One of the richest nations in the world, Qatar's economy is primarily driven by the oil and natural gas sectors. Qatar ranks in the top 5 nations with the highest per capita GDPs in the world with a GDP of up to $94,000. This is possibly the reason why many business owners and entrepreneurs want to launch a firm in Qatar. The Qatari government is always working to improve the business climate in the nation, making it a lucrative market for entrepreneurs and investors. Doing business in Qatar has a lot of benefits.
Although Setting up company in Qatar can be financially rewarding, for foreigners who are unfamiliar with the local business laws and regulations, the procedure can be time-consuming and rather tedious. Nevertheless, we've got you covered.
Types of company structures available in Qatar
General partnership company
In Qatar, a general partnership (GP) is a legal entity that is formed by two or more partners who agree to carry on a business together with the goal of making a profit. The partners in a GP share equally in the profits and losses of the business and are jointly and severally liable for the debts and obligations of the partnership.
To form a GP in Qatar, the partners must register with the Ministry of Commerce and Industry (MOCI) and obtain a commercial registration certificate. The partners must also submit a partnership agreement that outlines the terms and conditions of the partnership, such as the capital contributions of each partner, the profit-sharing arrangement, and the management structure of the partnership.
The capital requirement for a GP in Qatar is QR 200,000 or its equivalent in other currencies, and at least one of the partners must be a Qatari national or a company wholly owned by Qatari nationals.
Sole Proprietorship Company
In Qatar, a sole proprietorship is a type of business entity that is owned and operated by a single person. This means that the business is not a separate legal entity from the owner, and the owner is personally responsible for all aspects of the business, including its debts and obligations.
To establish a sole proprietorship in Qatar, the owner must obtain a commercial registration certificate from the Ministry of Commerce and Industry (MOCI). The owner must also register for taxes with the General Tax Authority (GTA).
There is no minimum capital requirement to set up a sole proprietorship in Qatar, and the owner is not required to have a Qatari partner. However, the owner must be a resident of Qatar and hold a valid residency permit.
Shareholding Company
In Qatar, a shareholding company, also known as a joint-stock company, is a type of business entity that is owned by shareholders who own a portion of the company's shares. The shareholders are not personally responsible for the debts and obligations of the company beyond their investment in the company.
To establish a shareholding company in Qatar, the founders must first obtain approval from the Ministry of Commerce and Industry (MOCI) and register with the Commercial Register. The company must have at least five shareholders, and the minimum share capital requirement is QR 10 million or its equivalent in other currencies.
The shareholders in a shareholding company have limited liability and are only responsible for the amount of their investment in the company. The company's management is typically overseen by a board of directors who are elected by the shareholders.
Limited liability company
In Qatar, a limited liability company (LLC) is a type of business entity that combines the benefits of a sole proprietorship with those of a shareholding company. An LLC has separate legal status from its owners, and the owners have limited liability for the debts and obligations of the company.
The llc company formation in qatar, the founders must first obtain approval from the Ministry of Commerce and Industry (MOCI) and register with the Commercial Register. The company must have at least two and no more than 50 shareholders, and the minimum share capital requirement is QR 200,000 or its equivalent in other currencies.
Branch office of a foreign company
In Qatar, a foreign company may establish a branch office in the country to conduct business activities. A branch office of a foreign company is a legal entity that is part of the foreign company and operates under its name and management.
To establish a branch office in Qatar, the foreign company must obtain approval from the Ministry of Commerce and Industry (MOCI) and register with the Commercial Register. The foreign company must also appoint a local agent who is authorized to represent the branch office in all legal and administrative matters.
Representative trade office
A representative trade office, also known as a commercial representative office, is a type of business entity that foreign companies can establish in Qatar to conduct market research and promote their products or services. A representative trade office is not permitted to engage in commercial activities and cannot generate revenue in Qatar.
To establish a representative trade office in Qatar, the foreign company must obtain approval from the Ministry of Commerce and Industry (MOCI) and register with the Commercial Register. The representative trade office must also appoint a local agent who is authorized to represent the office in all legal and administrative matters.
Joint partnership company
In Qatar, a joint partnership is a type of business entity where two or more parties come together to form a partnership for the purpose of carrying on a business or investment activity. A joint partnership in Qatar can take two forms: a simple partnership or a limited partnership.
A simple partnership is a type of joint partnership where all partners are jointly and severally liable for the debts and obligations of the partnership. Each partner has an equal share in the profits and losses of the partnership, and they are all involved in the management of the business.
A limited partnership is a type of joint partnership that has two types of partners: general partners and limited partners. General partners have unlimited liability for the debts and obligations of the partnership and are responsible for the management of the business. Limited partners, on the other hand, have limited liability and are not involved in the management of the business.
To establish a joint partnership in Qatar, the partners must first obtain approval from the Ministry of Commerce and Industry (MOCI) and register with the Commercial Register. The partnership agreement must be in writing and include the name and address of each partner, the nature and scope of the partnership, and the capital contribution of each partner.
Commercial agency
In Qatar, a commercial agency is a type of business arrangement where a foreign company appoints a local agent to act on its behalf in the country. The local agent is responsible for promoting the products or services of the foreign company and negotiating contracts with customers in Qatar.
To establish a commercial agency in Qatar, the foreign company must obtain approval from the Ministry of Commerce and Industry (MOCI) and register with the Commercial Register. The commercial agency agreement must be in writing and include the name and address of each party, the nature and scope of the agency, the duration of the agreement, and the compensation of the local agent.
