The Employment Contract Conditions

Usually, contracts contain the conditions of employment and sometimes include a detailed job description, indicating responsibilities and performance standards. You should ask for this document to be formalized first you arrive to Qatar, with an official Ministry version in Arabic, or attested to by a notary. It's always preferred to have it as written agreement, while a verbal one is possible.
Contracts in Qatar specifies your basic salary, job title, duties and responsibilities, the period of your contract, and details of the reporting structure and performance measures of the company. it also contains termination conditions, including required notice of intent to terminate the contract on either side and liabilities to be incurred in respect of breaking the conditions of the contract. Your contract might include the phrase ‘employment subject to obtaining the necessary permits’. This is unlikely to present problems, but make sure that you’re able to obtain the required visas, etc. before committing yourself to the move abroad. Contracts are usually published with three copies, one for the employer other for labor and the third kept with the administration.
Note that local labor laws are always applied whether you hold a contract or not.

 

Establishing Business in Qatar ……………………..

Preface

You can find only limited options, but there are a many ways in which strange entities (persons or companies who are not nationals from the State of Qatar) can seek to establish a business in Qatar.
Qatar is a small Gulf States in setting of population & geographical area, but it’s the third largest gas reserves in the world. So there are many chances for investment and establish business in Qatar. Overseas investors are welcomed and various incentives are available to attract foreign capital with break taxes and exemptions from, traditions duty. Foreign businessmen are able to transfer their investments and profits could be repatriated.
Qatar is an attractive market where local facts are key. Here you can find 10 key to consider main points when you are doing business in Qatar.
1. Foreign investment borders
• Foreign investor can only invest in Qatar in accordance with the provisions of the Foreign Investment Law (Law No. (13) Of 2000).
• Foreign investor can invest in all parts of the national economy (other than those set out below) with a Qatari partner who must own at least 51 % of the enterprise.
• Foreign investor can not invest in commercial agencies or, broadly speaking, real estate. Approval from the Council of Ministers is required for overseas investment in banking or Insurance.
• Ministry of Economy and Commerce in Qatar permit foreign nationality to own 49% of a company as share with the company or business sponsor (Qatari Nationality).
• Non Qatari capital is guaranteed against confiscation (even if the state may obtain assets for community benefit on equality basis, provided the full economic assessment of the benefit is paid for the advantage).
• Foreign companies which are performing a specific agreement in Qatar may set up a branch office if the assignment facilitates the concert of a public service or effectiveness.
• Foreign companies operating in Qatar under a Qatari rules special consideration to extract, develop or manage the State’s national resources is excused from the Foreign Investment Law. In perform this covers the oil majors.
• Companies created by a foreign person with the government or a government creature (an Article 68 Company) will be topic to special rules.
2. Deciding the mainly proper business
Starting a Company in Qatar
• A range of freedoms are available to attract foreign investment.
• In almost major cases a Qatari partner (Business’s Sponsor) is required.
Branch agency
• Could be when a foreign company is performing a detailed agreement in Qatar.
• Approved by the Ministry of Economy and Commerce
• Not require for a (Business’s Sponsor) Qatari partner.
• Branch is only entitled to perform the specific agreement for which it is listed.
• Branch will be totally taxable except if it is contracted a special immunity.
Commercial Agency
• Foreign companies did not establish a company in Qatar; instead an agent is agreed to market products and services in Qatar.
• Below the registered agencies, commission is payable on all sales of the products within the country even if the sales are not owed to the activities of the agent.
• It is not easy to stop a registered agency; in addition reward is payable upon the termination of the agency, including upon the expiry of a fixed period for an agency.
Delegate Trade Office
• A new system of establishing a market way in Qatar.
• Can be used to encourage the foreign companies in Qatar and to set up it to Qatari companies.
• Business must be agreed by a foreign entity (where the contract can be performed considerably outside Qatar) or by a company or branch allowed to do business in Qatar.

