For the most part, companies entering the Qatar market will form a Limited Liability Company – LLC. The Foreign Investment Law is that Investors/ Non Qatari nationality, may invest only through the medium of a joint venture company incorporated in Qatar, in which one or more Qatari nationality or 100% Qatari nationality owned entities, hold no less than 51% of the share capital. The foreign investors can therefore, not own more than 49%*. These joint venture companies with Qatari partners are allowed in all business sectors of the economy excluding commercial agencies and real estate.
The minimum share capital, in order to obtain the commercial registration was QAR 200 000, this has been recently amended as a result of the new Companies Law, No. 11 of 2015, currently there is no set limit for the share capital deposit. The 51% – 49% relationship does not have to be reflected in the profit share, this can be determined by agreement between the foreign shareholders and their Qatari partners.
When establishing through Venture Partner Qatar, we ensure that agreements are in place that completely protect the foreign investor’s control and profits. In addition, we provide a penalty free exit strategy for the foreign investor.
Clearly, this shareholding relationship dictates that foreign entities wishing to establish themselves in Qatar are extremely cautious about who they choose to partner with, partnering with Venture Partner Qatar, eliminates the need for a protracted search for the ideal Qatari partner.
* GCC Nationals may partner with Qatari partners in Qatar on a 50%-50% share basis