Setting up New Business in Qatar, this useful guide outlines the entire process, including tax, admin, employment laws, and more.
Political and economic stability, high-quality infrastructure, and one of the world’s rock bottom corporate tax rates. (10%) There are many great reasons to fix a business in Qatar. The government has a sustainable development plan. We are setting up New Business in Qatar.
The goal of Qatar National Vision 2030 is to reorganize the country into a complex society capable of achieving sustainable development by 2030. Qatar is investing around $ 200 billion to realize the goal. You will like it. Although hiring an experienced lawyer or consultancy company is advisable when fixing a Qatar business, this useful guide offers some necessary information. Setting up New Business in Qatar.
The business landscape in Qatar
Home to over 85 different nationalities, Qatar consistently ranks with the highest economies in competition and innovation. With a dynamic economy, the country offers many opportunities for your business to grow. You do not need this. You were setting up New Business in Qatar.
Many have already developed successful businesses in Qatar, and new operations are encouraged by the authorities. The Qatar Financial Center, for example, is probably a government business and financial entity. It serves to promote Qatar as a beautiful trading site, acting as a bridge between East and West. Such support is often essential for Westerners when doing business in a foreign country with such a unique cultural background. Exports got to be ready to kick off the business environment correctly.
Business culture in Qatar
Your investor life in Qatar is often more comfortable if you’re polite and patient. Arabs are usually helpful and friendly if you invite some advice, as they see this attitude as a symbol of respect. However, doing business with Arabs also means you’ll face hard bargaining; they’re experts. It’s important to understand that answers like “I will believe it later” may demonstrate that the agreement won’t go further. It’s better to watch all the signs around you attentively because Arabs rarely say an immediate “no” to a proposition. You are setting up New Business in Qatar.
Opportunities in Qatar
You should do extensive research about the region and your business. A doable business program must include studying the market conditions, the competitors, and, therefore, the forecast results. Remember that a reputable plan has higher chances to draw in more local support. Although gas still constitutes Qatar’s priority for economic development, the government demonstrates diversifying the economy, offering incentives in trade, expertise, and investment from outside the country.
The state does business with rapid access to major markets and suppliers, particularly in tourism, manufacturing, health, education, information technology (IT), agriculture, consulting services, and other sports, culture, and media services. According to the Qatari planning ministry, within the half-moon of 2019, Qatar’s inward foreign investments reached 722.6 billion Qatari riyals (U$199.7 billion), representing 67.9% of Qatar’s total assets and setting up New Business in Qatar.
Who can start a business in Qatar?
As a foreigner, appointing a service agent/sponsor is an initiative to recover Qatar’s business. A strong sponsor or a local professional partner can be a significant weapon with official entities. The foreign or local company must then obtain a billboard registration from the Ministry of Commerce and Industry (MoCI). The Commercial Companies Law defines all the specified documentation and procedures. And every one legal contracts must use Arabic, and these versions will precede English translation.
Financial requirements Business in Qatar.
Foreign business owners and investors must form a personal indebtedness company (LLC) to operate within Qatar. The corporate must have a minimum authorized share capital of QAR 200,000 and two shareholders. Generally, foreign investors can own up to 49% of the share capital. More than one Qatari partner should be the opposite 51%. Within specific sectors, the Minister of Economy and Commerce may grant permission for foreign investors’ shareholding to exceed 49% up to 100% (if the business is compatible with Qatar’s development plans). They are setting up New Business in Qatar.
How to make it easier?
Qatar’s most supported industries include agriculture, education, tourism, healthcare, exploitation of natural resources, energy, mining, and technical and IT services. The govt may offer some incentives to foreign companies investing in these industries, like no tax for ten years. Like the Qatar Financial Center (QFC), the Qatari government also provides business incubators and free economic zone platforms to attract foreign direct investment. Fixing a business within QFC is straightforward. They are setting up New Business in Qatar.
After you submit your application, a Relationship Manager will guide you through registering, obtaining a license, and starting operations. Qatar Financial Center (QFC) was established in 2005 by the Qatari government as a trading platform to attract international financial services providers. Through QFC, there are already around 670 companies – internationally.
