 shareholders;
- shareholders have limited liability for their obligations.
- suitable for large enterprises;
- minimum share capital – 10,000,000 QAR;
- must have at least 5 shareholders;
- shareholders have limited liability for their obligations.
- shares cannot be freely traded on the stock exchange;
- suitable for family businesses;
- minimum share capital – 3,000,000 QAR;
- must have at least 2 and no more than 50 shareholders;
- shareholders have limited liability for their obligations.
- do not have legal entity status;
- all partners bear unlimited joint liability for obligations.
- consist of one or more limited partners (investors) and one or more general partners;
- general partners bear unlimited joint liability for obligations;
- limited partners have liability restricted to their investment.
- do not have legal entity status;
- the parent company bears full liability for obligations.
- cannot engage in commercial activities;
- can represent the interests of the parent company.
These are the main types of companies available for registration in Qatar. The choice of business structure depends on the goals and needs of the founders.
Documents required for company registration in Qatar
The list of required documents may vary depending on the company’s legal status, industry, and other factors. However, in general, you will need the following:
- Registration application. This can be completed online or at the Ministry of Commerce and Industry. It must include details about the company, its owners, and directors.
- Memorandum of Association (MOA). This document must be approved by a lawerand include details about the company’s purpose, structure, capital, and management.
- Business plan. This document contains a detailed description of the company’s products or services, target markets, strategy, and financial projections.
- Copies of passports and ID cards for all company owners and directors.
- Proof of payment of the registration fee.
- Proof of address (a lease agreement or other registration-related documents).
- Certificate of share capital deposit.
This is a general list, and specific requirements may differ depending on the company type and local regulations.
Company registration process in Qatar
The process of setting up a business in Qatar involves the following steps:
- Selecting the type of company (LLC, Joint-Stock Company, Branch, Representative Office, etc.).
- Getting approval from the Ministry of Commerce and Industry or other relevant authorities, depending on the business activity.
- Preparing the necessary documents: the Memorandum of Association, details of shareholders and directors, business plan, and any additional paperwork required for the chosen company type.
- Submitting the documents to the Ministry of Commerce and Industry and paying the registration fee.
- Receiving the certificate of incorporation.
- Obtaining necessary licenses and permits based on the type of activity.
- Opening a bank account.
- Hiring employees.
This is a general outline for informational purposes only. For a detailed consultation on company registration in Qatar, we recommend contacting the specialists at Dynasty Business Adviser.
Registration timeframe in Qatar
The timeline may vary depending on:
- The location of registration. Setting up a company in a Free Economic Zone (FEZ) is generally faster than registering outside of it.
- The complexity of the company structure and business activities. More complex structures and industries may require additional time.
- The availability and completeness of all required documents.
On average, setting up a business in Qatar takes:
- 4 to 8 weeks in a Free Economic Zone;
- 6 to 10 weeks outside a Free Economic Zone.
Taxation in Qatar
Qatar’s tax system is characterized by relatively low rates and several incentives for businesses. Key taxes include a 10% corporate income tax (except for oil and gas companies, where the rate can be up to 35%) and a 5% value-added tax (VAT). Additionally, Qatar has no property or dividend taxes, creating a favorable tax environment for entrepreneurs.
Taxation in Qatar is regulated by relevant legislative acts and must be strictly followed by all legal entities.
Attitude toward foreign investors in Qatar
Overall, Qatar has a favorable attitude toward foreign investors. The country actively encourages foreign direct investment: it offers various incentives and benefits to international companies. Qatar aims to develop its economy and diversify its investment portfolio.
However, as in any other country, there are certain restrictions and requirements for foreign investors. For example, they cannot directly own assets in Qatar’s oil and gas industry. However, they may participate in joint ventures with state-owned companies.
There are also restrictions on owning assets in banks and insurance companies — foreign investors can hold no more than 49% of shares. Foreigners can only own real estate in designated areas of Qatar.
Despite these restrictions, the Qatari government is focused on creating an attractive investment environment and actively encourages foreign companies to contribute to the country’s economy.
Cost of setting up a business in Qatar
The cost of company registration depends on various factors, including the location of registration (inside or outside a Free Economic Zone), the complexity of the business structure, and the range of required services (legal assistance, licensing support, accounting, etc.).
On average, the costs are as follows:
- In a FEZ: QAR 20,000 – 50,000.
- Outside a Free Economic Zone: QAR 50,000 – 100,000.
|
EXPENSE CATEGORY |
AMOUNT |
|---|---|
|
Company registration (government fees) |
2 000 QAR |
|
Business license (government fees) |
from 1,000 to 10,000 QAR |
|
Legal services |
from 5,000 to 20,000 QAR |
|
Office rental |
from QAR 5,000 per month |
|
Other expenses (document translation, accounting services, etc.) |
costs vary |
For a detailed cost estimate tailored to your specific business requirements, feel free to contact us using your preferred method, and we will provide comprehensive information.
Advantages of partnering with Dynasty Business Adviser
Dynasty Business Adviser is a company that provides a full range of services for business registration and support in Qatar.
Key benefits of working with us:
- years of experience in business registration and support in Qatar;
- in-depth knowledge of Qatari legislation;
- comprehensive approach to business setup and support;
- saving your time and money;
- guarantee of confidentiality and protection of your interests.
Step-by-step guide to working with us:
- Schedule a consultation with a Dynasty Business Adviser expert — share your ideas and business goals during the consultation, and we provide expert recommendations, considering Qatar’s unique business landscape and potential challenges.
- Budget planning based on licensing requirements, company structure, office location, and potential additional costs.
- Company name approval.
- Document preparation — send us scanned copies of the necessary documents via email.
- Document legalization.
- Business registration — on average, it takes 20-60 days to register a company in Qatar.
- Opening a bank account.
- Ongoing business support — if needed, we offer consulting, notary, auditing, and accounting services.
Dynasty Business Adviser – your reliable business partner in Qatar.