3. Companies formations
Two forms most expected to be of interest to foreign investors are Limited Liability Companies (LLC) by Article 68 Companies. (Other possible legal entities under Qatari law are the Simple Partnership, the shared Partnership and the Qatari Shareholding Company (QSC) but foreign sharing in these organizations is limited).
Limited Liability Company (LLC)
• Minimum invest QR 200,000
• At least have 51 % Qatari ownership except a release has been obtained.
• The parties’ profit shares don’t essentially have to reflect their shareholdings.
• 10% of each year’s net profits must be reserved within a company awaiting the reserve stands at 50% of the share capital.
• Shares should be only transferred after they have 1st been offered to the other shareholders by way of pre-emption, except if the other shareholders have agreed to surrender their right.
Article 68 Company
• Formed by an investor, which may be foreign, with the Government or a 51 +% Government owned entity.
• The foreign investor’s share of the company is a subject for negotiation but can be greater than 51 %.
• Corporate organization is a Qatari Shareholding Company with Government Participation
4. Commercial Registration
Using “government connection officer”
Almost all companies use a “government connection officer” to carry out all the necessary registration formalities. Also will be helpful for obtaining residence permits, driving licenses and telephone, power and water… A “government connection officer” will know all the ins and outs of the relevant procedures and requirements and will help minimize any frustrations which might if not it will be knowledgeable when setting up. So, we can notice that Qatar commerce connectivity has high level guide to what is required from the company’s management.
Company structure
Following are required for a Commercial Registration
• Memorandum & Articles of Association in Arabic which conform to the standard form prepared by the Ministry of Economy and Commerce.
• Notarized, legal copies of the foreign company’s Certificate of integration, letter and Articles of organization.
• Documents indicating the deposit of the share capital at any of Qatari bank.
• A rent contract for the office of the company with the electricity and water’s board number.
• Chamber of Commerce Registration.
After a company has been integrated and the Commercial registration issued the share capital can be released to the company’s directors or the general manager for the purposes of operating the company. The following licenses also required:
• Municipal license. • Signage license • Employer’s Immigration Department identity card.
Branch Office
Following are necessary to establish a branch office:
• Approval from the Ministry of Economy and Commerce to establish the branch.
• Valid copies of the foreign company are Certificate of integration and Memorandum and Articles of organization.
• Valid power of brief from foreign company to the manager of the branch
• Copy of the contract in esteem of which it is required to establish the branch office.
• Chamber of Commerce Registration.
• A rent contract for the office of the company.
Once the branch has been approved and the Commercial Registration issued the following licenses are also required:
• Municipal license. • Signage license. • Employer’s Immigration Department identity card.
5. Taxation for Companies in Qatar
• Revenue tax is levied on businesses other than those completely owned by gulf nationals.
• Revenue tax is charged on all income arising in Qatar, including profits on the sale of the company’s property.
• Share of income of the Qatari or GCC partner in a business is excused from tax.
• An income tax exemption can be decided for a period of up to 10 years for major projects if they have assured criteria.Tax is billed by the following rates:
Taxable Income in Qatari Riyals Rate
0 – 100, 000 QR.                             Excused
100, 001 – 500, 000 QR.                  10%
500, 001 – 1, 000,000 QR.              15%
000, 001 – 1, 500, 000 QR  20%
500, 001 – 2, 500, 000 QR  25%
Individuals
There is no income tax on personal  ( Employees ).
Customs duty
The new GCC customs duty is 5% on most objects. immunity from customs duty can be obtained for the import of equipment linking to a exacting project as can release from customs duty for the import of primary or semi-manufactured materials where they are not accessible locally. In addition to customs duty, legalization fees are payable on import documents.
6. Staff
• Qatarization initiative is in place which aims to raise the number of Qatari employees in the public sector workforce. The new Labor Law begins Qatarization initiatives for private sector articles. The employment of Qatari nationals is one of the principle taken into account when tax release are granted.
• Contracts of employment are administered by the Labor Law
• Must be in Arabic and accepted by the Labor Department.
• Employers should be attentive of the requirement to pay end of service benefits to employees.
• Companies will need to get residence and work permits for their emigrant staff. A new Labor Department group has been recognized to supervise purposes for bringing in foreign staff.
• All emigrant employees have to be sponsored by their company who is in charge for them at the same time as they are in Qatar.
7. Property
• Ownership of land by outsiders of Qatar is restricted.
• Land for projects be able to be given to foreign investors on long term rent for periods of up to 60 years which may be renewed.
• A current law now allows foreigners to have properties in three new developments.
8. Commercial Contracts
Once a business person has been established it will need to guard its benefit when constricting with other persons.
• The parties to a worldwide contract are free to decide the law and authority which will administer that contract.
• Parties can also accept in writing to submit argument to negotiation.
9. Thinker Properties
Usually, thinker property rights were not as well confined in Qatar as foreign investors were used to, on the other hand new trademark and copyright laws were performed in 2002.
10. Culture and Customs
Previously we talked about that a facilitator who knows the system can be awfully useful to guide you from first to last the required official procedure and sensible steps.

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