Types of Companies
There are general rules for setting up and operating a company in Qatar. These are laid out clearly in the Commercial Companies Law No. 5 (2002). For example, a company must be Qatari owned; it must be headquartered in Qatar.
Partnership Company
A partnership company is a company which comprises two or more natural persons, who shall be jointly liable for the company’s obligations to the full extent in all their properties
Limited Partnership Company
The limited partnership company is a company consisting of two categories of partners:
Limited Liability Company
A limited liability company is the company formed by one or more persons, but not exceeding fifty persons. The liability of any partner shall be limited to his share in the capital, and that the partners’ shares must not be tradable securities
Public Shareholding Company
A public shareholding company is every company which its capital is divided into negotiable shares and with equal value, and the shareholder shall be liable only within the extent of his equity participation.
The capital of the public shareholding company shall not be less than ten million Riyals. The establishment of the public shareholding company shall be issued by a decision from the Minister.
Private Shareholding Company
A number of founder’s not less than five persons may establish among themselves a private shareholding company, the shares of which shall not be floated for public underwriting, and they may underwrite the whole shares. The capital of the company shall be not less than two million Riyals Except the provisions of public underwriting, all the provisions mentioned in the Commercial Companies Law regarding public shareholding companies shall be applicable to private shareholding companies
Limited Partnership with Shares Company
A Limited Partnership With Shares Company is a company comprising two groups. One of them includes one or more partners jointly liable for the debts of the company in all of their assets. The other group consists of one or more partners who are not liable for the debts of the company except to the extent of their shares in the capital. The company’s capital shall be not less than one million Riyals, fully paid at the time of incorporation.
Underwriting in the shares of Limited partnership with Shares Company shall be made according to the rules and provisions of underwriting in public shareholding companies.
Foreign Ownership
Foreign business owners and investors will almost always form a private limited liability company (L.L.C.) to operate within Qatar. The company must have a minimum authorized share capital of QR200, 000 and two shareholders and a maximum of 30 shareholders. Generally, foreign investors can own up to 49% of the share capital, while the other 51% must be held by one or more Qatari partners.
In some instances, the Minister of Economy and Commerce may grant permission for foreign investors’ shareholding to exceed 49% up to 100% within certain sectors (see list below) and provided the business (or project) is compatible with Qatar’s development plans. Other factors taken into consideration are whether the company (or project) adequately exploits available domestic raw materials, provides new products or establishes new technologies, and has the interests of national cadres at heart.
Supported Industries
The limited partnership company is a company consisting of two categories of partners:
In addition, and as way of an incentive, the Ministry of Economy and Commerce may exempt foreign companies investing in the supported industries through the number of exemptions, including income tax for a period of 10 years, customs with respect to imported equipment and machinery required for setting up the business, and imported raw materials and semi-manufactured products required for production, which are not available in Qatar.
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Please feel free to contact us, regardless of the business structure you choose.