One or more persons may apply for incorporation of a limited liability company (LLC) under the provisions of the QFC Companies Regulations for the purpose of carrying on a business of the kind permitted by the QFC Law.
In addition to the normal LLCs, the following types of companies are also basically incorporated as LLCs, with varying features and requirements in accordance with the provisions of the respective regulations and rules:
Special Purpose Companies (SPCs)
SPCs are incorporated under the provisions of the QFC Special Company Regulations read in conjunction with QFC Companies Regulations. A QFC SPC can be used to obtain financing for a specific purpose while limiting shareholders’ risk or to place assets in a structure where they can be easily managed and protected. SPCs may also hold assets/property on behalf of third parties whether on trust or otherwise. SPCs can be structured in both conventional and Sharia compliant forms and the license regime for SPCs covers any type of securitization or other capital market transaction.
Holding Companies are incorporated under the provisions of the QFC Special Company Regulations read in conjunction with QFC Companies Regulations. A QFC Holding Company can perform a variety of activities including raising finance, providing security or guarantees, managing or ring-fencing risk, acquisition and commercially driven restructurings, holding and divesting assets.
Single Family Offices (SFOs)
SFOs are incorporated under the provisions of the QFC Single Family Office Regulations read in conjunction with QFC Companies Regulations. A SFO manages business, investments and wealth of a high net worth “Single Family”. A “Single Family” is a family made up of a group of individuals all of whom are the bloodline descendants of a common ancestor or their spouses (including widows and widowers, whether or not remarried).
A SFO must have a minimum investable or liquid assets (assets which are realisable in a 180-day period) of US$5 million.
Investment Clubs (LLC(IC)s)
LLC(IC)s are incorporated under the provisions of the QFC Investment Clubs Regulations read in conjunction with QFC Companies Regulations. A LLC(IC) is a simple legal entity not subject to the usual level of financial regulation which allows groups of friends to jointly invest, as the Investment Club’s activities are not being conducted “by way of business” (as that term is defined in Article 25 of the QFC Financial Services Regulations).
An LLC(IC) must have a minimum of two and a maximum of fifteen Members (natural persons or a body corporates of any nationality). An LLC(IC) pools contributions of its Members for investment in assets and securities, monitors and reviews the performance of the portfolio of the LLC(IC) and enables Members to make recommendations at the periodic Members’ meetings about the portfolio.
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