A holding company in Qatar can start shareholding companies or limited liability companies. The holding company holds up to 51% of stakes in these LLCs and shareholding companies.
Requirements for Opening a Holding Company in Qatar
Many requirements need to be fulfilled before a holding company in Qatar can start doing business. The minimum share capital has to be drafted in a business account in Qatar. Holding companies involve less complexities and formalities when compared to other types of companies in Qatar.
Here is a detailed look at the requirements that need to be fulfilled for starting a holding company.
- The Ministry of Economy and Industry in Doha Qataralso approves the formation of a holding company.
- A limited liability company provides the required structure for getting a holding company registered.
- The minimum share capital requirement for a holding company in Qatar is Qatari Riyals 10 million as a public shareholding company.
- By law, a holding company needs to draft its Memorandum of Association and the Articles of Association to submit at the time of registration.
- The Commercial Registry in Qatar incorporates a holding company.
Tax Benefits for a Holding Company in Qatar
A holding company in Qatar is given special status for taxation besides exemptions.
- No withholding or other taxes on dividends.
- No wealth tax.
- No VAT.
Get in touch with Excel Consultants & Partners LLC’s holding company formation experts in Qatar for more information and assistance.
Establishing a Holding Company in Qatar
A holding company in Qatar can work similarly to a limited liability company in Qatar. Please have a look at the conditions that a holding company needs to meet to work as LLC in Qatar.
- The LLC setup has a minimum share capital of QAR 200,000.
- The Articles of Association and Memorandum of Association need to be submitted in Arabic.
- The Ministry of Economy and Commerce of Qatar approves this business entity structure.
- In this particular case, foreigners can hold 49% shares of the company.
- A foreign investor or business person needs to have the support of a Qatari citizen for opening a limited liability company in Qatar.
A shareholding company distributes capital to negotiable shares of equal value.
It needs to have 5 shareholders to form a company. Private and public shareholding companies must have
a board of managers, a minimum of 5 and a maximum of 11.
The main reason for making a holding company is to establish control through stakes in other companies in Qatar. Holding companies cannot perform commercial activities.
A Qatari holding company can own trademarks, assets, and real estate as permitted by relevant laws.
One of the main functions of holding companies is that they provide oversight to different business functions performed in other companies.
Besides forming a holding company as a limited liability company, businesses can establish holding companies as partnerships with enough voting stock in other enterprises. This allows the parent company to supervise the management and strategies.
For more assistance with establishing a holding company in Qatar, get in touch with Excel Consultants & Partners LLC by emailing us at info[at]excelconsultants.org or calling at +974.70268254.
Read more on this topic by following our blog category on company formation in Qatar.
You can also read our previously written blog posts on company formation in Qatar.
You can reach us at info[at]ExcelConsultants.org or call us at +974.70268254.
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