Business partnerships can be tricky, but with Afreno acting as your nominee local partner, we can successfully forge a fruitful new partnership that fully complies with the 2015 State of Qatar Companies Law no. 11. This law requires that a Qatari citizen should be able to hold a minimum of 51% of a certain company’s shares. As such, you will still be in control of your own business operations, but you will have our expert team of consultants and administrative assistants to help you minimize your risks and provide you with quality service when it comes to company registrations, filing corporate requirements, and interacting with various branches of the government. The same is true for a General Partnership (with 2 general partners) or a Limited Partnership (with 1 general partner and 1 limited partner) as well.
With Afreno acting as your Principal Representative, you can rest assured that we’ve got you covered when you register to set up a branch with the Qatar Financial Centre (QFC). We can also be your senior executive (SEF) as mandatory by the QFC for any company licensed here. As your Services Support Provider (SSP), we can help you with various tasks and requirements through our parent entity, Afreno WLL.
Frequently Asked Questions
What is the purpose of a nominee partner?
Nominee accounts can act on your behalf, for instance, in holding stocks. This reduces risks and costs, increasing efficiency overall in operations.
How do silent partners work?
As stated in formal agreement in writing, silent partners contribute to investments financially but not in operational tasks.
What are the liabilities of silent partners?
Their liabilities are limited to the amount invested in the capital and creation of the business.
Can silent partners buy out ownership?
Yes. This must be included in the terms for buying out the ownership. Terms for dissolution must also be defined.
What is an equity partner?
At the time of the creation of the partnership, equity partners must have already contributed.
What is a salaried partner?
A salaried partner does not contribute to the partnership. The gai here is based on annual compensation and bonuses.
Why should I have different types of partners anyway?
Potential partners always have various benefits in getting your company off the ground. Partners have pros and cons depending on their roles, their involvement, their liabilities, and their contribution to your business.
Why should I have a local partner in Qatar?
The 2015 State of Qatar Companies Law no. 11. requires that a Qatari citizen should be able to hold a minimum of 51% of a certain company’s shares.
What if I set up a branch in the Qatar Financial Centre?
Afreno can act as your Principal Representative with the foreign branch to minimize risks.
Why should I trust Afreno?
We have been in the business with years and years of solid first-hand experience, helping you set up your business and guiding you through all the requirements and legal intricacies to set you up for success.
Nominee Local Partner
What is a nominee local partner? When we talk about a nominee, this is a person or a firm where properties or securities are transferred to so that it can facilitate transactions without being the actual owner. For instance, a nominee account means that a stockbroker has the authority to hold shares of clients. Your nominee will be a third party who holds your investments, but you retain control of the actual shares. You are the one who holds real ownership as the beneficiary, and while brokers can buy and sell shares on your behalf, creditors cannot go after you if things go south.
Because this nominee is entrusted with a significant amount of responsibility like safekeeping the securities of investors, you must be sure that your nominee local partner can be fully trusted, and preferably one who has had long-standing relationships with the necessary bodies of government as well as a solid reputation spanning decades of good customer service.
The role of a silent partner is merely to provide capital to a business and is limited to that only, without any operational involvement. This individual cannot participate in general management meetings, nor can he or she be involved in daily operations. This can also be called a limited partner, with his liability limited to the amount invested in the business.
Despite being uninvolved in day-to-day tasks, the silent partner can be consulted when the owners need solicited guidance in developing and growing the business or the market. He or she can also step in to mediate when disputes arise among other partners in the firm. Even if silent partners do not directly involve themselves in the business operations, he or she must still have management styles and corporate visions aligned and compatible with the other partners. This partnership must also be clearly stated in a formal legal agreement in writing.
All partners in a business partnership share in both the benefits and the drawbacks of the partnership according to legal terms. The partnership agreement must clearly state and define what each partner’s responsibilities are, how these partners will be paid accordingly, and how to handle the different partnership conditions in the business. Managing partners or administrative partners are responsible for handling the partnership overall, which includes legal functions, human resources functions, and day-to-day legal functions. They can act on behalf of the other partners as defined in the agreement.
Of course, the increased responsibilities of a managing partner also include increased liabilities, which can mean that if a managing partner signs legal documents, he or she will be held responsible for any liabilities there. Afreno can help you understand the different types of partnerships and give you the most sound advice as to which one best benefits your firm.
A general partner can be involved in the regular day-to-day operations of the business. He or she is personally responsible for any liabilities as well, while a limited partner takes no part in business operations. He or she is only responsible for the liabilities of the amount invested into the partnership. These limited partners can be called “sleeping partners” at times because of their contributions albeit not involving themselves in daily matters. Both limited partners and general partners have their distributive share that is based on the percentage share of ownership as must be clearly defined in the initial partnership agreement.
While other partners like junior partners, senior partners, and associate partners can also be included, they have varied duties and responsibilities depending on what your business needs the most. Afreno can help you understand the best course of action to take when starting up your business to make it as efficient as possible.
A principal representative can have a wide range of responsibilities in your firm. A principal can also be the CEO, the founder, and the owner, and the representative can have significant responsibilities and decision-making authorities that can greatly impact the company as a whole. A principal representative can manage relationships, represent a company in business dealings and contractor meetings, act on behalf of key persons in the firm, manage client and business foundations, uphold important missions and strategic visions of companies, as well as invest or own the most shares in a company.
The role of the principal varies within every business, but the representative must be fully trusted and professional if he or she is to carry out the tasks handed to him or her by the principal. The principal representative must act in the company’s best interests and be a sort of ambassador for the firm if needed.
Senior Executive Function (SEF)
Overall responsibility is handed to the firm or individual when Senior Executive Function is given. This function can be a sole responsibility or a joint responsibility, which includes conducting the entirety of the business of a fully licensed firm, or operating through a branch in the Qatar Financial Centre if the firm is a non-local licensed firm.
When choosing someone to pass on the Senior Executive Function, the individual who is to carry it out must be a resident in the State of Qatar if it is a Local Licensed Firm, or he or she must be spending an appropriate amount of time in the State of Qatar that is related to the overall responsibilities of that Senior Executive Function. This is in the case of a Non-Local Licensed Firm. Because the SEF is not to be taken lightly, you must choose a trusted partner to offer the SEF to in your business.