Discusses the legal requirements/options for joint venture/licensing in this market.
Last Published: 8/15/2019

The Commercial Companies Law, Law No. 5/2002 (replacing Law No. 11/1981) controls the establishment of all private business concerns in Qatar.  The updated law allows corporate mergers, corporate bonds, and the conversion of corporate partnerships into joint stock companies.

As mentioned above, joint ventures involving foreign partners primarily take the form of limited liability companies.  Generally (see information about Law 1/2019 on foreign ownership), foreign investors may own up to 49% and the Qatari partners no less than 51% of a limited liability concern.  Foreign partners in partnerships organized as limited liability partnerships must pay the full amount of their contribution to authorized financial institutions in cash or in kind prior to the start of operations. These firms are normally required to set aside 10% of their profits each year in a statutory reserve, until it equals 50% of the venture's authorized capital.

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