Qatar government fees reduce by 90 percent

30 July 2024 - Badreddine Souissi

Qatar has recently made significant reductions to many government fees in relation to business establishments in the country. These updates, similar to recent amendments to the Cultural and Media Sector in the country, have seen some fees experience reductions of over 90%. With the new capital requirement aimed at incentivising and encouraging entrepreneurs and businesses to setup in Qatar and attracting an influx of investments into varying business sectors.

These reductions extend to renewals, including commercial registration renewal fees being significantly lowered.

What are the fees that have been changed?

These fee changes are likely to have a significant impact on Qatar’s economic progress.

Among the more significant reduced Ministry of Commerce and Industry (MOCI) government fees are:

Registration in the Commercial Register
Renewal of registration in the Commercial Register
Licensing of commercial, industrial, or public premises or branch

Previously these fees could equate to QAR10,000 each but are now more than 90% reduced which has the most significant impact in terms of cost savings to a business, especially in the initial incorporation of a company in Qatar. It makes setting up in Qatar more achievable.

How does this affect the costs of doing business in Qatar?

When making comparisons between setting up a business in Qatar or appearing on the commercial registry before and after the 90% reduction in fees, the capital requirement and setup costs have vastly reduced.

There has been an overall reduction in MOCI fees including fees associated with Commercial Registration, Licenses, Commercial Permits, Attestation, and all the key stages of business incorporation and renewal. Total government fees could previously be upward of QAR12,000 and any additional regulatory approval costs required on top of this.

The total government fees would of course depend entirely on the individual business, its activities, and required MOCI government services so we cannot assume that one size fits all when it comes to exactly how much a business will save. The change in fees was effective as of only Thursday, 11th July but based on our experience a 75-90% reduction in MOCI fees is accurate.

What does this mean for business in Qatar when compared to other places in the region?

For foreign entities looking to set up in Qatar, the reduced government set-up and maintenance fees will encourage those who have been looking at Qatar, to take the plunge.

The reduced MOCI fees make Qatar incredibly competitive among its GCC neighbours. It is most comparable with the UAE and will now be significantly cheaper than government fees in Saudi Arabia. With competitive pricing and initiatives popping up across the GCC, reduced MOCI fees will make Qatar more attractive and boost healthy regional competition.

What kinds of businesses will be attracted to Qatar?

The greatest cost savings impact will be felt by businesses in the services, contracting, trading and industrial sectors. Generally, companies and sectors that require larger land or commercial spaces will be the most interested and impacted by this change.

Sovereign PPG is seeing a great response from clients with many questions about whether these fees are being applied yet. We anticipate that as word spreads about the highly reduced fees, Qatar will start receiving more foreign investment attention.

What were the changes for the Cultural and Media Sector in Qatar?

These registration and licensing fee reduction changes are specific to MOCI associated costs. An announcement in February 2024, shared the Ministry of Culture's (MOC) reduction in licensing fees for cinemas in Qatar from QAR200K to QAR25K. The Ministry of Culture acts as a separate regulatory government department meaning that to operate in the cinema sector in Qatar you would need to engage with both MOCI and MOC, benefiting from the reduced fees for cinema activities announced earlier this year as well as the newly reduced MOCI fees. Overall, the cost is much lower for all business activity types including cinemas.

How Can Sovereign PPG Help?

Establishing a business in Qatar has now been made to be more attractive to entrepreneurs or investors looking to setup in the region. For businesses looking to setup in the region, this reduction of government costs in Qatar could provide the most opportune time.

Company formation can be a complex process in an unfamiliar place, with regulatory requirements, approvals, and costs. This is where the expertise of a professional corporate services provider becomes invaluable. Sovereign PPG has decades of experience assisting businesses to find the perfect licensing solution, and a dedicated compliance team who can advise on best practices.

If you need assistance with this or with any other related company setup, restructuring, local partner or PRO support matter in Abu Dhabi, Dubai, the wider UAE, Saudi Arabia, Bahrain, Oman or Qatar, then please do get in touch with us on +971 (0)4 456 1761 for Dubai, or email us at SovPPG@SovereignGroup.com or complete the contact form below and we will be delighted to assist you.