Branch Office in Qatar

Do you want to establish a branch office in Qatar? Well, you have landed on the right page as this article covers all the information that you need to know for going ahead with it. Here, we take a look at what a branch office is, the requirements needed, its advantages and the process involved in setting up a branch office in Qatar. Read on to learn about it. 

What is a Branch Office in Qatar?

A branch office is an extension of a foreign company’s main office that operates within Qatar’s territory. It allows foreign companies to build a physical presence in Qatar without the need for a separate legal entity. Branch offices represent the interests of the parent company, operate with business activities, and perform different functions like marketing, sales, distribution, etc. 

Conditions to Fulfill for Opening Branch Office in Qatar

For setting up a branch office in Qatar, you must be aware of the conditions. Let us look at them -

1. Legal Entity

A branch office is an extension of the parent company, which represents its interests in Qatar. This means it is not a separate legal entity.

2. Local Sponsorship

Foreign companies require a local sponsor, also known as a Qatari partner to open a branch office. The local sponsor can be a Qatari individual or a Qatari-owned company.

3. Capital Requirement

There is no requirement for minimum capital for opening a branch office in Qatar.

4. Tax Policies

The branch offices in Qatar are subject to taxes unless they are exempted.

5. Approval

Approval from the Ministry of Economy and Commerce in Qatar is needed to establish and operate the branch office.

6.  Business Activities

Branch offices can only work for business activities that are agreed on in the contract. They are not permitted to operate in the private sector.

7.  Office Space

A branch office must have a physical presence in Qatar, which means it needs to lease office space. 

8. Bank Account

You need to open a bank account for your branch office to facilitate financial transactions.

Our business setup services in Qatar will ensure each and every condition is fulfilled.

Advantages of Setting up a Branch Office in Qatar

Here are the advantages of setting up a branch office in Qatar –

i) Qatar is a growing market and offers business opportunities across sectors. As such, opening a branch office in Qatar offers access to primary markets.

ii) The government authorities implement supportive policies to create a business-friendly environment. This attracts foreign investments and simplifies business setup in Qatar.

iii) The branch office can get access to major neighbouring countries like Oman, Saudi Arabia, and UAE as they are part of the Gulf Cooperation Council (GCC).

iv) Good infrastructure in Qatar enables you to access proper transportation facilities, telecommunications, etc. It will enable you to benefit in terms of profits, investments, and customer satisfaction.

Documents to Submit for Opening a Branch Office

There is certain paperwork that needs to be submitted to the authorities for opening a branch office in Qatar. Let us look at them –

• Letter of support.
• Board resolution to open a branch office.
• Articles of Association (AoA) of the parent company.
• Contract issued by the Qatari government entity.
• Certificate of Incorporation of the parent company.
• Power of attorney authorised to the representative.
• Licenses of the Ministry of Commerce and Industry.
• Passport copy of the individual who holds the power of attorney.

Steps of Opening a Branch Office in Qatar

If you want to set up a branch office in Qatar without facing any legal issues, here are the steps you need to follow–

Step 1 – File Application Forms

You need to fill out essential application forms, which include the details of the company. Details like number of shares issued, data of the parent company, and other necessary forms must be submitted to the authorities.

Step 2 – Submit Documents

Your office management needs to submit the Memorandum of Association (MoA) and Articles of Association (AoA) to the registering authority. Details about the office, such as its purpose, location, objectives, etc. must be disclosed.

Step 3 – Obtain Approval

Apply for commercial registration by filling out an application to Qatar’s Chamber of Commerce. The application must be submitted in Arabic and signed by responsible company individuals.

Step 4 – Apply for License

The company must avail of a trade license. The municipality grants the license if the company has a 12-month lease agreement for opening a branch office in Qatar.

Step 5 – Register and Receive Computer Card

The Ministry of Interior will register your company for a computer card. Once that is completed, you need to ensure that the branch office is registered with Qatar’s Labour Department so that they can apply for the quota and visas for the employees.

Step 6 – Apply for the TIN Number

You need to apply for the Tax Identification Number (TIN), and a permanent tax card. The branch office in Qatar must then appoint an auditor within 30 days to obtain the commercial registration.

Establishing a branch office in Qatar offers numerous opportunities for companies that wish to expand in the region. Your business can enter the country’s growing market, use its latest technology and infrastructure, and access talent from across the world. However, it requires proper research, knowledge about Qatari laws, and an understanding of the market.

Reach out to Commitbiz, and we will take care of the hassles of setting up a branch office. We are a team of experts with 16+ years of experience and are well-versed in marketing and management skills thereby ensuring smooth company formation.