Regarding Partnership Law in Qatar
By erik.fuerte •
Hi guys! I just want to be clarified regarding the partnership law here in qatar. For instance, the Company has a QR5,000,000 total assets, is there any requirement from the law regarding the amount of capital that should be set-up as Invested Capital?
Thanks guys!!
There can be establishment company-100% one Qatari onwer, no limitation on the capital or any tax, no need to submit audited accounts etc. Other is WLL company, where in min 51% stake has to be held by the Qatari partners and balance max upto 49% can be by foreign nationals, for these companies we has to pay income tax based on the audited annual report,for the income of the foreign partners. The minimum investment requirement for a WLL company is QAR 200,000/- it can go above it to any extent. for WLL companies there is a practice to having Qatari partner as a sponsor who will legally hold 51% stake for registration but full actual investment and management by the foreign partners,for this service partners agree to pay the Qatari partner/sponsor a fixed amount per month regardless the business or a percentage of the total turnover, or any other suitable agreement they can reach, but while selecting this sponsor the partners should do a proper study of the situations and reputation of the sponsor as legally he hold min 51% of company stake and he can technically claim it anytime to be his, there are cases like that also happened, it depends on the person,relationships,sponsorship fees agreement etc.
halo friend
pls call my friend lawyer mustafa at 6816721.and refer my name syed to him .he will help you and guide you easily.
And to my knowledge, minimum capital is QR200,000/
But I am not sure if there are changes made recently.
Basically, it is necessary to register a company to conduct business in Qatar. And Non-Qatari nationals are not permitted to own businesses and must have a Qatari owner who must own at least 51% of the company. The 51/49 % arrangement where the local (Qatari) partner must hold a minimum of 51% of the shares in the business. The foreign partner frequently runs the business while the local partner contributes with administration and support in the market.
List of Business Laws are as follows:
Law No. 13 of 2000: Qatar’s Investment Law Regulating the Investment of Foreign Capital in Economic Activities.
Decree Law No.(31) of 2004 on Amendment of some provisions of Law No.(13) of the year 2000 on Organization of Foreign Capital Investment in Economic Activities
Law No.(2) of 2005 on the amendment of some provisions of law No.13 of 2000 on Organization of Foreign Capital Investment in the economic activities.
Law No. (5) of 2002 Commercial Companies Law
Law No (8) of 2002 on Organization of Business of Commercial Agents
Law No. 7 of 2002: Law on the Protection of Copyright and neighbouring rights
Law No. 9 of 2002: Law on Trademarks, Commercial Indications, Trade Names, Geographical Indications and Industrial Designs.
Law No. 30 of 2004 Regulating Control of Accounts
Law No. 5 of 2005 on Protection of Secrets of Trade
Hope it helps :)