Limited liability company

Liability Limited

Minimum capital requirement No less than QR200,000 ($54,950), divided into equal shares of not less than QR10

Characteristics The company must have a memorandum and articles of association signed by all partners, outlining the distribution of shares, which are not freely transferable. If shares are transferred, the majority shareholder must remain Qatari. All shareholders must agree to the transfer of shares, and other shareholders are given the first option to purchase shares before they can be offered to an approved nominee.

General partnership

Liability Joint and several

Minimum capital requirement No requirement

Characteristics This type of company comprises joint partners who are empowered to administer the affairs of the company and are responsible for the company’s liabilities; and trustee partners who only contribute to the company’s capital without being responsible for its liabilities, except to the value of their shares in the capital. Trustee partners must not interfere in the management of the firm.

Simple limited partnership

Liability General partners have joint and several liability; limited partners have limited liability

Minimum capital requirement No requirement

Characteristics The company name is formed by reference to the name of all the partners, or the name of one partner followed by the words ‘and partners’. All the partners must be Qatari nationals.

Limited partnership with shares

Liability General partners have joint and several liability; limited partners have limited liability

Minimum capital requirement QR1m

Characteristics This is another type of local entity formed by two groups: joint partners comprising one or more partners, who are personally liable for debts; and trustee partners comprising at least four shareholding partners, whose liability is limited to the value of shares held in the capital. In the case of joint partners, all partners must be Qatari nationals. For trustee partners, Qatari nationals must hold 51 per cent of the total shareholding. The company must also have a general assembly made up of all joint and trustee shareholding partners.

Unincorporated joint venture

Liability The allocation of liability between joint-venture parties is set forth in the company memorandum.

Minimum capital requirement No requirement

Characteristics Two or more people can form an unincorporated joint venture.

Joint stock company (public or private)

Liability Limited

Minimum capital requirement QR10m for public joint-stock companies; QR2m for private joint-stock companies

Characteristics Foreign investors are restricted to owning between them a maximum of 25 per cent of the company.

Single-person company

Liability Limited

Minimum capital requirement QR200,000

Characteristics While the holder of the share capital manages the company, he/she is able to appoint one or more managers to represent the company in its transactions. A one-person company is dissolved upon the death of the holder of its share capital, unless the shares of the heirs are held by one person, or the heirs decide to continue the company by restructuring it into another entity.

Holding company

Liability Not applicable

Minimum capital requirement No less than QR10m

Characteristics A holding company can be incorporated as a joint-stock, limited liability or one-person company. It controls financially and administratively one or more companies. The holding company must hold at least 51 per cent of the shares in each of the companies it controls. These entities can also be structured as joint-stock, limited liability or one-person companies.