In August 2015 the new Commercial/Corporate Law was introduced along with the changes such
as the minimum capital requirement for limited liability companies which was previously 200,000
QR. Being familiar with the law, the local market and regulations is a bonus in a state such as Qatar
for generation of Business/Commercial development. This White paper includes a variety of
important information regarding the Commercial/Corporate sector.
A Company is a legal entity, allowed by law to appoint and permit a group of people, as shareholders,
to apply to the relevant governmental authority [Ministry of Economy and Commerce] for an
independent organization to be created. There are different types of companies as listed below:
Limited Liability Company [LLC] :
A LLC no longer requires a minimum capital of 200,000 QR to be established. No capital is required
under the current Commercial law and regulations. The structure of the company can be based
around one shareholder who owns 100% of the company and its shares. Both Qatari nationals and
Foreign Investors may set up an LLC, however, foreign investors must be aware that an exemption is
to be issued for them to have this privilege and invest in sectors that hold the priority for Qatari
Nationals.
A Single person company an “SPC” is an LLC with only one shareholder. A foreign Investor can wholly
own a SPC if he obtains an exemption to the Foreign Investment Law. This process may take several
months or years even and success is not always guaranteed.
Another way Foreign Investors may conduct business in Qatar by establishing a company is to have a
Qatari Partner who owns 51% of the shares in the company, leaving the investor with 49%. It’s of
value to add that these percentages do not reflect profit shares. LLC's may not issue shares or bonds
even if they were freely transferable, all of the shareholders must be aware of the transfer and they
must all be offered transfer by pre-emption or they may waive their rights.
With one of the world’s largest gas reserves, hosting the World Cup 2022 and a robust economic
profile Investment and business opportunities are expanding in Qatar. The country has and is still
attracting foreign and international investors and businesses to the region.
Shareholding Company :
There are two types’ public shareholdings and private shareholdings:
Public shareholdings must be registered with the Qatar Stock Exchange [QSE] within 12 months of
being established otherwise the state reserves the right to convert the company to a Private Shareholding.
If a shareholding is registered in the Qatar Stock Exchange [Public] it must have at least 30
shareholders. There is a minimum capital for Public Shareholdings registered with the Qatar Stock
Exchange that is 40 million QR. The startup shareholdings must have a capital of 10 million QR before
registration at the QSE under Article 9 of the Companies Law.
Private shareholdings encompass their own regulations based in Article 207 in the new law which
was previously the old “Article 68” regime; it is no longer possible to incorporate a public
shareholding company under the new Article 207. Government or a governmental entities even a
foreign entity together with the government or a governmental entities can establish a private Shareholding.
These companies can, through their articles of association, contract out of the provisions of
the Companies Law, allowing for a considerable degree of flexibility such as making the shares of
foreign investors higher than the standard 49% with the approval of the Ministry of Commerce.
To obtain a Commercial Registration and establish a company in the State of Qatar the
following is needed:
• Establish a Memorandum of Understanding and Articles of Association and they must be in Arabic
as that is the only legal form accepted by the Ministry of Economy and Commerce.
• Providing bank account details / bank statement of the value of the deposit of the share capital in
the bank.
• For foreign companies they must provide the Ministry of Economy and Commerce with a Certifi-
cate of Incorporation that is authenticated and notarized including a power of attorney appointing
someone to represent the Company here in Qatar.
• Choosing a new trade name to be approved by the commercial registration officer.
• Chamber of Commerce registration and the Commercial Registration Certificate. These documents
are required to prove the companies membership in the Chamber of Commerce.
Once a company has issued its Commercial Registration the share capital is released to
the main authority to run the company. To complete full registration the following must
be obtained:
1. Immigration Card
2. Signage License
3. Commercial License
Relevant Authorities for License Approvals:
• Industrial Companies- Approval from Ministry of Energy and Industry
• Law Firms- Approval from the Ministry of Justice
• Education Institutions- Approval from the Ministry of Education
• Healthcare entities- Approval from the Ministry of Health
• Tourism Companies- Approval from Qatar Tourism Authority
• Engineering Consultancy Office- Approval from Ministry of Municipal Affairs and Agriculture
Branch Office:
For specified government contracts performed by foreign investors. A special exemption is required
to avoid taxation otherwise branches are fully taxable under Taxation Laws and regulations in the
state of Qatar. A Qatari partner is not required for a branch office; however, it must be Government
Qualified by the Ministry of Economy and Commerce. A branch office cannot conduct business with
Private Sector, all business must be governmental.
Commercial Agency:
A Qatari National is used to distribute products for a company that is not established in Qatar and just
wishes to sell its products and services in the Qatari Market. A couple of agents may be appointed or
the company may appoint an Exclusive agent to distribute its products. Registration of Exclusive
agencies is subject to Commercial Agents Law No. 8 of 2002. Termination of agencies burdens the
original Company to reward them with compensation even at the expiration of a fixed term. Commission
is awarded to the agents for sales of the product/services even if this was indirect. Those who
claim to be agents without authoritative registration/permission will be penalized under Commercial
Law No. 27 of 2006.organization.