Minimum to establish a limited liability company set to be lowered from QR200,000 to a mere QR100
Qatar is planning to drastically lower the amount of capital needed to set up a company in the country, according to a source involved in the process. The minimum requirement to establish a limited liability company is set to be lowered from QR200,000 to a mere QR100.
The government is also looking at reducing the amount needed for companies to join its small to medium-sized enterprises (SME) stock market index to QR2m. At the moment the minimum is set at QR10m, similar to the sum needed to join Qatar Exchanges main index. As a result, no companies have listed on the secondary stock exchange as yet.
The regulatory changes have been outlined in the latest draft of the Commercial Companies Law, which is currently being reviewed by the Emirs office.
Other areas it focuses on include setting stricter standards for corporate governance and financial reporting, as well as simplifying formalities to set up a business.
Developing an SME market is one of the Qatari governments key objectives. In late 2010, the Qatar Development Bank set aside $150m for a programme of indirect lending for SMEs through loan guarantee support for commercial banks. This was complemented with export financing and promotion services.
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