Thinking of setting up a company in the Qatar Financial Centre? The first thing to establish is whether your proposed business falls within the activities the QFC licenses.
Your approved activities determine whether you apply through the QFC Authority as a non-regulated business or require authorisation from the QFC Regulatory Authority for financial services.
Choose the correct route and your company may benefit from up to 100% foreign ownership, an onshore presence in Qatar, a legal framework based on English common law and a competitive tax system.
This guide explains what businesses can do through the QFC, the difference between regulated and non-regulated activities and the main benefits of using it as a base in Qatar.
What is the Qatar Financial Centre?
The Qatar Financial Centre is an onshore business and financial centre established under Qatar Law No. 7 of 2005.
It is not an offshore centre or a free zone. A QFC company operates within Qatar through the QFC’s own legal, regulatory, tax and business environment.
The QFC legal framework is based on English common law and includes an independent Civil and Commercial Court and Regulatory Tribunal. The Court hears civil and commercial disputes that fall within the jurisdiction set out under the QFC Law.
For companies applying to establish themselves through the QFC, the two main bodies are:
- QFC Authority: Licenses firms to conduct business in or from the QFC and manages the QFC’s legal and tax environment.
- QFC Regulatory Authority: Authorises and supervises firms carrying out regulated financial activities.
A financial-services business may therefore need approval from both bodies as part of its setup process.
How QFC Permitted Activities work
Every QFC company must operate within the activities approved on its licence or authorisation.
Being registered with the QFC does not give a company permission to carry out any business it chooses. The proposed activity must be accepted by the QFC, and the company must stay within the conditions and limitations attached to that activity.
Activities fall into two main groups:
- Regulated activities: Financial services that require QFCRA authorisation.
- Non-regulated activities: Professional, commercial and business-support activities licensed by the QFC Authority.
This distinction affects the application process, governance requirements, compliance obligations, staffing and, for regulated firms, minimum capital.
Regulated Activities: financial services
A company carrying out regulated financial services needs authorisation from the QFCRA before it can begin operating.
The main regulated activities include:
- Banking and credit: Taking deposits, providing credit facilities and arranging credit facilities.
- Insurance: Issuing and carrying out insurance contracts, reinsurance and related insurance activities.
- Investment services: Dealing in investments and arranging investment transactions.
- Investment management and advice: Managing investments or advising clients on investments.
- Custody: Holding or arranging custody of clients’ financial assets.
- Investment funds: Establishing or operating collective investment funds.
- Islamic finance: Carrying out authorised financial activities in accordance with Sharia principles, subject to the required QFCRA endorsement and governance arrangements.
The QFCRA assesses the company’s owners, senior management, financial resources, governance, risk controls and proposed business model before granting authorisation.
The authorisation will state exactly which activities the firm can conduct and may restrict the products, services or types of customers it can serve.
Non-Regulated Activities: professional and business services
The non-regulated side of the QFC is much broader than financial services and includes many of the businesses that use it as an operational or regional base.
Examples include:
- Consultancy: Management, business, tax, human resources, logistics, healthcare, education, environmental, sports and other specialist consultancy services.
- Professional services: Legal services, accounting, auditing, intellectual-property services, translation and selected technical services.
- Technology and media: Computer programming, IT consultancy, software services, data hosting, web portals, media production and certain financial-technology services.
- Advertising and communications: Advertising, public relations, marketing, market research, brand management and specialised design.
- Corporate structures: Group holding and management offices, company headquarters and intra-group treasury operations.
- Business support: Administrative services, shared-service centres, call centres and support services for QFC entities.
- Recruitment and education: Employment agencies, professional education and other approved educational activities.
- Specialist sectors: Ship broking, shipping agencies, architectural and engineering services, event management, sports agencies and hospitality management.
- Trust and company services: Company-formation services, certain trustee arrangements, registered-office services and other approved corporate-support activities.
- Membership and non-profit structures: Approved business councils, professional associations and companies limited by guarantee.
The precise licence matters. Some activities are restricted to services provided within the company’s own group, while others require professional indemnity insurance or approval from another government authority.
A family office, for example, may use a holding, headquarters or trust-and-company-service structure. However, managing investments, advising on investments or providing custody for clients may require QFCRA authorisation.
Retail financial services: what you should know
The QFC should not be described as a wholesale-only financial centre.
Its current licensed activities include retail banking and wealth management, and its regulatory framework includes rules designed to protect retail customers.
