How to Establish a Joint Stock Company in Oman?

The Sultanate of Oman has earned its reputation as a premier business destination given its robust legal framework and economy. For businesses that require a large capital investment, Oman has a lot to offer. With transparent and clear-cut laws surrounding business structures, setting up a joint stock company in Oman is an ideal way to bring large-scale projects to life. In this article, we discuss all about company registration in Oman when you opt for the ‘joint stock’ business structure. Read on to know more.

What is a Joint Stock Company?

A joint stock company is a type of business entity in Oman where the company’s capital is divided into shares of equal value that are either privately owned by individuals or traded publicly. Individual shareholders are only liable for their shares in the company.

There are two types of joint stock companies in Oman. They are:

• Public Joint Stock Companies (PJSC): PJSCs offer shares to the public to raise capital.
• Closed Joint Stock Companies (CJSC): Unlike PJSCs, CJSCs do not offer shares to the public. Instead, they are held privately by investors.

How to Setup a Joint Stock Company in Oman?

The guidelines to set up a joint stock company are detailed by the Omani Commercial Companies Law. Commitbiz can help you streamline the entire company registration process. Here is a step-by-step guide on how to establish a joint stock company in Oman:

Step 1 - Develop a business plan

The first step is to have a comprehensive business plan with company details such as target market, goals, and most importantly, the capital needed for business setup. You also need to decide between the two types of joint stock companies - PJSC or CJSC.

Step 2 - Register the trade name

Once you have a formal business plan ready, the company name must be registered with the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP).

Step 3 - Get initial approval

Commitbiz experts will help you collate the documents and obtain approval from the relevant regulatory authorities such as the Central Bank of Oman and the Capital Market Authority.

Step 4 - Appoint board of directors

The next step as per Omani law requires you to appoint the board members. The number can vary depending on whether the company is a PJSC or CJSC.

Step 5 - Obtain Commercial Registration (CR) Certificate

You must submit all the required documents such as Articles of Association (AoA) and shareholder agreements to the Commitbiz experts for the purpose of receiving the commercial registration certificate. This enables you to commence business operations in the Sultanate of Oman.

Depending on the specific industry, your joint stock company in Oman may require additional approvals from the authorities. It needs to be mentioned here that after getting the  commercial registration certificate, the business must be registered with the Oman Chamber of Commerce and Industry (OCCI).

Requirements for Setting Up a Joint Stock Company

You must adhere to local Omani laws and regulations when establishing a joint stock company in the country. Some of them include:

• Capital: The minimum capital requirement for a public joint stock company is OMR 2 million while it is OMR 500,000 for a closed joint stock company.
• Board of Directors: The minimum number of directors typically required for a PJSC is 5 (five) while it is 3 (three) for a CJSC.
• Shareholders: For the formation of a joint stock company in Oman, there is a requirement of seven shareholders as founding members. These shareholders can be either Omani citizens or foreign nationals.
• Compliance: The company must comply with local requirements such as having a corporate bank account registered with an Omani bank and following CMA’s Code of Corporate Governance. Additionally, the company must appoint an auditor to review the financial records.

How Can Commitbiz Help?

Setting up a joint stock company in Oman requires significant investment and several rounds of approvals. With the help of business setup experts at Commitbiz, your company can reap the benefits of Oman’s favourable laws. From obtaining the relevant licenses to auditing, we take care of all the business requirements. Contact us today to get started!