How to Set Up a Company in Qatar?

Commercial Entities in Qatar

Doing business in Qatar through a local entity

Qatar wholly foreign-owned company

Foreigners can register a wholly foreign-owned company in Qatar only in specific sectors listed in the 2010 Qatar Foreign Investment Law and after receiving approval from the Ministry of Commerce and Trade. The law does not officially specify a paid-up capital, and in practice, the minimum amount required is determined by the Ministry of Commerce and Trade during the review process.

Industries that permit foreign direct investment include:

•  Agriculture and Utilization of Natural Resources
•  Manufacturing Activities
•  Health Services
•  Educational Services
•  Tourism
• Telecommunication Services
• Entertainment and Recreational Consulting Services

Best uses for: We advise our Clients to establish a wholly foreign-owned company in Qatar only if they plan to make a significant investment, hire locally, and/or engage in technology transfer in the months following the business setup. In reality, only larger multinational corporations are granted ministerial approval to operate locally through a wholly-owned subsidiary.

Qatar joint venture company

1. Foreigners who do not meet the criteria required for the registration of a wholly foreign-owned company may opt to register their business as a joint venture. In this case, foreign shareholding is permitted up to 49 percent without the need for prior approval from the Ministry of Commerce and Trade. If required, World Company Setup Consultants can provide you with nominee services for a professional passive Qatari shareholder;
2. Although we advise our clients to allocate a minimum paid-up capital of US$55,000 to their joint venture's capital, this amount can vary significantly depending on the operations the company will conduct. World Company Setup Consultants will prepare a business plan for the Government's review and will confirm the proposed capital amount to you to ensure timely receipt of the company registration approval;
3. Best uses for: The joint venture company is the most common type of entity established by foreigners wishing to do business in Qatar. It can be used for various trading and manufacturing business activities.

Qatar free zone company

Currently, there are two special economic zones in Qatar designed for foreign investment projects.

1. The Qatar Science & Technology Park, which accepts applications from R&D businesses, and the Qatar Financial Centre, which primarily targets companies offering financial, banking, and insurance services but is also open to foreign investors. While a company registered in these special economic zones can be wholly foreign-owned and benefit from multiple tax incentives, it is also subject to strict registration requirements, including:
2. A higher amount of paid-up capital and the obligation to submit a feasibility study to the Qatari authorities.
3. Best uses for: We generally advise our Clients to register in a Qatar free zone only if they plan to make a significant investment in the industries targeted by these zones and proceed with technology transfers in the months following the business setup. Only such projects are granted free zone registration approval.

Doing business in Qatar with a foreign entity

Qatar branch

1. Qatari regulations permit the registration of branches by foreign companies only if these companies have won a government tender for the provision of public services. Approval from the Minister of Commerce and Trade is required before branch registration, and the branch will be fully taxable in Qatar. The duration of the branch is dependent on the contract period, but it is possible to renew the branch if a new contract is awarded;
2. Since the branch is not considered a permanent establishment by the Qatari Government, the local clients of the branch will be required to withhold corporate tax and other taxes from payments made to the branch. Said amounts can be reclaimed upon completion of the contract and the submission of the final tax return by the branch;
3. Best uses for: Except for Clients who fall into the above situation, registering a branch in Qatar is generally not a strategy that will ease the setup process in regulated industries subject to licensing requirements, such as banking, insurance, and finance. Otherwise, we advise our clients to register a subsidiary instead of a branch.

Qatar International Engineering Consulting Office (IECO)

1. While branches of foreign companies can only be registered temporarily (see previous entity for more details), the Qatari Government provides an exception for branch registration by foreign engineering companies, subject to the approval of the authorities;
2. Unlike a standard branch, the IECO is considered a permanent establishment, and its clients are not required to withhold tax from their payments;
3. Best uses for: Such an entity can only be registered for the purpose of providing engineering services. In reality, only larger and most renowned multinational corporations will be granted approval for the registration of an IECO by the authorities.

Qatar representative office

1. Qatari law allows foreign companies to open representative offices. These entities will not engage in any income-generating activities; instead, they will only work to support the parent company's interests in Qatar. Prior approval from the Ministry of Commerce and Trade is mandatory;
2. Best uses for: The registration of a representative office is the most suitable entity for Clients who do not wish to trade with Qatari customers.

Doing Business in Qatar through an Agency Agreement

1. Our Clients who do not wish to appoint Qatari shareholders or invest a significant amount of capital may prefer to work with a commercial agent. This option does not require the establishment of a new company.

Comparison table between the different types of entities