How to Start a Business in Al-Mazunah Free Zone?

The Al-Mazunah Free Zone is located in the Dhofar area, which is 4,500,000 sqm southwest of Oman. It is one of Oman’s free zones, welcoming millions of expatriates who want to set up a business in Oman. This zone was launched in 1999 and has seen considerable growth in business establishments until today. This area attracts various industries, including the commerce industry, finance industry, media industry, etc. 

The Free Zone in Oman has seen growth in the economy compared to previous years. Various investment opportunities and modern infrastructure have increased in the zone, leading to more company formation in the Al Mazunah Free Zone. It is appropriately located with easy access to various markets in other countries. Businesses and entrepreneurs enjoy many benefits and gain profits by establishing companies here, and that is why we must learn more about this Free Zone. 

Let’s look at this article to learn about how to start a business in Al Mazunah Free Zone in Oman. 

Advantages of Setting Up a Business in Al Mazunah Free Zone

Let’s look at the benefits of business setup in the Al Mazunah –

• Tax Benefits
• Foreign Ownership
• Customs Benefits in terms of Import and Export.
• Strategic Location
• Infrastructure and Facilities
• Foreign Investment
• Access to Markets
• Regulatory Environment

Steps to Start a Business in Al Mazunah Free Zone

The authorities of the Free Zone in Oman have issued an organised procedure for setting up the respective business. 

Luckily, the steps required for the Oman free zone company formation are easy in comparison to other jurisdictions, as the authorities require minimum paperwork and duration. The key steps are –

1. Identify the type of legal entity:

Entrepreneurs must learn about the type of legal entity and choose in such a way that the respective entity must be suitable to the purpose and scope of the company.

You can set one of the two types of companies –

• Free Zone Limited Liability Company/Free Zone Company.
• Free Zone Establishment.

Each of them has its own regulations, and the difference lies in the number of shareholders. After thorough research, the owners must decide on the type of legal entity.

2. Choose a Trade Name:

With the legal entity, the business owners must choose a trade name. There are certain rules set by the Department of Economic Development, such as -  

• It shouldn’t be previously registered.
• It shouldn’t be uncertain and vague.
• It should respect the public morals and public order of the country.

3. Apply for Business License:

While applying for a business license, enterprisers must ensure that this license is chosen on the basis of the business activities selected by the company. They must follow an arranged procedure to register the license and start functioning in the company.

4. Select an Office Space:

The office requirements depend upon the number of employees and the type of business activities of the company. The business owners can buy/lease for the required office spaces in free zones. There are various packages depending on the size and location of the office, so after budgeting and according to the requirements, this office space must be selected.

5. Necessary Approvals:

Lastly, to start with a company in the free zone, the management of the company must apply for documents to obtain important approvals for the company. 

Documents required for Starting a Business in Al Mazunah Free Zone

i) To obtain initial approvals, these documents must be submitted –

• Fill out the Application Forms.
• Prepare a Business Plan.
• Coloured Passport Copies of the Shareholders/Appointed Managers and Directors of the company.
• Specimen Signature of the shareholders and directors of the company.
• Two years of Audited Financial Reports/Certificate of Reference from Personal Banks.
• Non-Objection Certificate from Current Sponsors.
• Unit Title Deed.
• Letter of Intent.
• A form of the Registry Identification Code (RIC).

ii) Furthermore, the owners must submit some more paperwork to pay the required registration and license fees – 

• Application Form for Registration.

• Board Resolution.
• Power of Attorney.
• MOA and AOA.
• Signatures of Manager/Director.
• Passport-Size Photos of Manager/Director.
• Share Capital Information.

These documents will lead to the preparation of lease agreements by the authority, trade licenses will be issued, and visa processing will begin. Once the official certificates are provided by the authorities, the entrepreneurs can operate accordingly for the company.

Therefore, the article proves how setting up a company in the Al Mazunah Free Zone can be beneficial and is comparatively easier to establish. However, when you have a helping hand, the setup process gets simpler. 

Commitibiz is here to help the company grow. We are a team of professionals that, along with other resources such as accounting, legal, payroll, visa, etc., seek to represent and assist business investors in the process of company incorporation. If you are planning to establish your Al-Mazunah business, please contact us today — we will be pleased to support you.