The most commonly preferred business entity by foreign investors in Qatar is the Limited Liability Company (LLC). It requires a minimum share capital of QR 200,000 (about 55,000 USD).
Qatar, known officially as the State of Qatar, is a small desert peninsula extending northward from the Arabian Peninsula. It is a highly developed country with the highest per capita income in the world. Ever since the development of oil in the region in 1940, its economy has been progressing by leaps and bounds, with it having one of the highest GDPs in the world now. Not surprisingly, the majority of this is derived from the energy sector. From the industrial standpoint, Qatar produces petrochemicals and fertilizers, offshoots of oil drilling, in abundance, besides steel and other construction materials. These are especially providential in the Middle Eastern markets, where construction and real estate development is progressing by the dozen every passing year.
In Qatar, a company can take one of the following legal forms.
As the name suggests, a One-Person Company in Qatar is owned by a single natural person or corporate entity, that is to say, the company’s entire share capital and economic bearing is held by that one person or corporate entity. The company’s owner is responsible for company obligations from one’s own assets, unless he/she separates one’s personal interests from that of the company. The minimum share capital required to start a One-Person Company in Qatar is QR 200,000 (approximately 54,000 USD). In addition, the name of the company should be linked with the name of its sole proprietor, followed by the phrase “One Person Company (O.P.C.)”
A Simple Partnership in Qatar is a company formed by 2 or more natural persons who are personally and jointly responsible for the liabilities of the company, i.e., they bear unlimited liability. The name of the partnership should be composed by reference to the name of all its partners, or one partner, followed by the phrase “And Partners”. It can have a special commercial name, provided that name is connected with the fact that it is a simple partnership company.
A Joint Partnership in Qatar is similar to a simple partnership, except in that it has 2 types of partners: (1) joint partners, who bear unlimited liability for the company’s liabilities, and (2) trustee partners, who bear the liabilities of the company only to the extent of the respective value of their shares in the capital. A trustee partner may not indulge in the management affairs of the company.
A Limited Liability Company (LLC) in Qatar can have between 2 to 50 partners, whose respective liabilities are limited to the value of shares they hold severally in the company. The name of such a company should be succeeded by the phrase “Limited Liability Company”. The shares of an LLC in Qatar are not freely transferable. The minimum capital required to start an LLC in Qatar is QR 200,000, divided into equal-value shares of not less than QR 10 each. In Qatar, an LLC is not allowed to engage in the Banking, Financial Services & Insurance (BFSI) industry.
A Public Shareholding Company, also known as a Joint Stock Company, in Qatar is a company whose capital is distributed into transferable shares of equal value. Such a company must have at least 5 shareholders. The minimum capital required to form a Public Shareholding Company in Qatar is QR 10 million and the name of the company should be followed by the phrase “Qatari Public Shareholding Company”.
A Limited Share Partnership in Qatar is a company formed between 1 or more joint partners (who must be Qatari citizens) and at least 4 trustee partners. The trustee partners bear limited liability for the company, while the joint partners are responsible for the debts and obligations of the company in personal capacity. The minimum capital required to start a Limited Share Partnership in Qatar is QR 1 million, divided into equal-value shares that are transferable.
A Joint Venture Company in Qatar is an unincorporated entity without legal personality. However, it has to specify its objectives as well as rights and obligations of the partners, and how profits and losses would be distributed between its partners, who are required to be 2 or more in number. Foreigners may be partners of a joint venture, in which case the company can only carry out those activities permitted for non-Qataris under the country’s laws.
A Holding Company in Qatar is a company that has financial and management control over other companies by owning at least 51% of one or more Shareholding, Limited Liability or One-Person companies. The minimum capital required to form a holding company is QR 10 million. The name of such a company should be followed by the phrase “Holding Company”.
Business Setup Worldwide is a platform to help you set up your business in Qatar. We can assist you with company incorporation, registration, corporate secretarial services, intellectual property protection and tax advisory, for starting a business in Qatar.
Business Setup Worldwide's proprietary business design techniques, combined with its regional know-how and global reach, enable companies to anticipate changes in customer priorities and the economic market, and then mould their businesses and improve operations to make use of opportunities created by those changes.
If you’re wondering how to start a business in Qatar, look no further. Our advisors at Business Setup Worldwide can help. We take care of the entire Banking, Visa, Legal, and Licensing formalities, in accordance with the local laws. We guide you through your company formation, with your business objectives at the centre of our operations.
Our commitment to professionalism, business-oriented experience across various domains, proactive learning in the ever-changing global environment, and the ability to conceive innovative strategies and provide comprehensive support in executing such strategies distinguish Business Setup Worldwide, and provide you the competitive edge to scale your company. If you are thinking of starting a business in Qatar, do reach out to us.