LOCAL JOINT VENTURE COMPANY A local JV company must be majority owned by the Qatari partner, who will hold a minimum of 51 per cent of the company. In theory, this also means the company will be controlled by the Qatari partner, who will also take 51 per cent of the profit: but in practice, neither of these is necessarily the case. Business owners may choose to look for a partner with influence (wasta),
who will be involved; or prefer a hands-off partner, normally a company, who will allow them to go about their business as they prefer. Note a local partner is not needed (after an amendment to the law in 2010) when the company is investing in one of the following sectors: Agriculture, industry, healthcare, education and tourism, exploitation and development of natural resources, energy or mining.
BRANCH OF FOREIGN COMPANY A company making substantial investment in Qatar may establish a business entity by ministerial decree. Te company must first be authorised by the Ministry of Economy and Commerce. Tis is done when the Ministry deems the company to be participating in a project which facilitates the development of a public service or utility. Unlike a local JV company, (as described above) the branch requires no Qatari partner. However, a branch is normally wound up at the end of a specific venture.
BRANCH OF A QATAR COMPANY Local companies can establish a subsidiary that can carry out business in Qatar, which can then be run by a foreign company. Te foreign company is then paid a fee or commission. However, this has disadvantages: A foreign company operating under this category loses control over the business name, which is registered locally by the local company. Te business may also be legally vulnerable as it is not a true local entity in legal terms.
COMMERCIAL AGENCY A commercial agency does not establish a direct presence in Qatar.
Instead, a local company can be appointed as an agent to market goods and services in Qatar. Tis is particularly common with retail outlets. Agents must be registered, and are governed by Qatar Agency Law. Te establishment of companies is controlled by Qatar Commercial Companies Law.
QATAR COMMERCIAL COMPANY LAW Te Commercial Companies Law 2002 covers establishment, structure
and governance of private businesses in Qatar. While there are several types of companies which can be formed under the 2002 Act, private and public limited liability companies are perhaps
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