Like every other country globally, Qatar has regulations and guidelines to follow if a foreigner desires to invest in a business. One can avail PRO services in Qatar from agencies on financial, legal, tax, business counseling, and feasibility analysis.
First and foremost, for a foreign national to start a company in Qatar, one must assign a sponsor or service agent. But, experts believe this requirement has become lenient and can even be nullified in the future.
General laws and guidelines you should be aware of before investing in Qatar. The Commercial Companies Law of Qatar states that a foreign company must be headquartered in Qatar to carry out business legally. It can be any type of company varying in size, form, and having relationships with other entities.
Typically, these types of firms are permitted to do business in Qatar:
- Joint firms
- Limited liability firms
- Particular partnership firms
- Shareholding firms
- Equities Partnership firm
- Limited partnership company
The necessary protocol, paperwork, and code of conduct are all summarised in the specified law of Qatar. All the legal paperwork should be in Arabic, while English will always succeed after Arabic. If you are thinking of setting up a company in Qatar, AAIQA offers one of the best PRO services in Qatar. Let us explore the firms a bit more below:
- Limited Partners
They are legally bound to take responsibility for the debts incurred in the invested company or their investment. However, they have no power in the management.
- Partnership Company
Business partnerships occur very often in Qatar. In a partnership firm, there should be two and more partners overseeing the operations and must be liable for that particular company. In this type of company, every joint partner must be a Qatari. All the partners must have the authority to convene business meetings and business operations under the registered company name. However, it is a must to seek approval before joining as a partner in a firm.
- Equities Partnership Firm
An equity partnership firm will consist of two partners, where they will be jointly held accountable for debts incurred in every asset during the company operations. Shareholders can also be held liable.
- Shareholding firm
This kind of company is set up by shareholding arrangement. The company should have been authorized by The Minister of Commerce and Economy before establishment. The capital shares of the firm are dispersed to transferable shares of similar value. A minimum of five Qatari shareholders must be registered to get authorized to begin operations.
- Foreign Ownership
Primarily a foreign national will establish a private limited liability company (LLC) to own a business in Qatar. The company must have at least QR200,000 legal share capital and two liable shareholders, and a total of thirty shareholders are allowed. Foreign nationals are permitted to own not more than 49% of shares in a company; the remaining should be under Qatari partners.
However, if foreign national desires to own more than 49% of shares in a firm, authorization must be obtained from The Ministry of Economy and Commerce. The Qatari government will assess the compatibility of the business with the country's development plans before approving.
- The tax system of Qatar
The Qatar government provides tax exemption for an individual's income. That means tax will not be deducted from the employee's salaries. But, as per the Qatari tax law, a capitalist who owns a business and has income from the business profits is liable for tax. GCC nationals living in Qatar and Qataris are exempt from income tax.
A company must pay 10% of the total revenue collected in a financial year. This rule is only for businesses, and it does not apply to individuals earning a monthly salary.Do you want legal advice on Qatar’s tax laws? AAIQA provides tax and audit services in Qatar. Contact us to easily comply with the business tax laws of Qatar.
- Tax Exemption
Tax exemptions can be given to revenues obtained from fishing, aerial and marine transportation, agriculture, handicraft businesses having not more than three employees, public treasury, and public development bonds. Taxes in Qatar are very nominal, and it is one of the least taxing countries in the world, making it an attractive business destination. For importing general goods, 5% of customs duty is laid, while prior permission must be obtained from the government for banking investment.
Setting up a company in Qatar can be challenging to manage if you are not aware of the laws. AAIQA can help you manage the business tax laws efficiently. Contact us for further details.