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Find out moreThis Edition of Law Update, From Africa to Asia: Legal Narratives of Change and Continuity, takes you on a journey through dynamic markets.
Africa is undergoing a tech-driven transformation, overcoming regulatory challenges while its startup ecosystem thrives. India’s legal framework is evolving rapidly, keeping pace with its expanding economy and diverse business environment.
We also dive into China’s regulatory shifts, particularly how they are shaping investments in the MENA region, and explore Korea’s innovative global partnerships, which are driving advancements in industries across the UAE and beyond.
Read NowQatar has in place Law No. 25 of 2004 regarding the control over concealment of Non-Qataris’ practise of commercial, economic and professional activities in violation of the Law (“Proxy Law”). The Proxy Law has been amended by Law No. 27 of 2005 and more recently further amended by Law No. 3 of 2023.
Pursuant to the Proxy Law, non-Qataris may not practice any commercial, economic or professional activity except where permitted by law and it is prohibited for any person to assist any non-Qatari by enabling him by any means whatsoever to perform any commercial, economic or professional activity in violation of the Proxy Law.
Under the latest amendment to the Proxy Law, payment of dividend to each party (that is a shareholder in a company) is required to be in accordance with the profit distribution percentage set forth in the memorandum of incorporation of a company. Contravention of the Proxy Law would lead to fines and criminal penalties being imposed and additionally courts can order the closure or suspension of any business activity and confiscation of the goods which is in breach of the Proxy Law, publish the text of the court sentence in newspapers, deport the non-Qatari offender from Qatar and prevent the violator from practicing the activity in Qatar for upto three years from the date of completion or lapse of the penalty. The Qatari and non-Qatari party shall be jointly liable for all fees, taxes and other liabilities resulting from the practice of such activity.
Al Tamimi & Company is well positioned to provide bespoke advice on matters such as identifying key risks in any current shareholder arrangements and agreements vis-à-vis the Proxy Law and how to best resolve such issues.
To learn more about our services and get the latest legal insights from across the Middle East and North Africa region, click on the link below.