Company incorporation in Qatar requires whole knowledge about the business zone as well as legality. The incorporation of a company falls either within the free business zone or outside it because various laws, policies, as well as rules and regulations prevailing in the respective area. Free business zone provides several preferable benefits such as 100 percent ownership of shares for the foreign nationals, no imposition of corporate income tax, and unrestricted foreign currency transactions. This area is particularly attractive to maritime, technology, manufacturing, logistics, and petrochemical companies.
In addition to the incentives of free business zone, Qatar offers many other benefits for foreign businessmen. Companies operating in Qatar are not subject to any income tax of exportation, and they also have a corporate rate of less than 10%. Another support for the expansion of business is also given by its low-paid yet well-trained labor and very developed corporate framework. In addition, foreign businessmen can remit their earnings freely out of Qatar.
Nevertheless, registering the company in Qatar is not a process at all and can be quite complicated. Companies have to file with the MOCI and will also need to ensure that any legal contracts are both in Arabic and English. There has to be at least two owners, and 51% or more of the shareholdings have to be owned by Qatari shareholders. In addition, there must be at least QAR 200,000 in minimum share capital.
The documents required are a Commercial Residence (CR), a trade license, and a computer card. Companies also need to open corporate bank accounts, obtain residence permits for foreign owners, and register with the tax authority and the Ministry of Labor.
In general, free business zones of Qatar and its tax-friendly policies have been popular for investments in business, especially among international entrepreneurs who are running company formation in Qatar.