Type of Companies
The regulations relating to the structure and governance of companies are governed by the Commercial Companies Law, Law No. (5) of 2002, replacing Law No. (9) of 1998.
Holding Company
A Holding Company is a joint stock, limited liability or one person company financially and administratively controlling one or more other companies by holding at least 51% of the shares of such companies whether they are shareholding, limited liability or one person companies.
The Capital of a Holding Company shall not be less than QR 10,000,000 (ten million Qatari Riyals).
The words “Holding Company” should be added to the name of the company.
To the extent not contradicting to the provisions, holding companies shall be subject to the provisions hereof relating to shareholding, limited liability or one person companies, as the case may be.
Public Shareholding Company
A Public Share holding Company is a company whose capital is divided into shares of equal value, which are transferable.
Shareholders of a Public Share holding Company are not liable for the company’s obligations except for the amount of the nominal value of the shares for which they subscribe.
A Public Share holding Company should have a minimum of five shareholders and in all cases the name of the company should be followed by the words “Qatari Public Share holding Company”.
Subscription to the shares of the company shall remain open for not lesser than two weeks and not more than four weeks. Founders may extend the subscription period by another two weeks if shares are not fully subscribed, after obtaining the consent of the Ministry.
A Public Shareholding Company shall have a definite term, which should be indicated in the Memorandum of Association and in the Articles of Association, in accordance with a format issued by a Ministerial Decree. The fixed term of a Public Shareholding Company may be extended by an extra ordinary resolution of the General Assembly.
The capital of a Public Shareholding Company should not be less than QR 10,000,000 (Ten Million Qatari Riyals). The nominal value of each share may be less than QR 10, subject to the Ministry’s approval.
A Company may purchase its shares for the purpose of selling them in accordance with the rules determined by the Qatar Financial Markets Authority.
Joint Venture Company
A Limited Shares Partnership Company is a company formed by two groups, namely:
- Joint Partners comprising of one or more joint partners who are personally liable for the debts of the company.
- Trustee Partners comprising of no less than four shareholding partners whose liability is limited to the value of shares held in the capital.•
- The company should have a Memorandum and Articles of Association signed by all founding partners. In all cases the words “Limited Shares Partnership Company” should be added to the name of the company.
- For the joint partners, the company shall be governed in the same manner as a Simple Partnership Company and all the joint partners shall be natural persons.
- The company should have a minimum capital of QR 1,000,000 (one million Qatari Riyals), divided into shares of equal value that are transferable and indivisible and should be fully paid on incorporation.
- The company must have a General Assembly composed of all joint and trustee shareholding partners.
- A Limited Shares Partnership Company is managed by one or more joint partners.
Limited Shares Partnership Company
A Joint Venture Company is a company formed by two or more persons.
It is an un-incorporated entity, without validity against third parties and has no legal personality and is not subject to any registration procedures in the commercial register.
A Memorandum of a joint venture may be proved by all evidential means including substantive and circumstantial evidence.
The resolutions of a Joint Venture Company are decided by the unanimous vote of all the partners, unless stated otherwise by the Memorandum.
If non-Qataris are partners of a Joint Venture Company, then the company is allowed to carry out only those business activities stipulated by law for non-Qataris.
Limited Liability Company
A Limited Liability Company is a company formed with at least two partners and not more than fifty partners, whose liabilities are limited to the value of shares held in the company. The shares of a Limited Liability Company are not freely transferable.
The company should have a Memorandum and Articles of Association signed by all the partners. In all cases the words “Limited Liability Company” should be added to the name of the company.
The company must have a minimum capital of QR 200,000 (two hundred thousand Qatari Riyals), divided into shares of equal value not less than QR 10 (ten Riyals) each.
The management of a Limited Liability Company is conducted by one or more managers whether being partners in the company or not.
A Limited Liability Company may not engage in the business of insurance, banking, or in the investment of funds, whether as a principal or an agent.
Joint Partnership Company
A Joint Partnership Company is a company consisting of two types of partners:
- Joint partners who are empowered to administer the affairs of the company, and are jointly and personally responsible for the company’s liabilities.
- Trustee partners, who merely contribute to the company’s capital without being responsible for its liabilities except to the value of their shares in the capital.
All the Joint partners in a joint partnership company shall be natural persons. A Trustee partner shall not interfere in the management of the company.
One Person Company
A One Person Company refers to a company in which every economic activity and its full share capital is held by one natural or corporate person.
The company should have an Article of Association stating its rules, data, and procedures of its entry and registration. Such a company shall not have a corporate personality before its registration. The name of the company shall be linked with the name of the holder of is share capital followed by the words “One Person Company (O.P.C)”.
The company must have a minimum capital of QR 200,000 (two hundred thousand Qatari Riyals), paid in full. Such share capital may include shares in kind, whose value is estimated by professional experts.
The company shall be managed by the holder of its share capital, who may appoint one or more managers to represent the company in its transactions. The company’s owner shall be responsible from his own assets for company obligations, unless he separates his personal interests from that of the company. The company shall be dissolved upon the death of the holder of its share capital, unless the shares of the heirs is held by one person, or the heirs select to continue the company in another legal form.
.Simple Partnership Company