However, this does not mean that every QFC-authorised bank can automatically accept consumer deposits or offer personal loans.
A firm may provide only the regulated activities included in its specific QFCRA authorisation. The authorisation may also limit:
- The products it can offer
- The types of customers it can serve
- The countries or markets in which it can operate
- Whether it can deal with retail, business or institutional customers
- The conditions under which it can market its services
A company planning to provide financial services to individuals should confirm the permitted customer category and products before completing its application.
Key benefits of setting up in the QFC
Companies choose the QFC for several practical reasons:
Up to 100% foreign ownership: A QFC entity may generally be fully foreign-owned, without requiring a majority Qatari shareholder.
Onshore access: QFC companies operate from within Qatar and can serve the local and regional market, subject to their licence and other applicable laws.
English common-law framework: The QFC has a legal, judicial and regulatory framework based on English common law, with an independent court and regulatory tribunal.
Competitive corporate tax: The standard rate is 10% on locally sourced profits. Exemptions or concessionary treatment may apply to certain activities, structures and income.
Repatriation of profits: QFC companies benefit from the ability to repatriate profits, and the QFC states that outbound dividends, interest, royalties and management fees are not subject to withholding tax under its regime.
International tax network: QFC entities can benefit from Qatar’s network of double-taxation agreements, subject to the applicable conditions.
Ability to trade in different currencies: Companies may conduct business in currencies that suit their commercial activities.
Structured regulatory environment: Financial institutions, advisers and professional-services firms operate under an established licensing, compliance and dispute-resolution framework.
These benefits can make the QFC attractive to financial businesses, consultancies, technology firms, regional headquarters, holding companies and professional-service providers.
Is the QFC right for your business?
The QFC may be a strong option if your proposed activity appears on its regulated or non-regulated activity list and you want an onshore Qatar presence with up to 100% foreign ownership.
It is particularly relevant to:
- Financial-services companies
- Consultancies and professional firms
- Technology and communications businesses
- Holding companies and regional headquarters
- Intra-group treasury operations
- Recruitment and business-support firms
- Trust and company-service providers
It may not be the right route if your main activity is not licensed by the QFC or if the relevant activity carries restrictions that do not fit your business model.
Before applying, define exactly:
- What the company will sell
- Who its customers will be
- Whether it will serve companies or individual consumers
- Whether it will hold or manage client money or assets
- Whether it will provide financial advice
- Whether its services will be limited to its own corporate group
The QFC or QFCRA can then determine the appropriate activity and licensing route. Getting the classification right before applying can prevent delays and the need to restructure the application later.
Exploring the wider business landscape in Qatar? Browse advisers, consultants and company-support providers through Qatar Living’s business-services listings, and read our guides to setting up and operating a business in Qatar.
FAQs
What are Permitted Activities in the QFC?
Permitted Activities are the business activities that a QFC entity is allowed to conduct in or from the centre.
They are divided into regulated financial activities authorised by the QFCRA and non-regulated professional and business activities licensed by the QFC Authority.
The exact activities approved for a company will appear on its licence or authorisation.
Can I own 100% of my QFC company?
The QFC permits up to 100% foreign ownership.
Whether full foreign ownership is available will depend on the chosen activity, legal structure and any applicable approvals or restrictions.
Can a QFC bank offer retail deposits and loans in Qatar?
Potentially, but only if it has the appropriate QFCRA authorisation.
Retail banking is included in the QFC’s current regulated-activities framework. A bank’s authorisation determines whether it can accept retail deposits, provide personal credit or serve particular categories of customers.
What is the difference between the QFC Authority and the QFCRA?
The QFC Authority licenses firms to conduct business in or from the QFC and manages its legal and tax environment.
The QFC Regulatory Authority authorises and supervises firms carrying out regulated financial activities.
Does the QFC use a common-law legal system?
Yes. The QFC’s legal and judicial framework is based on English common law.
It has an independent Civil and Commercial Court and Regulatory Tribunal, whose jurisdiction is set out under the QFC Law.
What kinds of non-financial businesses can establish themselves through the QFC?
The QFC licenses a broad range of non-regulated activities, including consultancy, legal, accounting, auditing, technology, advertising, recruitment, education, event management, holding companies, regional headquarters and trust and company services.
The company must select the precise activity that matches its business, as each category may carry its own conditions and restrictions.
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