Does a Limited Liability Company require a Share Capital in Qatar?
Until recently the minimum share capital requirement was QAR200,000, this needed to be deposited in a bank and a letter of confirmation of funds was required from the bank in order to establish the company.
This is no longer required as a result of the new company law, No. 11 of 2015. Qatar Banks have their own requirements to open a Corporate account and as this is not dictated by the Central Bank, each bank has set its own limit. We are aware of one bank asking for a deposit of US$100,000 i.e. QAR365,000 at the top end of the scale, whereas two of Qatar’s well known banks are asking for a deposit of QAR30,000. Consequently, there is a vast spectrum.
Currently, there is no set limit for the share capital amount shown on the Memorandum of Incorporation, quite regularly, QAR100,000 is shown as the share capital but there is no longer a requirement to deposit this sum.
The 51% – 49% relationship does not have to be reflected in the profit share, this can be determined by an agreement between the foreign shareholders and their Qatari partner(s). When establishing through Venture Partner Qatar, we ensure that agreements are in place that completely protect the foreign investor’s control of management and finance. In addition, we provide a penalty free exit strategy for the foreign investor.
For more information on starting a business in Qatar or if you have a question that you would like answered, call a member of the team on +974 4478 8765, email info@vpqatar.com
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— Venture Partner (@venturepartnerq) August 21, 2017