Co Founder Agreement for Qatar

Co Founder Agreement Template for Qatar

A comprehensive legal agreement governed by Qatar law that establishes and regulates the relationship between co-founders of a business venture. This document outlines crucial elements including ownership structure, capital contributions, roles and responsibilities, decision-making processes, and exit mechanisms, all while ensuring compliance with Qatar's Commercial Companies Law and related regulations. The agreement incorporates both civil law principles and, where applicable, Sharia law considerations, making it specifically tailored for the Qatar business environment while providing a robust framework for co-founder collaboration and dispute resolution.

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What is a Co Founder Agreement?

The Co-Founder Agreement serves as a foundational document for business ventures in Qatar, essential for establishing clear terms and conditions between individuals jointly starting a business. This agreement is particularly crucial in Qatar's developing business landscape, where clear documentation of founder relationships is required for regulatory compliance and future investment opportunities. The document addresses key aspects required by Qatar's Commercial Companies Law No. 11 of 2015 and related regulations, including capital contributions, ownership structures, management rights, and dispute resolution mechanisms. It's typically used when two or more individuals decide to establish a business together, whether it's a startup, professional service firm, or traditional business venture, and needs to be in place either before or during the company formation process. The agreement should be drafted to accommodate both local and international founders, considering Qatar's foreign investment laws and requirements for local participation in certain sectors.

What sections should be included in a Co Founder Agreement?

1. Parties: Identification of all co-founders and the company (if already incorporated), including full legal names, addresses, and nationality details as required by Qatar law

2. Background: Context of the agreement, business concept, and purpose of the collaboration

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Company Formation: Details about the company structure, legal form, and registration requirements under Qatar law

5. Capital Contributions: Specification of initial and future capital contributions, including valuation of non-cash contributions

6. Ownership Structure: Distribution of shares/ownership percentages and classes of shares if applicable

7. Roles and Responsibilities: Detailed description of each founder's role, duties, and time commitment

8. Decision Making: Procedures for major business decisions and voting rights

9. Intellectual Property: Assignment and protection of IP rights, including pre-existing IP and new developments

10. Confidentiality: Protection of confidential information and trade secrets

11. Non-Competition: Restrictions on competing activities during and after the relationship

12. Transfer of Shares: Rules and restrictions regarding the transfer of ownership interests

13. Exit Provisions: Procedures for founder exit, including voluntary and involuntary departures

14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

15. Term and Termination: Duration of the agreement and grounds for termination

What sections are optional to include in a Co Founder Agreement?

1. Vesting Schedule: Used when founders' shares are subject to vesting periods, particularly relevant for startups seeking investment

2. Tag-Along Rights: Include when protecting minority founders' rights to join in sale of shares is desired

3. Drag-Along Rights: Include when majority founders may need to force minority participation in a company sale

4. Anti-Dilution Provisions: Include when protecting founders from ownership dilution in future funding rounds

5. Family Succession Rights: Important in Qatar context for family business arrangements

6. External Investment Provisions: Include when anticipating future investment rounds

7. Islamic Finance Compliance: Include when specific Sharia compliance is required

8. Founder Loans: Include when founders are providing loans to the company

9. Preferred Return: Include when certain founders are entitled to preferential returns

10. Good/Bad Leaver Provisions: Include detailed provisions for founder departure scenarios

What schedules should be included in a Co Founder Agreement?

1. Schedule 1: Business Plan: Detailed business plan including market analysis and financial projections

2. Schedule 2: Initial Capital Contributions: Detailed breakdown of each founder's initial contributions (cash and non-cash)

3. Schedule 3: Intellectual Property Register: List of all IP assets brought into or developed for the business

4. Schedule 4: Share Vesting Schedule: Detailed vesting terms and milestone requirements if applicable

5. Schedule 5: Key Performance Indicators: Specific performance metrics for each founder's role

6. Schedule 6: Company Formation Documents: Copies of registration documents and licenses required under Qatar law

7. Schedule 7: Reserved Matters: List of decisions requiring special majority or unanimous consent

8. Appendix A: Shareholders' Contact Details: Complete contact information for all notices under the agreement

9. Appendix B: Company Policies: Key internal policies and procedures

10. Appendix C: Power of Attorney Templates: Standard forms for required powers of attorney under Qatar law

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Qatar

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Technology and Digital Services

Financial Services

Professional Services

Real Estate and Construction

Healthcare and Medical Services

Education and Training

Manufacturing and Industrial

Retail and E-commerce

Media and Entertainment

Food and Beverage

Energy and Utilities

Tourism and Hospitality

Logistics and Transportation

Consulting Services

Sports and Recreation

Relevant Teams

Legal

Corporate Governance

Executive Leadership

Board of Directors

Corporate Secretariat

Compliance

Finance

Business Development

Strategy

Human Resources

Relevant Roles

Chief Executive Officer

Managing Director

Executive Director

Chief Financial Officer

Chief Technology Officer

Chief Operating Officer

General Counsel

Business Development Director

Company Secretary

Legal Director

Corporate Governance Officer

Compliance Manager

Board Member

Managing Partner

Founding Partner

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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