Useful Tips To Setting Up A Business In Qatar That One Must Know

Posted by Petter on February 24th, 2021

Firstly you need to know the laws in Qatar. The rules and regulations in Qatar for doing business are different, therefore, you need to first understand the Qatari laws to avoid any problems in the future. You can consult a consultancy firm in Qatar and they would properly guide you with the procedure for a business set up in Qatar.

• Research the local Qatari market and find out about the hottest trends in the market. The research will help you better understand the market and help you come up with innovative ideas to enter the market with your business. After thorough research, create a detailed business plan for entering the Qatari market and execute the plan.
  

• Next, you may be required to find a local sponsor or investor. Some sectors or industries require 51% of the ownership of a local Qatari national or Qatari business. Therefore, you may need to seek a local partner or investor for your business.
  

• The Qatar Police needs to give you a Police Clearance Certificate for you to be able to do business. This is an essential document which every foreign business owner or investor should possess. In fact, this certificate is obligatory for all foreign investors who wish to set up a company in Qatar.
  

• You will need permission from the ministry to conduct business. You need to acquire the Commercial Residence Certificate, which will be granted by the Economy and Commerce Ministry. This document is obligatory for a foreign business or investor who wishes to have a business set up in Qatar. In order to get the commercial and residential certificate, you need to submit the trade name of your business and the article of incorporation as well. This article must contain every detail of the business as well as its foreign and local investors.
  

• After acquiring the Commercial Residence Certificate (CRC), you need to acquire the trade licence from the government. For this, you need to submit the application with all the supporting documents such as the Article of Incorporation, Identity card, rental acknowledgement, a photograph of the premises from where the business will be conducted and other necessary documents. You will need to file all this paperwork with the local government authority to get the trade licence. The trade licence is an essential requirement for business.
  
  

• You need to incorporate the business or firm as the legal entity. There are 2 types of business entities in Qatar: Owner or single shareholder company and Limited Liability Company. Therefore, set up your firm as the legal entity before conducting business.
  
  

Limited Liability Company

This sector requires the 51% ownership of a Qatari national, then you need to create your legal entity under this sector. Creating a legal entity is crucial to keep your business secure. When the business registration of your company is done as a company under this sector, the entity gets protection as per the Qatari laws. Failure to register under this sector will invite legal consequences in Qatar. Two or more partners or individuals are required to incorporate the entity as a Limited Liability Company. If the company is foreign investment, then it should consist of a local Qatari national as the majority shareholder holding a minimum of 51% shares in the company, and the required minimum capital investment is QR 200000 approximately. This sector is liable for taxation at 10% per annum.

Single ownership company

For a single ownership company, it is not mandatory to have a local Qatari national as a partner. A single business owner could start the company. Even foreign investors or foreign business owners can incorporate the company as a single ownership company. This could be a very nice option for small or medium businesses wanting to set up business in Qatar as you do not need a Qatari sponsor for business registration. After successful business registration as a single ownership company, your company would be protected as per Qatar rules and regulations.

You need to mandatorily recognise the points mentioned above if you want to set up a business in Qatar. For further information on business registration in Qatar, you must visit AAIQA today.