Founders Agreement Template for Qatar

A Founders Agreement sets the ground rules when two or more people start a business together in Qatar. It spells out how the founders will split ownership, make decisions, and handle their responsibilities in the company - much like a prenup for business partners.

Under Qatari commercial law, this vital document helps prevent future disputes by clearly defining each founder's roles, capital contributions, and profit-sharing arrangements. It also outlines what happens if someone wants to leave or sell their stake, protecting both the business and its founding members from potential conflicts that could disrupt operations.

Create a Founders Agreement right when you start planning your business venture in Qatar - before money changes hands or work begins. This early clarity prevents misunderstandings about ownership, decision-making authority, and profit distribution that often emerge once a business starts growing.

The agreement becomes especially crucial when bringing on co-founders with different skills, investment levels, or time commitments. For example, if one founder provides funding while another handles operations, or when founding teams include both Qatari nationals and foreign partners, having clear terms from day one helps navigate Qatar's commercial regulations and protects everyone's interests.

• Basic Founders Agreement: Covers essential elements like ownership splits, roles, and basic decision-making - ideal for simple partnerships and small startups in Qatar
• Comprehensive Founders Agreement: Includes detailed provisions for intellectual property, non-compete clauses, and exit strategies - suited for tech companies or complex ventures
• Staged Founders Agreement: Structures ownership and control based on milestone achievements, commonly used when founders contribute different resources over time
• Industry-Specific Agreement: Tailored for sectors like technology, retail, or professional services, incorporating relevant Qatari regulatory requirements

• Co-Founders: The primary parties who sign and are bound by the Founders Agreement, including both Qatari nationals and foreign partners establishing the business
• Legal Counsel: Qatari-licensed attorneys who draft and review the agreement to ensure compliance with local commercial laws
• Business Advisors: Financial and strategic consultants who help structure ownership stakes and profit-sharing arrangements
• Company Secretary: Maintains official records and ensures the agreement aligns with corporate governance requirements
• Ministry Officials: Government representatives who may review the agreement during business registration or licensing

• Basic Information: Gather each founder's personal details, professional background, and planned roles in the business
• Capital Structure: Document initial investments, both monetary and in-kind contributions from each founder
• Business Plan: Outline the company's objectives, proposed structure, and anticipated operational model
• Ownership Division: Determine equity splits, vesting schedules, and any performance-based ownership adjustments
• Decision Framework: Define voting rights, management responsibilities, and key decision thresholds
• Exit Strategy: Plan scenarios for founder departures, company sale, or dissolution under Qatari law

• Identification Details: Full legal names and contact information of all founders, plus business name and registration details
• Capital Structure: Initial investments, equity distribution, and future funding commitments in compliance with Qatar Commercial Law
• Management Rights: Decision-making authority, voting thresholds, and board composition requirements
• Profit Distribution: Clear formula for sharing profits and losses among founders
• Non-Compete Terms: Geographic and time-bound restrictions following Qatari labor laws
• Dispute Resolution: Specific mediation and arbitration procedures under Qatar jurisdiction
• Exit Mechanisms: Share transfer restrictions and buyout procedures aligned with local regulations

A Founders Agreement differs significantly from a Business Acquisition Agreement in Qatar's legal framework. While both documents deal with business ownership, their timing and purpose are quite distinct.

• Timing and Purpose: Founders Agreements establish initial relationships when starting a new business, while Business Acquisition Agreement handles the transfer of an existing business
• Parties Involved: Founders Agreements bind co-founders creating something new together, whereas acquisition agreements involve buyers and sellers of established businesses
• Scope of Terms: Founders Agreements focus on future collaboration, roles, and equity distribution, while acquisition agreements detail asset valuation, transfer terms, and existing liabilities
• Legal Requirements: Under Qatari law, Founders Agreements need alignment with company formation rules, while acquisition agreements must address business transfer regulations and due diligence requirements