- May 17, 2021
- Posted by: Ajmal
Qatar has proven its strong economy by continuing its business activities independently, maintaining one of the highest GDP growth rates in the region, and also maintaining its title as one of the countries with the highest GDP per capita in the world.
Companies can set up a 100 percent branch owned by their parent companies which are located and registered abroad by getting special approval from the Ministry of Economy and Industry in Qatar.
The advantage of setting up a branch 100 percent owned by a foreign entity is to ensure that the foreign entity controls the management entirely and has a significant influence in any decision during the board meeting. Hence, the foreign entity controls the management in Qatar and can take any decision at its sole discretion in any investment or organizational change, without getting back to any local partner.
On the other hand, the disadvantage of doing this, is the corporate tax in which the General and Tax Authority (GTA) levies the tax on the profit the branch generates in Qatar based on 10 percent from the net profit.
Moreover, foreign investors cannot invest in banks, insurance companies, commercial agencies, or any sector not approved by the Ministry of Economy and Industry.