Mechanism for establishing and liquidating special companies for the FIFA World Cup Qatar 2022

Mechanism for establishing and liquidating special companies for the FIFA World Cup Qatar 2022

On  27 April 2022 the Minister of Commerce & Industry issued Resolution No. (39) of 2022 Regarding the Mechanism for Registration, Establishment and liquidation of Companies Related to the Hosting of the Events Related to the FIFA World Cup Qatar 2022 (the “Resolution”). The Resolution sets the process codified in Article (23) of the Enabling Law which affords FIFA and other specific entities responsible for delivering  aspects of the FIFA World Cup Qatar 2022 (“Competition”) with the right to establish a presence in the State of Qatar under an applicable regime with 100% foreign capital. While this is consistent with existing laws, the exemption afforded is limited to activities related to the Competition and the presence of such companies is to expire upon the laps of  ninety (90) days after the end of the Competition Period, unless those companies have sought to change their status or in case the Council of Ministers extends the said period based on a request from the Supreme Committee.

Consequently, the Minister of Commerce & Industry issued the Resolution to set out the process and procedures for establishing and liquidating those companies that will be established solely for the purpose of carrying an activity required to the hosting of the Competition and related events.

Process for establishing companies

The Resolution notably refers to an expedited process of registration which is one day from receipt of a completed application.The application must be submitted to the Relevant Department at the Ministry Commerce & Industry accompanied with the following supporting documents:

  • Copy of the letter from FIFA or the applicant company identifying the classification of the applicant in accordance with Article (23) of the Enabling.
  • Copy of the applicant’s establishment documents including the current Articles of Association attested in the country where the applicant founder’s headquarters is located.

An attested power of attorney from the founder designating a representative to complete the establishment process.

Notably, the applicant can be exempt from the attestation requirement provided that FIFA or  FIFA World Cup Qatar 2022 LLC (“Q22”) which is the company in charge of delivering the operational aspects of the Competition, submits a letter to the Relevant Department requesting such exemption. Moreover, the documents can be submitted in any language and the Relevant Department reserves the right to request an Arabic translation if needed.

Process for liquidating companies

The exemptions afforded to companies pursuant to the Enabling Law and the Resolution only allows these companies to remain in operation for the Competition Period which is defined as the period starting from 10 days before the first match and 5 days after the final match played.  Consequently, those companies shall automatically be deregistered at the lapse of 90 days after the end of the Competition Period. Further, such companies can be liquidated based on a request submitted to the Relevant Department accompanied with the following documents:

  • A copy of the audited financial statements from the date of establishment until the date of liquidation.
  • A copy of the no objection letter issued from the General Tax Authority.
  • A letter confirming that the company has settled  all its employees’ entitlements.
  • An attested letter from the founding company undertaking to settle all of the companies’ liabilities in the State of Qatar.

Further to the submission of the liquidation application, the relevant company must also undertake to publish an advertisement in two local newspapers declaring its intent to liquidate on the day following the submission of the liquidation application. Such advertisement much include information about the founding company and the liquidation date.

The above simplified process for establishment and liquidation afforded by the State of Qatar to FIFA and FIFA related companies fulfills Qatar’s obligation towards FIFA and demonstrate a high level of flexibility afforded to companies supporting the Competition in order to successfully deliver the World Cup in Qatar.

Key Contact

Salman Al-Ansari                                                 Khadeja Al-Zarraa

Partner                                                                Senior Associate

salansari@alansarilaw.com                                kalzarraa@alansarilaw.com

About Al-Ansari & Associates

Al-Ansari & Associates is a leading law firm based in Doha, the State of Qatar. Being the fastest growing firm in the State of Qatar, we are proud to have supported both local and international clients with multi jurisdictional qualified lawyers. The firm's practice is focused on core areas such as corporate and commercial, Banking and Finance, regulatory and compliance, Labour and Employment, TMT, Intellectual Property and Copyright, Real Estate and Contraction, Energy and Natural Resources, Transport and Infrastructure and Dispute Resolution. Al-Ansari & Associates provides its clients legal expertise with international standards.

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