Converting an existing company to a 100% foreign ownership LLC or Limited Liability Company has become a favoured business option permitted in a number of countries the world over. By introducing amendments to the laws governing businesses in the country, Qatar is now permitting expats to convert their Sole Proprietorship or Limited Liability Company to a 100 percent foreign ownership company. The process involves share transfer from the current 49-51% to 100% without any local share.
What is 100% Foreign Ownership?
100% foreign ownership means that a country allows people or companies from other countries to own all (100%) of a business, property, or investment. In many places, foreign investors must partner with local people or companies. However, with 100% foreign ownership, these rules do not apply. Foreign business owners and investors can fully own and control their businesses without local partners or sponsors.
This policy helps to attract more foreign investment, boost economic growth, and encourage new ideas and innovations. Countries aim to create a more attractive environment for international businesses and investors by allowing full ownership.
100% foreign ownership makes it easier for foreign businesses to operate, invest, and grow in a new country, contributing to the local economy and creating job opportunities. For many companies, this policy is crucial when choosing where to make investments and grow.
Benefits to converting an existing company to a 100% foreign ownership LLC.
For the Country:
- Foreign Investments: This policy helps bring in new investments, encouraging more companies to set up businesses in Qatar.
- Economic Stability: Allowing foreign businesses to establish themselves boosts the market and generates opportunities for skilled workers.
For Partners or Shareholders:
- Limited Liability: In a Limited Liability Company (LLC), the owner’s responsibility is limited to the business’s assets, protecting personal wealth.
- Reduced Risk: The LLC structure reduces the risk of losing personal assets compared to other types of business entities.
- Company Formation Without Local Shares: With 100% foreign ownership, you can set up a business in Qatar without needing local partners or shareholders, offering more control and independence.
Steps for converting an existing company to a 100 % foreign ownership LLC.
1. Apply for a new Name for the company: The first step in this connection is to apply for a new name. The new name should indicate proposed entity type. If it was mentioned earlier as a Sole Establishment, the new name should have the words LLC.
2. Update the Company Documents: After changing the type of legal entity, you are required to update the documents of the company. They should include amendments to MOA, Trade License, Immigration Cards, E-signature Card and Labour Cards.
3. Undertake the Share Transfer and Update the Licenses: Undertaking the share transfer and updating the license to establish the 100% foreign-owned LLC is next step. If it is a Civil Company, the Partnership Agreement is required to be submitted and an MOA will be established.
4. To update the details of the Bank: The company can use the same bank account and government department files since the trade license number continues to be the same, but with the updated name and company form.
Helpline Group’s professional consultants, with extensive experience in the Qatar market, will guide you through converting an existing company to a 100% foreign ownership LLC in Qatar. Our experts provide step-by-step support to ensure a smooth company formation, avoiding complications at every stage. With 10 branches worldwide and over 300+ industry specialists, we offer fast, efficient, and hassle-free services. Our team is committed to helping you convert your company into one with full foreign ownership, making the process simple and straightforward for you. Trust Helpline Group for a seamless business setup experience in Qatar.
