Tips for starting a business in Qatar

Qatar is one of the most progressive countries in the Middle East, with a strong economy and plenty of opportunities for expats. The Qatari government realizes that with such a low indigenous population, workers and businesses from abroad are essential to keeping the country growing, and with the 2022 World Cup due to take place there, it probably never has. There has been a better time to start a business in Qatar.

If you are thinking of taking the plunge and starting a business in Qatar, there are several things you need to know to ensure that you comply with company formation regulations. When you set up any business, you have to start the way you want to go on, by following protocol and doing things right the first time.

Creation of a WLL company in Qatar

The most common type of business formed in Qatar is a ‘limited liability’ company, or WLL. By establishing a WLL in Qatar, your personal assets are protected, so if the business fails and you end up having to declare the company bankrupt, you will not suffer personally financially. This type of protection can be invaluable, helping you proceed with confidence without worrying about personal liability from the start.

Another essential element that you will need to implement your new business is a local sponsor. Unlike most countries, the process of forming a company in Qatar requires that you have a Qatari partner sponsor your company and provide important local information to help you along the way. This Qatari sponsor must own more than half of the business, making him the majority shareholder, although he is not necessarily required to invest capital in the company. The need for a sponsor in Qatar does not apply to all types of businesses and there are consultants who can help you secure that vital sponsor if needed.

Other important elements to start a business in Qatar

In addition to a local sponsor, you will need to open a bank account with at least QAR 200,000 as part of your company formation in Qatar. You will also need to ensure that you have the proper visa for you and your family before starting your business in Qatar and you must register your business with the relevant ministry and the Qatar Chamber of Commerce. Other requirements include obtaining a business and signage license, arranging for a company stamp, and registering with the tax office.

As part of your WLL company formation, you will need to develop an ‘Articles of Association’ document with your local Qatar sponsor; this must be signed in the presence of an official. This may seem like a lengthy company formation process, but all the elements are essential to starting your business in Qatar.