Expanding a business into Qatar presents various structural options, each with its own benefits and limitations. Among the most
Business
By hiba Mohammed
March 14, 2025
Setting Up a Business in Qatar? Understand Branch, LLC & Subsidiary Options
By hiba Mohammed
March 14, 2025
Expanding a business into Qatar presents various structural options, each with its own benefits and limitations. Among the most common choices are branches of foreign companies, separate LLCs, and subsidiaries. Understanding their differences is essential for making an informed decision that aligns with your business goals.
In this article, we will explore the distinctions between these three business structures to help you determine the best fit for your company in Qatar.
- What is a Branch of a Foreign Company?
A branch is an extension of a foreign company that operates in Qatar under the parent company’s name. It is not a separate legal entity but functions as an overseas office of the parent company.
Key Features of a Branch in Qatar
✔ Ownership: 100% owned by the foreign company (no Qatari partner required).
✔ Legal Entity: Not separate from the parent company.
✔ Liability: The parent company is fully responsible for all debts and liabilities.
✔ Activities: Must align with the parent company’s business activities and require approval from the Ministry of Commerce and Industry (MOCI).
✔ Taxation: Subject to 10% corporate tax on profits generated in Qatar.
✔ Government Contracts: Often required for companies working on government projects.
When to Choose a Branch?
• If you want full foreign ownership.
• If you have a government contract or large-scale infrastructure projects.
• If you prefer to operate as an extension of your existing company rather than create a new entity.
- What is a Separate LLC (Limited Liability Company)?
An LLC in Qatar is an independent legal entity that requires a Qatari partner holding at least 51% ownership, unless it is set up in a Free Zone.
Key Features of an LLC in Qatar
✔ Ownership: Requires a Qatari partner (unless in Free Zones or under special exemptions).
✔ Legal Entity: A separate company with its own identity.
✔ Liability: Limited to the company’s capital; shareholders are not personally liable for debts.
✔ Independence: Operates independently from its owners.
✔ Taxation: 10% corporate tax, but Qatari partners’ profits are tax-exempt.
✔ Government Contracts: More flexibility to bid for projects in the public and private sectors.
When to Choose an LLC?
• If you want to limit liability and establish an independent entity.
• If you need a Qatari partner to access local markets.
• If you want to operate in various industries with more flexibility.
- What is a Subsidiary?
A subsidiary is a company owned or controlled by another company (parent company). Unlike a branch, it is a separate legal entity, meaning the parent company is not directly responsible for its liabilities.
Key Features of a Subsidiary in Qatar
✔ Ownership: Parent company owns more than 50% of the shares.
✔ Legal Entity: A fully independent company from the parent company.
✔ Liability: The parent company is only liable for its investment in the subsidiary.
✔ Independence: Has its own management, financial structure, and decision-making process.
✔ Taxation: 10% corporate tax on profits generated in Qatar.
✔ Government Contracts: Can bid for contracts like a local company.
When to Choose a Subsidiary?
• If you want a separate legal entity from the parent company.
• If you want greater financial independence and liability protection.
• If you want more control over operations without full foreign ownership restrictions.
Comparison Table: Branch vs. LLC vs. Subsidiary
Feature Branch LLC Subsidiary
Ownership 100% foreign ownership 51% Qatari partner required Majority-owned by a parent company
Legal Entity Not separate from the parent company Independent company Separate from the parent company
Liability Parent company is fully responsible Limited to the company’s capital Parent company is not directly liable
Independence Operates under parent company Operates independently Has its own management
Taxation 10% corporate tax 10% corporate tax 10% corporate tax
Government Contracts Usually required for foreign companies Can bid for projects Can bid for projects
Which Business Structure is Best for You?
• Choose a Branch if you need 100% foreign ownership and are working on government projects.
• Choose an LLC if you want an independent company with access to the Qatari market.
• Choose a Subsidiary if you want a separate legal entity controlled by your parent company.
Excelier Can Help You Find the Best Option and Set Up Your Company Immediately
Setting up a business in Qatar requires careful planning and compliance with local regulations. Excelier specializes in company formation services and can help you:
✔ Determine the best structure (Branch, LLC, or Subsidiary) based on your business needs.
✔ Handle all legal paperwork and approvals quickly and efficiently.
✔ Ensure compliance with Qatar’s business regulations.
✔ Set up your company immediately with a hassle-free process.
Contact Excelier today to get expert guidance and establish your business in Qatar without delays!
