Qatar has a wide range of profitable opportunities for various business ventures for Limited Liability Companies (LLCs), representative offices and partnership arrangements. It is therefore imperative to hire an experienced local partner who can guide and give direction to a new company with regard to the right business channels and options available, saving precious resources: time and money.
The laws make it mandatory for a local partner to hold between 49 and 51% ownership. In essence,such a partnership is the key to the success of an investment which is long term. The law also makes it compulsory for companies to hold a lease for 12 months on the office space as a precondition for license— a huge cost component for new enterprises. At the same time, however, foreign investment is encouraged in Qatar, which promotes new entities through tax incentives and exemptions from customs duty.
While zeroing in on a legal business partnership, it is vital to consider who best benefits the organization: a citizen or a completely owned Qatari entity? Either is not really obliged to contribute financially or in practical terms to the operations of the business, but owing to the shareholder stake,can lawfully terminate the business without consultation in case of unclear paper work.
Restricted shareholder stake is permitted for industries like:
- Development of natural resources, mining and energy
It is important to keep this in mind while considering a validated partner as legally, the entrepreneur assumes a great personal risk if the business fails. Financial issues and debt may lead to problems in leaving the country, more so if the business loan is from the local bank instead of any outside resource.And so, the safest way is a partnership with a company that assists foreigners in setting up a business.