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Business Startup in Qatar – What You Should Know!

 Posted on April 22nd, 2014

While drawing up plans for your new investments, have you considered the possibility of a business startup in Qatar? If you are still wondering how to start a business in Qatar, then take a look at the reasons given below to start looking at this country as a serious contender.

  1. The unlimited provision of oil and natural gas reserves in Qatar has enabled it to build up a stable and financially strong economy. The country is known to house the largest gas reserves in the world. It is also currently reputed to be the leading exporter of liquefied natural gas (LNG).
  2. Moreover, the huge amount of attention it has received from International companies in the form of investments has further helped in strengthening Qatar’s economy by helping it to grow at a remarkable pace.
  3. Qatar has exhibited extreme progress in its approach towards managing local economy and infrastructure. This has helped to provide its people with living standards that are of an extremely high quality.
  4. Qatar includes many free zone areas which offer ample flexibility for international business setups.

With the above information, you can no longer be in doubt about the location. However, to understand the mechanics of how to start a business in Qatar, you need to be aware of the regulations that govern local and foreign investment in Qatar.

 

Free-Zone Regulations for Business setup in Qatar

As mentioned above, Qatar segregates specific areas as Free zone area. An area, when designated as Free zone, can provide business setups with a certain level of independence from various factors that are binding on areas that are not designated as Free zone. Some of the facilities or privileges of business set up in the free zone include:

  1. Reduced costs
  2. Tax e-free function
  3. Complete ownership of companies by non-Qatari or foreign individuals

 

Investment Regulations in Qatar

You may also wish to start up your business in a non-free zone area. In such event, you need to be aware of some requirements that your business needs to comply with. For instance, all international business initiatives that are planned for investments in the banking and financial sectors need to get formal approval from the Council of Ministers in Qatar.

Another crucial clause prior to starting your business would be to search and find Qatari partners for your business. According to regulations mandated by the Ministry of Business and Trade in Qatar, non-Qatari investors can hold only 49% stakes in their companies and would have to allow 51% to remain with their Qatari partner. This holds true particularly for investments in the following sectors:

  1. Agriculture
  2. Industry
  3. Health
  4. IT
  5. Education
  6. Tourism
  7. Development of natural resources, energy or mining

When you are in a Free-zone, however, you as a non-Qatari can enjoy complete ownership of your business.

Qatar offers a world of opportunities for foreign investors. In order to start a business in Qatar, educate yourself on the different regulations built by the Qatari government. Also increase your awareness on the aspects of the country’s business laws in order to derive the best benefits from this progressive and fast growing economy.

Al Misnad Law is able to offer clients assistance with all aspects of company formation in Qatar.

Call +974 4016 7020 for Law and Legal Services/Consulting.