A company is a legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise. A company may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction.
The line of business the company is in will generally determine which business structure it chooses such as a partnership, proprietorship, or corporation. These structures also denote the ownership structure of the company.
They can also be distinguished between private and public companies. Both have different ownership structures, regulations, and financial reporting requirements.
- A company is a legal entity formed by a group of individuals to engage in and operate a business enterprise in a commercial or industrial capacity.
- A company’s business line depends on its structure, which can range from a partnership to a proprietorship, or even a corporation.
- Companies may be either public or private; the former issues equity to shareholders on an exchange, while the latter is privately-owned and not regulated.
- A company is generally organized to earn a profit from business activities.
- Companies are an important contributor to the health of an economy as they employ individuals and attract disposable income to spur growth.
How a Company Works
A company is essentially an artificial person—also known as corporate personhood—in that it is an entity separate from the individuals who own, manage, and support its operations. Companies are generally organized to earn a profit from business activities, though some may be structured as nonprofit charities. Each country has its own hierarchy of company and corporate structures, though with many similarities.
A company has many of the same legal rights and responsibilities as a person does, like the ability to enter into contracts, the right to sue (or be sued), borrow money, pay taxes, own assets, and hire employees.
Licensing Authorities in Qatar
Qatar Mainland License
The Ministry of Commerce and Industry is responsible for overseeing commercial and industrial activities for the state of Qatar, directing these activities in accordance with the requirements of national development. The Ministry’s mandate includes business development needed to attract investments and support and develop exports.
The Qatari government allows full ownership of the business for foreign investors.
The MCI is dedicated towards companies requiring trading activities, office space availability anywhere in Qatar, specific business activities that require external approvals (such as taxi services, as an example), organizing of work with banking & government sectors etc.
Qatar Free Zones
1. Qatar Financial Center
The Qatar Financial Centre (QFC) is an onshore business and financial centre located in Doha, established by Law No. 7 of 2005 of the State of Qatar. A world-class platform for companies, QFC offers its own legal, regulatory, tax and business environment, contributing to the decisive economic development and diversification prescribed by Qatar National Vision 2030. Supported by QFC’s broad range of legal and regulatory services, regulated and non-regulated, that align with international best practice, domestic and international companies can set up or expand their business in Qatar. QFC allows up to 100% foreign ownership, 100% repatriation of profits, and charges a competitive rate of 10% corporate tax on locally-sourced profits, all while integrating businesses into Qatar’s swift expansion into a major trade and investment centre.
2. Qatar Free Zone AuthorityQatar Free Zone is focused on four core sectors: emerging technologies, logistics, industry and maritime. They are positioned 30 minutes from Downtown Doha and sit adjacent to Hamad Airport and Hamad Seaport, both award-winning transport hubs that connect you to the world. QFZ offers extremely competitive tax exemptions, including 20-year corporate tax holidays, no individual income taxes, and zero import custom duties. Investors are also entitled to 100% foreign ownership, with full capital repatriation.
QFZ comprises of 2 main areas – the airport and seaport free zones
a. Ras Boufantas Free ZoneIt is adjacent to Hamad International Airport and has specific sections of the zone dedicated to particular industries, allowing for optimal cluster growth and perfectly tailored infrastructure and facilities. Fully serviced plots come in different sizes to suit specific industry needs, and facilities are flexible, meaning that companies can either choose to build their own, can hire QFZA to build it for them to exact specifications, or can elect to use pre-built facilities. Ras Bufontas, the airport free zones, will complement high value and time-sensitive products.
Key areas of focus
- Emerging Tech
- Aviation Business
- Light Manufacturing
b. Umm AlHoul Free ZoneUmm Alhoul Free Zone covers 32km and is situated near Hamad Port, the world’s largest greenfield port, providing an optimal location for industries which benefit from access to sea freight and shipping routes. The zones have been designed to incorporate additional smart technologies including smart waste bins, intelligent street lighting, addressable advertising panels and more. MARSA is a new maritime cluster in Qatar’s Umm Alhoul free zone, strategically located adjacent to Hamad Port, the world’s largest greenfield seaport, and only 20 minutes from Doha city center.
Key areas of focus
- Heavy Manufacturing
- Logistics Hub
- Industrial Sectors
- Downstream Petrochemical
- Emerging Tech
- Maritime Industries & Services
3. Qatar Science and Technology ParkSituated in Qatar’s Foundation Education City, this technology park was established in 2009 with an aim to provide a home to technology-based firms. This zone comes with a lot of incentives that meets the expectations of the business entities. Some of the renowned companies that bask in its zone hold Microsoft, Shell, and GE etc. This free zone completely concentrates on the technology domain to give an emerging platform to the business entities.
Key areas of focus
- Technology Developments
- Education and Training
- New Business Development
- Research and Development
Call Us Now: +974 44 101 710
Council of Ministers Building – Al Corniche,
Qatar Free Zone Authority, Unit 155, Wing 4
– Ground level, Doha – Qatar
Steps to Start a Company in Qatar
Get Commercial Residence (CR)
Benefits of Setting Up a Company in Qatar
Easy Filing of Corporate Tax
No Income Tax or Social Security Deductions
No Taxation on Exports
Inexpensive Labor Force
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