Start Your Business in Qatar in 2020
There are many foreign investors who want to Start a business in Qatar. If you’re one of them, here’s how.
Why You Start a Business in Qatar ?
Qatar’s economy in 2020 is experiencing steady growth despite the continuing economic blockade and Covid-19, as the country is moving towards the path of self-sufficiency and economic development under the leadership of His Highness Sheikh Tamim bin Hamad Al Thani.
Start a business in Qatar is possible for foreigners, provided they follow the procedures and complete all the formalities. Many international companies, small and medium-sized have succeeded in establishing themselves in Qatar despite the constraints.
The different companies
In Qatar, you will find 4 types of companies, Limited Liability Company, Rule 68 Company, Single Shareholder and Owner Company.
- Limited Liability Company: a minimum capital of 200,000QR is required (i.e. 47,000 euros). You will need a Qatari partner who will own 51% of the shares. You will not be allowed to undertake activities related to the banking sector, insurance, or any other investment company. The company will have to pay 10% of its profits based on the fiscal year.
- Rule 68 Company: You will need to partner with a state-owned company or a corporation the majority of whose shares are state-owned. You can own more than 51% of the shares, for this you will need an authorization from the Qatar Council of Ministers. They will set the legal and fiscal obligations of the company.
- Single Shareholder and Owner Company: no need for a local partner. Tourism, agriculture and health activities must be justified by the Ministry of Economy and Trade in Qatar. A minimum capital of 200,000QR is required (i.e. 47,000 euros).
Before you start a business in Qatar
Before you begin, you need to determine the area in which you want to establish your business. In the ‘free zone’ or ‘outside the free zone’. In free zones, foreigners can own 100% of the shares of their company, but also, import goods, services, and is allowed to repatriate capital and profits without restriction. Being in this area, the company is allowed to sponsor foreign employees.
The procedures to start a business in Qatar:
The first step will be to register the name of your company with the Ministry of Economy and Trade (costs at your expense). Subsequently, you will have to submit the status of your company to the same department for validation.
Once this first step is completed, you can open a bank account (minimum capital). In order for this to become legal, the receipt given by the bank must be sent to the Ministry of Justice, along with other documents (identity card of the partners, copies of the company statute, etc.). The complete company file must be returned to the Ministry of Economy and Trade (costs compared to capital). Following this, an official certificate will be given to you within 7 days.
You will need to approach the nearest town hall to apply for a Trade License. For this you will need the lease of the premises of the company and your certificate of commercial registration.
The last step will be to apply for a TIN (Tax Identification Number), a tax identification number, from the Ministry of Finance.