🇶🇦 Qatar (QFC) vs 🇮🇳 India
A side-by-side look at setting up a company in Qatar (QFC) (QFC LLC) and India (Private Limited Company), plus 7 regulatory differences to plan for if you operate in both.
| Criterion | Qatar (QFC) | India |
|---|---|---|
| Typical vehicle | QFC LLC | Private Limited Company |
| Foreign ownership | 100% | 100% under automatic route (most sectors) |
| Minimum capital | No statutory minimum | No statutory minimum |
| Time to incorporate | 10–20 days | 15–30 days |
| Corporate tax | 10% | 22% (15% new manufacturing) |
| VAT / GST | None (VAT pending) | 18% GST |
| Dividend withholding | 0% | 20% (treaty relief) |
| Resident director | Not required | Required |
| Physical office | Flexi-desk accepted | Required |
| Annual running cost | USD 5,000–12,000 | USD 2,500–8,000 |
| Audit | Mandatory | Mandatory |
| Legal system | English common law (QFC courts) | Common law |
| Currency controls | None | FEMA restrictions apply |
Operating in both: key conflicts
Tax: Wide corporate rate gap invites transfer-pricing scrutiny
A double-digit headline rate differential between related entities attracts transfer-pricing audits. Prepare contemporaneous documentation and a defensible intercompany pricing policy.
Data transfer: Divergent transfer safeguards required
Transfers between these jurisdictions need documented safeguards (SCCs or equivalent) and a transfer impact assessment.
Employment: Termination regimes conflict
Notice periods and end-of-service entitlements differ; localise the termination and severance clauses.
Economic substance: Substance requirements apply on one side only
Directors, decision-making and core income-generating activity must be demonstrably located in the jurisdiction that imposes the substance test. Shared board meetings held elsewhere will fail the test.
Sanctions & export control: Extraterritorial sanctions reach differs
The higher-exposure jurisdiction applies its sanctions and export-control rules extraterritorially to group entities, personnel and USD/GBP clearing. Screen counterparties against the stricter list group-wide.
Treasury: Capital movement restrictions on one side
Repatriation of dividends, loans and intercompany balances is regulated in one jurisdiction. Cash pooling across the group will require prior approval or will be blocked.
Governance: Resident director requirements differ
One jurisdiction requires a resident director. Appointing the same individual in both can undermine the substance position of the other entity.
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Figures are indicative and change often. Not legal or tax advice — confirm with qualified counsel.