Company Agreement for Qatar

Company Agreement Template for Qatar

A comprehensive legal document governed by Qatar law that establishes the framework for a company's formation, operation, and governance. This agreement outlines the relationships between shareholders, management structure, capital requirements, and operational procedures in accordance with Qatar's Commercial Companies Law (Law No. 11 of 2015). It serves as the foundational document that regulates shareholders' rights and obligations, decision-making processes, share transfer restrictions, and other crucial aspects of company management while ensuring compliance with Qatar's legal requirements and business practices.

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What is a Company Agreement?

The Company Agreement is a fundamental legal document required when establishing a company in Qatar, whether for local or foreign investment purposes. This document is essential for compliance with Qatar's Commercial Companies Law and related regulations, providing the legal framework that governs the relationship between shareholders and the company's operations. It becomes necessary when two or more parties wish to form a company in Qatar, detailing crucial elements such as capital structure, management framework, profit distribution, and decision-making processes. The agreement must align with Qatar's specific legal requirements while accommodating the commercial objectives of the founding parties, making it particularly important for both local and international investors seeking to establish a business presence in Qatar.

What sections should be included in a Company Agreement?

1. Parties: Identifies and provides full details of all shareholders/partners entering into the agreement

2. Background: States the context and purpose for establishing the company

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Company Formation: Details of company establishment, including type, name, and registration requirements

5. Business Purpose: Clearly defines the authorized business activities of the company

6. Capital Structure: Specifies the company's capital, share distribution, and payment terms

7. Shareholders' Rights and Obligations: Outlines rights, responsibilities, and obligations of shareholders

8. Management Structure: Details the management framework, including board composition and authority

9. General Assembly: Procedures for shareholder meetings and voting requirements

10. Financial Matters: Covers financial management, accounts, auditing, and profit distribution

11. Share Transfer Restrictions: Rules governing the transfer of shares and pre-emptive rights

12. Term and Termination: Duration of the agreement and circumstances for termination

13. Confidentiality: Provisions protecting company and shareholder confidential information

14. Governing Law and Jurisdiction: Confirms Qatar law governance and dispute resolution mechanisms

What sections are optional to include in a Company Agreement?

1. Tag-Along Rights: Include when minority shareholder protection is required for share sales

2. Drag-Along Rights: Include when majority shareholders need power to force minority participation in sale

3. Non-Competition: Include when restrictions on shareholders' competing activities are needed

4. Intellectual Property Rights: Include when the company will own or develop significant IP

5. Islamic Finance Compliance: Include when the company needs to ensure Shariah compliance

6. Foreign Investment Provisions: Include when there are foreign shareholders

7. Emergency Funding: Include when addressing potential future capital requirements

8. Exit Strategy: Include when specific exit mechanisms need to be pre-agreed

What schedules should be included in a Company Agreement?

1. Schedule 1 - Details of Shareholders: Complete information about shareholders including contact details and shareholding

2. Schedule 2 - Share Capital and Distribution: Detailed breakdown of share capital, classes, and allocation

3. Schedule 3 - Business Plan: Initial business plan and strategic objectives

4. Schedule 4 - Board Matters: Detailed procedures for board meetings and reserved matters

5. Schedule 5 - Company Management Structure: Organizational chart and management responsibilities

6. Schedule 6 - Deed of Adherence: Template for new shareholders joining the company

7. Schedule 7 - Initial Budget: First-year operational budget and financial projections

8. Appendix A - Company Articles of Association: Copy of the company's articles of association

9. Appendix B - Shareholder Resolutions: Required shareholder resolutions for company establishment

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

Financial Services

Real Estate

Manufacturing

Technology

Retail

Professional Services

Construction

Healthcare

Education

Hospitality

Energy

Transportation

Trading

Consulting

Media and Entertainment

Relevant Teams

Legal

Corporate Governance

Compliance

Finance

Corporate Affairs

Business Development

Risk Management

Board Secretariat

Investment

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Legal Officer

Legal Director

Corporate Lawyer

Company Secretary

Chief Financial Officer

Business Development Director

Corporate Governance Officer

Compliance Manager

Board Director

Managing Director

Investment Manager

General Counsel

Legal Counsel

Commercial Director

Industries
Law No. 11 of 2015 (Commercial Companies Law): The primary legislation governing the establishment, operation, and dissolution of companies in Qatar. It defines different types of companies, corporate governance requirements, and shareholders' rights and obligations.
Law No. 22 of 2004 (Civil Code): Provides the general principles of contract law in Qatar, including formation, validity, and enforcement of contracts, which are fundamental to company agreements.
Law No. 27 of 2006 (Commercial Code): Regulates commercial transactions and business activities in Qatar, including provisions relevant to company operations and commercial relationships.
Law No. 1 of 2019 (Foreign Investment Law): Regulates foreign investment in Qatar, including provisions for foreign ownership of companies and related restrictions or requirements.
Law No. 24 of 2018 (Income Tax Law): Outlines the tax obligations and framework for companies operating in Qatar, which should be considered in company structuring.
Qatar Financial Centre (QFC) Law No. 7 of 2005: If the company will operate within the QFC, this law provides the legal framework for establishment and operation within this special economic zone.
Law No. 34 of 2005 (Free Zones Law): If the company will operate in a free zone, this law governs the establishment and operation of companies within Qatar's free zones.
Labor Law No. 14 of 2004: Governs employment relationships and must be considered for provisions related to employees and management in the company agreement.
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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