Qatar Wholly Foreign-Owned Company
- There is no requirement for minimum share capital. This entity can be incorporated in specific industries listed in the Qatar Foreign Investment Law after obtaining local administration approval.
- Industries where foreign direct investment is allowed are: consulting services, manufacturing, tourism, healthcare services, education services, agriculture and natural resource exploration, leisure and entertainment and telecommunication services.
- A wholly foreign-owned company is recommended if it is expected to invest a significant amount to hire local staff.
Qatar Joint Venture Company
- Foreign ownership is allowed up to 49% without requiring prior approval from local administration. A minimum share capital of USD 55,000 is recommended. This amount can vary depending on the company’s business operations.
Qatar Free Zone Company
- Qatar economic zones are mainly used for R&D activities, shipping services, professional services, management services, financial, banking and insurance services.
- In the event that a wholly-owned foreign company is incorporated in an economic zone, it can benefit from a number of tax incentives. These companies have strict incorporation requirements, such as high share capital and the obligation to submit a feasibility study to the local administration.
- A foreign company branch is permitted when a government contract to provide public services is obtained. Local administration approval is necessary prior to the registration of the branch. The branch is entirely taxable within the jurisdiction of Qatar. The duration of the branch operation is linked to the contract period and it is feasible to renew the branch if new contracts are awarded to the branch unit.
- A branch is not considered to be a permanent establishment, local clients are required to withhold corporate income taxes and other taxes from their payment to the branch. These payments can be reclaimed after the conclusion of the contract by means of a final tax return.
Qatar International Engineering Consultancy Office (IECO)
- As opposed to a regular branch, an IECO is considered to be a permanent establishment and its clients are not required to deduct withholding tax on payments made. Theses entities are mainly incorporated to provide engineering services.
Qatar Representative Office
- A representative office must not engage in any direct income-generating activities. They are authorized to promote the business of the parent company. Prior approval is required from the local administration.
- Clients who are not interested to invest a substantial amount of capital or appoint shareholders can work with a local commercial agent. There is no requirement under this option to set up a new company.