Legal framework for trade and investments

Prezentace na téma: "Legal framework for trade and investments"— Transkript prezentace:

1 Legal framework for trade and investments
Kuwait Qatar Legal framework for trade and investments

2 Emerging Europe and Central Asia’s Leading Independent Law Firm
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4 Out of Area But certainly not out of our depth. Quite the contrary.
We have experience in coordinating external legal counsel in jurisdictions where we do not have a local presence. Kinstellar Prague would be your single point of contact in order to ensure the unified approach. In case of any legal issues under Kuwaiti or Qatari law we are able to arrange a cooperation with a local law firm Al Tamimi & Company. Al Tamimi & Company Al Tamimi & Company is the largest and most dynamic non-affiliated law firm in the Middle East with 16 offices across 9 countries and comprising 330 Fee Earners lawyer (partners are included). Over the years Al Tamimi have advised, and continue to support, government, government-owned entities, local, regional and international companies, banks and financial institutions along with both international and regional law firms.

5 Running a Business in Kuwait and Qatar
Investment treaties in place Enforcement of court judgments / arbitral awards Use of official documents Typical forms of investment, time schedule and costs Restrictions on foreigners owning shares or real estate Other issues to note In the course of this brief presentation we will try to answer or point out at least a couple of important legal questions which may be relevant when considering investing in Kuwait / Qatar. We have co-operated with our partner law firm Al Tamimi in order to bring uptodate information. Generally speaking both countries legal system is based on civil law, in combination with Islamic law.

6 International Treaties
Business and trade Cooperation Agreement between the EU and the Gulf Marrakesh Agreement establishing the World Trade Organization Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade Convention establishing Multilateral Investment Guarantee Agency Transport and logistic Customs Convention on the International Transport of Goods under Cover of TIR Carnets (Geneva, 14 November 1975) Air Transport Agreements (bilateral) Both Kuwait and Qatar are parties to these multilateral agreements Bilateral: Czech – Kuwait Air Transport Agreement and Czech / Qatari Air Transport Agreement NOT PARTIES TO ENERGY CHARTER TREATY Many more… České názvy dohod: Dohoda o spolupráci mezi Evropskou unií a Perským zálivem Dohoda o zřízení Světové obchodní organizace podepsaná v marockém Marákéši Dohoda o přijetí článku 6 Všeobecné dohody o clech a obchodu Agentura pro mnohostranné investiční záruky Celní úmluva o mezinárodní přepravě zboží v rámci karnetů TIR Bilaterální smlouvy o letecké přepravě

7 International Treaties (Cont‘d)
Energy International Energy Forum Charter (Riyadh, 22 February 2011) Statute of the International Renewable Energy Agency (IRENA) (Bonn, 26 January 2009) Statute of the IAEA (New York, 26 October 1956) (the both states) IP Paris Convention for the Protection of Industrial Property Terrorism and Corruption UN International Convention for the Suppression of the Financing of Terrorism UN Convention against Corruption České názvy dohod: Charta Mezinárodního energetického fóra Nařízení Mezinárodní agentury pro obnovitelnou energii Nařízení Mezinárodní agentury pro atomovou energii Pařížská úmluva o ochraně průmyslového vlastnictví Mezinárodní úmluva OSN o potlačení financování terorismu Úmluva OSN proti korupci

