778-Som-Lalit Institute Of Business Management - Gujarat ...

(g) A non-Qatari company working in Qatar under a Qatari government concession
to extract, exploit or manage the State's natural resources is exempt from the
Foreign Investment Law. In exercise this shields all the major oil companies.
(h) A company formed between a non-Qatari entity and the Government or a
Governmental entity (an Article 68 Company) will be subject to special rules.
Company structures
The two forms of vehicle most estimated to be of attention to non-Qatari investors
are Limited Liability Companies (LLCs) and so-called Article 68 Companies. Other
potential legal entities under Qatari law are Limited Partnerships, Particular
Partnerships, Holding Companies, Single Owner Companies and Qatari
Shareholding Companies (QSC), but non-Qatari participation is regulated.
If the non-Qatari investor is allowed to own 100% of the company (by MBT as a
result of investing in certain specified sectors) the single shareholder company can
be used as the vehicle for such investment.
Article 68 Company
Characteristics include:
(a) formed among an investor, which may be non-Qatari, and the Government or a
company in which the Government holds shares in the share capital of a company;
(b) the non-Qatari investor's portion of the company is a matter for negotiation, but
can be greater than 51% subject to Council of Ministers' sanction;
(c) corporate structure is of a "Qatari Shareholding Company with Government
Participation"; and
(d) falls outside the Foreign Investment Law and, to a certain degree, the
Commercial Companies Law.
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