Branch company
It is a type of business structure where a foreign company establishes a presence in the country without
creating a separate legal entity. Establishing a branch company in Qatar can be a suitable option for
foreign companies looking to expand their presence in the country without creating a separate legal
entity. However, it is essential to consider the local legal requirements, taxation, and compliance
aspects before proceeding with this business structure. Consulting with local legal and business experts
is recommended to navigate the establishment process and ensure compliance with all regulations.
Here’s an overview of branch companies in Qatar:
Legal Status: A branch company is not a separate legal entity but an extension of the parent
company. As a result, the parent company is fully responsible for the obligations and liabilities of
the branch.
Ownership: The ownership of the branch company is held by the parent company located outside of
Qatar. The parent company retains full control over the branch’s operations.
Activities: The branch company can only engage in activities that are similar to those of the
parent company. The scope of activities must be stated clearly in the branch’s registration documents.
Local Sponsorship: To establish a branch company in Qatar, a local Qatari service agent is
required. The local sponsor does not have ownership or control over the branch’s operations but
assists in administrative and legal matters.
Licensing: The branch company must obtain the necessary licenses and approvals from the
relevant authorities in Qatar to carry out its activities.
Profit Repatriation: Branch companies are allowed to repatriate profits to the parent company
outside of Qatar subject to local tax regulations.