It is not a new thing to say that business owners and foreign investors from all over the world are keen to invest their fortunes to start up a own business in Qatar.
The reason behind this dramatic move made by the Business owners and Foreign Investors is simply the lucrative and profitable business opportunities Qatar and its Government offers.
Qatar has taken several steps and strategies regarding the country’s business registration policies and regulatory affairs in past few decades to seek attention of investors.
Why not, all the investments made by these foreign business companies surly picks up the country’s economic level to a great extant.
Various business companies with different business policies, products and services shows great interest to establish their own business firm in Qatar.
Hence the Qatari Government introduces registration facilities of different types of companies in Qatar. Each of these business companies in Qatar differ from each other in terms of financial aspects, infrastructure, registration procedures, laws, regulation, labor laws and work force.
In this article we are mainly going to focus on the company registration policies and formation methods for different types of companies in Qatar.
It is very important for the business owners and foreign investors to know which type of business company is most suitable for them to start up their business in Qatar.
Let us first look on the various Types of Business Companies that Qatar offers to us. It is also important to know that The Ministry of Business and Trade Regulation Qatar is the only sole statutory body in the entire country who deals with all sort of business registration policies and regulatory affairs. Each and every business company registered in Qatar must have their own office within the country.
Simple Partnership Company
Simple Partnership Company is one of the most suitable business entities that can be incorporated in Qatar by business owners and foreign investors to do business.
The Simple Partnership Company mainly involves two or more owners or partners who can be personally or jointly responsible for the company liabilities.
Each of the partners is said to be nationals of the State of Qatar. The company must have a Memorandum of Association (MoA).
The naming procedure of all these Simple Partnership Company is quite interesting, it is formed by reference to the name of partners or by a single individual followed by the words “And Partners”.
The Simple Partnership Company can even have a special commercial name that can be checked for approval by The Ministry of Business and Trade Regulation Qatar.
Single Shareholder Companies
The Single Shareholder Companies are said to be the most easy and cheapest to incorporate compared to all other business companies in Qatar.
The Single Shareholder Companies are almost similar to the Limited Liability Companies in Qatar in all aspects and regulations.
As per the name of the business company it is easy to guess that a single individual or a sole corporate figure is mainly responsible for the company liability.
The company owner’s liability is limited to an extent of the total capital invested in the company.
An important fact to know about these single shareholder company is that the company’s capital should not be less than QR50,000.
Joint Partnership Company
A Joint Partnership Company is one of the most important formats of Business Companies in Qatar. The most important part to look into about these Joint Partnership Companies are the two types of partners that take act in the company formation:
a) Joint Partners who are said to be jointly or personally responsible for the company liabilities can empower to administer the company policies and regulatory affairs.
It is a mandatory fact of law regulated by the Qatar Government that all the joint company partners in a joint partnership company has to be citizen or permanent resident of Qatar.
b) Trustee Partners, of the Joint Partnership companies in Qatar merely contributes to any extent to the company’s total capital.
The Trustee partners are not directly responsible to any of the company’s liabilities except to their own shares withhold in the company capital. The Trustee Partners are not allowed to take part or make any sort of interference in the management system of the company.
Joint Venture Company
Among all the various types of companies in Qatar the Joint Venture Company has the most interesting incorporation policies. The joint venture company is formed by two or more individual or corporate figures.
It is often described as an un-incorporated business entity as the company does not go through any registration procedures in the commercial register, The Ministry of Business and Trade Regulation Qatar.
The joint venture company has not legal member responsible for the company liabilities. The Memorandum of these companies are mainly based upon evidential means which includes both substantive and circumstantial evidence.
The resolutions and other company-based decisions are mainly decided by unanimous voting of partners, unless stated otherwise by the company Memorandum.
The company is only allowed to carry out those specific business activities stipulated by law if a non-Qataris partners in a Joint Venture Company.
Corporations are one of the crucial formats of business companies incorporated in Qatar. In Qatar the Corporation based business companies can form as a closed stock company or public stock company.
