Set Up a Limited Liability Company in Qatar
Updated on Tuesday 01st February 2022
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The limited liability company is a commonly used business form in Qatar. It is suitable for small to medium-sized businesses and it allows for a convenient degree of investor protection. Investors who what to set up a limited liability company in Qatar should remember the specific laws for foreign company ownership in this country. One of our company registration agents in Qatar can help you with information about the requirements for WLL company formation in Qatar in 2022, so make sure you get in touch with us.
The characteristics of the limited liability company
The limited liability company, or LLC, is a type of company that has a minimum of two founders and a maximum number of fifty partners. In Qatar, this type of company is known as a WLL company in Qatar. Each of the shareholders is liable only to the degree of capital invested in the company – this limited liability characteristic makes it advantageous for investors. The minimum share capital for an LLC in Qatar is 200,000 QAR (approximately 45,832 EUR) divided into equal shares with a value of 10 QAR or more.
Foreign investors are allowed to hold a maximum of 49% in the company and the LLC must have one or more Qatari partners. In some business sectors, full foreign ownership may be permitted, however, it is recommended to talk to one of our Qatar company formation agents to clear information on the conditions for fully owning a business. Here is an infographic with information about the WLL company in Qatar:
Qatar limited liability company registration in 2022
An LLC in Qatar needs to be registered with the Ministry of Economy and Commerce. For this purpose, investors need to prepare the Articles of Association and the Memorandum in Arabic. Our Qatar company registration agents can help you during this step. The company needs to have a unique trade name and a corporate bank account. The company’s constitutive documents, together with the documents that prove the name availability are submitted with the Ministry of Economy and Commerce and the legal entity receives a commercial residence certificate. Additional charges, permits, or licenses may be needed according to each business activity undertaken by the company. Our experts can help you with information about the laws on licensing. The trade license is one of these mandatory permits and it is also issued by the Ministry of Economy and Commerce.
The taxation and incorporation requirements differ in the Qatar Financial Centre and the Qatar Science and Technology Park. Investors should be well informed about the advantages of these special zones, including full foreign ownership permissions, before deciding to incorporate an LLC in Qatar in any of the areas. A team of accounting specialists can help you comply with the rules in force.
If you need to set up a company in another country, such as Saudi Arabia, we can put you in touch with our local partners.
FAQ about LLC company in Qatar
We often encounter questions about how the LLC is registered in Qatar and what are the steps to follow in order to properly implement the market activities. Therefore, we have prepared a set of questions to help you get an idea about LLC in Qatar, with the mention that our company formation agents in Qatar are at your disposal with specialized information and advice.
1. How many shareholders can WLL company form in Qatar?
LLC in Qatar is the most used business structure, which can be registered by two investors, who thus become the founders of the company. Each of them is responsible for the part of the investment made in the company.
2. Is there a minimum share capital for an LLC in Qatar?
Yes, WLL company formation in Qatar requires a minimum share capital of QAR 200,000 or about EUR 45,800. This amount must be deposited in a bank account in Qatar.
3. Where is LLC registered in Qatar?
Qatari Ministry of Economy and Commerce is entitled to an LLC registration company in Qatar. Our company formation agents in Qatar can handle the formalities related to the documents collaborating with the relevant institutions.
4. Do I need a corporate bank account for LLC in Qatar?
Yes, you need to open a bank account when registering a WLL company in Qatar. The minimum share capital is deposited, and then the account will be used for future financial operations in the company.
5. What are the company’s constitutive documents?
The company's constituent documents are Articles of Association and represent the main documents of the LLC in Qatar. They contain information about shareholders, main business address, activities, management rules, and much more. Talk to our agents about the documents required for the WLL company in Qatar. They can also help foreigners obtain an investor visa for Qatar.
6. Is a local partner needed to set up an LLC in Qatar?
Yes, the local business partner owns 51% of the company, while the foreign investor will have the remaining 49% share in the company. Find out from our specialists what are the formalities to be followed for WLL company formation in Qatar.
7. What is Commercial Residence for LLC in Qatar?
Among the first documents required for LLC registration in Qatar is Commercial residence or CR, issued by the Ministry of Economy and Commerce. With this type of document, foreigners interested in opening a business in Qatar can open a corporate bank account and even accept invoice payments. We mention that CR is obtained with the help of Articles of Association.
8. How to get a business license in Qatar?
In order to be able to develop certain activities, it is necessary to obtain a trade license from Qatari Commercial Registration and License. This document is issued after the LLC documents in Qatar have been verified and accepted, as well as the building completion certificate, if the businessman has office space for his business.
9. Can an LLC company be opened in Qatar in free zones?
Yes, Qatar offers a number of benefits for foreigners who want to open their business in this country. These include free trade zones, with an advantageous charging system, an experienced and multilingual workforce, various incentives.
10. Why use our agents for registering an LLC in Qatar?
The formalities for registering an LLC in Qatar can be managed from the beginning by our specialists. They know the laws and procedures for setting up a company, so it will be fairly easy to get started and develop your business.
Qatar, a safe investment destination
Qatar enjoys the status of one of the richest economies in the world, here contributing the largest oil and gas reserves. The best investment sectors are tourism, energy, industry, manufacturing, engineering, research & development. Tax exemptions, zero import duties on machinery, excellent infrastructure, and one of the lowest corporate income taxes in the world are some of the benefits of the business climate in Qatar, offering foreigners interested in investing in this country. Here are some interesting statistics:
- Qatar has more than USD 28.6 billion in total FDI stock in 2020.
- According to the 2020 Doing Business report, Qatar ranked 77th out of 190 global economies in terms of optimal climate and business conditions.
- The United States, South Korea, Japan, and Singapore are among Qatar's largest investors.
One of our Qatar company registration agents can help you incorporate a limited liability company or any other business entity of your choice in 2022. Contact us for more information and additional details about WLL company formation in Qatar. We can also help you with company incorporation in Sweden.