The Legal Obligations of the Free Trade Zones In Qatar

Posted on August 27th, 2014

Expanding the business to include the international domain is perhaps a dream that every entrepreneur has at a point of time. What could be a better indicator of success than getting acknowledgement of your products and services outside the realm of your homeland? And the profit emerging out of the whole deal is obviously a bonus. It is perhaps to facilitate this feature of the trade that free trade zones have been gaining such consistent popularity. Defined as a unique economic zone, the free trade zone has definitely proved to be boon for international trade considering the relative leniency of the law governing bodies.

Free Trade Zone In Qatar- The Laws Governing It

Qatar is one of the many countries across the globe promoting free trade zones. Trade in Qatar is generally governed by the postulates set of the Commercial Companies Law number 5 in 2002. However, the entities operating within the free trade zone of Qatar are likely to find themselves governed by Law number 35 of 2005, which comes equipped with significant relaxations compared to the Companies Law.

Though entrepreneurs are not really allowed to flaunt rules blatantly, one could hardly fail to notice the degree of legal leniency when they opt to set up business in one of the free trade zones of Qatar. For instance, operating in a free trade zone in Qatar means that you will not be compelled to operate alongside a Qatari (which is mandatory if you choose to operate outside the free trade zone in most sectors) in order to set sail smoothly. A complete ownership of companies by non-Qatari or foreign individuals is allowed in a free trade zone.

The laws governing the free trade zones in Qatar also ensure that entities are exempted from paying taxes altogether- the exemption being inclusive of custom duties levied on products and services that is imported by the business. Operating a business in the free trade zones in Qatar also means that you
may employ expatriates only whereas outside the free zone the law requires that a certain number of employees are Qatari nationals.

Al-Misnad Law provides comprehensive legal services in Qatar for virtually every aspect of business. Call +974 4016 7020 for Law and Legal Consulting/Services.