As of July 11, Qatar has implemented significant reductions in many governmental fees for establishing business in the country with the Ministry of Commerce and Industry (MOCI). The amended fees have seen reductions of up to 90%, similar to recent amendments to the country’s cinema and entertainment industry. These amendments aim to boost the attractiveness of doing business in Qatar for international businesses and entrepreneurs across various sectors.
The fees for registering a business in Qatar would have previously equated to QAR 10,000 per registration. They could present a higher collateral challenge to aspiring businesses looking to enter the region through the country. However, after significant reductions, the incorporation of a company in Qatar is more achievable. The updates to governmental fees also extend to renewals, permitting companies to remain operational within Qatar with lower business costs.
The industries that observed the greatest cost-saving opportunities include the service, contracting, trading, and industrial sectors. Registration in the commercial register, renewal of registration in the commercial register, and licensing of premises and branches were amongst the most significantly reduced individual fees. Generally, businesses that require a larger commercial space will benefit the most from these changes.
Prior to the amendments to governmental fees, the total cost to register a business in Qatar would easily have been upward of QAR 12,000, with the addition of any necessary regulatory approval costs. It’s important to bear in mind that the total expenditure would be dependent on the individual business, accounting for the company’s differing activities and the number of MOCI services required.
These fee reductions are all with respect to MOCI governmental costs, improving Qatar’s regional and international competitiveness, which are now more comparable with the UAE and significantly lower when compared with Saudi Arabia. Qatar is leaning into more affordable incorporation initiatives, which seems to be trending in key markets across the Gulf Cooperation Council (GCC) as the Abu Dhabi Global Market (ADGM) in Abu Dhabi also recently announced government fee reductions starting from 2025. As the wider GCC expands their offerings, each country has to improve its setup environment to draw attention back to its jurisdiction, whether through general fee reductions or attracting specific industries.
It is expected that from these updates, foreign entities looking to set up in Qatar will be encouraged to engage with their ventures in the country. It certainly encourages small and medium enterprises (SMEs) to explore Qatar, as it offers a more competitive capital requirement. With Qatar free zones being traditionally the more affordable setup option and Qatar Financial Centre (QFC) recently reporting a 230% increase in firm registrations, the government fee reductions in the mainland will bring the overall business setup costs to a comparative level with free zone jurisdictions.
Establishing in Qatar is now more attractive to entrepreneurs or investors looking to set up in the region, as reduced government costs provide a more opportune setup environment.