EXPANSION OF DUBAI-BASED COMPANIES INTO QATAR

Among the most challenging problems that business owners face as their companies grow is figuring out how to expand into new international markets in a compliant and profitable manner in order to ensure control and oversight of their expanded business.

Expansion into a new country or jurisdiction necessitates a thorough examination of the new market, as well as the regulatory environment in that jurisdiction, to be sure that the company is properly set up to deliver the appropriate products or services to the needed customers.

Qatar is an excellent option for business holders in Dubai and throughout the UAE looking to expand. It is a country with a rapidly growing economy and a forward-thinking expansion strategy that will definitely supply businesses with a wide range of investment opportunities in the near future.

Despite its small size, Qatar has one of the world’s wealthiest economies in terms of GDP per capita, and while petroleum and natural gas account for more than 70% of total government income, the country’s current main focus is on the development of non-energy related industries such as petrochemical, real estate, financial services, education, health, sports, and tourism.

With the lifting of the three-and-a-half-year embargo imposed on Qatar by the UAE, Saudi Arabia, Bahrain, and Egypt, and the gradual resumption of normal life following Covid-19, expansion into the Qatari market is now a much more feasible alternative.

Why Qatar?

Qatar currently offers a plethora of multi-tiered investment opportunities as a result of the country’s forward-thinking policies and drive for economic diversification.

It will organize the FIFA World Cup in November 2022, which will generate a plethora of investment opportunities in infrastructure, hospitality, and leisure facilities both during and after the event.

The North Field Expansion Gas Development Project, announced by Qatar Petroleum in 2017, has increased demand for businesses involved in shipping, logistics, local transportation, and hospitality, and the Qatar National Vision 2030 will ensure that the country continues to enable and incentivize foreign investment in a variety of areas.

Should I establish my business in Qatar on the mainland or in a free zone?

LLC – Mainland Company

The Limited Liability Company (LLC) is the most well-known and widely used business structure on the global market. In order to incorporate this type of business in Qatar, you must name a Qatari national (corporate or individual) as the majority 51 percent shareholder. The remaining 49 percent of shares in the company can be assigned to the company’s foreign shareholder. It should be noted that the profit and loss split does not have to follow this 51:49 split; for example, 99 percent of the profit and loss can be allocated to the 49 percent shareholder.

One of the primary benefits of a mainland LLC over a freezone company in Qatar is the ability to conduct business with anyone inside or outside the country. A freezone company, on the other hand, is limited to doing business only within the jurisdiction of its freezone or internationally; it cannot do business with mainland Qatar corporates or Qatar government agencies.

The following company structures are available in Qatar:

-Limited Liability Corporation (LLC)

-Foreign Company’s Branch

-Representative Office

-Company in a Freezone

Click on the hypertext links above for more data about every company structure and the criteria for establishing this type of business in Qatar.

Companies in Qatar Free Zone

In contrast to mainland companies, Qatar free zones permit 100 % foreign ownership. Because of the inclusive nature of free zones and the opportunity for joint projects and partnerships with other free zone businesses, they are a great alternative for small and medium-sized enterprises (SMEs). In addition to flexibility in company structuring options, free zones offer other benefits such as access to capital investment.

In Qatar, three free zones are currently operational. The Qatar Investment Free Zones (QFZ), the Qatar Financial Centre (QFC), and the Qatar Science and Technology Park are among them (QSTP).

Msheireb’s Downtown Free Zone

This zone is situated in the central of Downtown Doha and contains 17 commercial buildings as well as 10,000+ parking spaces. It is made up of office and retail spaces, as well as Civil Facilities and cultural and entertainment offerings.

Ras Bufontas’s

This airport free zone covers 4km2 and has direct links to Hamad International Airport. It has 24 pre-fabricated industrial units ranging in size from 415m2 to 1500m2.

It consists of a variety of businesses in a variety of industries, such as logistics, new technologies, light manufacturing, aviation, and international business services.

Qatar Financial Centre (QFC) is a financial institution in Qatar.

The QFC was established to serve as a financial and business hub, trying to attract financial institutions from around the world.

QFC allows the establishment of various types of legal entities, and it is unique in the Middle East in that it has no physical boundaries, and companies registered in QFC can operate both in Qatar and globally.

Qatar Science and Technology Park is located in Qatar.

The Qatar Foundation includes the QSTP. It is a research and commercial excellence center for scientific development. The QSTP’s goal is to be the Middle East’s leading location for technology development and commercialization.

Operating within QSTP necessitates a license, and enterprises hoping to register must engage in activities that are considered to contribute to technological advancement in some way.

Businesses in QSTP are not subject to taxation and can buy goods and services duty-free.

There is no minimum capital requirement for companies engaged in non-regulated activities. The proposed activity defines the minimum funding requirements for regulated activities.
Finally, You must bear in mind that doing business in Qatar requires the use of more than one language, as Qatar is a country known for the presence of people from all countries of the world, not only the Arabs, and for this, you will definitely need to cooperate with a translation company in Dubai.