In Qatar – working in various fields, from media and sports to technology and consulting. The units registered at the QFC agency come from all over the world (60 countries). Interacts with a community of about 3,500 people. The total assets under its management in 2018 are more than $ 20 billion. They are setting up New Business in Qatar.
Foreign investors can fully adopt companies established under QFC responsibility. With QFC, fees are charged, such as installation fees (around the US $ 5,000) and annual fees (between the US $ 500–5,000). The platform employs these to assess strategic fit and, therefore, benefit your company to Qatar. As an alternative to starting a replacement business, buy a business operation. Making a profit (a concern) can make the method much more straightforward. Do not include lodging capital, obtaining sponsorship, or registration. You only got to agree on one price and try to transfer ownership of the business.
The legal structures for businesses in Qatar
Business types Setting up New Business in Qatar.
According to Commercial Companies Law N.5 (2002), a corporation must have its headquarters in Qatar. Generally, subsequent sorts of companies can operate in Qatar:
This business comprises two types of partners: 1) the joint partners, empowered to administer the company’s affairs and responsible for its liabilities, and 2) the trustee partners, who contribute to the company’s capital. (their responsibilities are limited to the value of their shares in the money). The minimum financial investment for this company is QAR 200,000.
Equities Partnership Company
An equities partnership company comprises two teams: the primary with one or more partners jointly liable for the corporate debts altogether their assets, and therefore the second includes shareholders.
Limited Partnership Company Setting up New Business in Qatar
This company comprises two or more natural people from Qatar who are personally and jointly liable for its debt. Foreign ownership is restricted to 49%. There’s no minimum financial investment required.
Limited Liability Company Setting up New Business in Qatar
This structure includes a minimum of two and a maximum of fifty partners, whose responsibilities are limited to the worth of the company’s shares held. Foreign shareholders are allowed to rent management and have an indebted company. The minimum capital required is QAR 200,000.
Shareholding Company Setting up New Business in Qatar
This company is made through a shareholding arrangement approved by the Ministry of Commerce. Industry before the corporate is established. The number of shareholders should be a minimum of five, and every one of them must be Qataris. Also, an elected board of directors is going to be liable for managing the shareholding company. The capital shouldn’t be but QAR 10,000,000. Setting up New Business in Qatar.
Particular Partnership Company
A partnership company consists of two or more partners responsible for corporate liabilities. All joint partners must be Qataris, and each partner has business meetings and business facilities in the name of corporate. Prior approval is mandatory before proceeding with any investment.
Freelancer or self-employed
If you want to be self-employed in Qatar, you want to ask a corporation to sponsor you. It is important to note that you should not travel to Qatar to search for temporary or casual work. A sponsor may sign a short-term contract. Independent is against independent law. It is against the law to try to pay Qatar in any way without a permit from the Ministry of Labor. Sponsorship is provided by a legally registered company or an individual. You will approach the corporation as a freelance working as a subcontractor.
How to start a business in Qatar as an ex-pat. Setting up New Business in Qatar.
Before starting a business in Qatar, you would like to know what you will do carefully there. The justification is simple: the method is often expensive and bureaucratic for ex-pats. Also, in some regions, foreigners can hold only 49% corporate. Others must have a 51% territory shareholder; It is common to hire an advisory firm to search for a potential Qatari shareholder. An exception to the current rule is to open your business during a business area; you will then retain the corporate ownership.
Although the law does not specify the capital requirement, a minimum paid-up capital of QAR 200,000 is generally suggested to maximize the business probability of being approved. It is also recommended. Just arrange any necessary assistance with your bank in your bank country before you leave. Banks in Qatar can also be reticent to lend you money, especially if you are a new person to the country. The following steps specialize in registering an indebtedness Company LLC, the most typical Qatar company: Setting up New Business in Qatar.
Registering your business within the country
When you can finally start things off, you want to follow the steps below to incorporate and run your business entirely: Setting up New Business in Qatar.
- Trade a reputation for your enterprise. If the specified name doesn’t have a meaning in Arabic, you’ll need to pay an additional QAR 1,000.
- Get your articles of association signed with all shareholders. They own bets. Then, send the document to be signed by the Ministry of Justice.
- Submit names and association articles to be issued for your company by Billboard Registration (CR). Your application is being submitted for review by various ministerial departments. Is based on your business activities. Once your application is approved and all fees are paid. You will want to return to the Ministry of Economy and Commerce (MEC) to request your commercial register. Note that CR is valid for less than one year. With this document, you will eventually open a company checking account.
