100% foreign ownership in Qatar

100% foreign ownership in Qatar

In 2019, a new law regulating foreign investment was released which now allows up to 100% foreign onwership in Qatar. Certain activities remain excluded but majority of commercial activities are permitted in all economic sectors to allow 100% foreign ownership.

Setting up a 100% foreign owned business in Qatar

For companies in Qatar, it is now possible to have 100% foreign ownership. Qatar has been developing its business landscape in recent years to align with its ambitious Vision 2023 goals, to move away from its economic reliance on the oil and energy sectors. The transformative milestone in Qatar’s business environment proves to investors that Qatar is committed to being more flexible and autonomous.

Previously, foreign investors were only able to invest in Qatar’s economy if a Qatari national or local partner/sponsor held a minimum of 51% share capital. The new policy allows foreign investors to own 100% of their businesses in the Qatar Mainland for the majority of business activities.

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Which activities can be 100% foreign owned in Qatar?

In 2019, The Ministry of Commerce & Industry (MOCI) introduced the new Foreign Direct Investment Law which allows for 100% foreign ownership in Qatar in most sectors such as infrastructure, education, energy, healthcare, tourism, information and communications technology, and services – with the government allocating large budgets to projects in these sectors.

There are some limits on foreign ownership. Sectors such as banking, insurance, telecommunications, and commercial agencies still require a Qatari National or local partner/ sponsor to hold 51% share capital.

Single Window in Qatar

The MOCI launched a “one-stop-shop” Single Window for company registration and licensing by combining multiple government services into one integrated system called the Single Window platform. Designed to further increase efficiency and effectiveness in opening a company in Qatar.

Offering many investment attractions to foreign investors is set to be a game changer for Qatar’s business environment. The new law around 100% foreign ownership includes land allocation which the business can use or lease as per the applicable rules and regulations

Benefits of retaining a local partner in Qatar

In some cases, for particular business activities, it remains a requirement to have a Qatari national or local partner holding 51% share capital.

There are also benefits to retaining a local partner or opting for a minority shareholder (99% : 1%) structure. Retaining a local partner can assist with government contracts and regulatory approvals. It allows the local partner to perform PRO services such as staff visas and government liaison services. The best option is to choose a Corporate Partner as a local minority shareholder, to allow the company to act as PRO, Company Secretary and Authorised Signatory to undertake assistance and Government Liaison services.

How can PRO Partner Group assist?

Starting a business in Qatar requires many processes and levels of approval. It is beneficial to engage with PRO Partner Group, as an experienced CSP for company formation in Qatar, to help you understand your business structure and what is possible for your business activities. Contact us to arrange a call to understand if your business is eligible to be 100% Foreign Owned in Qatar.

Set up 100% in Qatar

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