Setting Up A Company In Qatar: A Practical Guide

Published on and written by Cyril Jarnias

Qatar has established itself as a premier destination for international entrepreneurs seeking to expand their operations in the Middle East. With a dynamic economy, favorable business environment, and advantageous tax system, setting up a company in Qatar offers numerous opportunities. Here is a comprehensive guide to help you realize your business project in the emirate.

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Qatar, a Promised Land for Entrepreneurs

Qatar boasts numerous assets that make it a preferred destination for starting a business:

A Strategic Economic Hub: Located at the heart of the Persian Gulf, Qatar benefits from an ideal geographical position to reach markets in the Middle East, Africa, and Asia. Its capital Doha has become a regional hub for business and finance.

A Prosperous and Diversified Economy: Although the hydrocarbon sector remains a pillar of the Qatari economy, the country has successfully diversified into sectors such as financial services, new technologies, tourism, and renewable energy. This diversification offers numerous opportunities for foreign companies.

An Attractive Business Environment: Qatar has established a regulatory and tax framework very favorable to foreign investors. Administrative procedures have been simplified, and many benefits are granted to companies setting up in the country.

State-of-the-Art Infrastructure: Qatar has modern and efficient infrastructure, whether in terms of transportation, telecommunications, or business zones dedicated to companies.

A Skilled Workforce: The country attracts many international talents and trains an increasingly skilled local workforce, particularly in cutting-edge sectors.

Good to Know:

Qatar recently relaxed its legislation to allow foreigners to own up to 100% of their company’s capital in most business sectors, further enhancing its attractiveness to international investors.

Legal Structures for Doing Business in Qatar

Several legal forms are available to entrepreneurs wishing to set up a company in Qatar:

Limited Liability Company (LLC): Equivalent to an LLC, this is the most common form for SMEs. It requires a minimum of 2 partners and share capital of 200,000 Qatari riyals (approximately $55,000).

Single Person Company (SPC): A variant of the LLC allowing a sole entrepreneur to create their company with 100% ownership.

Branch Office: Allows a foreign company to establish a branch in Qatar without creating a separate legal entity.

Representative Office: A lightweight structure allowing a foreign company to have a presence in Qatar for non-commercial activities (prospecting, marketing, etc.).

Joint Stock Company: Equivalent to a public limited company, suitable for large projects requiring significant capital.

Free Zone Company: A company established in one of Qatar’s free zones, benefiting from specific tax and regulatory advantages.

Good to Know:

The LLC remains the most suitable structure for the majority of foreign entrepreneurs, offering a good balance between management simplicity and partner protection.

Attractive Tax System for Companies

The Qatari tax regime is particularly advantageous for companies:

Corporate Tax: The standard rate is 10% on profits. However, many exemptions and reductions are possible depending on the business sector and location.

VAT: There is currently no VAT in Qatar, although its introduction is being considered in the medium term.

Personal Income Tax: There is no income tax for individuals in Qatar, which is a major advantage for attracting international talent.

Customs Duties: Import duties are generally 5%, with many possible exemptions.

Tax Treaties: Qatar has signed double taxation avoidance agreements with many countries, facilitating international exchanges.

Good to Know:

Companies established in free zones like the Qatar Financial Centre can benefit from total corporate tax exemptions for several years.

Setting Up Your Company in Qatar: Key Steps

Here is the procedure to follow to establish your business in Qatar:

1. Define Your Project: Develop a detailed business plan and choose the most suitable legal structure.

2. Obtain Preliminary Approval: Submit your project to the Ministry of Commerce and Industry to obtain preliminary approval.

3. Reserve the Company Name: Have your chosen company name validated by the competent authorities.

4. Prepare the Articles of Association: Draft your company’s articles of association in Arabic and English.

5. Open a Provisional Bank Account: Deposit the share capital into a temporary bank account.

6. Obtain the Commercial License: Submit your complete file to the Ministry of Commerce to obtain your operating license.

