100% Foreign Ownership Company in Qatar
After the FIFA World Cup 2022, Qatar has become one of the favorite destinations for foreigners to invest or set up business in Qatar. In line with Qatar National Vision 2030, the Qatar Government has implemented more business opportunities for foreign investors and has introduced additional incentives and exemptions to liberalize the Qatar Business environment. To be part of this, Qatar’s “Foreign Investment Law” Law No. 1/2019 allows foreigners to set up 100% foreign ownership registration across various business industries or to convert existing businesses to 100% foreign ownership to bolster the foreign investment environment.
According to “Foreign Investment Law” previously, a foreigner can start a company in Qatar requires a Qatari partner with 51% shareholding in the company. As per a new policy, the Qatar Government has opened different ways that a foreign party can own 100% foreign ownership in Qatar. This excellent opportunity allows foreign investors or entrepreneurs to set up their own businesses with the world’s lowest tax rate, and the company is benefiting from huge diversification and economic growth. Following are the various types of entities that can be registered with 100% foreign ownership in Qatar.
- Limited Liability Company
- Branch Office
- Trade Representative Office
- Free trade zone companies in areas like QFZA, QFC and QSTP
The law allows foreign investors to operate a trade representation office without a Qatari partner to promote their business activities and offer different products and services to the Qatari market; however, these trading companies are not allowed to import, export, or sell any products in Qatar.
Advantages of setting up a 100% Foreign Ownership Company in Qatar
Qatar Government is continuously making an immense effort to implement new rules and regulations for the development of the business environment for foreign investors and to introduce additional incentives and exemptions. The Foreign Investment Law provides a number of benefits to foreign investors or entrepreneurs in Qatar. Some of them are:
- No Qatari sponsor required
- Increased flexibility and autonomy
- Exemption on corporate and income tax
- No restriction on money exchange and transfer of profit abroad
- No custom duties
- Enhanced profitability & competitiveness
- Equal participation of government and private tenders
- Stable economic growth
About 100% Foreign ownership in Various Legal Structures
Qatar Mainland (LLC):
As per the new law of the Ministry of Commerce and Industry (MOCI), it is no longer required for an investor to set up a business in Qatar Mainland with a 51% Qatari sponsorship. Because of its strategic location and access to the local market, this will be an optimal choice for entrepreneurs or foreign investors to start their own businesses on the Mainland with 100% foreign ownership. Incorporation in the form of LLC (Limited Liability Company) is allowed with 100% ownership in almost 90% of sectors of the economy, excluding banking, insurance, and funds investment activities.
Meanwhile, business startups in Qatar Mainland are subject to various government regulations, including tax laws, labor laws, and commercial laws. The Government is committed to simplifying the company setup process and to effortlessly running the businesses in the country.
- Trading companies
- Business consulting and technical services
- Culture, sports, entertainment, and distribution services
- Development and exploration of natural resources
- Information Technology
- General Contracting & Construction
Qatar Free Zone (QFZ):
Qatar free zone is a very popular and independent entity designed to optimize and streamline company formation. Starting a company in the Qatar Free zone sector will offer more opportunities and encourage foreign investors in Qatar. It has many benefits such as 100% foreign ownership of shares, no income tax & corporate tax, no restriction on foreign currency and taxation on foreign trade.
- Business consulting services
- Technical services
Qatar Financial Centre (QFC)
Qatar Financial Centre (QFC) is also a popular option in Qatar and does allow companies to set up with 100% foreign ownership. QFC is a business- friendly ecosystem that offers 100% repatriation of profits, and charges a competitive rate of 10% corporate tax on locally attained profits.
Before going to set up a business in Qatar, it is necessary to know about the laws and type of business structure available for foreigners. Due to the world-class infrastructure and strong economy, many foreigners have successfully established their own companies in various business sectors in Qatar. With all assistance for company formation in Qatar, QCF Global Services will help you to incorporate your own business smoothly, simply, and economically.
How to Start a 100% Foreign Owned Company in Qatar?
If you are seeking for how to start a business in Qatar as a foreigner or like to know more about accessing the Qatar Mainland, Free Zone, and QFC(Qatar Financial Center), our qualified and expert professionals will guide you. We at QCF Global Services have years of experience on serving company formation in Qatar. We are a leading business consultant and helping lots of customers to register their own company in various business sectors.