Qatar is one of the promising business destinations due to its easy policies, low 10% corporate tax and stable environment. Starting a business in Qatar is financially rewarding, thereby attracting entrepreneurs from around the globe. When setting up a business, the first step is to obtain a trade licence in Qatar.

This legal document permits business owners to operate legally within the state. Read on to discover everything about getting a trade licence, including the prerequisites and fees.

What Is a Trade Licence?

Starting a business in Qatar follows certain legal obligations, such as visa approvals, permits and sponsorship agreements. Among these, one crucial step is the trade licence application in Qatar. It is granted by the Ministry of Commerce and Industry (MOCI) and is also known as a business licence or Commercial Permit (CP).

Every business owner, local or an expat, must obtain a trade licence before setting up business operations.

Types of Trade Licences in Qatar

Business licences are divided into multiple types based on the main line of activity. Among the many types, the four common ones are:

Prerequisites for a Trade Licence

Navigating the trade licence application process can be daunting for many. To simplify the process, we have divided it into simple steps. Before applying for a trade licence in Qatar, business owners must comply with some prerequisites. Read on to discover the complete requirements for a hassle-free application:

1. Select a Business Type and Licence

The first step is to finalise your business type and trade licence. As per the Law of Companies No. (11) of 2015, businesses in Qatar are established on the following legal structures:

• Holding Company
• Limited Liability Company (LLC)
• Shareholding Company
• Private Shareholding Company
• Foreign Companies – Exempted by Ministerial Order

Besides legal structure, business owners also have to finalise a licence type. Choose from Industrial, Commercial, Professional, Tourism or E-Commerce licences depending on your business activities.

2. Choose from Mainland and Freezone

In Qatar, the business landscape is divided into mainland and freezone companies. While the mainland allows 49% expat ownership, Freezone permits 100% foreign ownership. Under special conditions, MOCI may approve 100% ownership to mainland companies. The best thing about the Freezone is that you don’t need a local sponsor to set up a business.

3. Get a Business Visa

The next prerequisite is a business visa application and approval. Simply put, a business visa is a type of Qatar visa issued to business owners who wish to travel to Qatar. It is valid for 72 hours to 3 months and is extendable.

4. Rent or Buy an Office Location

Another requirement for a trade licence is to buy or rent an office in Qatar. Business owners can rent or buy a space depending on their needs, budget and location.

5. Register a Trade Name

The next step in obtaining a trade licence is to finalise your business name and legally register it with the MOCI. This process provides copyright protection and builds a reputation amongst customers. When choosing a business name, make sure that it is not misleading and is not already registered.

Process

• Visit the MOCI official website.
• Sign up and then log in to the portal.
• Choose ‘Entity, ’ then go to ‘Commercial Activities.’
• Type the correct trade name and check if it is available for use.
• If yes, proceed with paying the fees.

Fees

• 3-Day Reservation: Free
• 6 Months Reservation: QAR 1,000

6. Prepare the Articles of Association (AOA)

Another requirement before a trade licence application is to draft the Articles of Association (AOA). This includes everything about business operations, from the shareholders’ details to capital information. Here are the key sections of AOA:

• Names of owners
• Complete business address
• Capital amount
• Share types
• Share value
• Company activities
• Company objectives

Prepare AOA in Arabic and English and send it to the Ministry of Justice for approval.

7. Complete Company Registration (CR)

Once you have everything in place, the last requirement is to register your company in Qatar. Please note that company registration charges vary depending on the business type. Simply register your company with MOCI by submitting an online application alongside documents like AOA and residency permits.

How to Apply for a Trade Licence

If you meet the prerequisite checklist, you can apply for a trade licence in Qatar. Applications can be made online using the MOCI portal. Here are the must-have documents for the application:

Documents

• Copy of Qatar ID Card (QID) of all shareholders.
• Commercial Registration copy.
• Rental agreement or any other proof of a business space in Qatar.

Process

• Simply go to the MOCI official website.
• Sign in to the portal.
• Fill out the trade licence application form by providing detailed information about your business.
• Attach the required documents.
• Pay the fees.
• Apply and wait for issuance.

Fees

• Locals:
  • Physical businesses: QAR 500
  • Home-based businesses: QAR 300
• Expats: QAR 1,500

Validity and Renewal of a Trade Licence

A trade licence in Qatar is valid for one year. Business owners can renew the licence for up to five years using the MOCI official website. Let’s go through the required documents and fees:

Documents

• Application form available on the MOCI website
• Original and copy of trade licence
• Computer card issued alongside trade licence
• Copy of QID
• Copy of the Company Registration Certificate
• Municipality licence copy
• Copy of the rental agreement
• Copy of the Chamber of Commerce Certificate
• Company financial statement for the past year

Fees

Renewal fees vary depending on business activity.

FAQs

1. How Can I Obtain a Trade Licence in Qatar?

If you meet the requirements, simply visit the MOCI website, fill out the application, attach the documents and pay the fees. After necessary verifications, MOCI will issue a trade licence to the business owner.

2. How Much Does It Cost to Get a Trade Licence in Qatar?

Getting a trade licence in Qatar can cost anywhere between AED 300 and AED 1,500.

3. Can a Foreigner Start a Business in Qatar?

Yes, expats can start a business and enjoy high returns in Qatar. While mainland companies offer 49% ownership, Freezone permits complete ownership to expats.

Obtaining a trade licence in Qatar is easier than ever with our step-by-step process. Be sure to apply for a trade licence, as it is a legal requirement and safeguards your business identity.

For more information on starting a business in Qatar, keep reading the Property Finder blog.