How to Form a Company in Oman
Company Formation and Business Setup in Oman
Oman which is often referred to by the name Sultanate of Oman is a strategically situated and growing business hub. It is among the fastest-growing GCC nations and also an established residence for ex-pats from abroad with plenty of opportunities in business. The Omani Government is constantly working towards the development of the nation and has taken a number of measures to ease the burden of ex-pats from abroad and attract the attention of foreign investment. If you’re planning to expand your business on an international scale, Oman is a location where you can count on it. We provide a brief overview of the reasons for choosing Oman for your investment spot. Let’s look at the various business structures that can be implemented.
Why Start a Business in Oman?
Oman has witnessed a remarkable transformation in its economic and social structure. Oman earns huge revenue from oil production, which provides fuel for the economy. Diversification is now a top government priority, with particular importance being given to tourism as the primary source of income. In addition, Oman has created several free zones to attract foreign business into the country, as well as to diversify the economy beyond that of the oil sector. Free trade zones are situated within Al Mazunah, Sohar, Salalah as well as Duqm SEZ. Industries that are permitted to operate in the zones of free trade include manufacturing, export and import warehouses and storage manufacturing, as well as assembly and manufacturing.
Types of Business Entities in Oman
Oman’s location Oman is ideal for the following types of business structures:
The sole proprietorship or a single-person business can be established with one director who is sole and there are no minimum share capital requirements, such as a minimum amount of capital that has to be paid. One-person companies are expected to become the most widely used company for foreigners who want to conduct business in Oman through a straightforward corporate arrangement.
Joint Stock Company
A Joint-stock corporation is formed by a minimum of 3 shareholders. JSCs that sell their shares openly is referred to as a Public JSC and those who don’t offer shares for sale to the public are known as private JSCs. They can be established by companies who wish to participate in the massive investments of funds or to raise capital.
Limited Liability Company
An LLC can include an –
- A shareholder who is the status of an Omani, GCC or USA shareholder
Omani LLC is the most commonly used entity for foreigners. Omani LLC is the most often used company for foreigners who wish to conduct business in Oman
The term “Joint Venture” refers to a Joint Venture is an internal agreement between two or more parties, wherein one party conducts business in their personal name, while the profits and losses are divided. The JV cannot be considered a legally constituted entity, and therefore doesn’t require registration with or protection from local authorities.
Holding companies are entities that hold a minimum of 51% of shares of at least one joint-stock company or a Limited Liability company. We recommend the registration of a holding company to undertake projects that require large amounts of capital or the raising of capital.
Benefits of Business Setup in Oman
Being a business owner in Oman is an excellent opportunity for foreign ex-pats. There are a variety of reasons to begin your own business in Oman. The ground has the following advantages:
- An ideal business site
- The availability of natural resources
- Fast developing economy
- Government assistance to encourage the development of new businesses
- No tax on personal earnings
- New business opportunities in the non-oil field
How to Start a Business in Oman?
Similar to other GCC countries like the other GCC countries, the Oman company registration procedure involves certain steps that have to be completed in a timely manner. Before we get to the actual process Let’s take a look at the essential conditions that turn out to be essential.
Company Formation in Oman
Registration of a company for companies in Oman will be a procedure that allows the business to be provided with an actual platform. To begin the procedure, there are specific steps to be followed. The steps below are that pertain to the incorporation and post-incorporation process you should follow after you have made the decision to start a business in Oman.
Incorporation Process in Oman
1. Decide on a Trade Name
A name for trade has to be unique and relevant to the particular business. Select a name, and then submit the request to the Ministry of Commerce and Industry (MCI).
2. Submit Documents of Incorporation
This is the beginning stage in which all documents have to be presented for incorporation to start the process. The most important documents needed include:
- Memorandum and Articles of Association
- Shareholders’ Visas and Passports
- Tax Registration Certificate
- Identity Card of Shareholders
- Certificate of Initial Deposit
- Filed Company Registration Form
- Chamber of Commerce and Industry Affiliation Certificate
3. Capital Account Opening
After the documents have been accepted the capital account has to be opened in order to pay the initial fee for incorporation.
4. Register with the Chamber of Commerce
Sign up with The Oman Chamber of Commerce and Industry (OCCI) to ensure conformity with the commercial rules and regulations that are required for companies operating in Oman.
5. Register the Business
This is the process of submitting the basic information:
- Legalized Opening Forms
- Municipality Approval
- Share Capital Certificate
Post-Incorporation Process in Oman
1. Apply for Visa
The next step following an incorporation procedure is to apply for visas for your entire staff. It is possible to make a deal with visa consultants in order to apply for visa services in a quicker manner.
2. Employee Registration
The employees have to be recognized as part of the company entity. Registration of employees under the name of the company is required.
3. Conversion of Bank Account
The capital account of the business needs to be changed into the account currently in use in order to facilitate the transaction of business successfully.