Licenses and permits Setting up New Business in Qatar
After the CR is issued, you will need a trade license. It allows you to have office space to conduct your business activities. MECs must approve this, and this is usually the most challenging part of the method. Also, plan some time carefully, as it may take some time to complete. Once your business is ready to run, it is time to hire some employees. However, they are to be supplied with a residence permit. You will need a computer card, which is essentially a document, which states that the corporate has the authority to sign one—immigration issue PC cards (also known as signature cards). Setting up New Business in Qatar.
How to obtain a business visa within the country
According to the web site Hukoomi, business visas allow non-Qataris to conduct business and add Qatar temporarily. There are two sorts of business visas:
- 72-hour Business Visa: issued on arrival, this visa is extendable for an extra 72 hours. People mostly use this for short-term business trips.
- Business Visa: available for brand spanking new expatriate workers and persons conducting short-term contractual add Qatar. The visa is valid for a maximum of three months. Setting up New Business in Qatar.
There is also the Investor Visa for expatriates who invest in selected business ventures in Qatar. They’re eligible for residency without sponsorship. Applicants must have property ownership documents, a certificate of excellent behavior, and have a medical check-up to qualify. Setting up New Business in Qatar.
Starting up an online business in Qatar
Many are still growing in the e-commerce segment to get into Qatar as its penetration is only 20%. However, because Qatar facilitates a connected community. Therefore the highest per capita income globally, the potential market for online businesses, is massive. You do not need a permanent residence to partner in an online business; You will start an online business in Qatar on a business visa. However, before starting your online business within the country, you want to be legally registered. The steps are almost equal to a traditional company. You are setting up New Business in Qatar.
You will want to make sure that you have added the term “e-commerce activity” to your business registration (CR). Without this legal process, you cannot open a checking account or import a product. You should use the “.qa” domain when logging on to Qatar. You will find the options available on the field. QA. Use an area secured payment portal so that your platform looks reliable and reliable. Also, explore the resources available within the e-commerce information portal of the Ministry of Transport and Communications. You are setting up New Business in Qatar.
Foreign companies are opening up a branch or subsidiary.
A branch office is an extension of a parent company abroad, and it is often 100% foreign-owned. However, counting on the parent company’s tax jurisdiction, the branch’s profits will be taxable in its home country. Branch offices got to have authorization from the Ministry of Economic and Commerce and sometimes need strict government contracts. It’s better to register a subsidiary rather than a branch. If there’s no trade with Qatari customers, a representative office is more recommended.
Starting up a non-profit company in Qatar
Qatari law only considers the later registered types of NPOs: associations, foundations, clubs, and non-secular centers. The law does not recognize non-profit companies. They are not mentioned within the commercial companies’ law or the law relating to foreign investment. The law is silent on whether or not a non-registered NPO is allowed to work. They are setting up New Business in Qatar.
I am setting up an offshore company.
If you’re considering fixing an offshore company, you should bear several significant pros and cons in mind. Offshore incorporation may be a straightforward process altogether of the favored offshore financial centers and tax havens worldwide. They will provide a good range of advantages to corporate and company principals. You can read more about the pros and cons of fixing an offshore company, including privacy and reduced liabilities, in our helpful guide to offshore companies. It also explains the way to register, establish, or incorporate your offshore business. You are setting up New Business in Qatar.
Administrating your business in Qatar
Nowadays, accounting software programs assist you in simplifying the way you manage all aspects of your business: keeping track of and managing invoices, cash flow, orders, VAT returns, budgets, tax reports, and so on. one of the only popular software programs is Tally ERP9. Setting up New Business in Qatar.
You must maintain all accounting books and records for a minimum of five years from the date you register the annual tax declaration (with the tax administration).
Invoices and labels
Businesses in Qatar must use Arabic because of the primary language for issuing invoices, service lists, and merchandise labels. However, small quantities of products with English-only tags may pass import checks on a case-by-case basis. Setting up New Business in Qatar.
Business banking in Qatar
All the most important banks in Qatar offer customers a specialized business account. However, before opening your corporate checking account, you want to have your Commercial Register (CR), a document stating that you simply have a legal company.
