Qatar has become very appealing to a lot of entrepreneurs thanks to its well developed and advanced economy, beneficial geographic location and economic freedom. However, doing business in Qatar needs extensive knowledge of different legal and financial and regulatory complexities. Here’s what you have to know before you begin your journey towards company formation in Qatar.
1.Select the Best Business Form
The first step in setting up a business in Qatar is selecting the applicable business structure or its legal form for your business. Some of the available options include the following:
- Limited Liability Company (LLC): This is the most common model for foreign investors, having at least two shareholders and being 51% local.
- Branch Office: A body of a foreign corporation may operate as a branch office without a local partner only for government projects.
- Free Zone Companies: These companies are found in places like the Qatar Free Zone or Qatar Financial Centre (QFC), where 100% foreign participation is permitted, apart from other advantages like tax waivers and easier company registration in Qatar. These companies are wholly owned by foreign capital.
It is important to choose the right structure at this juncture since it will define not only the tax regime of your company but also its liability and legal responsibilities.
2.Local Sponsorship Requirements
For almost all businesses, other than those operating inside the free zones, Qatar expects the foreign investor to have local proxies or sponsors who own 51% of the company’s shares. While this is given, many sponsors will be dormant partners for a fee. It is very important to make sure that the intended sponsor is reliable in order to not disrupt the activities.
Businesses in free zones are free from this requirement and such areas are for international companies since they allow 100% foreign ownership.
3.Business Licensing and Registration
Successful company formation in Qatar is possible after acquiring the required licenses in relation to the type of business to be undertaken:
Commercial License: extends to companies who are engaged in trading, i.e. purchases and, after that advances in sales of the physical goods.
Service License: extends to companies who offer other income generating activities affiliated with professional services e.g. consultancy firms.
Once you settle on the business structure, you are required to go to the Ministry of Commerce and Industry to be registered, seek clearance from Qatar Chamber of Commerce and seek a tax identification number. Each of the activities includes a lot of document preparation, thus a specialist should be sought in order to accomplish the procedure quickly.
4.Task Control Management In the Organization
When starting a business in other regions of Qatar, it is necessary to have a comprehensive understanding of the labor laws. There are laws on employment contracts, wages, working hours, and benefits. Violating these regulations may hinder business efficiency and expose you to legal risks. An essential component of a company’s capacity to survive is having a workforce of individuals aware of their rights.
5.Taxation Benefits
Due to the country’s low taxation, preparing all the legal requirements for company registration in Qatar is one of the most advisable undertakings. Again, these companies will benefit from a variety of tax holidays, especially in free zone areas. Regarding corporate taxes, neither firms nor their employees pay any taxes, which explains why many people seek to invest in Qatar.
Why Helpline Group?
Plunging into deep waters as to concerns that apply to all points regarding specialized companies establishing in the region of Qatar can cause a riptide to one not well versed. Helpline Group, a consulting company specializing in such spheres, offers specialized assistance regarding company formation in Qatar. Provided numerous years of experience, Helpline Group provides optimum services that reduce procedures such as deciding on the business structure and completing relevant paperwork.
To those traveling to Qatar and intending to engage in business, professional assistance from Helpline Group is available to alleviate difficulties encountered in Qatar.
