Companies can take a number of different options if they wish to set up a business in Qatar. However, for those looking to invest in Qatar for the long term, with the exceptions of certain industries, it will be difficult to avoid the 51-49% rule.
This refers to the establishment of a local joint-venture company, in which a Qatar partner must own a minimum of 51% of the share capital of the company.
In practice, this does not normally mean that the Qatar partner receives 51% of the profit, although obviously the amount he does receive will depend on whether he makes any direct investment in the company or takes an active role in supporting the company.
The choice of a partner can be a make or break decision for a company and should not be taken lightly. Good sources of advice are the business section of your embassy, law firms such as Simmons and Simmons, and of course other businesses already doing business in Qatar.
Rather than choose an individual, some firms prefer to nominate a company that specialises in providing the necessary partnership along with other services: one such firm is Links.
Certain industries are exempt from the 49-51% requirement. This industries include agriculture, health and education. However, companies in certain other industries, such as banking, may not be established at all.
Other options include starting a branch of a foreign company in Qatar. These, however, are usually set up for a specific purpose and then wound up at the end of a project. Companies can also choose to appoint a local agent in Qatar to carry out business on their behalf. However, when doing this companies should be aware that the agent will gain a commission on goods and services sold even if they do not result from the agents actions.
Further information and Resources
Setting Up a Business in Qatar: 10 Key Points: Simmons and Simmons
Investment in Qatar: Qatar Invesment Promotion Deparment
Establishing a Business in Qatar: Article by David Chaddock
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