Setting up a subsidiary is one of the most challenging parts of an expansion. Failing to meet all of Qatar’s subsidiary laws could lead to expensive fines or delays plus set back your entire operations schedule.
However, it’s hard to learn how to set up a Qatar subsidiary while you’re continuing to run your parent company and trying to hire new employees, figure out a payroll option, and build a benefits plan.
G-P offers a better alternative. As a global Employer of Record (EOR), we can help you start working in days, not months. With us, you won’t have to learn all of Qatar’s subsidiary laws or worry about compliance.
How to set up a Qatar subsidiary
Incorporated entities need at least 51% of shareholdings by Qatari nationals, and the country puts a strong emphasis on hiring citizens over international workers when possible. Additionally, different cities and regions often have their own costs, availability, and Qatar subsidiary laws. We recommend working with a business advisor, lawyer, accountant, and other appropriate professionals to find the best location for your subsidiary.
Arabic is the country’s official language, and Qatari Arabic is the local dialect. While many individuals speak English as a second language, there’s also a growing population of French-speaking individuals. If you don’t have anyone in your company who speaks these different dialects, you should hire a translator or consultant.
Qatar’s subsidiary laws also depend on the type of entity you incorporate as. You can choose between a limited liability company (LLC), partnership, unincorporated joint venture, or branch/representative office. Most companies set up their subsidiary as an LLC because it protects their investment and gives them the most freedom to work in Qatar.
The steps to setting up your Qatar subsidiary as an LLC include:
- Reserving a company name.
- Opening a local bank account and depositing minimum capital.
- Authenticating the articles of association.
- Registering with the commercial registry and the Chamber of Commerce and Industry.
- Obtaining trade and signage licenses from the Municipality of Doha.
- Registering for taxes and getting a Tax Identification Number (TIN).
- Creating a company seal.
Qatar subsidiary laws
LLCs are an attractive subsidiary option because each shareholder’s liability is limited to the capital they invest. That said, you’ll still need to follow Qatar’s subsidiary laws, which stipulate that you must have between 2 and 50 founding members. Previously, companies needed QAR 200,000 as minimum capital, but the current Commercial Companies Law states that they do not need any minimum capital.
Benefits of setting up a Qatar subsidiary
Going through the Qatar subsidiary setup process will allow you to start working in the country legally. Incorporating as an LLC also protects the parent company from any litigation or liability, and your subsidiary can operate somewhat independently.
Other important considerations
You’ll need a significant amount of time and money to complete the Qatar subsidiary setup process. Even if you complete every step correctly, it could still take a few months before you’re even ready to hire an employee. Plus, you’ll need to hire an expert in Qatar’s subsidiary laws to help you stay compliant, which could mean paying a lawyer, accountant, or consultant.
Many company executives have to travel back and forth to Qatar to establish an entity. Either clear your own schedule or work with someone else in your company who has the time to help set up the subsidiary.
Enter new markets with G-P — no new entities required.
Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 Global Growth Platform™ to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.
Get in touch today to learn more about how we can streamline the global growth process.