Qatar’s vibrant economy, pro-business regulations, and low corporate taxes (low of just 10% here) makes it ideal for business entrepreneurs, that said whether you are a local or an expat it’s no dummy move to start a business in Qatar. There is only one thing you will want before you start and that’s a trade license in Qatar.
A trade license is a legal document issued by the Ministry of Commerce and Industry (MOCI) which allows you legal permission to operate your business. In this guide, we will go through the types of licenses you can apply for, requirements, costs, and steps to apply.
What is a Trade License in Qatar?
A trade license in Qatar (also referred to as a Commercial Permit or CP) is required by all businesses. Your trade license demonstrates that your company is compliant with local law and that you are operating an acceptable business in an approved sector. You will not be able to conduct trade activities legally without it.
Regardless of whether you want to have a retail store, consultancy firm or a manufacturing plant without a trade license you will not be able to do business legally.
Types of Trade Licenses in Qatar
There are four types of trade licenses in Qatar depending on your business activities:
1. Commercial License
Used for all activities that include; buying, selling, importing, and exporting goods. (eg. Retail Store, Trading Company).
2. Industrial License
Will be required if your business is providing manufacturing, processing or production.
3. Professional License
For service-based businesses like consultants, lawyers, and freelancer.
4. Tourism License
If you provide travel agency or tour operator services or hospitality services.
Requirements to Get a Trade License in Qatar
You will want to confirm that you have completed the following requirements prior to applying for your trade license:
1. Select your Business Structure
In accordance with Qatar’s Company Law No. 11 of 2015 you may register as:
- Limited Liability Company (LLC)
- Holding Company
- Shareholding Company
- Foreign Company Branch
2. Decide to register on the Mainland or in a Free Zone
- Mainland: 49% foreign ownership is permitted (or 100% in some special cases).
- Free Zone: 100% foreign ownership is permitted, and you do not have a local sponsor requirement.
3. Obtain a Business Visa
You will need a temporary business visa, which may be valid 72 hours to 3 months, to enter Qatar and setup your business.
4. Buy or Rent Office Space
A physical office or commercial space is required if you register on the mainland.
5. Register Your Trade Name
Your business name must be unique to the category you want to register and get approval from MOCI. The subsequent reservations will vary in cost:
- 3-Day Reservation: Free
- 6-Month Reservation: QAR 1,000
6. Draft Articles of Association (AOA)
This legal document specifies how the business will operate, the shareholders, the capital, etc. You will need to have this document approved by the Ministry of Justice.
7. Complete Company Registration (CR)
Submit the relevant documents (AOA. QID copies, Lease) to MOCI for approval.
How to Apply for a Trade License in Qatar
Once again, congratulations on meeting the requirements! Here’s the next step:
- Go to the website for the MOCI
- Login or Create an account
- Fill out the Application Form
- Upload all the documents that may be needed (QID, CR copy, rental Agreement)
- Pay the fees
- Locals (QAR 300–500)
- Expats (QAR 1,500)
- Submit & wait for approval
Processing time varies, but approvals are typically quick if all documents are in order.
Trade License Validity and Renewal
Your trade license in Qatar is valid for 1 year. You can apply for the validity to be extended for up to 5 years.
Documents Needed for Renewal:
(The normal documents you will need for a company to renew a trade license will be)
- The original trade license.
- Financial statement of the company’s operations.
- A copy of the rental agreement updated.
- A certificate from the Chamber of Commerce.
Renewal Fees:
Renewal fees will vary depending on what type of business you run, so double check the exact costs from the MOCI’s portal.
Frequently asked questions and answers about Trade Licenses in Qatar
1. Can a Foreigner Open a Business in Qatar?
Yes! Expats can own 100% of their business if they are in a Free Zone, and mainland businesses where expats are allowed to own up to 49% (this is not always the case).
2. How much does a trade license cost?
Trade licenses can cost anywhere from QAR 300 – 1,500 depending on the type of business and ownership structure.
3. How long does it take to get a license?
It would typically take a few weeks, provided all the documentation has been submitted accurately.
Ready to Start Your Business in Qatar?
Obtaining a trade license in Qatar is straightforward if you follow the right steps. Once approved, you can focus on growing your business in one of the fastest-growing economies in the Middle East.
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