Types of Companies in Qatar
Updated on Wednesday 11th August 2021
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Investors in Qatar have several options when choosing the type of business entity they wish to incorporate. The choice depends on the number of founders, the available capital and, in some cases, on the plans to expand the capital. The available business structures meet several business demands, from those for small legal entities to those suitable for larger businesses that can also trade their stocks. One of our company formation agents in Qatar can give you detailed information on the main business entity types.
The partnerships in Qatar
Investors in Qatar who share the same business goals with another investor, either Qatari national or foreign entrepreneur, can open a partnership. The general partnership is formed by two or more members and is assigned a special name under which it will carry out the company activities. Both partners are jointly liable for the debts and obligations of this partnership. Our lawyers in Qatar can give you details about the level of liability.
The limited share partnership is incorporated by two types of partners: the active ones and the non-active ones. A minimum number of inactive partners are required to set-up this business form. The difference lies in the degree of liability: the active partners are jointly liable. These business forms are co-owned with a Qatari national.
The corporations in Qatar
The limited liability company is the most popular business type. The LLC is incorporated by at least two founders and can have up to fifty shareholders. The main characteristic of this business form is also its main advantage for investors: the shareholders are only liable to the extent of the capital invested in the company. The public shareholding company is also referred to as the joint-stock company and it can be public or private (closed). A minimum of five shareholders is needed to form the public one and it has different minimum share capital requirements according to its open or closed particularity.
Company registration in Qatar can differ according to the chosen type of company. One of our agents is able to give you specific information on the special requirements for registration and taxation principles for each type of company.
The branch and representative office in Qatar
The branch is chosen by foreign legal entities that want to establish their presence in Qatar. Ministerial approval is needed for this type of company to be able to conduct its specific activities in the country. Similarly, the representative office is an option for foreign businesses although this business form may not conduct economic activities, only research, and marketing-related ones. Investors can also open a sole proprietorship – the simplest business form where the founder is fully liable for the debts of the business. Foreign investors should know that full foreign company ownership is not permitted in Qatar. One or more Qatari partners need to co-own the business and the foreign investor may only hold 49% of the business.
Investors often outsource the accounting services for their chosen business form in Qatar. Our team can give you more details.
You can contact our company registration agents in Qatar for specialized assistance during the incorporation of any one of the business types described above.