Regarded the Sultanate of Oman, the country is situated on the Arabian Peninsula's southeast coast. The government has seen a transformational change in exploiting the country's economy with a population of more than 6.5 million. Although the nation has a rising oil-economy, the sector has reinforced its non-oil segment with endless support, contributing immensely to maximizing the nation's revenue and profitability.
Starting a company is becoming a desirable and lucrative business destination for global industry professionals for a while. The nation is expected to achieve a 3.7 percent GDP growth by 2020. It is one of the increasing GCC states with many business opportunities, which is also an emerging home for global expats. If you intend to set up a business in Oman, then this is the perfect time to proceed forward. This blog highlights the entire process of investing in Oman, which will be beneficial for you.
Types of Business Entities in Oman
Oman's location is well-equipped for the following company structures:
Advantages of Setting Up a Company in Oman
Oman's growing destinations provide the global business stakeholders with numerous benefits that prompt them to commence with the company incorporation process. It turns out to be a potential option for international expats to make the trade-in Oman. There are several other reasons for starting a business in Oman.
1. A Flexible Economy
Oman is seen as a country with a future that looks forward to rising rapidly. The area has liberalized its markets, opening business opportunities for foreign business investors to do business. The region is a perfect choice for multi-industry business owners and investors. Some of the crucial sectors in Oman are:
- Tourism and Travel
- Oil and Gas
- Food Processing
- Logistics etc.
2. Holds Strategic Location
Oman's land has a coastline of more than 1700 km, enabling the region to stand as one of the world's booming maritime trade routes. It serves as a maritime gateway to the Indian Ocean and the Arabian Gulf. The region also has ties to neighboring countries that include Saudi Arabia, the UAE, Qatar, Bahrain, etc. It turns out to be successful later for the company investors to extend their company in neighboring locations.
3. Availability of Broad Pool of Talent
Holding a large population of around 6.5 million (as of January 2020), the area as a working employee has a significant share of the nation. It makes it easier for business companies to employ skilled people who will do their best to maximize their full profit. The country also has a legitimate point about the Research and Development ( R&D) domain.
4. Reliable Infrastructure
When it comes to infrastructure growth, Oman ranks among the fastest developing countries. This Omani Government initiative helps business companies to conduct the operations at ease. The nation has a firm ground when it comes to the various media, which include lane, sea, and airports.
5. Business-Friendly Country
The region has stood as an enterprise-friendly region with a practical implementation of the operational business model. It has a broad commercial network with neighboring countries. The state also maintains more than 35 Double Taxation Agreements (DTAs), which means business owners and employees can perform financial transactions with more than 35 nations without charging the import-export charges.
6. Tax Waiver
There is no individual tax in Oman, which means the business professional is free of income tax payments. However, being a part of the GCC zone, by the beginning of 2021, the nation decided to adopt the VAT services.
You can see that the company incorporation process requires several layers of clearance of documents, which may turn out to be a complicated procedure if you are unaware of the legal process. You can set yourself free from unnecessary stress by outsourcing the integration services and can focus more on developing business strategies. At the same time, the time and money available get utilized most profitably.
How to Establish a Business in Oman?
The following steps need to be taken appropriately to start a business in Oman:
1. Select a Company Structure
The first and foremost step of setting a business entity in Oman is to pick a business entity structure appropriate to it. It is necessary to remember that the framework’s allocation depends on the number of potential shareholders and the total capital. For the following commercial enterprises, the zone turns out to be lucrative:
- Sole proprietorship
- Joint-stock company
- Branch office
- Representative office
- Limited liability company
- Commercial agency
2. Book a Trade Name
If you have completed the business layout selection, the second step is to determine your company’s trade name. The company’s name needs to be carefully selected, as it will stand for your corporation as a brand. However, it would help if you abode by specific rules when choosing a name for your company.
- The name you select cannot be a replica of the current competitors.
- A name that may sound offensive in many ways, like religion, politics, military, context, or content
- An honorary or special sign in any cultural, Arab, or international organization
- A name that carries the words "Oman" or "Omani."
- A name which denotes an incorrect geographical division of the Oman Sultanate
The business investors must obtain the approved signatory form and the bank certificate submitted to its Ministry of Trade and Industry in Oman when choosing the company trade name.
3.Submit the Necessary Documents
The third step is to be careful with the documentation needed to guide them to navigate the approval process. Now, the set of documents contains the following:
- Organization registration form
- Copy of current company shareholder IDs and approved entity signatories
- Copy of shareholder's proof of residence
- Investors visa and passport
- Business Statues
- Certificate of participation to the chamber of commerce and industry
- Certificate of Original Capital Deposit at the Bank
- Memorandum and Articles of Association
4.Registration with the Oman Chamber of Commerce and Industry (OCCI)
Once you're familiar with the above documentation, you'll need to register with the Ministry of Commerce and Industry (MOCI), Oman Chamber of Commerce (OCCI) for the trade laws that a business enterprise requires to buy.
5.Gather the Needed Approvals
In addition to registering with OCCI, the requisite approvals must be obtained from the regulatory authorities. The approval process now depends on the design, scale, and business activities conducted within the organization. However, the list includes:
- The tax enrolment department
- Enrolment with the Royal Oman Police
- Registration with human resources ministry
- Registration with the Governorate
- The Oman Import-Export Authority, whether it is interested in the importing of products
- Industrial, environmental and other permits which are relevant
6. Get the Business Seal
Finally, while drafting the business records, you need to keep the company seal essential to the business entity.
Our Business Setup Services in Oman
Commitbiz comes with a business setup solution package that includes:
- Company Formation and Registration
- Local Sponsorship
- Public Relations Officer (PRO) Services
- Accounting and Bookkeeping
- Tax Consulting
- VAT Registration
- Intellectual Property Services
How Can We Help?
Commitbiz Consultants consistently provided excellent company incorporation services across the UAE, Oman, Qatar, and Bahrain. Since its inception, it has been intended to simplify the business setup procedure and has enabled multiple business stakeholders, business people, and practitioners to execute their business ideas. Our business consultants are well proficient in the business setup process and can effectively guide you by providing tailor-made solutions. If you have any suspect, please feel free to have a word with our business advisors. Contact us today- we would be happy to help.