Qatar is a great place to establish a company. This is because the Qatari government aggressively supports foreign investment and the establishment of branch offices of international corporations in the country.
Over 85 nationalities call Qatar home, and the country is often cited as having one of the world’s most creative and competitive economies. The country’s fast-paced economy gives businesses many chances to succeed. Additionally, with the FIFA World Cup 2022 around the corner, Qatar now provides several viable company and investment options.
In this article, we talk about how a foreign expatriate can start a business in the country and what options are available to them. We will cover the following topics:
• Can a foreigner open a business in Qatar?
• Company structures available in Qatar
• Why entrepreneurs choose Creative Zone
Can a foreigner open a business in Qatar?
Yes, a foreigner can open a business in Qatar. Whether you are an individual entrepreneur or an international company, you have several choices in establishing your presence in the country.
Setting up a company in Qatar can be a complicated process as you have to consider factors ranging from business activity to business insurance policies. In this article, along with diving into the company structures available in Qatar, we will go into detail about:
• How to get a business visa in Qatar
• What is the cost of a business visa in Qatar?
• Taxes in Qatar
• Business Insurance in Qatar
By the end, you will understand how you can proceed with your company formation in Qatar. If you have any queries, you can contact one of Creative Zone’s business setup managers to get an up-to-date price tailored to your individual needs for an exact quote. They can help you get precisely the cost that matches the activities you want to carry out.
Company structures available in Qatar
There are several legal structures you can choose for your business entity. Here are some of the popular ones:
Limited Liability Company (LLC): The LLC requires a minimum of two partners and a maximum of 50. Each partner is only accountable for the value of the company’s shares. The minimum capital needed to form an LLC is QAR 200,000.
Limited Partnership Company: With this structure, the government limits foreign ownership to 49%. The company requires two or more Qatari citizens to be joint partners who are liable for the firm’s debt they represent. The plus side is that there is no minimum capital requirement.
Joint Company: This type of company has a joint partner and a trustee partner. The company’s administration is handled by the joint partners, who are also responsible for the company’s financial responsibilities. The trustee partners contribute to the company’s capital, and their responsibilities are limited to their value in share capital. To establish a joint venture, you must make a financial commitment of at least QAR 200,000.
Other company structures include:
• Sole Proprietorship Company
• General Partnership Company
• Shareholding Company
• Branch Office
• Representative Office
How to get a business visa in Qatar
A business visa in Qatar allows you to attend meetings, conferences, exhibits, and do business with international firms, among other things. You require the following before applying for a business visa in Qatar:
• Passport with at least six months of validity and at least three blank pages; if applicable, all your previous passports
• Scanned colour copy of your passport’s first and last pages
• A recent colour passport photo with a white backdrop
To apply for the visa, you must:
• apply online at www.qatarvisaservice.com
• fill out the form for a Qatar business visa
• submit scanned copies of the required documents along with the completed form
• pay the visa processing fees
• the visa will be sent to you via email once approved
While filling out the papers, ensure the information entered is accurate. Any erroneous or misleading information can result in the rejection of your visa application. Be advised that a visa refusal may impact your future applications for a business visa in Qatar or any other country.
What is the cost of a business visa in Qatar?
The cost of a business visa is QAR 200. Depending on the visa type you applied for, you can stay in the country from 72 hours to three months. You can apply for an extension if the need arises.
The 72-hour business visa is often used for short stays and issued on arrival. The business visa is accessible to newly-arrived expatriates and those engaged in short-term contract employment in Qatar and is valid for either 30 or 90 days.
Expatriates who engage in certain business endeavours in Qatar might also qualify for the investor visa. Applicants must show that they own property, have a certificate of good behaviour, and have a medical check-up to be eligible
Taxes in Qatar
Taxes on salaries and other types of earnings are non-existent in Qatar. Qatar does not have capital gains, estate, wealth, or gift taxes, unlike many other nations.
However, there is a Company Tax. Companies having 100% foreign ownership, including those with minority participation, pay a fixed rate of 10% on commercial earnings. Compared to many other nations globally, this corporation tax rate is much lower.
Companies owned by Qatari and GCC nationals are not taxed, but they have to file tax and financial statements if their capital is more than QAR 2 million.
Business insurance in Qatar
You will need to get various business insurance policies to safeguard your company. Here are some of the most common:
• Workmen’s compensation and employer’s liability: This coverage protects your company against death, damage, or disease caused by work-related exposures.
• Directors’ and officers’ liability: This is indemnity paid to a firm’s directors, managers or supervisors to compensate for losses or defence expenses incurred while working for the company.
• Products liability: This policy protects your company against lawsuits arising from the manufacturing or sale of consumer goods, including losses or injuries to third parties caused by defects in the product or failure to warn.
Why entrepreneurs choose Creative Zone
While starting a business in Qatar appears lucrative, setting it up requires qualified and expert professionals to handle all government-related work. With the assistance of a business formation specialist like Creative Zone, starting your business can be quick, simple, and economical.
Creative Zone is the UAE’s oldest and most trusted business setup expert. Since 2010, we have helped over 44,000 entrepreneurs successfully establish their businesses.
We specialise in delivering solutions that best fit your needs when starting a business by providing quick, dependable, hassle-free, and experienced assistance.
Assisting your business setup in Dubai is only the start. We also provide a range of services, including tax preparation, legal advice, and HR management.
When you become our client, you get access to our community of fellow entrepreneurs. You can interact and network with the region’s larger business community through CZ Connect, our networking tool.
Take advantage of our FREE consultations today and get solutions to help with your free zone or mainland company formation in Dubai.