Qatar’s National Vision 2030 has driven the implementation of a plan aimed at diversifying its sources of income and establishing the private sector. Hence, the Qatari economy has shown resilient to a number of regional difficulties. Through the implementation of integrated economic policies, the Qatar National Vision 2030 aims to create a competitive and diverse knowledge-based economy. Already, this State also ranked first in the MENA region for the most supportive entrepreneurial governmental policies. Are you an entrepreneur considering relocating to Qatar? Here are the legal aspects to consider:
The first step is to take a closer look at the legal business structures that are offered, and which one best suits your needs. Generally, entrepreneurs opt for either a Limited Liability Company (Minimum capital of QAR 200,000 required) or a joint venture with a local entrepreneur, or a branch of an existing foreign company. Opting for initiating a branch of an existing foreign company, allows for it to be fully owned by the foreign entrepreneur in comparison to the other structures.
After having chosen your business structure, it is time to acquire the licenses and permits. At this stage, depending on your chosen structure the requirements could differ. However, in general a Trade License needs to be acquired to commence your activity. In addition, a “Computer Card” needs to be issued by the Immigration authority to recruit employees. Given that this stage is indeed the toughest due to its bureaucratic nature, it is advised to be guided by a local firm.
Once the business is set up, the task of recruiting employees becomes prominent. When dealing with local or expatriate employees, it is crucial to be abide by the Qatari labor laws related to the working hours, conditions, the minimum wage, and foreigner employee quotas. Labor law requirements include providing a contract of employment, assuring that the employee has received the prior approval of the Ministry of Labor and the Ministry of Interior, not exceeding 48 hours per week, any overtime should not exceed 2 hours a day, depending on the years of service offering 3-4 weeks of vacation per year. There are no particular social security requirements, but a pension fund must be attributed by the employer. The Qatari labor laws are not challenging and easy to abide by.
To conclude, relocating to Qatar means relocating into a dynamic and booming market. Numerous factors such as its sustainable economic growth, being in the heart of the MENA region, and the business-friendly environment indicate that such a relocation holds multiple advantages. The simplified legal framework portrays Qatar’s highly welcoming attitude towards foreign entrepreneurs. In a race to achieve its 2030 Vision, Qatar has passed regulations that support the formation of a welcoming climate of investment, innovation, and entrepreneurship.
BY Egli HAXHIRAJ, Anamaria MESHKURTI, Jonida GJUZI and Noor ALI
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