How to Establish a Business in the Sohar Free Zone?

How to Establish a Business in the Sohar Free Zone?

by Zaara 25, May 2021

There are four operational free zones in Oman, one of which is Sohar’s free trade zone. The Sohar Free Zone, situated in the Sultanate of Oman and 220 km away from its capital, Muscat, is still developing. Once completed, the port of Sohar will cover 4,500 hectares. Business operations such as steel production/manufacturing, trade and logistics, oil and gas, petrochemicals, minerals, aggregate industries, ceramics, and food logistics and processing will primarily operate in the Sohar Port and the free zone.

The Sultanate of Oman is a platform for global investors and corporate dreamers to look for opportunities. It transforms out to be one of the world’s open economies that offers a wide range of options to different organizational structures. It offers several free zones to boost the region as an investor-centric region. It turns out that one such free zone is the Sohar Free Zone. If you are an entrepreneur and are looking to set up a company in Oman, you can go to the Free Zone and Sohar Port. Before you start taking the essential step of starting up a business in Oman, this article will take you through the necessities you need to know.

Investment Opportunities in Sohar Free Zone

The Sohar Port Free Zone provides multiple sectors with a broad range of business opportunities. The key sectors comprise:

  • Petrochemicals
  • Plastic
  • Iron, Steel, Aluminum
  • Auto Parts
  • Grains
  • White Goods
  • Furniture
  • Ceramics

One of the leading players in this FZ is the industries stated above. The region also provides investors with multiple benefits. Let's take a look at them.

Advantages of Setting Up a Company in Sohar

  • 100 percent foreign ownership (minimum of two shareholders)
  • A 10-year exemption from corporate tax
  • No customs duty
  • No prohibitions on sales within the GCC; a standard 5% GCC customs duty applies
  • Minimum Omanization levels of 15%
  • Single-window licensing procedure

Licenses and Permits

These are specifically related to the characteristics of the business and the operations to be carried out. Let’s have a glance at them.

Types of Licenses Issued in Sohar

  • Industrial License
  • Light Manufacturing and Assembly License
  • Logistics License
  • General  Trading License
  • Service Provider License

 Types of Licenses Issued in Sohar

  • Sohar Work Permit
  • Common Area Work Permit
  • Special Transport Permit

How to Establish a Business in Sohar Free Trade Zone?

The process to incorporate a company in the Sohar Free Zone are:

1. Submit an Application

The first step that you need to go over is to submit the company registration application form. A filled Plot Application Form (PAF) needs to be submitted.

2. Submit the Necessary Documents

Once the application is submitted, some essential documents must be raised accordingly to complete the registration process. Below mentioned are the different forms that you need to offer.

Documents Required to Establish a Business in Sohar Free Trade Zone

  • Filed and Signed Investor's registration's form by the owners
  • Replica of owner's Passport

      In case if the Investor is from outside Oman, the following documents are to be


  • Commercial registration of the company
  • Board Resolution of the Free Zone Company
  • Articles and Memorandum of Association

3. Issue a No-Objection Letter from the MECA

A No-Objection Letter needs to be received from the Ministry of Environment and Climate Affairs that depicts no objection to the project's commencement.

4. Due Diligence Process

It will be performed on the shareholders and promoters of the FZ Company. A background check, past projects, and client information will be investigated.

5. The signing of the agreement

Once done with the above processes, the last step includes signing the Sohar Free Trade Zone Authority and the new Free Zone Business.

After the completion of the process, the following will be provided:

  • Commercial Incorporation Certificate
  • Affiliation Certificate to Oman Chamber of Commerce and Industry
  • PO Box No. for one year

All the free zones in Oman do issue certain advantages. Alike Al-Mazunah FZ, the Sohar FZ also offers individual facilities for its investors to commence their business operations smoothly.

Facilities Provided by Sohar Free Zone

  • Available land for industrial or logistical use
  • Pre-built warehouse for Lease
  • Commercial offices for Rent
  • Modern Infrastructure
  • Direct highways connecting UAE and Muscat
  • Road Connection with Saudi Arabia

Therefore, you can see that the Free Zone comes with a large investment choice and numerous advantages to attract foreign investors. The company's formation process becomes much easier if you have a  well-versed guide with the particular area's legal laws. Commitibiz aims to provide the best business formation solutions to business investors and entrepreneurs to transform their business dreams into reality. We are a team of professionals who wish to serve and help business investors in the company formation process and many other services like accounting, legal, tax, visa, etc. Contact us today to know more-we'd be delighted to guide you.

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