How to Start a Business in Qatar?

Posted on May 13th, 2014

Qatar, with its endless possibilities and robust economy is the best destination for starting your new business. The country is sure to offer you various facilities and benefits for your endeavors. However, you need to understand the different nuances of Qatar law, before opening a business in Qatar. Read on for more information.

Starting a Company in Qatar

When you plan to start a company in Qatar, there are a few things that you need to be aware of. Some of these have been highlighted below.

 

Choose the Appropriate Business Type

Plan your initiatives based on the available business vehicles or company types recognized under the Qatari law. This ensures that you are able to cover your best interests and reap in the maximum benefits. The categories are as follows:

 

Trade Representative Office

This provides 100% ownership to foreign investors and is used as a marketing opportunity for a foreign company to showcase their products and services. The Qatari Law does not allow Trade Representative Offices to sell, export or import their products. Moreover, they are also not allowed to interact directly with consumers within the State of Qatar. The purpose of a representative office is solely to promote the foreign company’s brand in Qatar.

 

Branch Office

You can opt for this mode of operation if you plan to run a public service initiative and forge a contract with a government organization. Though the international counterpart is allowed 100% ownership in this company type, the initiative must end once the contract terminates.

 

Limited Liability Company (LLC)

If you opt for this type, then as a foreign investor you will be permitted to own  49% stake in the business. Local participation in an LLC shall not be less than 51% of the capital unless full foreign ownership is allowed for the categories provided for in the Foreign Investment Law of 2000 and its amendments. LLCs are the most commonly used legal entities by foreign and local investors in Qatar. As an LLC, you are allowed to enter into negotiations to forge multiple contracts and perform as many business related activities as you wish.

 

Select the Appropriate Local Partner

Once you have opted for the appropriate channel for conducting business in Qatar, the next important activity for you will be to choose a Qatari firm or an individual as your local partner, when required.

 

Register Your Company

Every new business that is being established in Qatar soil needs to be registered. By registering your company you will be legally binding it to the rules and regulations of the Qatari law. The registration process involves the following steps:

 

1. Identify and gain approval for an appropriate name for the company
2. Seek approval from the Commercial Companies Inspection Department, which is part of the Ministry of Business and Trade.
3. Open a bank account and deposit the Startup capital
4. Get the articles of Association validated and approved by the Commercial Companies Inspection Department
5. Register the application in the Commercial Registry and the Chamber of Commerce and Industry
6. Acquire the Trade License from the Ministry of Doha
7. Follow procedures to register for taxes
8. Design, a company seal to stamp documents before sending for government approval.

Conforming to these will help you to accomplish your goal smoothly and enable you to rake in benefits at the earliest. Call +974 4016 7020 to talk to our experts!