Qatar: Investment Clubs and Foundations to be Established
- 11/05/201711/12/2019
- by Benjamin Filaferro
Qatar’s Financial Centre has announced it has introduced legislation to allow Investment Clubs and Foundations to be set-up. Foundations will be established under the QFC Foundation Regulations and Rules and will have their own legal personality. Their structure will be flexible and will be able to be used for succession planning, asset protection and employee share plans. Their constitution needs to be provided to the Financial Centre’s Authority but will remain a confidential document. Investment Clubs will be companies limited by shares and will be incorporated under the QFC Investment Clubs Regulations and Rules. To ensure they do not have to be authorised, Investment Clubs should not be carried on ‘by way of business’. They will be able to pool funds by up to 15 members and investing in a portfolio of assets and securities. In certain circumstances, a member will be able to exit by selling their shares back to the Investment Club. The Regulations also provide for the Investment Club’s assets to be valued and for disputes over valuations to be resolved. Both entities will be able to be 100% foreign owned and will be able to trade in the currency of their choice. They may also benefit from unlimited repatriation of profits.