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Main Page / Legislations / Law No. 5 of 2002, promulgating the Law of Commercial Companies / Part 1 / General Provisions
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Law No. 5 of 2002, promulgating the Law of Commercial Companies

Law Summary Record Type: LawNumber: 5Date: 25/05/2002 Corresponding to 14/03/1423 HijriNumber of Articles: 348Status: In force
Official Gazette :Issue: 7Offcial Journal Issue Publication Date: 03/08/2002 Corresponding to 25/05/1423 HijriPage from: 17
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General Provisions

  • 1 Article - Amended

     In the application of the provisions of the present law, unless the context requires otherwise, the words and expressions set forth below shall bear themeaning assigned to each of them:
     
    “Ministry” means the Ministry of Business and Commerce;
    “Minister” means the Minister of Business and Commerce;
    “Competent Department” means the relevant Department at the Ministry.
    “Memorandum of the Company” means the Memorandum of Association of the company.
    “Public Claim” means the criminal claim.

  • 2 Article - Amended

     A commercial company is a contract in terms whereof two or more natural or juristic persons agree to participate in a project for the purpose of making a profit, by contributing in money or in kind to share the profits and losses of such project in agreed proportions.
    The company may be constituted by one person in accordance with the provisions of Part Seven (as herein repeated) of this Law.

  • 3 Article

     Every company incorporated in Qatar shall hold the Qatari nationality. Such company shall have its principal office in Qatar and shall not automaticallybe entitled to privileges legally reserved for Qatari nationals.

  • 4 Article - Amended

     Every company incorporated in the State of Qatar shall take one of the following forms:
    1. General partnership
    2. Limited partnership
    3. Joint venture company/Particular Partnership
    4. Joint stock company/shareholding company
    5. Equities Partnership
    6. Limited liability company
    7. Sole proprietorship
    8. Holding company

  • 5 Article

     Any company that does not take on the forms referred to in the preceding Article shall be deemed null and void, and any person who enters into a contract on behalf of such company shall be severallyand jointly liable for the obligations arising therefrom.

  • 6 Article

     Save as for a joint venture company, the Memorandum of Association and any amendment thereto shall be drawn up in Arabic and shall be attested by the Notary Public, otherwise the said Memorandum or its amendment shall be null and void.

  • 7 Article

     Partners may invoke nullity arising from failure to provide dully written or formalized Memorandum against each other, but no protest thereby may be admitted against third parties who may protest against the partners on the basis of such nullity.

  • 8 Article

     Save as for a joint venture company, no company shall enjoy corporate personality unless registered in accordance with the provisions of this Law. The managers or Board members of such company shall be, mutatis mutandis jointly liable for all the damages suffered by third parties due to the non-registration of such company.

  • 9 Article

     The share of a partner in a company may consist of a specified amount of fund (cash share) or may be made in kind (material assets) to serve the objects of the company. Such a share may take the form of work performance, provided that the share of a partner shall not be constituted by the reputation or the influence of such partner. The company's capital shall exclusively comprise cash and corporeal shares.
     

  • 10 Article

     Where the share of a partner comprises a title or any other corporeal right, such partner shall, in accordance with the applied regulations in respect of sale agreement, be liable to the guarantee of such a share in case of amortisation or maturity or in the event of an evident flow or shortage therein.
     
    In the event of a share being based merely on utilization of property the applicable regulations in respect of rent agreements shall apply to matters referred to in the preceding paragraph.
    Unless otherwise agreed, where a partner's share involved entitlements with third parties, such partner's liability towards the company shall be absolved only upon the settlement of these entitlements.
    Unless otherwise agreed, where a partner's share is composed of efforts, then the profits arising from such efforts shall be the company's right unless such profits are achieved by virtue of a patent certificated.
    A partner whose share is performance of work shall not perform the same work for his own account.

  • 11 Article

     Each partner shall be indebted to the company for the share pledged by himself and
    unless settled on due dates, default partners shall indemnify the company against damages caused by such delay.

  • 12 Article

     No personal creditor may acquire his entitlements from the debtor's share in the company capital. However, such creditor may receive his entitlements from the dividends accrued to his debtor in accordance to the balance sheet of the company. If the company is dissolved, the creditor's entitlements shall be transferred to the share of his debtor in the surplus balance of the company's property after payment of the company debts.
    Where the partner's share comprises stocks, his personal creditor may, in addition to the entitlements referred to in the preceding paragraph, request the sale of these stocks to satisfy his entitlements from the sale proceeds.

  • 13 Article

     The Memorandum of Associationmay not include any provision that deprives a partner of the profit or relieveshim from the loss; otherwise, such contract shall be deemed null and void. However, it may be stipulated that partners contributing only with efforts, shall be exempted from the loss.

  • 14 Article

     Where a partner's share in profit or loss is not specified in the Memorandum of
    Association, his share thereof shall be prorate to his share capital. Where a Memorandum determines the partner's share in profits only, his share in loss shall be equal to his share in profits. The same ruling shall also apply if only the partner's share in loss was determined in the Memorandum.
     
    Where a partner's share is limited to his efforts, and the Memorandum of Association have not fixed his share in the profit or loss, the company shall assess his work and such assessment shall be the basis for determining his share in the profit or loss in accordance to the aforementioned provisions. Where more than one partner contributes by their effort without assessment of their shares, such shares shall be deemed of equal value, unless proven otherwise. Where, in addition to his efforts, a partner' contribution is made in cash or in corporeal shares, he shall be entitled to a share in the profit or in the loss in consideration of his efforts, and to another share against his cash or corporeal share.

  • 15 Article

     Fictitious profits may not be distributed to the partners, otherwise the company's creditors may claim from every partner to reimburse the amounts he so received even in good faith. The partner may not be obliged to reimburse the real profits that he has received, notwithstanding that the company might incur a loss in subsequent years.

  • 16 Article

     All the contracts, correspondences, discharges and notices and other documents issued by the company shall bear its name and a statement of kind, head office and its serial registration number in the Commercial Register.
    In addition to these particulars, save as for general partnerships and limited partnerships, the company's capital and the paid-up amount thereof shall be indicated. Where a company is in liquidation, such fact shall be stated in the papers issued thereby.

  • 17 Article - Amended

     Notwithstanding the provisions pertaining to the incorporation of companies, the provisions of the present Law shall apply to foreign companies that operate their activities in the State.

  • 18 Article

     Without prejudice to the special provisions of each company, the provisions of this Part shall apply to all companies stipulated herein.

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