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Qatar, formally the State of Qatar, is a Western Asian nation. It occupies the tiny Qatar Peninsula on the Arabian Peninsula's northeastern coast, and shares its only land boundary to the south with neighboring Gulf Cooperation Council monarchy Saudi Arabia, with the remainder of its territory covered by the Persian Gulf. The Gulf of Bahrain, a Persian Gulf inlet, divides Qatar from neighboring Bahrain. Doha, the nation's capital, is home to more than 80% of the population.
Qatar has a total population of 2.6 million people in early 2017: 313,000 Qataris and 2.3 million expats. Islam is the state religion. In terms of income, the nation has the fourth-highest GDP (PPP) per capita and the sixth-highest GNP per capita in the world (Atlas method). The United Nations classifies Qatar as a nation with extremely high human development, with the third-highest HDI in the Arab world. It has a high-income economy that is supported by the world's third-largest natural gas and oil reserves. Qatar is the world's biggest supplier of liquefied natural gas and the world's highest per capita emitter of carbon dioxide.
The House of Thani has controlled Qatar as a hereditary monarchy since Mohammed bin Thani signed a contract with the British in 1868 that recognized the country's independence. Following Ottoman control, Qatar was a British protectorate until 1971, when it gained independence. Tamim bin Hamad Al Thani, Qatar's current emir, has practically all administrative and legislative power, as well as control over the judiciary, and picks the prime minister and cabinet. The Consultative Assembly, which is largely elected, may veto laws and has limited authority to fire ministers.
Qatar developed as a prominent influence in the Arab world in the twenty-first century as a result of its resource riches, as well as its worldwide growing media business, Al Jazeera Media Network, and apparently financial backing for many rebel groups during the Arab Spring. Qatar has been designated a medium power. Qatar will host the 2022 FIFA World Cup, making it the first Muslim and Arab nation to do so. Qatar will also host the Asian Games in 2030.
After a year of employment, employees are entitled to 15 days of paid leave; after five years of service, they are entitled to 20 days.
Qatar recognizes eleven public holidays.
After three months of work, you are entitled to two weeks of paid sick leave. It is necessary to have a medical certificate.
Employees are entitled to 50 days of paid leave, which can begin before the birth of the child.
There are no provisions regarding paternity leave in Qatar labor laws.
There are no provisions regarding parental leave in Qatar labor laws.
Only Muslim employees are eligible for Hajj pilgrimage leave, which lasts two weeks and is paid once during the working time.
Employees on indefinite contracts are entitled to be terminated at will with one month's notice if they have less than five years' service and two months if they have more than five years' service.
Individuals employed for one to five years are required to give one month's notice. Those who have been employed for more than five years must provide two months' notice.
The probationary period in Qatar should not be longer than six months.
Employees who resign from their positions are entitled to EOSB (end of service benefits). These benefits are mutually agreed upon by the employer and employee and must account for at least three weeks of the employee's gross salary for each year worked.
The maximum number of hours per week is 48, or eight hours per day. This is reduced to 36 hours per week, six hours per day, during Ramadan.
Hours worked in excess of 48 hours are compensated at a rate of 25%. Night work is compensated at a 50% premium.
In Qatar, the monthly minimum salary is 1,000 QAR. Employers must additionally pay at least 300 QAR for meals and 500 QAR for lodging if they do not offer these directly to employees.
Qataris have access to healthcare that is either free or highly subsidized. Expats will often need additional insurance. Companies provide supplemental private healthcare to workers, while Qatari nationals get highly subsidized healthcare coverage.
In Qatar, total remuneration is often divided into salary, housing allowance, and transportation allowance. Some workers may also bargain for educational benefits for their children in Qatar.
An entity that is fully or partly foreign owned and receives revenue from Qatari sources is subject to Qatari taxation. In the event of a joint venture, the joint venture's tax obligation is determined by the foreign partners' portion of the joint venture's earnings. Currently, no corporate income tax (CIT) is imposed on business entities fully owned by Qatari citizens or GCC nationals residing in Qatar.
