The idea of starting a business in Qatar can be a fruitful experience, as it provides the opportunity to enter a prosperous economy, enjoy tax advantages, and live in a high-quality environment. Nevertheless, it may be complicated, particularly to expats. This guide demystifies all that you would want to know, including the cost of setting up a business, visa requirements among others based on the real life experiences of entrepreneurs in Qatar.
Business Ownership Options in Qatar
Qatar permits various business forms, according to the ownership and location:
100% Foreign Ownership (Mainland)
- No Qatari sponsor needed (as of 2020 changes).
- Cost: Approximately 10,000 – 20,000 QAR (registration, licensing and legal fees).
- Tax: Local income is taxed at 10 percent (foreign-sourced revenue is not taxed).
- Office Requirement: Has to lease a physical office (flexible offices are accepted).
Free Zones (Qatar Free Zones Authority – QFZA)
- Foreign ownership is permitted up to 100 percent.
- Tax-exempt during a fixed time (depends on the zone).
- Limited to the tech, logistic, and media industries.
- Cost: Increased cost of set up (~15,000 – 50,000 QAR).
Qatar Financial Centre (QFC)
- Suitable to financial, consulting and marketing companies.
- The English common law is applicable (less cumbersome legal procedures).
- Cost: Approximately 5 000 USD (registration and annual renewal).
- No physical office needed (virtual offices permitted).
Step-by-Step Business Setup Process
Step 1: Choose Your Business Activity
- Approved activities at Ministry of Commerce & Industry (MOCI) or QFC.
- There are industries (e.g. oil/gas, banking) that have local joint venture requirements.
Step 2: Register Your Business
- Name reservation (~ 500 QAR).
- Commercial Registration (CR) (~5,000 – 10,000 QAR).
- Trade license (Depends on activity).
- Office lease agreement (must have mainland businesses).
Step 3: Apply for Residency (RP)
- After registering, you are able to apply a Residence Permit (RP).
- Processing time: ~4-8 weeks.
- Cost: 3,000 5,000 QAR (with medical tests).
Step 4: Open a Business Bank Account
- Required documents:
- Trade license
- Passport & Qatar ID
- Proof of address
Costs Breakdown
| Expense | Estimated Cost (QAR) |
| Business Name Approval | 500 – 1,000 |
| Commercial Registration | 5,000 – 10,000 |
| Trade License | 1,000 – 5,000 |
| Office Rent (Monthly) | 3,000 – 10,000 |
| Residence Permit | 3,000 – 5,000 |
| Total Estimated Cost | 10,000 – 20,000 |
Note: Fees vary based on business type and legal assistance.
Also Read
Do You Need a Business Setup Agency?
- DIY Option: It is possible but time-consuming (government portals may be complicated).
- Agency Option: Suggested to expats (~5,000 – 10,000 QAR of service charges).
- They do paperwork, licensing and visa processing.
Pros & Cons of Starting a Business in Qatar
Pros
- No tax on foreign profits (Local profits are taxed at 10% only).
- Foreign ownership is permitted to 100 percent (no sponsor required).
- Quality infrastructure and safety.
- Family and business owner residency visa.
Cons
- Bureaucracy (time to process varies).
- Rent of office may be costly.
- High levels of strictness.
Helpful Resources
- Invest Qatar – Official business setup portal.
- Qatar Financial Centre (QFC) – Best for financial & consulting firms.
- Facebook Groups:
- Qatar Business Owners Network (for discussions on procedures).
- Expats in Qatar (general advice).
Qatar is a good option, especially in the case of digital business with international customers, in case you are interested in tax benefits, residency, and a stable economy. But UAE (Dubai/AD) can be simpler and quicker to startups. QFC is probably the most suitable choice of performance marketing agencies (such as yours) because of its flexible policies and English-law framework. Need help? Use a business setup agency to simplify the procedure.
