In Oman, the combination of a budding, thriving community and a modern economy provides individuals and enterprises worldwide with plenty of business prospects to take advantage of these possibilities. There are several robust incentive schemes in the Sultanate of Oman which attract foreign companies to invest in the country, ranging from customs duty and income tax exclusions to subsidized interest rates.
Oman, one of the Arab nations on the southeastern Arabian Peninsula, has always been on the foreign investors and business owners' priority list. It is one of the rising GCC nations that is also an ancestral home to foreign ex-pats with many business opportunities. The position gives investors the freedom to opt for either of them, be it for a new business setup in Oman or expansion. In addition to the collaboration businesses, the location also allows people to come forward and start a low-capital, one-person company known as a sole proprietorship. If you plan to invest in Oman for the first time or invest in low capital, you can always opt for a sole-proprietorship firm.
What Is a Sole Proprietorship Firm?
A sole proprietorship is one of the company frameworks that a person acts as the sole owner, initiates. A person trades on his account and, on his behalf, obtains a business license. The establishment does not have an independent legal body from its owner because it assumes the full amount of assets and liabilities.
Key Characteristics of a Sole Proprietorship in Oman
- Possessed by a single entity
- No cap on beginning or closing
- The owner holds absolute ownership of the
- Higher formation and enforcement costs
- The owner assumes total responsibility.
- The owner absorbs profits and losses.
- No Special regulation
As you have stated, the main features, the next step you should be aware of, is the documentation you need to own to open a sole proprietorship in Oman.
Documents Required to Establish a Sole Proprietorship in Oman
- Public Key Infrastructure (PKI) enabled ID Card.
- Public Key Infrastructure (PKI) enabled the Resident Card.
- Authorized Signatories For
- Individual’s identity card
Procedure for Registering a Sole Proprietorship in Oman
In contrast to the other business establishments in Oman, sole proprietorship registration requires far fewer steps. The key steps involve:
1. Minimum Cost
The first and foremost thing an individual wants to do to establish a sole proprietorship corporation is registering a corporate enterprise with a minimum cost of OMR 3000.
2. Liaise with the Department of Commerce and Industry
To begin the registration process, the documentation, as mentioned above, must be submitted at the MOCI.
3. Register with the Royal Police of Oman
The individual must ensure that the business company is registered with the ROP and receive a good standing certificate.
Specific government authorizations are required to complete the company registration process in oman. The Ministry of Trade and Industry will provide a commercial license. When acquired, it is possible to start the critical business processes. Now, you can also turn your one-person business into a relationship firm until you are on the ground with the company conducting the related operations and generating revenue. Under the Omani law Article 13 Bis1 of the Sultanate Declaration of 1974 Legal Entities Rule, it can transfer a one-person company to other company structures.
It is beneficial to take the help of company advisors to launch a business from the very beginning. The main reason for this is that company advisors are right in recognizing the particular legislation that must be maintained by each business enterprise when starting up a business in a foreign land. Commitbiz is here to help you with this process. We provide our clients with integrated services as a luxury business consultant in Oman and set the critical foundations of accounting, tax, legal, visa, etc. Our business experts will value your requirements and respond to them. To know more in detail, do contact us – we’d be delighted to guide you.