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 the public shareholding company in Qatar. This article will help you understand all the essential aspects of a public shareholding company in Qatar.
What is a Public Shareholding Company?
It is a business entity where the share value is equal and transferable. The Qatari Commercial Company Law governs public shareholding companies. Shareholders of a QPSC are liable to the extent of their investment in the share capital.
Requirements for Opening a Qatar Public Shareholding Company
You have to fulfil certain requirements to start a Qatari public shareholding company (QPSC). Some of them are:
- A minimum of five shareholders are required to start a QPSC.
- The name of a Public Shareholding Company in Qatar must begin with the phrase ‘Qatari Public Shareholding Company’.
- A QPSC must have a minimum capital of QAR 10,000,000* (approximately 2,730,250 USD), and each share's minimal value should be QAR 10.
- The bids for the subscription of company shares will remain open for at least two weeks and up to four weeks. However, the founders have the right to extend the subscription period for two more weeks.
- A Public Shareholding Company in Qatar must follow the terms of the Ministerial Decree, the MOA (Memorandum of Association), and AOA (Articles of Association).
- The General Assembly meeting of the shareholders must be held at least once a year. Shareholders attending the meeting must own at least 10% of the company shares.
*The minimum capital value of a QPSC is subject to change. Please consult your business setup advisor for more details.
How to Start a Public Shareholding Company in Qatar?
The process for establishing a public shareholding company in Qatar is as follows:
Finalise the Trade Name
The trade name should be original and not identical or similar to the name of an already existing company in Qatar. In addition, the name must also have an Arabic meaning.
Draft the MOA and AOA
Now, you will have to draft the Articles of Association (AOA), which mention the duties and responsibilities of the company’s members and the Memorandum of Association (MOA), which cites the company’s rights and obligations.
Obtain the Company Registration Certificate
You must submit the required documentation to the Company Registrar's office after completing the MOA and AOA to obtain the Commercial Registration (CR) Certificate. This certificate serves as a license and will help you conduct business.
Availing yourself of the Trade License
Obtain the relevant trade licence from the Ministry of Economy and Industry (MOCI), which would be required to conduct business operations.
Required Documents
The documents that you will need to submit for company formation in Qatar are:
- Copies of valid ID proof of the shareholders
- Passport-size photo of each shareholder
- Copy of financial statements
- Copy of business plan
- Copy of lease agreement
- Copies of Memorandum of Association (MOA) and Articles of Association (AOA)
Benefits of setting up a QPSC
The following are the benefits of starting a Public Shareholding Company in Qatar:
- Limited liability for shareholders
- Flexibility in conducting business operations
- Ease of transferring shares
- Easy company incorporation process
- Minimum restrictions on selling products and services
How Can We Help?
It's advisable to hire a business consultant to access the various services required for business setup in Qatar. The process is straightforward but can be challenging for foreign business investors. Business Setup Worldwide is a corporate service provider with experienced consultants. Our team will provide you with end-to-end Qatar company formation services. Contact us to get started.
