Holding companies in Qatar can activate as limited liability companies or shareholding companies, with 100% foreign ownership. There are several requirements for opening a holding company in Qatar, and among these, the minimum share capital which needs to be drafted in a bank account in Qatar. All the conditions implicated in opening a holding company in Qatar can be explained by our team of company formation specialists in Qatar.
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What are the requirements for opening a holding company in Qatar?
|Legal entities used||
Limited Liability Company, Shareholding Company
|It requires approval from the Ministry of Economy and Commerce in Doha|
|Around 3 weeks|
No resident director required
A name reservation required
20% corporate tax rate
|Control||100% foreign ownership available|
|Accounting and Reporting||Annual tax return, statutory audits|
|Number of double taxation treaties||Around 60|
There are no complex formalities for setting up a holding company in Qatar, however, there are a few requirements to consider, alongside the support of our team of consultants:
- There is no need for minimum share capital for a holding company in Qatar as a public shareholding company.
- The limited liability company is the proper business structure for a holding company to be registered.
- The Ministry of Economy and Commerce in Doha issues the approvals for companies in Qatar, including for holding companies.
- The Articles of Association and the Memorandum of Association are the necessary documents at the time of company registration.
The incorporation of a holding company is made with the Commercial Registry in Qatar, and for complete assistance, you can talk to our team of company formation representatives in Qatar.
Tax exemptions for holding companies in Qatar
Holding companies in Qatar have a special status in matters of taxation, meaning that there are several exemptions to consider. For instance, dividends are not subject to withholding tax, or any other tax, there is no wealth tax and no VAT imposed. Feel free to talk to our specialists and ask for tax compliance and support in the case of holding companies in Qatar.
Qatar is among the excellent business destinations, both for foreign and local entrepreneurs. If you have already chosen the right business structure for your future activities, we recommend you use the services offered by our accountant in Qatar. Bookkeeping, payroll, annual financial statements, and HR solutions are among the essential aspects of accounting. You can also request tax minimization methods for the company you own.
Opening an LLC for establishing a holding company in Qatar
Holding companies in Qatar can run under the rules of limited liability companies which can be easily established if certain conditions are respected:
- QAR 200,000 is the minimum share capital for setting up an LLC. However, holding companies in Qatar do not require minimum capital.
- All the documents (the Articles and the Memorandum of Association) need to be translated into Arabic before they are drafted.
- The approvals for this type of structure are made by the Ministry of Economy and Commerce in Doha.
- Investors from abroad are allowed to have 100% of the shares in the firm.
- The support of a local investor is not needed for opening a limited liability company in Qatar, as recent legislation has been modified.
Shareholding companies in Qatar
A shareholding company has the same approval regime, just like in the case of other structures, meaning that the final approvals are made by the Ministry of Economy and Commerce in Doha. Such a structure can be used for opening a holding company in Qatar, under several conditions. For example, the capital of the shareholding company is normally distributed to negotiable shares of equal value, with the mention that there is a need for at least 5 shareholders for the formation of the company.
Moreover, the shareholding company, whether public or private, needs to have a board of managers with at least 5 members, but not exceeding 11. It is important to know the rules of company structures before going on the market, which is why the support of our team of consultants is at the disposal of international investors at any time. Support in company formation in Qatar can be solicited from our team. Our advisors can also offer you details about taxation in Qatar.
The characteristics of holding companies
A holding company owns shares in other companies, it cannot perform activities and can control a number of enterprises. The only purpose of a holding company is to have control of other firms established in Qatar. Moreover, a holding company in Qatar can own trademarks, and real estate properties, plus other assets, in accordance with the applicable laws. Even though a holding company owns the assets of other firms, it only upholds oversight functions and consequently does not participate in an active manner in controlling the daily activities of the firm. It is good to know that a holding company is the parent corporation that can be established as a limited liability company, or as a partnership that owns sufficient voting stock in another enterprise so that it can control that company’s strategies and supervise its managerial assessments.
There are no complex formalities in opening a holding company in Qatar, however, it is recommended to pay attention to conditions imposed by the laws. Also, the support of our team of company formation experts in Qatar is at your disposal at any time if you would like to open a holding company in Qatar, therefore, do not hesitate to contact us right away.