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Types of businesses established in Qatar The commercial company Law No. 5 of 2002 governs the rules and regulations for establishing a business in Qatar and classifies several types of business enterprise. Limited Liability Company (LLC) The limited liability company is an association having a minimum of two and maximum of 30 partners. Each partner is liable only to the extent of his/her share in the company's capital, and the term limited liability together with the capital must be mentioned on all letterheads and correspondence. The capital of a limited liability company must not be less than QR200,000 ($55,000), divided into equal shares of a nominal value of QR10 ($2.75) or more each. Public Shareholding Company (PSC) Public shareholding companies should be established in accordance with the commercial companies law and by virtue of a ministerial decree. Shares are offered to the public and only Qataris may be shareholders in such companies with three exceptions: - Where the company is incorporated under a special decree which allows for foreign shareholding.
- Where a shareholder is a national of another Arab country which has a reciprocal agreement with Qatar allowing Qataris the same privileges in that country.
- Where there is a need for foreign capital or experience, provided a license from the Ministry of Economy and Commerce is obtained.
The minimum capital of a public shareholding company is QR10m ($2.75m) and the nominal value of each share in a public shareholding companies is QR10 ($2.75) each. A closed shareholding company requires a minimum of QR2m ($550,000) in capital.
Partnership A general partnership company is an association of two or more persons formed under a specific name in order to carry out commercial business. It is a separate legal entity, but its partners are jointly and severally liable for its obligations. A foreigner may be a partner in a Qatari partnership company subject to the restrictions of the Commercial Companies Law No.25 of 1990.
Partnership in Commendum A partnership in a commendum, company is similar to a general partnership, but it also has non-active partners with limited liability. The law governing this partnership is the same as the one governing general partnership's obligations only to the extent of their share in the capital. The names of non-active partners may not be included in the name of the partnership. Commendite Partnership By Share A commendite partnership by Share Company is a partnership formed between joint partners and 10 or more non-active shareholding partners whose liability is limited. The minimum capital of a commendite partnership by share company is QR200,000 ($55,000). Joint Venture A joint venture consists of two or more parties formed to carry out certain businesses and do not acquire separate legal status. It does not have to be registered in the commercial register, nor does its existence have to be made public. The joint venture should specify its objectives, the rights and obligations of the partners and the methods of distributing profits and losses among those partners. Branch A branch of a foreign company may be registered in Qatar to execute certain contracts or to carry out certain operations after obtaining the required ministerial decision issued allowing non-Qatari persons or companies to be engaged in contracting business in accordance with the provisions of Commercial Companies Law No. 25 of 1990. Furthermore, foreign companies or persons may invest in Qatar in business activities relating to the development of the economy or to support the public services and utilities in the country relating to industry, agriculture, minerals, mining, utilities or tourism, subject to obtaining the required ministerial decision. Representative Office A foreign company can open a representative office in Qatar. The representative office is similar to a branch with the exception that it cannot do businesses in Qatar. Its head office will wholly own the representative office. Related Links
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