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Qatar: Types of Company

Public Shareholding Company

Also known as a joint stock company or a Qatari shareholding company, the public shareholding company (PSC) is established in accordance with Qatari commercial company law and by virtue of ministerial decree. Generally, only Qataris may be shareholders, but there are three exceptions to this rule:

  • A national of another Arab country that has a relevant reciprocal agreement with Qatar;
  • Where foreign investment or experience is required, so long as the necessary license has been granted by the Ministry of Economy and Commerce; and
  • Where the company has been incorporated under a special decree that allows for foreign shareholding.

A minimum of five shareholders is required. Shareholders are not liable for the company’s obligations, except to the extent of the total nominal value of their respective shareholding.

A PSC may be open (i.e. public) or closed (i.e. private). The minimum capital requirement for an open PSC is QAR10m, with a nominal value for each share of QAR10; for a closed PSC, this is reduced to QAR2m.

 

 

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