CEO Message - Find The Best Qatari Sponsor for Business

Why Should You Establish a Business in Qatar?

Qatar enjoys one of the wealthiest economies in the world, which makes it a viable location for successful businesses. Even though primarily known for its natural gas and petroleum, it is home to financial, hospitality, retail, manufacturing, import-export, and tourism industries. At AAIQA, we understand that people come to our country from different cultures and economies. We want to make Qatar a resource-intensive business location for you, which is why we offer a range of services if you are looking for a Qatari business sponsor:

Why is a Qatari Sponsor necessary?

As with the surrounding GCC countries, Qatar’s commercial law declares that a foreign-based investor must appoint a local (Qatari) sponsor before establishing a business. The sponsor’s role depends upon the specific business structure, which is why the investor must understand their responsibilities and how they help in establishing a full-fledged business in Qatar. When looking for a Qatari sponsor, here are two options in the industry.

What is Individual Sponsorship?

In the case of a Limited Liability Company (LCC), the Qatari sponsor must hold a minimum of 51 percent shares of the organisation. They must demonstrate a percentage of profit and a share of loss as well. They should be a Qatari citizen above twenty-one years old and may not have prior experience in the industry. The Qatari sponsor for business must be paid a particular annual payment at the price of control over the company and full power of attorney.
When looking for a Qatari partner, hold strict background checks of your sponsor’s education, business knowledge, and character before signing an official contract, also known as the Memorandum of Incorporation. Look out for hidden expenses by asking for a payment distribution, and read them carefully before signing the terms. Only legal documents are accepted in court, so never trust a sponsor’s verbal assurance. There are also questions regarding an individual sponsor’s ulterior motives to capture the company, unexpected retirement, death, or disappearance.

What is Corporate Sponsorship?

A corporate sponsorship involves a 100 per cent-Qatari-owned company, which offers a more beneficial governance structure to protect foreign investment, allowing shareholder succession under the company law. They have a team that caters to visa renewals, licenses, and additional support to establish the company. Like individual sponsorship, the corporate sponsor enjoys a 51 percent share in the business at the price of an annual payment.
Here, unlike individual sponsorship, entrepreneurs retain total control over the business, management, staff, and clientele. LLC companies that have a corporate sponsor are governed by the Company Law, enjoy 100 percent of the benefits, have detailed protective contracts established by qualified legal experts, and exit strategies without a penalty.

Thus, Qatar is your dream country if you want to enjoy lucrative opportunities. Contact us at AAIQA if you are looking for expert advice on how to find a sponsor in Qatar.