Includes steps involved in establishing a local office.
Last Published: 8/15/2019

In order to do business in Qatar and establish a local office, foreign and local companies as well as service agencies are required to obtain commercial registration from the Ministry of Commerce and Industry (MoCI).  Qatar enacted Law No. 25/2005 (the “Commercial Registry Law”) which states that no individual person or single entity may engage in commercial activity before registering in the Commercial Registry maintained by the MoCI.  Any inquiries regarding the registration process should be directed to the Director of Commercial Affairs in the Commercial Registration and Licenses Department at the MoCI.  Law No. 20/2014 amended certain provisions of the Commercial Registry Law to simplify and expedite the registration and appeals process.

In January 2019, Law No. 1/ 2019 regulating the investment of non-Qatari capital was signed by the Amir, repealing Law No. 13/2000 on the regulation of foreign investment.  The new law permits foreign investors to invest up to 100% in nearly all sectors of the economy.  Additionally, to allow more foreign real estate investment, the government enacted a new law (Law 16/2018) to allow foreign individuals, companies, and real estate developers freehold ownership of real estate in 10 designated zones and ‎usufructuary rights up to 99 years in 16 other zones.  Foreign real estate investors and owners will also be granted residency in Qatar for as long as they own their property. 

Important exceptions to the Foreign Investment Law are as follows:

  • 100% Foreign Investment Law: Excepted sectors include banking, insurance, and commercial agencies, where foreign capital investment remains limited at 49 percent, barring special dispensation from the Cabinet.  Investors must obtain an exemption from Qatar’s Council of Ministers prior to investing in the banking and insurance sectors.
  • Article 68 Companies: The Foreign Investment Law provides that it shall not apply to companies and individuals whom the government of Qatar entrusts with excavation, utilization or management of natural wealth resources under a concession or agreement, or to companies that are established by the government or public institutions or in which the government participates in partnership with foreign investors (so called “Article 68 Companies”).  Special rules apply in these circumstances.
  • Representational trade office:  The decision of the MCI No. 142/2006 provides that foreign firms may open representational offices without a local partner.  Such offices may not conduct any financial transactions related to the company’s commercial activities in Qatar and are therefore not subject to taxation however the office must be registered with the tax authorities.  Though the representational office may be registered in the Commercial Registry and employ staff in its own name, it is really a “shop window” to source business.  A representational office may be converted into a joint venture company or 100% foreign ownership at a later date.
  • Branch registration:  The Foreign Investment Law contains provisions that, subject to an exemption from the MoCI, allow a branch of a foreign company to be registered in Qatar if that foreign company has a contract in Qatar that results in facilitating the rendering of a service or implies a public benefit.  This has generally been interpreted to mean engaging in a contract with the Government of Qatar or a quasi-governmental entity. This registration does not allow the foreign company to conduct commercial activity that is not related to the subject of its registration.  Foreign companies registered under this category do not need a sponsor or service agent.  As of the writing of this text, it is yet unclear whether the new law for 100% foreign investment will impact branch registration provisions.
  • Service agents or sponsorship:  In the past, this type of arrangement consisted of appointing a Qatari entity to act as a service agent for a foreign firm.  Specific services would be determined by the two parties and could include handling administrative and business matters in Qatar, such as immigration procedures, import licenses, providing introductions to decision makers, etc. Although the service agent remains a common business practice in the region, it is no longer an appropriate business option in Qatar in light of Law No. 25/2004, commonly known as the “Proxy Law.”  The Proxy Law was enacted in Qatar to address the practice of concealing non-Qataris doing business in violation of existing Qatari law.  It prohibits natural or legal persons from concealing the business activities of non-Qataris, for example by allowing a non-Qatari to use the name, license or commercial registration of Qatari party.  According to Law No. 25/2004, the service agent relationship is considered a form of proxy business and fines and imprisonment can be imposed on anyone who infringes the law.
  • QFC, QSTP, Manateq, and Free Zones:  The Qatari government offers business incubator and free economic zone platforms to attract foreign direct investment.  The Qatar Financial Centre (QFC) and the Qatar Science and Technology Park (QSTP)provide environments for international companies and institutions to operate under certain free zone-type conditions.  The criteria and limitations to operate in these environments are fairly stringent.  Foreign investors interested in setting up in the QFC must carry out specific permitted activities.  On the other hand, the QSTP is restricted to entities engaged in research and development activities in Qatar.  Interested parties must submit applications for both the QFC and the QSTP for assessment of eligibility to establish a corporate presence. In addition, Manateq, a national initiative encompassing special economic zones, industrial zones, logistics parks, and warehousing parks, aims to attract small, medium, and large enterprises with various infrastructure incentives.  Recommended industries vary by zone, but generally include construction, building materials, metals, chemicals, plastics, petrochemicals, food manufacturing and storage.   The Qatar Free Zones Authority, established in 2018, is accepting investment applications in two free economic zones, which are co-located with Qatar’s primary airport and seaport.  Recommended industries include logistics, consumer products, light manufacturing, ICT, pharmaceuticals, maritime industries, and plastics.  Incentives include tax exemptions, zero customs duties, full repatriation of profits, and potential access to a $3 billion government-backed fund for strategic investments in the free zones.   More information on Manateq and the Free Zones can be found here:

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.