Q & A - Business RegistrationSetting Up a Business in Qatar

Qatar's strength is derived from its oil and gas revenues which have made it one of the wealthiest countries in the world in terms of per capital income. The Government of Qatar has ownership interests in several economic sectors, including oil and gases production, petrochemicals, and the steel and fertilizer industries. Government policy in recent years has recognized the need to promote greater private investment in core industrial projects.

There are three major considerations to be made by those thinking of starting a business in Qatar. You must have a good knowledge of the region, and be prepared to undertake extensive research into the business sector you aim to operate within. You must have a viable business plan, which includes a study of the market conditions, the competition and your forecast results. You must be prepared to find the necessary investment from your own resources or through your bank and preferably by other means than applying locally, particularly if you’re new to the region and without a track record. A credible plan might attract local support, possibly government support.

The law requires that you have a local partner who holds the majority interest and can therefore control the business (as well as close it, if he feels like it…). The local partner, be it a company or an individual, doesn’t need to contribute to the start-up investment or participate financially at all. As with self-employment, there are various ways that a partner can be remunerated. The local partner requirement is currently under review in some states, however, in order to encourage foreign investment.

When the business is registered, you must show the Ministry of Commerce that you have a substantial sum of money to invest. The required sum varies between the states (it’s between $10,000/£6,500 and $50,000/£33,500 in most cases) and is regarded as a guarantee against liabilities, although you may withdraw the money shortly afterwards

The process is complex and financially risky, meaning that local knowledge is crucial, therefore it is imperative that you deal with the professionals right from the start. We at Farahat & Co. can guide you through the registration complexities and ensure that your interests are protected.

By using Farahat & Co. consulting services, many people have developed successful, highly profitable businesses in Qatar. New operations are encouraged by the authorities, and export and manufacturing industries are especially strongly supported by government, particularly as regards the acquisition of land on which to construct a factory. If you decide to set up such a business in a free trade zone, of which there are several in the region, it’s granted exemptions from import and export duties, commercial taxes, building and property licence fees, land tax and restrictions on the transfer of capital invested in the zone.

Corporate law in Qatar is similar to that in western countries, in that businesses can be run as limited liability operations, private companies or other types of concern. As discussed, setting up a business or buying a going concern can be complex and that is where we at Farahat & Co. can give you local legal advice and guidance about the registration formalities.

An alternative to starting a new business is to buy a going concern, which is a more straightforward process, as it doesn’t involve lodging capital, obtaining sponsorship or registration; all you have to do is agree a price and transfer the ownership of the business.

Local Chambers of Commerce can advise about start-ups and are adept at cherry-picking potentially profitable newcomers to the region. Winning the confidence and support of a Chamber of Commerce will help your cause.