Qatar is the worlds wealthiest country due to the governments economic development strategy. The country’s banking services,political and social stability, investment incentives and infrastructure all add to produce an exceptional environment for start-up businesses.
Types of company in Qatar:
- Partnership Company
- Limited Liability Company
- Limited Share Partnership Company
- Holding Company
- Limited Partnership Company
- Particular Partnership Company
- Shareholding Company
- Single Person Company
A Limited Liability Company (LLC) is the most common company incorporated in Qatar for foreign investors. In the majority of cases a foreign investor will need one or more Qatari partners to be involved in the company and to act as the majority shareholder. The Qatari partner would usually hold 51% of the shares of the company and the foreign investor would hold the remaining 49% . A separate profit share arrangement is then usually arranged which will not reflect the shareholding agreements.
Main features of a Limited Liability Company:
- The required minimum share capital of an LLC is 200,000 QR
- To obtain a trade license, a suitbale office space is required for at least one year
- Unless an exemption has been granted, a Qatari resident must hold 51% of the shares in the company
- Until the legal reserve of the company stands at 50% of the share capital, 10% of every year’s net profits are to be kept within the company
For more information on registering a company in Qatar, please do not hesitate to contact the experts at CompanyRegistrationsWorldwide.com.