The Fundamentals of Starting a New Business in Qatar

Qatar is an independent country with its own laws and regulations for foreign governments operating in the country. The data presented can be ambiguous and perplexing at times, and to make matters worse, one frequently receives contradictory pieces of advice from diverse persons.

But don’t worry, there are plenty of professional services in Qatar to assist you with legal, taxation, and financial aspects, business consultation, company background checks, and feasibility studies. 

Let’s begin with the types of businesses. You’ll need to decide what kind of business you want to start. The most common type of company in Qatar is a limited liability company (LLC) or a wholly owned subsidiary (WLL). In an LLC, Qatari nationals must own the majority of the company, with a share of around 51% It makes no difference if there are only one or more Qatari shareholders, but the majority (at least 51 percent) must be Qatari nationals.

The following are the commonly accepted types of businesses that are permitted to operate in Qatar:

• Company formed as a result of a joint venture or a partnership
• Limited Liability Partnership
• Equities Partnership Corporation
• Company with a Shareholding
• Limited Liability Corporation (LLC)

Let’s get to understand these words a little better.

However, if you’ve already decided on the type of business you want to start, you can skip ahead to Local Sponsor.

Company in Partnership

Commercial collaboration agreements are popular in Qatar. A partnership company is made up of two or more partners who are personally liable for the company’s liabilities. However, in these kinds of cases, all joint partners must be Qataris, and each partner must have the right to hold commercial meetings and conduct business under the company’s name. However, prior to making any investment, it is necessary to obtain approval.

Limited Liability Partnership

They are only liable for the company’s debts or to the extent of their registered investment. They are not in charge of anything.

Equities Partnership Corporation

An equities partnership company is made up of two teams, one of which includes shareholders and one or more partners who are jointly liable for the company’s debts in all of its assets.

Company with a Stakeholders

Prior to the establishment of the company, a shareholding arrangement issued by the Ministry of Economy and Commerce is used to form this company. The company’s capital is divided into up for negotiation shares of equal value. The minimum number of shareholders ought to be five, with each of them being Qataris.

Limited Liability Corporation (LLC)

This is the most common legal structure in Qatar, and it requires that the company be 51 % owned by a Qatari partner or partners. Following formation, the LLC is free to trade in the Country of Qatar.

LOCAL SPONSOR 

To establish a business in Qatar, foreign businesses must first assign a service agent / sponsor. That is the first and most important step because it can lead to a plethora of chances for someone starting from scratch. This necessity for service agent / sponsor in Qatar, on the other hand, is best left to professional experts who can assist you in finding reliable partnerships.

PROCESS OF DOCUMENTATION

To begin, you must fully incorporate the following three documents and carry out all of the critical tasks to run and expand your business in Qatar.

CR stands for Commercial Residence.

The term “Trade License” refers to the legal office space under your CR.

The Computer Card (also known as the Signature Card or Khaid Munshiah) is used to issue Residence Permits (RP) to your employees.

Commercial Real Estate (CR)

The first part of documentation you must obtain is the CR. It is approved by the Minister of Economy and Commerce (MEC) and is typically the quickest to obtain. A certificate of registration (CR) is simply a piece of paper that states that there is “a legal entity with the name x that is owned by these shareholders.”

Trade Permit

After receiving your CR, you must obtain a Trade License in order to have a MEC-approved office space for performing your business activities. Obtaining a Trade License is usually the most difficult part of this process; it can take some time to complete, so plan your time accordingly.

Computer Card 

We hope you’re making a killing at your business and relaxing at your badass office with an ocean view by now. However, your office must be empty because you are unable to employ anyone full-time under your corporation because you are unable to issue them a Residence Permit. You’ll need a Computer Card for that. It is worth noting here that, whereas the MEC issues the CR and Trade License, Immigration issues the Computer Card.

A Computer Card is essentially a document that specifies who has signing authority on your company’s behalf. While the Qatari partner in your business must be mentioned on the Computer Card, the non-Qatari member is not needed to do so but can still be included. Before you apply for your Computer Card, you must obtain an official company postmark that will be used on all official documentation. You can do this by going to any main printing press and ordering an official company stamp. They will request a copy of your CR, as well as copies of the shareholders’ IDs. This typically takes a day and shouldn’t cost you more than QAR200.

QATAR’S System Of taxation

Personal Income Tax: There is no tax on income per capita. This means that employees can take their wages and salaries home without having to pay taxes on them. However, under Companies Tax Law, any individual who engages in any type of commercial activity with the intent of generating income is required to pay tax.

Qatari and GCC citizens living in Qatar are exempt from paying taxes on their earnings. The tax rate is 10% of the firm’s revenue state income, paid annually. This fixed rate, however, applies only to businesses and not to individual income or Personal Tax.

Normal business expenses are deductible, and losses can be carried forward for up to three years from the original structured finance.

Of course, we can’t ignore the importance of the language factor. Can you establish a business in Qatar while you do not know the language they speak there? Certainly you can, as You can use Torjoman, the best translation company in Dubai.