Doing Business in Qatar
Commercial Bank has unparalleled knowledge of both the local market and the Gulf region as a whole – and we pass this knowledge directly on to our clients. Advice and information on How to be successful Options for new business set-up Qatar Financial Centre The success of your business or project in Qatar will need to meet stringent prequalification and contract conditions to ensure delivery of quality work on time. Success factors The association of a local Qatari company (as a consortium partner or sub-contractor) will be a positive evaluation factor. Other success factors include close attention to local regulations, labour laws and visa processes, transportation logistics and taxation matters. Contract guarantee formats Contract guarantee formats in Qatar usually specify payment on demand, and are governed by Qatari laws. Many sponsors require contract guarantees to be issued through a local Qatari bank (such as Commercial Bank). With the upcoming World Cup in 2022, bear in mind that project bids will be aggressive. Options for new companies in Qatar If you are setting up a business in Qatar you may choose one of the following options. Incorporate an LLC This option means that a local shareholder is generally required to hold at least 51% of shares. The foreign shareholder’s profits are in general taxable, and the foreign party is able to repatriate up to 97% of company profits. Parties may enter into an agreement in which the foreign party is allowed to manage the company. Establish a branch of a foreign company To establish a branch of your foreign company here in Qatar, you must have a contract with a government or quasi-government entity. No local shareholder is required, and profits are generally taxable. The activity you undertake is identified in the contract you make, and this must be adhered to until the end of the contract. Incorporate a company within the Qatar Financial Centre (QFC) scheme This option means that the business you are setting up is 100% foreign-owned and is subject to 10% corporate taxation. The company’s primary activity must relate to financial services (i.e. banking, insurance or investment advice) or its support (i.e. legal, accountancy or consultancy). There is a strategic focus on asset management, captive insurance and reinsurance. Over 140 licenses for this kind of business have already been issued in Qatar.