Did you know that Qatar ranked 5th globally in the 2023 National Entrepreneurship Context Index for the ease of running a business? Home to over 85 nationalities, the country has a booming business and cultural landscape. If you are tired of the 9 to 5 cycle, break the chain and start a business in Qatar.
Whether you are an expat or a local, starting a business is simple with our step-by-step guide. Scroll down to explore the breakdown of the process, documents and fees.
General Eligibility Criteria For Starting a Business in Qatar
Here are some basic requirements to start a business in Qatar as an expat or local:
- The owner must be at least 21 years old.
- The owner must be free from criminal records or bankruptcy.
- Both locals and foreigners can run a business in Qatar but the requirements differ. Complete requirements are discussed ahead.
How to Start a Business in Qatar
Did you know Qatar levies one of the lowest corporate taxes of 10% in the world? This is an important reason for doing business here. But all that paperwork, documentation and licencing seem daunting. Here is a simplified breakdown of the process of starting a business in Qatar to guide you:
Step 1 – Decide a Business Activity and Draft a Business Plan
First things first! Starting a business requires an idea of what your main activity line would be. Having a clear idea helps you plan out goals and vision for your business. We recommend drafting a business plan with the help of an expert. Here are the things to consider:
- What is your business activity? Whether it is a clothing business or an automobile one.
- What is the medium of your business? Whether you will run your business physically or online in Qatar.
- Is your chosen business profitable enough in Qatar? Carry out extensive research and study Qatar’s market and competitors.
- Choose a legally permissible business idea.
- Consider businesses that the Qatar Government supports, such as tourism, information technology, agriculture, healthcare or others.
- Draft a 5-year plan with all the investment and expected returns.
Step 2 – Choose a Business Type
According to Law of Companies No. (11) of 2015, businesses operating in Qatar follow some legal structures. Here are the legal structures in Qatar:
- Shareholding Company
- Private Shareholding Company
- Limited Liability Company
- Holding Company
- Foreign Companies – Exempted by Ministerial Order
Step 3: Choose between Mainland vs Freezone
Mainland businesses are registered by the Ministry of Commerce and Industry (MOCI). Expats can own 49% shares of the companies in mainland areas, subject to the approval of the Ministry of Commerce and Industry. While the other 51% shares must be owned by a Qatari sponsor.
As per Law No. 1 of 2019, 100% foreign ownership is permitted in various sectors without needing a local sponsor. However, this depends on specific industries and MOCI approval.
Moreover, free zones in Qatar allow 100% foreign ownership in some designated areas, without a local sponsor. Here are some popular free zones in the state:
- Qatar Financial Centre (QFC)
- Qatar Science and Technology Park (QSTP)
- Qatar Free Zone (QFZ)
Step 4: Visa Application For Expats
As an expat, you need to apply for a Qatar business visa. There are different types of visas in Qatar such as:
- 72-hour business visa
- 3-month business visa
- Investor visa
Once landed here, apply for a Qatar identification document (QID).
Step 5: Find a Sponsor and Shareholder Agreement
If an expat wants to start a business on the mainland, the next step is to find a Qatari shareholder. Hire a consultant for this step. After finalising the shareholder, draft and sign a legal agreement highlighting all the terms and conditions.
However, you can skip this step for free zone businesses or locals.
Step 6: Office Location
For physical businesses, the next step is to finalise an office location. After this, get approval from the Municipality for the office location.
Browse through these offices for rent in Qatar to find an ideal location.
Step 7: Trade Name Reservation
The next step is to decide a trade name for your business. Ensure the name follows the legal guidelines such as:
- It is not misleading.
- It does not violate public morals.
- It is not used by any other registered entity.
Apply for a trade name reservation using the MOCI website or by visiting MOCI headquarters or the nearest branch. Here is how to reserve a trade name online:
- Go to the MOCI official website.
- Sign in to the portal.
- Select ‘Entity’, then click on ‘Commercial activities’.
- Enter the trade name and check its availability.
- Pay the fees.
