Doing Business in Qatar –  Here are Some Legal Requirements to Consider!

Posted on November 30th, 2014

Qatar has a well-defined Commercial law established in 2006 and the Commercial Companies law of 2002 for doing business in Qatar which regulates all kinds of commercial activities, deals with business agencies, commercial concerns, trade names, and competition. It also regulates all commercial contracts and the structure of companies defining the mode of governance. Companies in Qatar needs to consider all factors defined by the Commercial law prior to moving ahead.r.

Being prepared for providing maximum equity participation

You should be aware that the Qatari Foreign Investment law restricts the ownership of a non-Qatari partner to around 49%. Moreover, it requires the majority stake of 51% to be owned by its Qatari partner.

However, you will be luckier if your business idea falls within the purview of certain sectors like, Agriculture, Health, Education, Tourism, and Energy and Mining, IT, Cultural services, sports and entertainment, which are termed as priority sectors. Qatar Foreign investment laws waive off for specific companies and at the relevant Ministry’s sole and entire discretion, the maximum equity participation clause for all business sectors pertaining to these priority sectors.


Being aware of company registration details

Prior to starting with your business, you need to be aware of the required documentation and other details in order to register your company. Some of the vital pre-requisites include the following:

Registration with the Qatar Chamber of Commerce

Proof of capital deposits made, from a Bank in Qatar

Memorandum and Articles of Association (to be provided in Arabic)

Certificate of Registration that have been verified and authenticated

Establish local office

If you wish to setup local office in Qatar, you need to ensure that the nature of your setup falls within the type of entities accepted by the Commercial Company law. A list of all such entities includes:


  1. Limited liability company
  2. General partnership
  3. Simple limited partnership
  4. Limited partnership with shares
  5. Unincorporated joint venture
  6. Joint stock company (public or private)
  7. Single-person company

Limited Liability Company (LLC) is hugely popular for being the easiest to set up. The Commercial Companies Law restricts however the LLC’s from being involved in activities which are related to banking or insurance. The law also restricts LLC’s from acting as a principal or an agent on behalf of third parties and making relevant investments. In addition to this, LLC’s are not permitted to issue shares for public subscription.

Establish temporary branch office

You can set up a temporary branch office for your business in Qatar for which you will not be required to involve a Qatari partner. For this purpose, a government or a quasi-government body should award you with a contract entitling you to proceed with setting up the branch office. The Branch, however, will be taxable under the Qatari law and will not be permitted to undertake any private sector projects.

Contact Al Misnad Law for all kinds of legal services from the best law firm in Qatar. Call +974 4016 7020 to learn more.