8 Enforcement of Decisions / Judicial Cooperation
Judgments in civil/criminal matters - reciprocity required Extradition - reciprocity required Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 10 June ) (both states) Judicial Cooperation – Kuwait only: Convention of 15 November 1965 on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters (Kuwait only) Convention of 18 March 1970 on the Taking of Evidence Abroad in Civil or Commercial Matters (Kuwait only) Zákon č. 104/2013 o mezinárodní justiční spolupráci ve věcech trestních § 4 Záruka vzájemnosti (1) Není-li mezinárodní justiční spolupráce mezi Českou republikou a cizím státem upravena mezinárodní smlouvou, vyhoví justiční orgán žádosti cizozemského orgánu o mezinárodní justiční spolupráci pouze tehdy, poskytne-li cizí stát ujištění o vzájemnosti, které ministr spravedlnosti přijme, nebo pokud cizí stát dříve přijal ujištění o vzájemnosti ze strany České republiky v obdobném případě. Vyžádání ujištění o vzájemnosti od cizího státu zajistí ministerstvo. (2) Podmiňuje-li cizí stát vyhovění žádosti o mezinárodní justiční spolupráci ujištěním o vzájemnosti, poskytne je ministr spravedlnosti po zvážení všech rozhodných skutečností; v přípravném řízení tak činí na návrh Nejvyššího státního zastupitelství. (3) Ujištění o vzájemnosti může ministr spravedlnosti přijmout nebo poskytnout pouze po dohodě s Ministerstvem zahraničních věcí a v případě, že se takové ujištění týká i druhu mezinárodní justiční spolupráce, pro který je ústředním orgánem Nejvyšší státní zastupitelství, rovněž po dohodě s Nejvyšším státním zastupitelstvím. (4) Ministr spravedlnosti může udělit souhlas s doručováním písemností adresátům v České republice cizozemskými orgány přímo prostřednictvím provozovatele poštovních služeb pouze, pokud cizozemský orgán zaručí vzájemnost, a to po dohodě s Ministerstvem zahraničních věcí a Nejvyšším státním zastupitelstvím. Na základě takového souhlasu vydá ministr spravedlnosti prohlášení o vzájemnosti, ve kterém se uvede rozsah souhlasu a podmínky, za kterých byl udělen, zejména že doručované písemnosti nesmí obsahovat pohrůžku donucením. (5) Pokud v obdobném případě již byla dříve přijata záruka vzájemnosti ze strany cizího státu a nejsou-li pochybnosti o jejím dodržování, není další záruky vzájemnosti zapotřebí. (6) Pro postupy uvedené v části páté se odstavce 1 až 5 neužijí, nestanoví-li tento zákon jinak. Zákon č. 91/2012 – o mezinárodním právu soukromém § 15 (1) Pokud v dalších ustanoveních tohoto zákona není stanoveno něco jiného, nelze pravomocná cizí rozhodnutí uznat, jestliže f) není zaručena vzájemnost; vzájemnost se nevyžaduje, nesměřuje-li cizí rozhodnutí proti státnímu občanu České republiky nebo české právnické osobě.

9 Verification of Documents / Super-legalisation
Verification of Kuwait/Qatar documents for use in the Czech Republic Competent Kuwait/Qatar authority Ministry of Foreign Affairs of the State Kuwait/Qatar Embassy of the Czech Republic in Kuwait (for both states) Verification of Czech documents for use in Kuwait/Qatar Czech authority that is superior to the authority which has issued a document Ministry of Foreign Affairs of the Czech Republic Embassy of Kuwait in Prague, Czech Republic / Qatar Embassy in Berlin, Germany

10 How to Start Business in Kuwait / Qatar?
Establishing a company Establishing a joint venture Appointment of a local commercial agent Appointment of a commercial representative Qatar Establishing a company Establishing a joint venture Register a branch of a foreign company Appoint a representative trade office (RTO) Qatar Financial Centre (QFC) Qatar Science and Technology Park (QSTP) Free Zones Distributor / sale representative Service Agent KUWAIT . Commercial Code – several types of commercial agents / distributorship agreements – may require registration, may be for at least 5 years, may not be easy to terminate QATAR – Commercial Companies Law – 2015 RTO – only with approval of Minister of Economy and Commerce, only for marketing and administration QFC – since 2005 – no foreign ownership restrictions, license required, only for financial and supporting firms QSTP - no foreign ownership restrictions, tax exemptions, only for activities contributing to advancement in technology, license required Free Zones – 2005 – development of special economic zones, logistic parks…no restrictions on foreign ownership, tax exemptions KUWAIT : Commercial Code, Law 116/2013 regarding the promotion of direct investment, Law 74/1979 regulating the Ownership of Real Estate by Non-Kuwaitis Law on the Regulation of Commercial Agencies  – several types of commercial agents / distributorship agreements – may require registration, may be for at least 5 years, may not be easy to terminate - protection of the agent / distributor. Commercial Representatives - more limited scope, not registered QATAR – Commercial Companies Law – 2015  LLC - private LLC - most common QFC – since 2005 –  based on Qatar Financial Centre Law, no foreign ownership restrictions, license required, primarily but not only for financial and supporting firms, now also for various business to business service providers (not possible if the firm is to be involved in direct construction, manufacturing, import and sale of goods), own legal and court system