The closed stock company is permitted to be 100% foreign-owned, while foreign ownership in a public stock company is limited to a maximum of 49%.
Public Shareholding Company
In a Public Shareholding Company the total capital consumed by the company is divided into shares of equal value. These shares of the company capital are also transferable.
The Shareholders are not liable for the company’s obligations except to their own shares that they subscribe within the company’s capital. As per rules and regulation conducted by The Ministry of Business and Trade Regulation Qatar the Public Shareholding Company must have a minimum of five shareholders.
The proposed name of the company by which is incorporated in Qatar must have the words “Qatari Public Shareholding Company”.
A Public Shareholding Company in Qatar is asked to have a definite term for the company, which has to be clearly indicated in the company Memorandum of Association (MoA) as well as in the company Articles of Association (AoA), as per the format authenticated by a Ministerial Decree in Qatar.
Nevertheless, if needed the incorporation term of all these Public Shareholding Companies may be extended by a resolution of the General Assembly. The total company capital of a Public Shareholding companies in Qatar cannot be less than QR 10,000,000.
Limited Shares Partnership Company
The Limited Shares Partnership Company in Qatar is maintained by one or more joint partners. These types of companies in Qatar are mainly formed by two groups, they are mentioned below:
(a) Joint Partners comprising of one or more joint partners who are said to be completely liable for all sort of company debts and liabilities.
(b) Trustee Partners comprising of not less than four (4) shareholding partners whose has limited liability towards the company shares held in the capital.
All the partners or each of the individual corporate figure of the limited shares Partnership Company must signed the Memorandum and Articles of Association.
As like all other business company the Limited Shares partnership company has to add up the words “Limited Shares Partnership Company” to the company name.
Limited Shares Partnership Company formed by joint partners is governed similarly as the Simple Partnership Company. But yes, each of the joint partners must be citizens or permanent resident of Qatar.
The minimum capital amount required to held up such type of companies in Qatar is QR 1,000,000/- (One Million Qatari Riyals).
The total company capital is divided into equal shares and are even transferable and indivisible.
The total capital amount has to be fully paid to any corporate bank in Qatar upon company incorporation.
The Limited shares Partnership Company are asked to maintain a General Assembly which must include valid authentication of al the joint and trustee shareholding partners of the company.
Limited Liability Company
The Limited Liability Companies in Qatar are said to be the most common and most preferable ones among all other business companies in Qatar for the foreign investors.
The Limited liability Company is formed by comprising of at least two individual partners and not more than fifty individual partners. Al these company’s individual partners’ liabilities are limited to the value of shares they subscribed in the company.
One important fact about the shares of a Limited Liability Company is that they cannot be freely transferable. As like all other legal business entities in Qatar the Limited Liability Company must have their own company Memorandum and Articles of Association signed by each individual company partners.
The words “Limited Liability Company” must be added to the desired proposed trade name given to the company. The minimum capital required to incorporate a Limited Liability Company is QR 200,000/- (Two Hundred Thousand Qatari Riyals).
The management system of the company is conducted by one or more company managers or company secretaries, whether partners in the company or not.
As Limited Liability Company are mostly owned by the foreign investors who comes up to do business in Qatar, hence some guidelines are conducted by the Qatari Government over the types of business policies that these companies with be able to conduct.
As per law and regulation any Limited Liability Company incorporated in Qatar cannot engage into businesses related to insurance, banking, financing or other investment policies, whether as a principal or simply as an agent.
Along with Foreign Owned Companies business entities like Corporate Non-Government Banks, Investment Businesses and similar smaller corporate infrastructure institutes often opt to incorporate as Limited Liability Company (LLC) in Qatar. In there they are so strict about law and you need to be aware about cid of Qatar.
This reason behind this move is because the various facilities and benefits the company registration policy offers to the business owners and foreign investors along with the fact that a relatively small capital QR 200,000 is required for incorporation.