One Person Company in Qatar

Qatar has been continuously growing as a business investment destination. With its capital Doha, the location opens a gateway to neighboring countries, including Bahrain and Saudi Arabia. 

Investors who set up a business in Qatar get an opportunity to tap into other markets. When it comes to a business establishment, the region allows multiple business structures to fix their roots. 

In this article, we will cover one of the corporate structures which is known as a One-Person Company in Qatar. This person will be the sole shareholder and director (there is a nominee director, but with no power until the original director is incapable of entering into a contract). 

Therefore, neither employee stock options nor equity finance is possible. Furthermore, an OPC must convert into a private limited company or public limited company within six months if its average three-year turnover exceeds Rs. 2 crore or its paid-up capital exceeds Rs. 50 lakhs. 

Highlights of an SPC, Qatar

A one-member business setup in Qatar is referred to as a one-person corporation under Sub-Section 62 of Section 2 of The Companies Act, 2013, which states the following.

• Liability is extended to the limit of investment made
• Fundraising from financial institutions becomes way easier
• The minimum number of the shareholder is 1, and the maximum is 15
• It must be filed with the Ministry of Corporate Affairs and then must have a minimum share capital of QR 2,00,000
• Each OPC is required to propose a nominee Director to the MOA or AOA who will take over ownership of the OPC if the promoter Director becomes incapacitated
• An OPC must also become a Private Limited Company if its yearly revenue exceeds Rs. 2 crores, and after each Financial Year, it must submit audited financial statements to the Ministry of Corporate Affairs. 

As a result, before incorporation, the Entrepreneur should carefully analyze the attributes of an OPC. As the name implies, one-Person Companies (OPCs) can be registered with just one member, yet they have the benefit of having 15 Directors.

Restrictions and Terms for a Qatari OPC

A one-person corporation (OPC) has some restrictions even though it enables a solo entrepreneur to operate a firm with limited liability protection.

1.  No one may incorporate more than one Single-Person Company or hold the position of the nominee in more than one such company.
2.  Minors are not permitted to join the One Person Company, serve as nominees, or possess shares with a beneficial interest.
3.  An OPC is not permitted to engage in non-banking financial investment operations, such as purchasing corporate securities.

How to Open a One-Person Business in Qatar?

The company registration process for a One-Person Company turns out to be easier as compared to the other business entities, especially if it is a Qatar Free Zone company formation. 

Prepare the Documents Required for an OPC

Documentation plays a crucial role in initiating the process of a company setup. You need to make sure that necessary documents need to be drafted and presented accordingly to the higher authorities.

To be submitted by the director:

• Copy of Passport for Foreign Nationals and NRIs
• Copy of Passport, Voter ID, and Driver’s License
• Copy of the latest bank statement
• Passport-sized photographs
• Specimen signature (blank document with signature)
• Notarized Articles of Association.

For the Registered Office:

• A scanned copy of the most recent bank statement, phone, mobile, electric, or gas bill, a scanned copy of the most recent bank statement, phone, mobile, electric, or gas bill
• A notarized rental agreement in English
• A no-objection letter from the property owner
• A scanned copy of the sale deed or property deed in English (in case of owned property).

Once the entire set of documents is in hand, the company registration process can be initiated forward.

• Nominate a Nominee Director

It is a mandate for every OPC to nominate a Nominee Director in the Memorandum and Articles of Association. In the case of an OPC, a nominee during the incorporation process is required.

• Decide on a Trade Name and Get It Approved

Select a trading name adhering to the government guideline so that it gets approved.

• Obtain the License from the Government Authority(s)

Once all the essentials are submitted, after a respective duration, obtain your license after getting all the approvals.

Why Get Included in the List of One-Person Top Companies in Qatar?

It grants one promoter complete authority over the business while restricting his or her legal responsibility to contributions to the company. As we have seen that the location provides benefits for multiple corporate structures, the tax services in Qatar are also feasible.

The benefits of setting up an OPC are as follows:

• If an investor or an entrepreneur wants to establish a company with a low budget, One Person Company is the option that one can go for. Later on, as the business grows, this can be converted into a private or a public limited company with the essential number of shareholders required for both types.
• Setting up a one-person company can help you understand the region's business climate.
• It helps in understanding the growth opportunities in the target market
• As compared to the other business entities, the setup process for One Person Company is way easier.

As you can see that opening a branch office in Qatar can help your business to expand its reach. The establishment process is much easier if you have a helping hand. 

At Commitbiz, we focus on providing the core essentials required to set up a branch office. If you are looking out for the same, do contact us today, even if it’s for friendly advice-we’d be glad to assist you.