Change of Company Ownership in Qatar: How to Add or Remove Partners and Convert to a Foreign-Owned LLC
Including adding new partners, removing existing shareholders, and converting an existing Qatari company into a foreign-owned LLC.
Whether you are planning to restructure your company for investment, compliance, or expansion, our legal and corporate experts ensure a smooth and fully compliant ownership change process approved by the Ministry of Commerce & Industry (MOCI).
Understanding Company Ownership Change in Qatar
A Limited Liability Company (LLC) is the most common business structure in Qatar. Ownership is divided among partners (shareholders), and any change — such as adding or removing a partner or transferring shares to a foreign company — must be legally registered and approved by the authorities.
With the Foreign Investment Law, Qatar now allows 100% foreign ownership in many business sectors, creating new opportunities for international investors.
1. Adding a New Partner in a Qatar LLC
When your business welcomes a new investor or strategic partner, the process involves updating your company’s shareholding and legal records.
Steps:
Partner Resolution – All existing partners approve the addition of the new investor.
Share Sale Agreement (SPA) – A notarized agreement defining the transfer or allocation of shares.
Amendment of Articles of Association (AOA) – To reflect the new ownership and management structure.
MOCI Approval – Submit all updated documents for approval and registration.
Update CR, Trade License, and Computer Card – Reflecting the new ownership officially.
2. Removing an Existing Partner
A partner can be removed voluntarily or through a share transfer to another partner or new shareholder.
Steps:
Share Transfer Deed – Document the sale or resignation of shares by the outgoing partner.
Legal Documentation – Amend the company’s AOA and MOA.
MOCI Notarization – Authenticate all amendments and share transfer documents.
Official Updates – Reflect the new ownership on the Commercial Registration (CR), Trade License, and Immigration Card.
3. Changing Ownership from an Individual to a Foreign Company
When a foreign company acquires an existing Qatari business or replaces an individual shareholder, additional attestation and regulatory steps are required.
Steps:
Due Diligence and Valuation – Assess financials, assets, and liabilities.
Share Sale Agreement (SPA) – Formal contract between the local owner and the foreign company.
Corporate Document Legalization – The foreign company’s documents (Certificate of Incorporation, Board Resolution, Power of Attorney) must be attested by:
Ministry of Foreign Affairs (home country)
Qatari Embassy abroad
Ministry of Foreign Affairs in Qatar
Amend Company Articles – Include the new corporate shareholder.
MOCI & CR Update – Complete ownership registration and approval process.
Bank and Immigration Updates – Reflect the new authorized signatories and company details.
4. Key Documents Required
Company’s Commercial Registration (CR)
Trade License and Computer Card
Partner IDs and Passports
Updated MOA / AOA
Share Sale & Transfer Agreement
Corporate Documents (if foreign shareholder involved)
Attested Board Resolution and Power of Attorney
5. Legal and Compliance Considerations
Capital Requirements – Ensure minimum capital as per MOCI guidelines for foreign ownership.
Sectoral Restrictions – Some industries require additional approvals (healthcare, education, contracting, etc.).
Tax & Accounting – Ownership changes may have implications for tax filings and profit distribution.
