TaxSavvyQA

Selling locally from a free zone

Can my QFZ company sell to customers in Doha?

The situation

Free zones target specific sectors; a mainland CR is often better for local retail.

The law

  • Qatar Free Zones regime (QFZA): 100 percent foreign ownership and a tax holiday of up to 20 years on QFZA terms
  • Law No. 1 of 2019 regulating investment of non-Qatari capital: Allows foreign ownership up to 100 percent in most activities, with MOCI approval

What it means for you

If most of your customers are walk-in buyers in Doha, a mainland CR is often the better fit. Some groups run a QFZ company for import, storage or manufacturing and a mainland company for local sales. Ask QFZA in writing how local sales are handled for your activity before you choose.

What to do

  1. Map where your customers are.
  2. Ask QFZA about local sales rules.
  3. Consider a mainland entity.
  4. Decide before licensing.

We can do this for youSetting up in the Qatar Financial Centre or a Qatar Free Zone, and registering for QFC tax: QAR 12,000

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