Apart from being famous as a tourist destination, Qatar has been counted in the list of business investment locations. Located in the Arabian Peninsula, and with its capital Doha, the region has been providing a favorable business climate to international investors. Setting up a company in Qatar has turned out to be more prominent along with time. Business industries of different nature have found stability across the region that gave birth to different corporate structures. One such structure is a Public Shareholding Company. In this article, you will get a clear picture as to why PSC turns out to be a favorable option. Let’s start with…
What is a Public Shareholding Company?
A Public Shareholding Company (PSC) is a business entity whose capital gets divided into equal shares of value. The shares dealt in this company turns out to be a transferrable one. In Qatar, this business entity is also termed as Joint Stock Company or a Qatar Shareholding Company.
Highlights of a Public Shareholding Company (PSC) in Qatar
- The minimum number of shareholders turns out to be 5
- A PSC in Qatar holds the flexibility to be a Public or a Private Limited Company
- The minimum share capital required is QAR 10m
- 100% Ownership is provided to foreigners in certain sectors
- Shareholders are liable for the company’s obligations only till their value of shareholdings
To initiate a company in any foreign region, paperwork plays a very important role. Similarly, to start a PSC in Qatar, certain essentials are to be drafted and submitted. Let’s have a look at them.
Documents Required for a Public Shareholding Company in Qatar
The core essentials for a PSC in Qatar include:
- Copies of ID cards of shareholders
- Photocopies of each shareholder
- Financial Statements
- Business Plan
- Lease Agreement
- Copies of MOA and AOA
- Copy of Commercial Residence
After the aforementioned documents are available in-hand, one can proceed towards the company registration process.
How to Set Up a PSC in Qatar?
Now, the company setup process in Qatar involves a few steps:
1.Register the Trade Name
The first and foremost task that you need to focus on when it comes to company registration process is to get the trade name registered. While proceeding towards it, it is to be kept in mind that the name should be unique and not a copied one. The name must have an Arabic meaning.
2.Draft the Memorandum and Articles of Association
The next step in the pipeline is to draft the Memorandum and Articles of Association. The Memorandum contains the rights and duties related to the external stakeholders of the company, while the Articles of Association holds the duties and responsibilities to be performed within an organization.
3.Obtain the Commercial Residence/ Company Registration Certificate
Once done with the MOA and AOA, you need to submit all the necessary essentials at the Company Registrar Office so as to obtain the Commercial Residence (CR) Certificate. This certificate is a legal license to perform the business activities.
4.Obtain a Trading License
A trade license is to be obtained once you are done with the CR certificate. The trading license is issued by the Ministry of Economy and Commerce (MEC), which is a must to carry out the business activities.
By now you must have got an idea regarding the entire journey of incorporating a PSC in Qatar. The process can be made much easier if one is well-versed with the legal laws of Qatar. Keeping this in mind, the investors always prefer to go ahead with a business consultant who can ease the process. This not only helps in clearing the legal issue but also helps to understand the entire company proceedings within less time. We at Commitbiz strive to deliver the same, and this has made us stand as a premium business consultant in the UAE. Our business experts will help you in building the core business domains that hold accounting, taxation, legal, visa services etc. To have a word, contact us today-we’d be glad to assist.