Guide on Public Shareholding Company in Qatar

Qatar offers a stable environment for industries and businesses to grow. This stability came with the establishment of different corporate business entities, one of which is a public shareholding company.  

Qatari Public Shareholding Company 

A Public Shareholding Company (PSC) is a corporation whose capital is divided into transferable, equal-valued shares. The shareholders are not liable for the company’s debts and liabilities, but they can be liable for the value of their shares in the company. The formation of a public shareholding company in Qatar is very similar to that of a publicly traded corporation. 

Requirements of a Public Shareholding Company in Qatar

  • A minimum of 5 shareholders are required to start a PSC in Qatar
  • The name of a Public Shareholding Company formation in Qatar must start with the words “Qatari Public Shareholding Company”. 
  • The minimum capital requirement for a PSC in Qatar is QAR10,000,00 (ten million Qatari Riyals), and the nominal value for each share may be less than QR10.
  • The bids for the subscription of company shares will remain open for at least 2 weeks and not more than 4 weeks. However, the founders have the right to extend the subscription period for 2 weeks. 
  • A public shareholding company must follow the definite terms mentioned in the Ministerial Decree, which are also mentioned in the MOA (Memorandum of Association) and AOA (Articles of Association). As per the General Assembly, one extra resolution of the fixed term can be added. 
  • The General Assembly meeting (comprising the shareholders) must be held at least once a year. The included shareholders must own at least 10% of the company shares.   
  • A public shareholding company must have one or more auditors appointed by the General Assembly. The auditors can be reappointed annually, but their working year cannot exceed five years.  

How to Set Up a Public Shareholding Company in Qatar

Company formation in Qatar takes you through a particular process. The process for the public shareholding company setup in Qatar is as follows:

1. Finalize the Trade Name

keep in mind that the name should be original and not already in use. In addition, the given word must have an Arabic meaning. 

2. Draft the MOA and AOA

The Articles of Association mention the duties and responsibilities to be carried out within an organization and the Memorandum of Association cites the rights and obligations of the company.

3. Obtain the Company Registration Certificate

You must submit the required documentation to the Company Registrar's Office after completing the MOA and AOA to get the Commercial Residence (CR) Certificate. This certificate serves as a valid license to conduct business.

4. Get the Trade License

After getting the Company Registration Certificate you need to obtain the relevant trade licence. The Ministry of Economy and Industry (MOCI) issues the trade license which would be required to conduct company operations.

Documents Required for Public Shareholding Company Formation in Qatar

The documents that need to be submitted for company incorporation in Qatar include:

  • Copies of ID cards of shareholders
  • Photocopies of each shareholder
  • Financial Statements
  • Business Plan
  • Lease Agreement
  • Copies of MOA and AOA
  • Copy of Commercial Residence

Our Role

It's advisable to hire a business consultant to avail of company formation services in Qatar. The process is straightforward but gets complicated for foreign business investors. Business Setup Worldwide is an experienced business consultancy with knowledgeable consultants. Our team will provide you with end-to-end Qatar company formation services. 

FAQs

1. What is a public corporation in Qatar?

It is a corporation whose capital is divided into transferable, equal-valued shares.

2. What is the minimum number of founders in Qatar for a PSC?

Two founders.

3. What is the main business in Qatar?

Petroleum and natural gas.