Unless expressly excluded, an entity is taxed in Qatar if it generates Qatar-source revenue, regardless of where it is incorporated.
With some exclusions, taxable income is usually subject to a flat (CIT) rate of 10%.
Qatar has a territorial taxation system, which implies that a person is taxable in Qatar if he or she earns qualified Qatar-source income, regardless of where they live.
Salaries, wages, and allowances received by working people are not subject to income tax. If a self-employed person earns qualified income in Qatar, he or she may be liable to income tax.
Currently, no VAT or sales tax is levied on activities in Qatar. VAT, on the other hand, is anticipated to be implemented in Qatar soon within a single GCC framework. The tax rate that is expected is 5%.
Work permits are necessary when an employee only needs to job in Qatar for a brief amount of time, depending on the sort of work to be performed.
Qatar has launched "Qatarization," a government-led strategic plan to offer employment for its inhabitants in both the commercial and public sectors, and to prioritize Qatari natives over foreign workers when it comes to job prospects
If a Qatari company want to recruit an employee from another country, they must first acquire approval from the government.
All workers, with the exception of Qatari and GCC citizens (who need just a work permit), must have a resident visa and work permit sponsored by their employer in order to lawfully work and remain in Qatar (which must have an entity established in Qatar).
An employment contract should include:
Name of employer and place of employment
Name of employee, address, qualifications, nationality, place of residency and proof of identity
Type of contract
Place and date of contract signing
Probation period (cannot exceed six months and may not be extended or renewed)
Benefits and leave entitlement
Duration of the contract (if for a fixed-term contract)
Salary, payment method, and payment intervals (must be paid into bank accounts in Qatar)
In Qatar, there are three sorts of contracts: fixed-term, indefinite-term, and job-completion. Fixed-term contracts have a set expiration date and should not last more than five years. They may, however, be prolonged if both parties agree. If employment continues beyond the expiry of a fixed-term contract without an agreement to extend it, the contract automatically becomes an indefinite-term contract beginning on the fixed-term contract's original start date. Job-completion or casual employment contracts are transitory and should not last more than four weeks, although they may be extended for the same duration if both sides agree. In contrast, indefinite-term contracts have no expiry date and may only be dissolved by the parties who signed them.
Qatar often prohibits foreign investment, which might have an influence on how you establish a Qatar subsidiary. Incorporated firms must have at least 51 percent of their shareholdings held by Qatari residents, and the government prioritizes employing natives over expats whenever feasible. Despite the tiny size of the nation, distinct towns and areas sometimes have their own prices, availability, even Qatar secondary laws. To determine the ideal site for your subsidiary, we suggest consulting with a business counselor, lawyer, accountant, and other necessary specialists.
The official language of the nation is Arabic, and the native dialect is Qatari Arabic. While many people speak English as a second language, there is also an increasing community of French speakers. If your organization does not have somebody who speaks these many languages, you should engage a translation or consultant.
The subsidiary laws of Qatar are also affected by the sort of company you incorporate as. A limited liability corporation (LLC), partnership, unincorporated joint venture, or branch/representative office are all options. Maximum businesses establish their subsidiary as an LLC to safeguard their investment and provide them the most flexibility to function in Qatar.
The following are the processes to establishing your Qatar subsidiary as an LLC:
1. Reserving a business name
2. Opening a local bank account and depositing a small amount of money
3. Authentication of the articles of incorporation
4. Obtaining a business registration number and registering with the Chamber of Commerce and Industry
5. Obtaining Doha Municipality commercial and signage permits
6. Obtaining a Tax Identification Number and registering for taxes (TIN)
7. Developing a corporate seal
Because each shareholder's liability is limited to the money invested, LLCs are an appealing subsidiary alternative. However, you must still adhere to Qatar's subsidiary regulations, which require you to have between two and fifty founding members. Previously, firms were required to have a minimum capital of 200,000 QAR, but the current Commercial Companies Law specifies that no minimum capital is required.