Do you want to start and run a successful business in Qatar? If yes, this article is for you. Here are a few practical tips to achieve your goals!
How to start a business in Qatar
Qatar is one of the wealthiest countries with an increasing GDP rate, creating massive opportunities for people to start and run successful businesses. No matter which industry you choose, you can start a profitable business or company in Qatar. Here are a few tips to streamline the process and achieve your goals. Read on!
Analyze the Market
When planning to start and run a business in Qatar, one of the first things to remember is that your success will largely depend on your understanding of the market. To stand a fighting chance in the industry of your choice, you need to have a thorough knowledge of local procedures, the players you will be competing with, and ways to break into the market.
Choose the Right Partner
In Qatar, a company must be wholly owned by Qatari. A Qatari individual must possess at least 51% of the share capital of a company in Qatar. That’s why partnering is so critical to the success of your business. Ideally, partners with similar values, ideas, and ambitions make a good partnership. Take your time to align with that partner. So this decision will go a long way in making things easier for you.
Register Your Business
The process includes registering with the Ministry of Economy and Commerce in Qatar and acquiring a membership in the Qatar Chamber of Commerce and Industry. Apart from all this, a startup must obtain a business license, immigration card, signage license, and other additional authorizations before starting operations.
Other requirements include depositing a minimum share capital of QAR 200,000, determined primarily by the nature of the business, in a Qatari bank and obtaining residence permits, registering with the tax & revenue department, and registering employee agreements with the ministry of labor.
Understand Tax Laws
The tax rate is 10% of the company’s total state income, paid annually. However, this flat rate only applies to businesses, not personal taxes, or individual income. Remember that typical business expenses are deductible, and losses can be carried forward for no more than three years from the original accounting statement. Rental income is subject to a flat rate of 10%.
There are no other taxes, as Qatar is among the top low-tax countries in the world, making it attractive to ex-pats. Meanwhile, the customs duty for general cargo entering Qatar is approximately 5%.
For temporary imports into the country, permission from the Director General of Qatari Customs is necessary, along with a check or bank guarantee to the Customs Department for shipping fees.
Choose a Suitable Location
In recent years, Qatar has transformed into a vibrant country boasting state-of-the-art shopping malls, incredible stadiums, the tallest buildings, modern hotels, world-class infrastructure, and accessible tourism sites.
Note that with these massive benefits coupled with a high standard of living, Qatar is now a major business center and an ideal place to set up a business. There are few legal company setup options in Qatar, including free zones, making the decision simpler and much easier than in any other GCC country.
These free zones are intended to provide a level of economic security regarding the free flow of goods to the local market, in addition to supporting the process of economic diversification.
Apply for Business Insurance
With the Qatari government becoming more open and accessible to foreign investment, the insurance industry in Qatar is growing massively. If before, people saw life insurance as a luxury only for the rich, now many locals see it as an alternative method to protect the well-being of their families and businesses.
But ensuring the protection of one’s business and family against unexpected situations is something everyone should consider. It is protection against premature death or loss of income due to illness or financial misfortune. It is necessary to ensure that your business and your family in country are adequately provided for something to happen to you.
With so many exceptionally excellent benefits and privileges, Qatar is one of the most favorable countries to start a business. Qatar welcomes foreign investors from all over the world to establish a company in their country. The Qatari government provides various business opportunities to attract more foreign direct investment to the country. Until Next Time!
- Article based on personal opinion, experience and research.
- Photos from Unsplash & canva.