Qatar: The Corporate Veil
Type
E-journal
Date
12 Apr 2016
Jurisdiction
Qatar
Taxonomy
General Company Law & Business Entities
Copyright
LexisNexis
Relevant company
Clyde & Co
Legal reference
Article 298 of Qatar Law No. 11/2015
Analysis
The General Principle The majority of the commercial businesses currently operating in Qatar, whether wholly owned by Qatari nationals and/or by Qatari nationals in joint venture with foreign investors, are registered with limited liability and referred to as limited liability companies (LLC) in accordance with the provisions of Qatar Law No 11/2015 (Companies Law).
LLCs have traditionally been seen as a safe option by investors on the basis of the general principle of the "corporate veil", a legal concept which separates the personality of the LLC from the personalities of its investors. Investors rely on this concept to limit their liability to the amount each has invested in the LLC. In exceptional circumstances however, generally involving fraud, the corporate veil may be "lifted" or "pierced" in order to directly access the investors.