Opening a checking account. Setting up New Business in Qatar.
First, you will open a short term checking account. Then, with CR in your hands, you address Qatar’s permission to open a politician’s business account. I would like to receive a letter from the Ministry of Economic and Commerce. The report will be activated as soon as you make an initial deposit. It takes about one to two business days to activate the account. You are setting up New Business in Qatar.
Taxation for businesses in Qatar
An entity that’s partially or entirely under foreign ownership must pay taxes in Qatar. Its profits are generally subject to tax at a flat rate of 10%. This corporate rate is relatively less than in other countries. In some specific business areas or a company entity under complete ownership by Qatari and Gulf Cooperation Council (GCC) nationals, the tax is free. The law also doesn’t apply to the following: Setting up New Business in Qatar.
- private associations and foundations;
- non-profit organizations;
- salaries, wages, and allowances;
- gross income from legacies and inheritances.
There is no tax on personal per capita income, which suggests. Employees can bring their wages and salaries home without writing taxes; however, they are engaged in any business activity to realize some gain. He will be required to pay tax. Also, if income is derived from Qatar sources, individual households are subject to tax.
Other taxes At present, Qatar doesn’t impose business taxes or value-added taxes on enterprises. Goods from outside the GCC countries usually accompany fifty specific products, like tobacco, which have higher tax rates. Temporary imports are sometimes tax-free. They are setting up New Business in Qatar.
By law, you will want to settle accounts that follow international financial reporting standards. The taxpayer should also keep records and documentation regarding Qatar’s activities for the top of the taxable year and ten years related to documents and documentation. Setting up New Business in Qatar.
Declaration The default tax year-end date is 31 December. Around this point, you want to submit the tax declaration and pay any tax due within four months of the top of the accounting period, e.g., by 30 April 2019, for an accounting period that ends on 31 December 2018. If your company is a component of QFC, you want to submit all tax returns online using the QFC Tax Portal and setting up New Business in Qatar.
Business Insurance in Qatar
Business insurances are essential to guard your organization. Most insurance companies offer an identical portfolio of insurance products: Setting up New Business in Qatar.
Liability insurance products
- General Third Party Liability Insurance: Indemnification for damages resulted from accidental death or bodily injury of a third party person or unintentional damage to 3rd party property.
- Professional Indemnity Insurance: A particular type of compensation intended to protect your company against those claims. The knowledgeable service you provide causes financial loss to your customer.
- Directors and Officers Liability Insurance: indemnity payable to the administrators and officers of a corporation (managers or supervisors) as compensation for their losses or defense costs resulting from action against them while working with the corporate. Setting up New Business in Qatar.
Workmen’s Compensation Insurance
According to the Qatar Labor Law, all employees must have coverage under Workers Compensation Insurance (also known as Employer’s Liability Insurance). This policy covers work-related accidents and occupational diseases. It also provides salary replacement and medical benefits to employees or workers injured while employed by your business.
Property Insurance Setting up New Business in Qatar.
- Property All Risk Insurance: indemnity for accidental physical loss and damage.
- Business Interruption Insurance: indemnity for loss of revenue or gross profit margin following accidental damage to your property, covered under your Property All Risks policy. This policy must co-exist with your Property All Risk Insurance and can’t get on a stand-alone basis.
Product insurance Business in Qatar.
This policy protects your business against any claims of injury or injury caused by products supplied by your company. It’s essential for the cosmetic and medical supplies industries. You are setting up New Business in Qatar.
Employing staff when fixing a business in Qatar
After fixing your business and getting your computer card, you will be ready to hire employees. It is important to note that every employee – except Qatari citizens-requires only one-piece permit. They should have a residence visa and working papers provided by the employer—those who must have a Qatar unit. Employers should provide foreign workers with contracts of employment. Setting up New Business in Qatar.
The contract can also occur during the second language (preferably English), so everyone understands it. However, the Arabic version is the only legally valid document to be officially recognized by the Qatar Ministry. Foreign employees must obtain prior approval from the Ministry of Labor and the Interior Ministry before signing a local employment contract and relying on the role’s character.
As a part of the work permit/residence visa process, employees must provide a verified copy of their degree certificate to the Ministry of Labor. In most cases, workers will find themselves giving information such as criminal records and employment history and setting up New Business in Qatar.
