Qatar- New law: Ministry holds familiarisation meet

Date

12/11/2015 1:20:59 PM

(MENAFN- The Peninsula) Ministry officials at the familiarisation session.

DOHA: The Ministry of Economy and Commerce organised a session this week to familiarise representatives from limited liability companies in Qatar with the new Commercial Companies Law No 11 of 2015.

This is the sixth out of a series of sessions that are being held by the Ministry in its efforts to shed light on the new law. The session brought together officials from the Ministry of Economy and Commerce Qatar University Qatar Central Bank as well as representatives from limited liability companies.

The session highlighted the new law’s role in reinforcing Qatar’s economic competitiveness and boosting investments. Limited liability company reps exchanged views with officials from the Ministry of Economy and Commerce who in turn responded to their queries. The session addressed the improvements and benefits that will come into effect as a result of applying the new law with regard to limited liability companies; a business structure that is favored among Qatari businessmen.

Moreover the session touched on provisions of the new Commercial Companies Law and conveyed the required legal actions to be taken by limited liability companies so as to adjust their positions in accordance with the new law.

The session provided participants with a definition of limited liability companies: a limited liability company is a business structure that involves 1 to 50 partners; where the liability of its shareholders is directly in proportion to their shareholding influence according to the issued capital of the company.

Furthermore the session revealedthe provisions of the new law with regard to sole proprietorship companies.

The new law makes no distinction between limited liability companies and sole proprietorship companies and considers them one and the same. The new law eliminates minimum capital requirements for the establishment of limited liability companies hence partners are freeto determine their own capital thus encouraging small and medium scale enterprises.

Representatives from limited liability companies said the new law signifies a major leap forward in terms of simplifying business practices in Qatar stating that the new law addresses a number of challenges that existed under the previous law.

They added that the law takes into account technological advancements and encourages public private partnerships praising the Ministry of Economy and Commerce for initiating dialogue with the private sector.

The new law is part of a comprehensive plan by the Ministry to reform legislation and streamline incorporation procedures for companies in a bid to bolster the private sector’s contribution to sustainable development in Qatar.

The law incorporates international standards applied to determine the ranking of countries in terms of the ease of doing business and aims to support investors by establishing a business-friendly environment.It addresses a number of challenges that existed under the previous law.

THE PENINSULA

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