- Reservation for 3 days: Free
- Reservation for 6 months: QAR 1,000
Address and Contact Details of MOCI
You can also contact the headquarters of Ministry of Commerce and Industry at:
- Address: 1st floor, Lusail City, Qatar
- Phone: +974 6 611 1400
Step 8: Prepare a Memorandum of Association (MOA)
Next is to draft a memorandum of association outlining the following:
- Name of owners
- Business address
- Amount of capital
- Share types
- Share value
- Company activities
- Company objectives
- Role of shareholders
Get it signed by all the partners approved by MOCI and then send it to the Ministry of Justice in Qatar for final approval.
Step 9: Company Registration
A Company Registration (CR) with MOCI is necessary to operate in Qatar and open a bank account. Here are some main documents required to apply for company registration using the MOCI official website:
- Residency permits (for expats).
- Company registration with the Ministry of Labour.
- Two copies of MOA.
- A filled-in application form.
Fees to Apply for Company Registration in Qatar
Here are the fees to apply for CR:
- One activity business: QAR 500
- Branch registration: QAR 100
- Additional business activity registration: QAR 300
Step 10: Apply for Trade Licence or Commercial Permit
After company registration comes an application for a trade licence. Easily apply using the MOCI portal by submitting the following documents:
- MOA
- Rental agreement and photographs of office building (for physical premises)
- CR
- Copy of QID of all partners
Service Fees to Apply for Trade Licence
Here are the service fees:
- Physical businesses: QAR 500
- Home-based businesses: QAR 300
Step 11: Open a Corporate Bank Account
Monetary transactions in Qatar require a corporate bank account. Requirements differ from bank to bank, however, here are the general documents required to open a corporate bank account:
- Commercial Registration
- Commercial Licence
- Company ID
- Qatari ID (QID) of all partners
- Passport with valid resident permit (for ex-pats)
Step 12: Register with the Labour Department
Get your business registered with the Ministry of Labour in Qatar.
Step 13: Registration with the Chamber of Commerce
The next step is to apply for registration with the Chamber of Commerce. This is for mainland companies.
Membership fees range from QAR 200 to QAR 5,000 depending on business activity.
Step 14: VAT Registration
If the business’s annual income falls within the taxable threshold, VAT registration is compulsory. Easily apply for a tax identification number on the Dhareeba portal of the General Tax Authority Qatar.
Step 15: Hire Employees and Business Inaugural
The last step in setting up a business is hiring employees and starting operations. When hiring employees, ensure compliance with Qatar labour laws.
Starting an Online Business in Qatar – What Is the Difference?
If you don’t want to invest big in renting an office space, we have some good news. Qatar allows locals and foreigners to run legally registered home-based businesses. E-commerce is a growing sector in the state. Moreover, it is a legal requirement to be licenced and sponsored by a company to work as a freelancer.
Expats on business visas or locals can follow the same process mentioned above to set up their online business. The only difference is the type of activity when applying for commercial registration. Choose ‘e-commerce activity’ here.
Benefits of Starting a Business in Qatar
Starting a business involves risk but the rewards are exemplary. From high returns to freedom, here are the benefits of starting a business in Qatar:
- Low corporate taxes of 10%.
- Booming and stable economy.
- Strategic location with easy access to international trade.
- Ease of starting a business with government aid.
- Multiple ways of ownership with 100% foreign ownership in free zones.
FAQs
How Can I Start a Home Business in Qatar?
Starting a home business in Qatar requires a trading name, licencing and company registration.
What Business Should I Start in Qatar?
You can start any legally permitted business in Qatar. Some top choices include:
- Tourism
- Information Technology
- Healthcare
- Agriculture
Can Expats Start Business in Qatar Without Sponsor?
No, expats need a Qatari sponsor to start a business on the mainland. However, starting a business in free zones does not need sponsorship.
That is all about how to start a business in Qatar. Become an entrepreneur in Qatar and embrace freedom and high returns with low taxes!
Moreover, if you are moving to Doha for your business venture, visit the Property Finder blog for tips on a smooth relocation.
