Qatar offers different legal business structures that are expected to meet the needs of various entrepreneurs and investors. The main business structures available in Qatar are Limited Liability Companies (LLC), Limited Liability Companies (WLL), joint ventures, branch offices, and representative offices.
LLC
An LLC is one of Qatar’s most popular forms of business structures due to its relatively simple formation process and allowing limited liability among its shareholders.
On the other hand, a WLL permits similar liability protections, though it may cater to different operational needs and investment scales, often applicable for more minor, local-led ventures. The shareholder’s assets are generally protected in both types of companies.
WLL
An LLC or WLL in Qatar combines elements of both corporate and partnership models. An LLC provides a partnership’s flexibility; at the same time, it allows liability protection particular to a corporation.
In the case of an LLC or WLL, shareholders’ assets are protected if the company incurs debts or legal obligations. The liability of shareholders in a WLL is confined to the amount of their investment in the company.
The Difference between LLC & WLL in Qatar
While a Limited Liability Company (LLC) might require a minimum number of shareholders, in the case of a WLL in Qatar, there should be at least two and can include up to fifty stakeholders.
Besides, while LLCs usually allow for foreign ownership, WLLs in Qatar must adhere to stringent national ownership stipulations, i.e. at least 51% of the company to be owned by Qatari nationals. However, 100% foreign ownership is permitted in WLL companies related to agriculture, manufacturing, health, education and tourism.
The management of a WLL can be handled either by the shareholders themselves or by appointing managers. Shareholders exercise significant control over the company’s strategic direction, making decisions while considering local business practices and legal requirements.
The WLL Company’s registration and regulation are mainly the responsibility of Qatar’s Ministry of Economy and Commerce. One of the significant advantages of a WLL Company is that it can carry out and fulfil an unlimited number of contracts simultaneously.
Key Advantages of a WLL Company
- No limitation of sales regarding the number of products or services the company consumes.
- Access to Local Markets in Qatar and the GCC region.
- WLL Company is permitted to participate in government and private tenders, as it is recognised as a local business company.
- The WLL Company will not be subject to withhold taxation.
Steps to Register a WLL Company in Qatar by Foreign Investors
The following steps are necessary to register a WLL company in Qatar:
- A Company Name Reservation: The prospective business owners must reserve a unique company name with the Ministry of Commerce and Industry relevant to the business activities.
- The Articles of Association must be finalised and submitted.
- Obtain initial approval from the Ministry of Commerce and Industry before proceeding with further legal requirements.
- Secure an Office space and apply for a trade license from the municipality where the business is located.
- Temporary Bank account Opening in any Corporate Bank.
- Deposit Capital share
- Provision for Further Documents
- Approval for Incorporation of Documents
- Authentication of Articles of Association
- Commercial Registration
- Registration with the Qatar Chamber of Commerce and Industry
- Company Seal
- Signage Licence.
Depending upon the business activities, additional approvals may be needed from the concerned departments. Additionally, registration for tax and obtaining necessary employee visas will be required.
Why Helpline Group Qatar?
Helpline Group in Qatar, with a team of highly experienced experts, provides all the required assistance in setting up a WLL company in Qatar. Their expertise will facilitate the establishment of your WLL company with proper guidance at every stage of the company formation.
