Establishing a business presence in Qatar
The Qatar National Vision for the year 2030 set out four guiding principles on the basis of which the State of Qatar aims to create a sustainable economy and advance the standard of living of its people.
This economic development strategy has been very successful and the investment incentives, infrastructure, banking services, insurances and political and social stability are contributing factors in creating an excellent business climate.
Company Formation in Qatar
Here must be noted that the parties' profit share do not necessarily have to reflect their equity stake. Therefore, foreign investors wishing to establish business operations in Qatar engaged in most of the commercial business activities must do so with a partner who is a Qatari national.
Qatar welcomes foreign participation to invest in all the various sectors of national economy with 51% Qatari participation. To promote foreign investment in Qatar Government has enacted new Foreign Investment Laws permitting 100 % foreign ownership in business sectors including agriculture, manufacturing, health, education, tourism power and projects which develop and utilize the State's natural resources.
Available Company structure
Business culture in Qatar
Avoid coming to Qatar for business trips during the fasting month of Ramadan as this is the time when businesses in Qatar give more priority to family and worship.
The two main religious festivals that differs every year as per the lunar calendar; Eid Al- Fitr and Eid Al-Adha. During this time the government ministries are closed for a much more duration of time as compared to the private companies. In the State of Qatar, working hours are from Sunday to Thursday.
Taxation is covered by Law 11 of 1993 and Law 9 of 1989
Companies owned by foreign nationals must pay tax on their activities. Qatar companies do not pay tax, but foreign partners must pay tax on their share of the business.
GCC citizens and companies are treated as Qatari Nationals for the purpose of tax and therefore do not pay tax on their business activities.
Tax declarations have to be made within four months of the end of the financial year. Companies with profits exceeding QAR100,000 have to submit audited financial statements certified by a registered Qatar accountant to support their declaration.
Qatar Tax rates start at 10% at profits between 100,000 and 500,000 riyals and rise to a total of 35% for profit above 5,000,000 riyals.
There is currently no taxation for employees on income tax
The employer in Qatar arranges for the work visa and residence permit to be processed. Before a visa is approved it has to be reviewed by the Ministry of Interior.
In order to procure required permits for working and doing business in Qatar, the sponsoring company must hire a public relation officer (PRO) eligible to submit application and collect issued permits from the immigration authorities.
All residents except the spouse and children under the sponsorship of their family members are required to obtain an exit permit when leaving Qatar.
The sponsor is responsible for arranging the exit permit.
We at QShield can help you
navigate through the various requirements and provide you with the assistance needed to close all the formalities on time.