NOTHING TO HIDE

Omar Qouteshat of Sultan Al Abdulla & Partners explains the impact the Qatar Anti-Concealment Law can have when non-Qataris are engaged in commercial activities there.

“In March 2023, Qatar Law No. 3/2023, On Combating the Concealment of Non-Qataris Practicing Commercial, Economic and Professional Activities in Violation of the Law which is known as the Qatar Anticoncealment Law was issued,” states Omar Qouteshat.

”It repealed a previously law of the same name Qatar Law No. 25/2004.”

“This law defines the crime of concealment as permitting a non-Qatari, whether they are a natural or a legal person, to carry out any of the prohibited acts which are listed in this law, and more specifically the acts that are set out in Article 2 and 3 of Qatar Law No. 3/2023, and other relevant provisions,” Qouteshat continues.

Prohibitions And Profit Shares

“According to Qatar Law No. 3/2023, non-Qataris are not entitled to engage in any commercial activities in Qatar unless they are registered or authorised under the regulations governing those practices,” Qouteshat adds.

“Article 2 of Qatar Law No. 3/2023 then stipulates that non-Qataris, whether they are a physical or juristic person, are prohibited from practising or engaging in any unauthorised commercial, economic or professional activities.”

“However, Qatar Law No. 3/2023 goes further by introducing additional penalties for non-Qataris who obtain greater percentages of a company’s profits than those stipulated in that company’s Articles of Association,” Qouteshat explains.

“These measures are designed to prevent non-Qataris from recording a lesser percentage of the company’s profit in order to reduce the tax which is due on those profits.”

“For example, shareholders in a Limited Liability Company can have a different percentage of the profits of that company than the percentage of shares they actually own in the company, and this is permitted,” Qouteshat explains. “However, if the shareholder is a non-Qatari, they must ensure they do not earn a profit percentage which goes beyond the amount which is stipulated in the company’s Articles of Association. “

“In addition, Article 3 of Qatar Law No. 3/2023 prohibits anyone, whether they are a physical or juristic person from assisting a non-Qatari in concealing unauthorised activities,” Qouteshat states.

”This includes enabling a non-Qatari to engage in any commercial, economic or professional activities, or make investments, whether by allowing them to use the concealer’s name, license, commercial or professional record, or in any other way which enables the