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A Subscription letter is a formal agreement where investors commit to buying shares or securities in a company, commonly used in Qatar's private placements and IPO processes. It outlines key investment terms, including the number of shares, price per share, and payment details, serving as a binding contract between the investor and the issuing company.

Under Qatar Financial Markets Authority regulations, these letters play a crucial role in capital raising and must include specific disclosures about investment risks, company information, and subscriber warranties. They help protect both parties by clearly documenting the investment terms and ensuring compliance with local securities laws.

Use a Subscription letter when raising capital through share offerings in Qatar, particularly for private placements, IPOs, or new investment rounds. This document becomes essential once you've identified potential investors and need to formalize their commitment to purchase shares or securities in your company.

The timing aligns with key stages of your capital raising process: after initial investor interest but before finalizing the share transfer. Under QFMA regulations, companies must secure these letters before proceeding with share issuance, making them a crucial step in documenting investor commitments and ensuring regulatory compliance for both parties.

• Basic Share Subscription: Standard version used for straightforward private company investments, covering essential terms like share quantity and price
• IPO Subscription: Specialized format for public offerings under QFMA regulations, including detailed prospectus acknowledgments and public market requirements
• Convertible Note Subscription: Used when the investment converts to equity later, common in Qatar's startup ecosystem
• Institutional Investor Version: Enhanced due diligence sections and sophisticated investor warranties for large-scale investments
• Real Estate Investment Subscription: Tailored for Qatar's property funds and REITs, incorporating specific asset class considerations

• Investment Companies: Issue subscription letters when raising capital, ensuring legal compliance with QFMA regulations
• Individual Investors: Sign these letters to formalize their commitment to purchase shares or securities
• Corporate Legal Teams: Draft and review the letters to protect company interests and ensure regulatory compliance
• Investment Banks: Coordinate the subscription process during IPOs or private placements
• QFMA Officials: Review subscription letters for compliance with securities regulations and market rules
• Company Directors: Approve and execute the letters on behalf of the issuing organization

• Company Details: Gather full legal name, registration number, and authorized signatory information
• Share Information: Calculate exact number of shares, price per share, and total subscription amount
• Investor Details: Collect complete identification and contact information for all subscribing parties
• Payment Terms: Define payment schedule, bank account details, and any installment arrangements
• Regulatory Compliance: Confirm QFMA requirements for your specific offering type
• Risk Disclosures: List all material risks and investment considerations
• Internal Approvals: Secure necessary board or shareholder approvals before finalizing

• Identification Details: Full legal names and addresses of both issuing company and subscriber
• Share Specifics: Precise number, class, and price of shares being subscribed
• Payment Terms: Clear payment schedule, method, and bank account details
• Subscriber Warranties: Declarations about investor status and investment understanding
• Risk Disclosures: Comprehensive list of investment risks as per QFMA requirements
• Governing Law: Explicit statement of Qatar law application and jurisdiction
• Execution Block: Proper signature spaces with witness requirements
• Regulatory Compliance: References to relevant QFMA regulations and requirements

A Subscription letter differs significantly from an Engagement Letter in both purpose and legal effect. While both documents formalize commitments, they serve distinct functions in Qatar's business environment.

• Primary Purpose: Subscription letters specifically commit to purchasing shares or securities, while Engagement letters establish professional service relationships
• Legal Framework: Subscription letters fall under QFMA securities regulations, whereas Engagement letters operate under general contract law
• Financial Commitment: Subscription letters involve direct capital investment with specific share quantities and prices; Engagement letters typically outline service fees and scope
• Required Elements: Subscription letters must include detailed share information and investor warranties; Engagement letters focus on service terms and deliverables
• Regulatory Oversight: Subscription letters require stricter regulatory compliance and often need QFMA approval; Engagement letters have more flexible requirements