Corporate Sponsorship

Although 100% foreign ownership is now possible in Qatar, some companies setting up in Qatar will need a reliable local partner and having the right local partner is the key to the success of any business in Qatar. Sovereign PPG understand the role that local partners play and our company can become your safe and reliable shareholder. In Qatar, Sovereign PPG's trade name is Venture Partner LLC (VPQ).

What are the Local Partner options in Qatar

As per Companies Law in Qatar, if you wish to set up a LLC, you may still require or wish to maintain a local partner. Sovereign PPG (PPG) Qatar (trading as Venture Partner Qatar – VPQ), as a 100% Qatari owned company, can act as a corporate nominee shareholder in the LLC. Having a corporate rather than individual Qatari partner offers numerous advantages and protections to the foreign investor. The corporate nominee model provides effective 100% control for the 49% shareholder over the day-to-day management of the LLC in Qatar – with full control of Revenue, P&L, staff, IP, assets and provides a clear sale/exit/transfer strategy if required.

Sovereign PPG pride ourselves on providing a transparent and responsive service to our clients. Our aim is to make the company formation process as efficient as possible and to keep you up to date with the process at all times. Our focus is on flexibility and finding positive and practical ways forward. Our aim is to provide the right environment for your business to thrive in this exciting and dynamic market.

If your business requires a local partner or corporate sponsorship because of your business activities, then you can contact Sovereign PPG to discuss your requirements T: +974 (0)44 788 765, M: +974 (0)55 755 358 or email SovPPG@SovereignGroup.com and we would be delighted to assist.

What is the different between and corporate and individual sponsor?

Corporate Sponsor vs Individual Sponsor

When setting up a company in Qatar it is mandatory for a Qatari National to hold a 51% share of the company. However, there are two options for national sponsorship in Qatar; Corporate and Individual:

Considerations	Corporate Sponsor	Individual Sponsor
Signatories	Numerous Signatories - PPG (VPQ)is available at all times to attend legal signings as and when required which avoids any delays.	Individual Signatory - If the Individual Sponsor is unavailable for signings, this can cause delays.
Succession	Succession Protection - In the unfortunate case of death or incapacity of a signatory, this will not effect the company which is sponsored due to VPQ having multiple signatories.	No Protection - In case of the death of an Individual Sponsor, Sharia law takes effect and all items relating to the company will be frozen whilst under probate. The heirs of the deceased will split all assets, which could take time and once an agreement has been made, all legal documents including contracts and agreements will be redone. The entity will be unable to continue with business until this process is complete.
Agreements	Side Agreements – All agreements are with a Corporate Entity and will have a stronger uphold within the law. These agreements are legally binding which protects the foreign shareholders.	With an individual Local Sponsor, side agreements are not as strong and the POA of the local sponsor can revoke them at any time in the case of a dispute.
Number of Sponsorship Control	When dealing with a Corporate Sponsor, the number of clients at one time is controlled as PPG has limitations in place to reduce risk for partners and ensures safety to daily activities.	When dealing with an Individual Sponsor, there is no control over the number of clients at one time therefore if another company under the same Individual Sponsor defaults or has legal issues, this will also effect your business. This includes WPS blocks, labour blocks, court cases and fines.
Exit Clause	PPG offer exit, transfer and sales clauses in our contacts with no penalties due to our Corporate Partners. This allows for your entity to have a clear exit strategy and full control over the Intellectual Property, brand and P&L.	There is no exit clause with an Individual Sponsor therefore, this imposes high risk to the foreign shareholder in the event of a sale, exit or transfer