- Introduction
- Understanding a Subsidiary
- Benefits of Setting Up a Subsidiary
- Step-by-Step Process for Establishing a Subsidiary
- Document Requirements for Setting Up a Subsidiary
- Start Your Business Journey in Qatar with QIncorp
Introduction
Qatar is an appealing destination, not only due to its abundant oil resources but also for businesses seeking expansion opportunities. The country presents an advantageous business environment with its low tax rates and the potential for growth in a thriving economy boasting a high GDP and excellent quality of life. There are various corporate structures available in Qatar. Each structure has its advantages and disadvantages.
This blog will take you through the step-by-step process of opening a subsidiary in Qatar and the benefits it brings.
Understanding a Subsidiary
A subsidiary is a separate legal entity owned and controlled by a larger company, the parent or holding company. The parent company holds a majority or full ownership stake in the subsidiary, significantly influencing its operations, policies, and financial decisions. However, the subsidiary operates independently, with its management team and legal structure.
As a foreign investor, you can set up various forms of subsidiaries in Qatar, such as a limited liability company, joint venture, or partnership. Limited Liability Companies (LLCs) are popular due to their flexibility, separate legal status, and limited liability feature, ensuring shareholders’ liability is limited to the capital they invest.
Benefits of Setting Up a Subsidiary in Qatar
Expanding your business into international markets can bring new growth opportunities and diversify your operations. Qatar, the strongest economy in the Middle East, offers a promising business landscape for foreign investors. Establishing a subsidiary is one of the most effective ways to enter the Qatari market.
Full Foreign Ownership: Previously, the Qatari government required foreign investors to have a local partner to set up a subsidiary. However, recently, regulations have evolved, and now foreign investors can establish fully owned subsidiaries. Read our blog to learn more about 100% business ownership in Qatar:
Breaking Investment Barriers: Qatar Mainland Offers 100% Foreign Ownership
Legal Operations: Opening a subsidiary allows your company to legally start operations in Qatar, enabling you to participate in the country’s dynamic and growing economy.
Limited Liability: Incorporating as a Limited Liability Company (LLC) protects the parent company from litigation or liability, ensuring that your subsidiary can operate independently and shield your main business from potential risks.
Local Market Access: A subsidiary provides a gateway to tap into the Qatari market, allowing you to establish a local presence, build relationships with clients, and understand the unique needs of your customers in Qatar.
Tax Benefits: Qatar offers a favourable tax environment for foreign subsidiaries, with low corporate income taxe (10%) and no tax on employment income. This tax-friendly atmosphere can significantly enhance your company’s financial performance.
Step-by-Step Process for Establishing a Subsidiary in Qatar
Step 1: Partner with QIncorp
QIncorp is well-informed on Qatar’s business landscape. By partnering with QIncorp, you can benefit from our experience and expertise. Our dedicated consultant will provide honest advice and take you through the incorporation process in Qatar.
Step 2: Select the Business Structure
Our dedicated advisor will help you choose the most suitable business structure for your subsidiary in Qatar.
Step 3: Decide on the Jurisdiction
Select the location where you want to establish your subsidiary in Qatar. Whether you want to set up in Qatar Mainland or Qatar Free Zone, you will get full business ownership.
Step 4: Choose a Suitable Company Name
Ensure that the name of your subsidiary is unique, non-misleading, and compliant with public ethics.
Step 5: Draft Articles of Association
We will help you draft the Articles of Association outlining your subsidiary’s regulations and operational procedures. This step is crucial to establish the subsidiary’s internal governance structure and clarify shareholder rights and responsibilities.
Step 6: Commercial Registration in Qatar
We will help you complete the commercial registration process and register your subsidiary with the Chamber of Commerce and Industry.
Step 7: Open Your Corporate Bank Account
Opening a corporate bank account is essential for your financial operations in Qatar. QIncorp helps you choose a reputable bank in Qatar that offers suitable services for your business needs.
Step 8: Obtain Your Trade License
We will assist you in obtaining a trade license in Qatar, which allows your subsidiary to conduct specific business activities legally.
Step 9: Receive Your Computer Card
The computer card is an essential document used to identify the authorized signatory of a company. Its significance lies in securing permits for employing full-time workers. The application process for the computer card is overseen by the Immigration and Passport Control Office.
Step 10: Tax Registration in Qatar
We will assist you in registering your subsidiary for taxation with the Qatar Ministry of Finance. This step is essential for complying with the country’s tax regulations and obtaining a taxpayer identification number (TIN).
Learn more: Qatar’s Tax Regime: Individual and Corporate Taxation
Document Requirements for Setting Up a Qatar Subsidiary
Before starting the incorporation process in Qatar, you should have initial documents per Qatar’s Subsidiary law. Later, you must provide relevant documents at each stage of the process. Our dedicated consultant can further guide you on the specific requirements.
We will also help you with the attestation and translation of the documents offering you the best PRO services in Qatar.
Start Your Business Journey in Qatar with QIncorp
Establishing a subsidiary in Qatar can be rewarding, offering access to a thriving market and strategic advantages for your business. By following the step-by-step process and working with our experienced team at QIncorp, you can ensure a smooth and successful entry into the Qatari market.
Expand your business to Qatar and embark on an exciting business journey with QIncorp!