STEPS TO SETTING UP A BUSINESS IN QATAR STEP 1 The first step is to understand and decide on the type of presence you wish to establish in Qatar. The options available are dependent on the activities of the company and the contracts that they wish to fulfil whilst in Qatar. The entity types are as follows. 1) Limited Liability Company (LLC) incorporated under the Commercial Companies Law. The most common method available to foreign investors setting up in Qatar is to operate under a Limited Liability Company. This entity is primarily used by investors that are looking to operate in Qatar over the long term who would like to sell their products or services to both private and government entities in Qatar. Currently, the law states that most* Limited Liability Companies must have one or more local Qatari partner(s). The local shareholders are required to possess a minimum of 51% (50% in cases whereby the foreign shareholders are from the Gulf Cooperation Council (GCC)) shareholding in the LLC. However, the profit share of the company does not necessarily need to reflect that of the shareholding. Main Advantages of an LLC establishment: •

Unlike a branch or Trade Representative Office (see below), an LLC can carry out and fulfil an unlimited number of contracts simultaneously. Therefore, there is no limitation on the number of products or services the company can sell Your company will be recognised as a local company, often permitting the entity to take part in an increased number of government and private tenders The company will not be subject to withholding tax.

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2) Branch Office If you are a foreign company executing a specific contract in Qatar, you may establish a Branch Office. In this case, there is no need for a Qatari partner. The contract, however, must “facilitate the performance of a public service or utility,” i.e. your contract must be issued by a government or quasi-government entity including, but not limited to the following stipulations: Main Advantages of a Branch Office establishment: • •

Can maintain 100% Foreign Ownership There are no share capital requirements for a Branch Office

Considerations of a Branch Office establishment: • •

A Branch Office is entitled to perform only the specific contract for which it is registered and cannot tender for any further public or private contracts through the entity Branch Offices are fully taxable unless granted a special exemption.

3) Trade Representative Office If you are a manufacturing company looking for exposure in the Qatari market, you may want to set up a Trade Representative Office. This type of representation is useful in introducing your products to Qatari companies as a non-trading “shop-window.” Bear in mind, however, your Trade Representative Office cannot export, import or sell in the State of Qatar. Personnel from your Trade Representative office can contact a client or exporter to acquaint them with their foreign establishment, but they are not permitted to contact the end customer directly or to promote products that are not manufactured by your company. Main Advantages of a Trade Representative Office establishment: • •

Can maintain 100% foreign ownership There are no share capital requirements for a Trade Representative Office

Considerations of a Trade Representative Office establishment: • •

Trade Representative Office cannot export, import or sell in the State of Qatar Requires Ministerial Approval based on the manufacturing license of the mother country.

4) International Engineering Company To register as an International Engineering Company, you must ensure your branch office fulfils the following criteria: • • •

It must be a branch of a main office located abroad It must have a license to practice the relevant profession The main foreign office must dedicate time and resources to support the branch office and ultimately take responsibility for all their obligations

Please note, an International Engineering Company can be 100% foreign owned. However, establishing an International Engineering Company can be a time-consuming process and must meet strict requirements.

5) Commercial Agency Relationship a) A firm incorporated or registered with Qatar Financial Centre (QFC); b) A free zone entity within Qatar Science & Technology Park.

STEP 2 Seek advice from a specialist in company formation to decide on company structure if setting up a local entity. Most businesses will require a local partner. If you are setting up a financial services company, you must register with QFCRA. STEP 3 The company activities and trade name should be reserved at the Ministry of Economy & Commerce (MEC). Please note, both local and foreign shareholders are permitted to be individuals or corporate entities. Many jurisdictions are recognised as corporate shareholders. However, please be advised that UAE Free-zone entities are not recognised in the Qatar MEC. STEP 4 Appoint a lawyer to prepare legal documentation, specifically, the Articles of Association and any further documents required to establish the entity and confirm the relationship between the shareholders. STEP 5 Obtain the approval from the Commercial Companies Control Department on the Articles of Association. STEP 6 Authenticate the Articles of Association at the Ministry of Justice. STEP 7 Company will automatically be registered at the Qatar Chamber of Commerce and will be issued a certificate. Shortly after that, the Commercial Registration (CR) will be ready for collection. This is the document that outlines the shareholders, authorised signatories and authorised managers in the local entity. STEP 8 Deposit the minimum share capital into the corporate bank account in the name of the company, the share capital amount was previously was QAR200,000 ($54,919). However, under the new Commercial Companies Law of 2015, no minimum amount has been announced. The share capital amount should be deposited within the corporate bank account with 15 days of obtaining the Commercial Registration.

STEP 9 Sign a 12-month lease at an approved commercial office. Unfortunately, virtual offices are not permitted to obtain the Trade License against. STEP 10 After a municipality inspection and approval, obtain a Trade License (municipality license). STEP 11 Apply for a Computer Card at the Immigration Department in the Ministry of Interior. The card will include the authorized signatories for immigration services for the company. STEP 12 Register for taxes and obtain a Tax Identification Number (TIN). This should be completed by the appointed auditors for the company and should be applied for within 30 days of obtaining the Commercial Registration. Otherwise a fine of QAR5,000 would be applicable. STEP 13 Apply for the labour quota at the Labour Department. This will determine what kind of visas you can obtain for employees. The labour quota will outline the job position, gender and nationality of the employees for which you are permitted to hire. STEP 14 Obtain work visas for your staff to allow them to enter the country to work. Once they are in the country, they will then be required to have a medical and blood test, in addition to having their finger prints taken. Thereafter, the work visa can be transferred into a Residence Permit.

This information is provided from, Company Formation Specialists. Fusion Middle East provide corporate partnership to foreign investors looking to start or expand a business in Qatar or the UAE, Fusion Middle East uses local knowledge and expertise to provide tailored solutions, catering to each client’s individual business needs and helping to achieve their business objectives. By providing the highest levels of service and support, Fusion Middle East and its network of partners can help businesses set up in Qatar quickly and efficiently, with minimal stress in the minimal length of time. To find out more about how to set up a business in Qatar, get in touch with our team, who can walk you through each of the setup options.

REFERENCE LINKS Learn about doing business in Qatar in the U.S. Commercial Service's Country Commercial Guide. This comprehensive document presents an overview of the local commercial environment using economic, political, and market analysis. For in-depth statistics on trade between the U.S. and Qatar, consult the U.S. Census Bureau's website. The Embassy of the State of Qatar in Washington, D.C. also provides "commercial information" and information about obtaining entry visas. You may also want to familiarize yourself with Qatar National Vision 2030.