The Limited Liability Company (LLC) is the most favorable business structure used in Qatar.
Qatar LLC Startup Requirements
It is a must for an LLC company to have a minimum of two and a maximum of 50 participants. Each member is only liable to the extent of his or her share of the firm’s capital. The minimum required capital for an LLC must be QAR 200,000 (USD 55,000). This capital is divided into equal shares of QAR 10 or more each.
The signed Memorandum and Articles of Association must be submitted, in Arabic, to the Ministry of Economy and Commerce. Foreign investors are permitted a 49% stake in the business, on condition that there are one or more Qatari partners. However, foreigners may own up to 100% of a Qatari company in specific sectors, including agriculture, tourism, manufacturing, health, and education.
A Qatar LLC is liable to pay a corporate income tax of 10 % on profits sourced in Qatar and requires a minimum of 2 shareholders / 1 Director. A Qatar LLC is required to submit an annual tax return. If annual gains exceed QAR 100,000 (USD 27,500), the declaration should be accompanied by audited financial statements prepared by an auditor registered in Qatar.
On the 1st of Feb 2010, Law Number 1 of 2010 was issued amending some key provisions of Law No. 13 of 2000 regulating the investment of non-Qatari capital in the main economic sectors. Law 1 of 2010 allows foreign investors to have up to 100 percent ownership in businesses such as consultancy services, information technology (IT), services related to sports, culture and entertainment as well as distribution services. Qatar offers the business sector all the advantages of a highly-developed economy, the infrastructure and services match the highest international standards, facilitating efficiency, quality and service.