How to set up a construction company in Qatar

How to set up a construction company in Qatar

- Paulina Zalewska-Dzieciuchowicz

How to set up a construction company in Qatar

As the economy expands, some industries are positioned to take advantage of this growth. The construction industry, currently valued at over $45 billion is projected to expand by at least 3% each year through to 2026. Companies that provide construction, architecture, and engineering services are expected to see favourable returns.

Benefits of Starting a Construction Company in Qatar

Part of the recent economic growth has come from the Qatari government’s efforts to increase the amount of foreign investment in the nation. Before 2019, all companies that operated in Qatar were required to have majority Qatari ownership (51%). Now, according to the updated Foreign Investment Law (Law No. 1 of 2019), entities may be 100% foreign owned making it the perfect opportunity for foreign construction companies to enter the market.

In addition to foreign ownership, construction companies can enjoy the benefits of significant tax savings (no personal income tax and low corporate taxes), repatriation of revenue, modern technology and infrastructure.

How to Register Your Construction Company

There are four main legal regimes and platforms in Qatar to register companies — under the Ministry of Commerce and Industry in particular in accordance with the Commercial Companies Law, Qatar Financial Centre (QFC), Qatar Free Zone (QFZ) and Qatar Science & Technology Park (QSTP). The most appropriate for construction companies is to follow the guidelines of the Ministry of Commerce and Industry. Under this regime, there are several business entity types available, however, most construction companies will likely register as LLCs.

  • Step 1: Select and Register a Trade Name - The first step is to secure a trade name for the business. It’s important to make sure the name isn’t registered by another entity and that the name doesn’t include any inappropriate language. Trade name reservation certificate will cost 1,000 QAR (or about $275 USD).
  • Step 2: Sign Articles of Association and apply for Commercial Registration - Next, the business will need to obtain a commercial registration (CR). This registration is issued by the Ministry of Commerce and Industry. Companies will need to submit copies of all shareholders’ identification documents, articles of association.. With your CR, you will be able to open a Qatari bank account and start receiving payments from customers.
  • Step 3: Secure Office Space - Businesses operating in Qatar must have an approved office space to conduct business.
  • Step 4: Apply for a Trade Licence - After the CR is approved, the company can apply for the appropriate trade licence from the Ministry of Commerce and Industry. This must be approved before performing any construction work activities.
  • Step 5: Request a Computer Card (Immigration Card) - you need to apply also for a computer card from the Ministry of Interior. The holder of this card will be approved to issue residence permits to any foreign employees.

The cost to set up a construction business will vary depending on the type of entity that is selected and the number of trade licences that are required to operate the business. Generally, the government fees for registering the business will cost about 20,000-30,000 QAR (about $5,500 - $8,200 USD) for the first year. Each year the investor needs to cover the cost related to the renewal of the each year.

Set Up Your Qatar Construction Business for Success

The process of setting up a construction company in Qatar can be extremely expensive, bureaucratic, and time consuming. This can be very overwhelming for foreign business owners who struggle with the language or don’t have the right connections. Having an experienced professional on your side can help make the process easier. Even simple paperwork errors can cause significant delays and cost thousands of dollars to correct.

How can PRO Partner Group help?

PRO Partner Group has strong ties with Qatar and, an extensive team on the ground with in-depth knowledge of the market, company incorporation requirements, government departmental requirements and visa, labour and immigration services.

We understand that entering and developing in new markets is challenging. We can help you identify the correct legal entity for your business setup in Qatar and assist you with all relevant PRO services, such as staff visas, immigration and labour matters, and all relevant company licensing, corporate structuring, and corporate governance.

If you need guidance on setting up a construction company in Qatar or any other related company setup, restructuring, local partner or PRO support matter in Qatar, Abu Dhabi, Dubai, the wider UAE, Oman or Saudi Arabia, then please do get in touch with us on +974 4478 8765 for Qatar Doha office, +971 (0)4 456 1761 for Dubai, or email us at info@propartnergroup.com or complete the contact form below and we will be delighted to assist

Set up a construction company in Qatar

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