Branch Office in Qatar

Located on the Northeastern coast of the Arabian Peninsula, Qatar, with its capital Doha has turned out to be an appealing and growing business platform. The platform turns out to be feasible for business investors and entrepreneurs who are thinking of investing in Middle East countries. 

The country ranks itself in the first position when it comes to per capita income in the world.  This article will take you through the establishment of a branch office in Qatar.

Branch Offices for Foreign Companies in Qatar

Business setup in Qatar has emerged to be one of the best investment destinations as it provides a platform for various business entities. A branch office turns out to be an extended arm of a parent company where business activities are carried out. 

Branch offices are mostly engaged in settling out different business aspects such as human resources, marketing, etc.  Any foreign company that aims to execute a contract with the Qatari Government has the flexibility to set up a branch office in the country, provided they need to abide by the regulations set by the Ministry of Qatar. 

To get a clearer picture of the branch office, let’s focus on certain key factors of a branch office in the country.

Highlights of a Branch Office in Qatar

• Initially needs to be authorized by the Ministry of Economy and Commerce
• Branch offices turn out to be fully taxable unless a special contract is registered
• No minimum capital requirements
• Approval from the Minister of Business and Trade is required before branch office registration.
• Are entitled to perform a specific contract for which it is registered.

Why Set up a Branch Office in Qatar?

Now, the answer to this question lies in the following points:

1. To perform a specific project with the Qatari government
2. There is no requirement for any Qatari partner while setting up a branch office in the country
3. A branch office is registered to perform government-related projects and is not applicable to the private sector.

A Branch Office’s Permitted Activities for a Foreign Company in Qatar

A branch's permitted operations and the activities of a representative office in Qatar (unlike a branch office, there are many more restrictions) are restricted to carrying out the specific contracts for which it has been registered. Additional authorization is required for a branch to enter into new or renew existing contracts. 

Even while it can expand its operations by signing new government contracts, a branch's registration is only good for the life of the contract or contracts on which it is based, and it must be dissolved once these contracts are completed. Our Qatar business formation agents have more information on the branch formalities. 

Additionally, you can use our immigration lawyers in Qatar to assist with a company's relocation to Qatar. Companies registered under this category must be 100% foreign-owned and do not require a sponsor. 

Branch Offices are bound to the duration of the contract and are not permitted to conduct any other commercial activity in Qatar that is not specifically covered by the contract. As a result, the creation of Branch Offices is uncommon and only appropriate for a select few undertakings.

The restriction of just trading inside the parameters of a specific contract is not something that many overseas investors prefer. An extension of the parent corporation where business operations are conducted is a branch office.

How to Open a Qatar Branch Office?

To register a branch office in Qatar, the following steps are to be initiated:

1) Application and Documents Submission

The very first step that you need to go ahead with is filling out an application along with the necessary details regarding the business entity and the shareholders. To set up a branch office in Qatar, one needs to hold the following essentials:

• Letter of support from the Qatari government stating whom the services will be rendered to
• Copy of contract with the Qatari Government
• Authorization from the Ministry of Economy and Commerce to establish a branch
• Notarized, Authenticated copies of Power of Attorney from the Foreign Company to the manager of the branch
• Qatar Chamber of Commercial Registration

Once the above-stated documents are in hand, you can proceed further with the company setup process in the country.

2) Drafting of MOA

In the next step, a Memorandum of Association (MOA) needs to be drafted that needs to be submitted to the Ministry of Economy and Commerce.

3) Obtaining Commercial Residence from Ministry

Once submitted, approval regarding commercial residence is to be obtained.

4) Computer-Card Registration

A computer card needs to be registered so as to employ full-time and complete the projects within the project deadline. Once the branch has been approved, and the commercial registration is issued, the following licenses must also be obtained:

• Commercial License
• Signage License
• Immigration Card.

As you can see, opening a branch office in Qatar can help your business expand its reach. The establishment process turns out to be way easier if you have a helping hand. 

At Commitbiz, we focus on providing the core essentials required to set up a branch office. If you are looking out for the same, do contact us today, even if it’s for friendly advice-we’d be glad to assist you.