Employment rights and obligations
The Qatar Labor Law governs all employment relationships; this provides minimum standards of rights, obligations, and benefits for workers. You’ll find a number of these rules below.
The maximum working hours allowed is 48 hours per week (8 hours per day). During Ramadan, the working hours are shorter at 36 hours per week (6 hours per day). Setting up New Business in Qatar.
The overtime must not exceed 2 hours per day unless the work is essential for preventing a considerable loss or serious accident or eliminating or relieving the impact of a significant accident.
If the employee’s service period is smaller than five years, there’s a minimum of three weeks’ vacation per annum. However, if the service period is five years or more, there’s a minimum of 4 weeks per annum.
After three months of service, employees can have two weeks of paid leave per benefit year. Setting up New Business in Qatar.
After one year of continuous service, women can take 50 calendar days of maternity leave at full pay. There is no parental leave in Qatar. Also, under sponsorship, an employee has different jobs from the sponsor. Should be allowed to move from the country, rent a house, and open bank accounts. However, sponsors cannot keep their employees’ passports apart from any visa formalities.
Qatar features a wages protection system (WPS), whereby employers must pay their employees once a month – or every fortnight – directly into an area checking account. Some employers within the QFC also use the WPS. They are setting up New Business in Qatar.
Taxes and Social Security
Employees in Qatar aren’t subject to tax. Therefore, the employer has no tax write-off obligations. There also are no Social Security requirements, just for exceptional cases.
Employers need to contribute to a pension fund and deduct employee contributions from the employee’s salary.
Useful websites where you’ll find employees
An employer who is trying to find new employees for his/her company can announce available vacancies in:
- Employment search engines (Bayt, Monster, Online Qatar, Gulf Talent, then on);
- Newspaper job sections (Gulf Times and therefore the most prominent newspapers from your home country);
- Recruitment agencies for Qatar (Mahad Manpower Co. W.L.L, REED, Doha HR, Workabroad. ph, Global Woman Qatar, Ally International, etc.);
- Job fairs.
Support and advice when beginning a business in Qatar
If you would like to start a business in Qatar, you’ll find many business-consulting companies who can assist you. These companies may offer financial and legal support, loans and grants, marketing advice; they’ll even find Qatari partners for your company. Qatar’s government unearthed the Qatar Financial Center (QFC), a financial and commercial center designed to attract international financial services institutions and multinational corporations. QFC aims to market Qatar as a vibrant hub for trade.
A beautiful financial activity is to supply the environment. The institute operates on international standards. Provides legal assistance and business infrastructure for those in-between. Entities within the QFC can claim 100% ownership by foreigners. It can send all profits and capital outside Qatar. They are setting up New Business in Qatar.
Finding office space in Qatar
If you are trying to find a knowledgeable place where you will find your business, you will find one. Many land brokers can provide you with office space and a living room to rent. On the other hand, Qatar’s cowboy spaces are booming, and they provide you with the resources of large scale businesses at a fraction of the price.
The Qatar Financial Centre also can provide affordable office spaces selected from the right sort of location. In 2019, the QFC will relocate to Doha’s fresh Financial District, Msheireb. It’ll offer ultra-modern buildings with the newest in sustainable technologies. It is setting up New Business in Qatar.
However, if you don’t want to buy a workspace, you’ll apply to use the free co-working space of the Digital Incubation Center (DIC), a division of the Ministry of Transport and Communications. You can find more about the DIC in our guides to Business training courses, see the office and co-working spaces in Qatar, and Setting up New Business in Qatar.
Business training courses in Qatar
The DIC conducts a series of coaching sessions on emerging technologies and business processes. Its objective is to attach the new entrepreneurs with the most straightforward training experts from the local and overseas markets. The two programs offered are the Startup Track, which supports potential entrepreneurs who already have a market-ready product or prototype. Therefore, the Idea Camp – a program for entrepreneurs, developers, and designers who have an excellent idea for a technology solution.
The DIC is about up to spice up ICT innovation in Qatar. It also offers start-ups free office space, technical support, and guidance, besides the exposure and PR that come from being a part of the DIC. Setting up New Business in Qatar.
Here are some useful websites that provide information and support on starting a business in Qatar.