Qatar's Commercial Companies Law: the core framework
The formation, management and amendment of commercial companies are governed by the Commercial Companies Law promulgated by Law No. 11 of 2015, as amended by Law No. 8 of 2021, which strengthened the rules on governance, conflicts of interest and general assembly meetings. Article 3 provides that every company established in Qatar has Qatari nationality and must have its head office in Qatar.
Permitted company forms
Article 4 requires a company established in Qatar to take one of the following forms. A company that does not take one of them is void, and those who contracted in its name are personally and jointly liable (Article 5):
- General partnership.
- Limited partnership.
- Joint venture (particular partnership).
- Public shareholding company.
- Private shareholding company.
- Partnership limited by shares.
- Limited liability company (LLC).
- Limited liability company
- Formed by one or more persons, with no more than fifty partners; each partner is liable only up to their share in the capital (Article 228).
- Share capital
- The Ministry of Commerce and Industry states in its published guidance that there is no minimum capital for a limited liability company.
- Holding company
- Ministry guidance refers to capital of QAR 10,000,000 and to activities limited to managing and investing in subsidiaries and related matters.
Foreign ownership
Law No. 1 of 2019 regulating the investment of non-Qatari capital in economic activity governs ownership by non-Qataris and allows companies to be up to 100% foreign-owned in most sectors. According to Invest Qatar, the exceptions are banking and insurance (unless the Council of Ministers decides otherwise), commercial agencies, companies exploiting natural resources, and any other sectors designated by the Council of Ministers. The law offers incentives including land allocation by lease or usufruct, conditional tax and customs exemptions, and free transfer of investment returns.
Company formation in Qatar: what to prepare
According to the Ministry of Commerce and Industry's requirements for a limited liability company, you will usually need:
- Proof of identity for the founders, and a letter from the founding company where a partner is a legal entity.
- The memorandum of association certified by the Ministry of Justice.
- A copy of the authorised signatory's ID, and a power of attorney if a representative files for the founders.
- A trade name reserved with the Commercial Registration Department.
- Approval from the authority responsible for the activity, where required.
Points a corporate lawyer in Qatar should review before you sign
- How profits and losses are shared, and any contributions in kind or in work.
- The manager's powers, signing limits and decisions reserved to the partners.
- Restrictions on transferring shares and partners' pre-emption rights on a sale.
- Deadlock resolution, exit routes and how shares are valued on exit.