7. Register with Authorities: Register your company with the Qatar Chamber of Commerce and Industry and tax services.

8. Obtain a Business Visa: Apply for the necessary visas for you and your expatriate employees.

Good to Know:

The Qatar Financial Centre (QFC) offers a one-stop shop to simplify business setup procedures in certain sectors, with accelerated processes.

Qatar Compared to Other Offshore Jurisdictions: Strengths and Specificities

Compared to other popular offshore destinations, Qatar stands out with several advantages:

  • Greater political and economic stability than many tax havens
  • A more transparent regulatory framework compliant with international standards
  • Infrastructure and quality of life among the best in the world
  • A strategic geographical position between Europe, Africa, and Asia
  • Significant market opportunities in a rapidly growing economy

However, the cost of living and setup can be higher than elsewhere, and some cultural restrictions may surprise Western entrepreneurs.

Good to Know:

Qatar offers an excellent compromise between tax advantages and international credibility, making it a top choice for companies seeking to expand in the Middle East.

Social Obligations: What You Need to Know

Companies in Qatar must comply with certain social obligations:

Qatarization: Companies are encouraged to employ a certain percentage of Qatari citizens, varying by sector.

Social Security: Employers must contribute 10% of Qatari employees’ salaries for their retirement.

Health Insurance: Companies must provide health coverage for their expatriate employees.

Work Visas: The employer is responsible for obtaining and renewing visas for foreign employees.

Working Conditions: Qatari labor law sets standards for working hours, leave, and workplace safety.

Good to Know:

Although social obligations are less burdensome than in Europe, it is crucial to understand and respect them to avoid any issues with the authorities.

Opening a Professional Bank Account in Qatar: How-To Guide

Here are the steps to open a corporate bank account in Qatar:

1. Choose a Bank: Select a bank suited to your needs from among the local and international institutions present in Qatar.

2. Prepare Documents: Gather the necessary documents (commercial license, articles of association, directors’ passports, etc.).

3. Schedule an Appointment: Contact the bank to set up an appointment with a business advisor.

4. Present Your Project: During the appointment, explain your activity and banking needs.

5. Fill Out Forms: Complete the account opening and KYC (Know Your Customer) forms.

6. Make Initial Deposit: Deposit the minimum required amount to activate the account.

7. Obtain Access: Receive your online banking credentials and payment methods.

Good to Know:

Major international banks like HSBC or Standard Chartered are often more flexible for opening accounts for foreign companies than local banks.

Promising Sectors for Entrepreneurship in Qatar

Several sectors offer promising opportunities in Qatar:

Technology and Innovation: Qatar is heavily investing in digital transformation and tech startups.

Renewable Energy: The country is diversifying its energy mix, creating opportunities in solar and green hydrogen.

Healthcare and Biotechnology: Qatar is developing a world-class medical and scientific excellence hub.

Tourism and Leisure: With the post-2022 World Cup era, the tourism sector is experiencing strong development.

Financial Services: The Qatar Financial Centre attracts many fintech companies and innovative financial services.

Education and Training: The country is investing in human capital development, creating opportunities in education and vocational training.

Good to Know:

The Qatari government offers specific incentives to innovative companies in these priority sectors, particularly in special economic zones.

Recruiting in Qatar: Keys to Success

To build a high-performing team in Qatar:

Diversify Your Recruitment Sources: Use local job boards, professional social networks, and specialized recruitment agencies.

Respect Qatarization: Integrate local talent into your team to meet legal requirements and benefit from their market knowledge.

Offer Attractive Packages: Provide competitive compensation and benefits to attract the best talent in a tight labor market.

Facilitate Integration: Assist your expatriate recruits in settling in Qatar (housing, schools for children, etc.).

Train Your Teams: Invest in continuous training to develop your employees’ skills and retain them.

Create an Inclusive Corporate Culture: Foster a multicultural work environment that respects differences.

Good to Know:

Many international universities present in Qatar train high-level local talent, constituting an interesting pool for recruiters.

Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.

About the author
Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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