11 Establishing a Company
Kuwait Limited Liability Company (WLL) – 51 % must be owned by Kuwaiti citizens, tax exemptions Closed Joint Stock Company (KSC Closed) – 51 % must be owned by Kuwaiti citizens, approvals required, process up to 6 months Joint Stock Company – maximum amount of shares which may be held by foreigners set out by Ministry of Commerce and Industry Qatar Limited Liability Company (LLC) – 51 % must be owned by Qatari citizens Qatari Shareholding Company (QSC)– 51 % must be owned by Qatari citizens Public QSC Private / Closed QSC Branch of a foreign company WLL – only non Kuwaiti corporate bodies pay taxes, WLL companies do not pay taxes 51 % restriction does not apply on direct investment KSC Closed – 5 % tax contribution in Kuwait foundation for the advancement of science QATAR – LLC – up to 100 % foreign ownership may be allowed as an exception Branch of a foreign company – no Qatari citizen needs to be involved but limited as regards its purpose – generally only for contracts with governmental entities QATAR – LLC – 51 % RULE – Minister of Economy and Commerce may grant exemption up to 100 % foreign ownership, but rare Joint ventures – most common approach, shareholders profit shares do not need to be proportionate to equity shareholding WLL – only non Kuwaiti corporate bodies pay taxes, WLL companies do not pay taxes, process of setting up the WLL takes approx. 3 months 51 % restriction does not apply on direct investment (Law 116/2013 regarding the promotion of direct investment) - except in certain sectors, but license required. Kuwait Direct Investment Authority. LLC - no minimum capital requirement Public QSC - may issue shares to public, be listed on the Qatari Stock Exchange,  Branch of a foreign company - no requirement for a Qatari citizen to be involved, but it may only be established for the purpose of performing contracts with the government or similar entity, requires approval from the Ministry of Economy and Commerce, completely discretionary QFC regime - allowing for SPV companies, holding companies with no foreigner restrictions

12 Establishing a Joint Venture
Kuwait Formed under simple contract Unlimited joint and several liability vis-à-vis third parties Qatar Profit distribution may be different to share ownership A service agent/sponsor is not necessary Only Qatari nationals and companies wholly owned by Qataris may own real estate, with certain exceptions (specified areas / public companies) Joint Ventures – Kuwaiti Companies Law – no legal personality – it is a contract Acquiring real estate in Kuwait - under certain strict conditions possible to a limited extent also for foreigners since 2015 Companies with a Non-Kuwaiti partners may not own real estate

13 Exchange Control or Currency Regulations?
Kuwait Investors are protected with the stability of the Kuwaiti currency Free convertibility to any foreign currencies Anti-money laundering procedures may be required Qatar There are no exchange or currency regulations The Qatari is pegged to the US dollar.

14 BITs Agreement between the CR and Kuwait for the Promotion and Protection of Investments Agreement between the CR and Kuwait on Scientific and Technical Cooperation No BIT in place with Qatar Broad protection of investments, most favoured nation clause, fair and equitable treatment, no unlawful expropriation, free transfer of payments, settlement of disputes through international arbitration

15 Questions? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

16 Thank You! Kamil Blažek Partner +420 221 622 160
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