Qatar’s Ministry of Commerce and Industry (“MoCI”) has detailed the legal procedures applicable to companies found to be in breach of statutory provisions or their implementing regulations, emphasising that penalties may reach up to QR 1 million, in addition to daily fines of up to QR 10,000 for continuing violations.
In a recently issued infographic, the MoCI explained that where a company violates the relevant provisions of a law or its implementing regulations, any partner holding more than 10 percent of the company’s capital is entitled to submit a formal request to the MoCI seeking an inspection.
Upon receipt of such a request, the competent authority in the MoCI will initiate the enforcement process by notifying the alleged violator and investigating the reported breach. The notified party is required to appear before the MoCI within a specified period.
If the violator fails to appear within the specified timeframe, the authority will schedule a further appointment and issue a second notification. Continued failure to appear may result in disciplinary action pursuant to the law.
The disciplinary measures available to the MoCI include:
- Issuance of a formal warning;
- Reprimand;
- Temporary prohibition from serving as a board member or company manager for a defined period;
- Imposition of a daily financial penalty not exceeding QR 10,000 for ongoing violations; and
- Imposition of a financial fine not exceeding QR 1,000,000.
The MoCI confirmed that the company concerned will be formally notified of any disciplinary decision. In certain cases, the decision may also be published through appropriate official channels.
The MoCI also called upon company founders, partners, and stakeholders to ensure full compliance with applicable legal and regulatory requirements, emphasising that adherence to the law is essential to safeguarding commercial activity and fostering a fair, transparent, and competitive business environment.
