Qatar law provides for a number of business forms for investors. In general, foreign participation is restricted to 49%, and foreign investment may not be made in the banking sector, insurance companies, commercial agencies, or for the purchase of real estate.

However, under Qatar’s Investment Law Regulating the Investment of Foreign Capital in Economic Activities, majority foreign participation up to 100% may be allowed in certain sectors subject to approval. In addition, 100% foreign ownership is allowed in Qatar's free zones. (see Sec. 10.1.)

Qatar has two main tax regimes, (i) the state regime operated by the General Tax Authority (GTA), which applies to the majority of businesses in Qatar, and (ii) the Qatar Financial Centre (QFC) regime (see Sec. 10.1.) which is modelled after the English common law. The information given in this chapter is based on the state tax regime unless specified otherwise.

The types of business forms available in Qatar include:

Public Shareholding Company

A public shareholding company (PSC), or joint stock company, is generally limited to Qatari ownership only. However, foreign ownership is allowed in the case of a national of an Arab country with which Qatar has a reciprocal agreement, or where foreign experience is required or under the foreign investment law (see Sec. 10.1.).

A private shareholding company can also be formed, which cannot be publicly listed.

Key aspects of a PSC include:

A minimum of 5 shareholders are required and a minimum of 30 shareholders are required in case the company is listed on the Qatar stock exchange;
Liability of shareholders is limited to the nominal value of their shareholdings in the company;
Minimum capital requirement for a public company must be QAR 10 million;
For a private shareholding company, the minimum capital requirement is QAR 2 million;
Shares are transferable and may be offered publicly;
Promoters must subscribe for at least 20% of the company capital, and a maximum of 60%; and
Financial auditors must be appointed.

Limited Liability Company

A limited liability company (LLC) is the most commonly used business form in Qatar. Foreign ownership is generally limited to 49%, although 100% ownership may be allowed under the foreign investment law (see Sec. 10.1.)

Key aspects of an LLC include:

May be formed by a minimum of 2 shareholders and a maximum of 50;
Liability of participants is limited to the amount of their contribution to the company;
Minimum capital requirement of QAR 200,000;
Capital must be divided into shares of equal value of QAR 10 or more; and
The memorandum and articles of association of the company must be written in Arabic.

Branch or Representative Office

Foreign companies are allowed to establish a branch or a representative office in Qatar.

Key aspects of a branch office include:

A branch is allowed to execute certain contracts and projects, and conduct certain business operations;
Require ministerial approval subject to the restrictions of 100% foreign ownership;
Typically, only allowed for a limited duration based on the completion of the relevant contract or project; and
There is no minimum capital requirement.

Key aspects of a representative office include:

Must be wholly owned by its foreign parent company;
Are not allowed to conduct business in Qatar;
There is no minimum capital requirement; and
A foreign company can have 100% ownership in the representative office without any local support.

Joint Venture Company

Joint ventures are not a legal entity type in Qatar, but they may be formed between natural persons or legal entities by agreement. They do not need to be registered like other forms of business. When a foreign entity is a party to a joint venture, the venture may not conduct any business prohibited for foreign participation under Qatari law.

Partnerships

Qatar allows for the formation of 3 types of partnerships, including:

General Partnerships;
Limited Partnerships; and
Limited Share Partnerships.

However, eligibility to be a partner in a partnership is limited to Qatari nationals.

Further information on the general investment, tax, and regulatory regime of the country is available at the following external references:

“Doing Business” report from World Bank – click here.
Reports and publications from OECD – click here.
Reports and publications from IMF - click here.
Reports and news from Tax Justice Network – click here
Investor Guide - investing and operating in Qatar – click here.

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