Holding Company in Qatar

Looking to start a company in Qatar? Consider the formation of a holding company. This company structure helps the business to own controlling shares in other businesses and provides diversification and many other benefits to the businessman..

An Introduction to Holding Company in Qatar

A holding company is a legal structure that holds shares of other companies known as subsidiary companies. These subsidiaries operate in various industries, allowing the holding company to diversify its investments. 

A Qatar holding company must make a draft in the bank regarding the minimum share capital required.  The Ministry of Economy and Commerce in Doha is the responsible authority for establishing a holding company in Qatar.

Features of a Qatari Holding Company

  • According to the law, a Qatari holding company can move real estate. 
  • The holding company can invest money in stocks, bonds and other securities.
  • The Qatari holding company is responsible for supporting its subsidiaries based on the requirements.
  • A Qatari holding company can participate in the management of its subsidiaries and joint stock companies.
  • A holding company owns all types of intellectual property rights and leases them to the subsidiaries irrespective of state.

Benefits of Holding Company in Qatar

  • 100% repatriation of profits
  • 100% foreign company ownership
  • No withholding tax on outbound payments
  • Diversify the investments to avoid market risks with higher returns. 
  • No resident director is required for a holding company setup in Qatar.
  • A holding company is responsible for centralizing the financial functions of subsidiary companies. 

The Requirements for Opening a Holding Company in Qatar

  • No minimum share capital is required to start a holding company in Qatar.
  • The minimum number of shareholders is one for a holding company formation in Qatar.
  • An annual tax return filing and statutory audit reporting for a holding company registration in Qatar is essential. 
  • Drafting an Article of Association (AOA) outlining the company’s structure, governance and shareholders' rights. 
  • To start a holding company in Qatar, you must develop a comprehensive business plan that mentions the company’s purpose, investment strategy, and long-term goals. 

The Process of a Holding Company in Qatar

Go through the following steps for registering a holding company in Qatar:

The first step is evaluating the Qatar market before starting a holding company. Being aware of the market opportunities, associated risks, and evaluating the competitor is essential for setting up a business in Qatar. 

Finalize the asset ownership business structure for the holding company. Strategise the company goal according to the long term objective of the company. 

Register the legal name of the holding company with Qatar’s Ministry of Commerce and Industry. Maintaining legal compliance is mandatory while deciding the company name. 
4. Submit the Required Documents:

Submit all the following documents to the government authority:

  • Business Plan
  • Property lease/ ownership proof
  • Company Name Reservation application
  • Passport copies of the director/shareholders
  • AOA and MOA (Memorandum of Association and Articles of Association)

Fill out the application form and submit it to the Ministry along with the documents for review requesting a formal registration approval. 

The Ministry will review the application and documents and will obtain an incorporation certificate. The business activities can be performed once the registration certificate is obtained. 

Business Setup Worldwide provides end-to-end professional services for company formation in Qatar. Contact us if you have any queries. Our business advisors are ready to assist you through the process of company registration, document submission, bank account opening, PRO services and company renewal services.

FAQs

What is a holding company in Qatar?

A holding company in Qatar is a company that owns the majority shares of other companies. Its primary function is to hold and manage the assets and investments of its subsidiaries, and it does not engage in the day-to-day operations of the subsidiary companies.

What are the advantages of setting up a holding company in Qatar?

Some advantages of setting up a holding company in Qatar include tax benefits, limited liability protection, and diversifying investments across multiple companies. Holding companies can also help streamline the management of assets and provide better control over subsidiary companies.

How do I set up a holding company in Qatar?

To establish a holding company in Qatar, you must register with the Qatar Financial Centre (QFC) or Qatar Financial Markets Authority (QFMA) and obtain the necessary licenses and permits. You will also need to follow the legal and regulatory requirements of the country, including corporate governance and reporting standards.

Can a foreign company set up a holding company in Qatar?

Yes, a foreign company can set up a holding company in Qatar. However, they must follow the same registration and licensing procedures as a domestic company. Additionally, they may need to partner with a local sponsor or investor to comply with the country's legal requirements.

What is the role of a holding company in Qatar's economy?

Holding companies play an essential role in Qatar's economy by providing a structure for companies to manage their assets and investments effectively. They also encourage foreign investment in the country by providing a favorable business environment and a legal framework that promotes transparency and accountability.