Types
Of Company
Qatar
Limited Liability Company
The
limited liability company (LLC) is the most popular
business structure used in Qatar. LLCs must have
a minimum of two and a maximum of 30 participants,
each of whom is liable only to the extent of his
or her share of the company’s capital. The
capital of an LLC must be at least QAR200,000,
divided into equal shares of QAR10 or more each.
The signed Memorandum and Articles of Association
must be submitted, in Arabic, to the Ministry
of Economy and Commerce.
Foreign
investors are permitted a 49% stake in the business,
on condition that there is one or more Qatari
partners. However, foreigners may own up to 100%
of a Qatari company in certain sectors, including
agriculture, tourism, manufacturing, health, and
education.
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Qatar Public Shareholding
Company
Also
known as a joint stock company or a Qatari shareholding
company, the public shareholding company (PSC)
is established in accordance with Qatari commercial
companies law and by virtue of ministerial decree.
Generally, only Qataris may be shareholders, but
there are three exceptions to this rule:
·A
national of another Arab country that has a relevant
reciprocal agreement with Qatar;
· Where foreign investment or experience
is required, so long as the necessary license
has been granted by the Ministry of Economy and
Commerce; and
· Where the company has been incorporated
under a special decree that allows for foreign
shareholding.
A minimum
of five shareholders is required. Shareholders
are not liable for the company’s obligations,
except to the extent of the total nominal value
of their respective shareholding.
A
PSC may be open (i.e. public) or closed (i.e.
private). The minimum capital requirement of an
open PSC is QAR10m, with a nominal value for each
share of QAR10; for a closed PSC, this is reduced
to QAR2m.
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Qatar Representative
Office
A
foreign business may open a representative office
in Qatar; the office must be wholly owned by its
head office. The representative office operates
along the same lines as a branch, although it
cannot do business in Qatar.
Qatar Branch
A
foreign business may set up a branch in Qatar,
on obtaining the necessary ministerial decision
to allow non-Qataris to engage in contracting
business, in order to execute certain contracts
or projects, or to carry out certain operations.
On completion of the contract or project, the
branch is usually closed and operations ceased.
Qatar General Partnership
A
general partnership must consist of two or more
members, and must be formed under a specific name
reflecting the partners’ names in order
to carry out commercial business. The partners
are jointly and severally liable for the partnership’s
obligations. A non-Qatari may be a partner, though
subject to restrictions under the 1990 Commercial
Companies Law.
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Qatar Partnership in
Commendam
A partnership
in commendam is similar to a general partnership,
but includes non-active partners with limited
liability and whose names do not appear in the
name of the entity. The law governing the partnership
in commendam is the same as that for the general
partnership’s obligations, but only to the
extent of the non-active partners’ share
in the capital.
Qatar Limited Share
Partnership
A limited
share partnership (also referred to as a “commendite
partnership by share”) is a business formed
between joint partners (one or more, who must
be Qatari citizens) and a minimum of four non-active,
“trustee” partners with limited liability.
The minimum share capital required is QAR1m.
Joint Venture
A joint
venture company consists of two or more persons
who combine to carry out a project. It is an unincorporated
entity without legal personality. However, it
must specify its objectives, as well as the rights
and obligations of the partners, and how profits
and losses are to be distributed between the partners.
Non-Qataris
may be partners of a joint venture, in which case
the company can only carry out those activities
permitted for non-Qataris under the country’s
laws.
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Further information
on Qatar:
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