Qatar has had phenomenal economic and financial growth in recent years. Due to Qatar's commitment to promoting international investment, many entrepreneurs establish their own companies. Planning, preparation, and dedication are necessary for company establishment in Qatar.
A Public Shareholding Company is one of the corporate structures through which an entrepreneur in Qatar can launch their venture. It is a corporation whose capital is divided into transferable, equal-valued shares.
Public Shareholding Company
Also known as the Joint Stock Company or a Qatari Shareholding Company, the Public Shareholding Company is established following Qatari Commercial Company law and Virtue Ministerial Decree. The Ministry sets specific rules if an individual decides to incorporate a Public Shareholding Company in Qatar. Learn more about the top 7 business opportunities in Qatar.
- A national of another Arab country with a relevant reciprocal agreement with Qatar.
- Foreign investment or experience is required so long as the Ministry of Economy and Commerce has granted the necessary license.
- The company has been incorporated under a special decree allowing foreign shareholding.
Features of a Public Shareholding Company in Qatar
- A minimum of 5 shareholders are required to start a PSC in Qatar
- A Public Shareholding Company in Qatar can be Open (i.e., Public) or Closed (i.e., Private)
- The minimum capital requirement for an open PSC is QAR10m, with a nominal value for each share of QAR10; for a closed PSC, this is reduced to QAR2m
- Foreigners may own up to 100% of a Qatari company in specific sectors
- Shareholders are not liable for the company’s obligations, except to the extent of the total nominal value of their respective shareholding
How to Set Up a Public Shareholding Company in Qatar
Company formation in Qatar takes you to go through a particular process. The process for the public shareholding company in Qatar is as follows:
1. Finalize the Trade Name
Getting the trade name registered should be your top priority regarding the company registration process. However, as you move forward, it must be kept in mind that the name should be original and not used in use. In addition, Arabic meaning must accompany the given word.
2. Draft the MOA and AOA
The creation of the Memorandum and Articles of Association is the following phase in the process. While the Articles of Association hold the duties and responsibilities to be carried out within an organization, the Memorandum has the rights and obligations connected to the company's external stakeholders.
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
Once you finish the CR certificate, you must obtain a trade license. The Ministry of Economy and Commerce (MEC) issues the trading license necessary to conduct company operations.
Documents Required for Public Shareholding Company Formation in Qatar
The documents that need to submit 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
Once you get your trade license, you can launch your business. Depending on how quickly you were able to put together all of the documentation and how busy the MEC is, the setup procedure can take anywhere from a month to four months. So be patient and realize that this will take some time.
You might also seek the assistance of a specialist knowledgeable about the setup procedure's rules, which will ultimately save you time.
We at Business Setup Worldwide have a dedicated team of professionals with in-depth knowledge of all Qatari company formation rules and regulations, which can assist you with establishing your business there quickly and easily. Contact us for further details.