Email: [email protected]
Phone: (+974) 400 222 09
address Lusail, Zone 69, Jery Al Khail Street (206), Building 45
Email: [email protected]
Phone: (+974) 400 222 09
address Lusail, Zone 69, Jery Al Khail Street (206), Building 45
Commercial companies in Qatar are considered one of the fundamental pillars of the national economy. Their types vary between limited liability companies, general partnerships, joint-stock companies, and others. Each type of company has a legal framework that defines the partners' responsibilities and obligations. One of the critical legal issues faced by investors and business owners is the liability of partners in the event of concealing the type of company—an act that can lead to serious legal consequences for the partners themselves.
In this article, we explore the concept of partners' liability when concealing the type of company, how Qatari law regulates this matter, and key legal recommendations to avoid potential risks.
Concealing the type of company means failing to disclose or deliberately misrepresenting the company’s correct legal form—such as presenting a limited liability company as a general partnership or vice versa, or establishing a fictitious company to evade legal and financial responsibilities. This act is sometimes used to avoid personal liability or to escape debt obligations.
According to Qatari law, the type of company determines the scope of the partners' liability.For example:
Therefore, concealing the type of company or misrepresenting it may lead to partners bearing greater responsibilities than expected or expose them to legal liability.
When the type of company is concealed or manipulated, partners may incur several legal liabilities, including:
Qatar’s Commercial Companies Law No. (11) of 2015 regulates the liability of partners across various types of companies and clearly defines:
The law also penalizes any manipulation of company information or concealment of its legal form and grants creditors or affected parties the right to file lawsuits to establish the personal liability of the partners.
At Al-Hamad Law Firm, we provide specialized legal services in company formation, contract review, and resolving disputes related to partners' liability. We assist our clients in:
Partners' liability in the case of concealing the type of company is a sensitive legal issue that requires a thorough understanding of Qatari law and a commitment to transparency. Compliance with the law and proper disclosure of the company’s legal form protects partners from legal and financial risks and enhances the company's credibility among partners, investors, and creditors.
Al-Hamad Law Firm for Legal Consultancy and Arbitration puts its legal expertise at your service to ensure the establishment and management of your companies in accordance with the highest legal standards in Qatar.