Regarded as the Sultanate of Oman, the nation is located on the southeastern coast of the Arabian Peninsula. With a population of more than 6.5 million, the country has marked a transformational shift when it comes to leveraging the nation’s economy. Although the nation holds a strong oil-economy, with tireless efforts, the region has strengthened its non-oil segment, which contributes significantly to leveraging the nation’s revenue and growth.
Over a while, it turns out to be a favorable and profitable business destination for the global business professionals to start a business. The nation is expected to hold a GDP growth of 3.7% by 2020. If you are planning to incorporate a company in Oman, then this is the perfect time to proceed ahead. This guide highlights the complete process of investing in Oman, which will be beneficial for you.
How to Incorporate a Business in Oman?
To start a business in Oman, the following steps are to be followed accordingly:
1.Select a Business Structure
The first and foremost step in incorporating a business entity in Oman is to select a relevant business entity structure. It is important to note that the selection of the structure depends on the number of shareholders available and the total share capital to be invested. The region turns out to be a profitable zone for the following business entities:
- Sole proprietorship
- Joint-stock company
- Branch office
- Representative office
- Limited liability company
- Commercial agency
2.Reserve a Trade Name
Once the selection of the business structure gets completed, the second move is to decide the trade name for your business. The company name needs to be chosen wisely, as it will stand as a brand for your business. However, certain restrictions need to be followed while selecting a name for your business.
- The selected name can’t be a copy of the existing competitors
- A name which might sound offensive in a multiple-way including religious, political, military, meaning or content
- An honorary sign or unique character in any of the regional, Arab or international organizations
- A name that carries the word “Oman” or “Omani.”
- A name that denotes an incorrect geographical division of the Sultanate of Oman
Upon selecting the business trade name, the business shareholders must obtain the authorized signatory form and the bank certificate that needs to be presented to the Ministry of Commerce and Industry (MOCI) in Oman.
3.Submit the Required Documents
The third step is to be handy with the required documents that would help them in the approval process. Now, the set of documents include the following:
- Company registration form
- Copy of valid IDs of the company shareholders and authorized signatories of the entity
- Copy of address proof of the shareholders
- Shareholder’s visa and passport
- Company statutes
- Chamber of Commerce and Industry Affiliation Certificate
- Certificate of Initial Capital Deposit at the Bank
- Memorandum and Articles of Association
4.Register with the Oman Chamber of Commerce and Industry (OCCI)
Once you are handy with the documents mentioned above, you need to register with the Ministry of Commerce and Industry (MOCI), Oman Chamber of Commerce (OCCI) for the commercial rules that need to be acquired by a business entity.
5.Gather the Required Approvals
Apart from the registration with the OCCI, necessary approvals need to be gathered from the relevant government authorities. Now, the approval process depends on nature, size and business activities that get carried out in the organization. However, the list includes:
- The tax registration department
- Registration with the Royal Oman Police
- Registration with the Ministry of Manpower
- Registration with the Municipality
- The Import-Export Authority of Oman, if involved in import-export of goods
- Industrial, environmental and other relevant permits
6. Get the Company Seal
Last but not least, you need to hold the company seal that is important for the business entity while drafting the business documents.
Benefits of Starting a Business in Oman
The growing destination of Oman provides multiple benefits to the global business investors that provokes them to proceed with the business incorporation process. Some of the benefits that you can avail by setting up a business in Oman are:
1.A Booming Economy
Oman is regarded as a future-oriented country that is looking forward to growing at a rapid speed. The region has liberalized its markets, opening up new business opportunities for global business investors. The region is a perfect choice for business owners and investors from multiple industries. Some of the critical sectors in Oman are:
- Tourism and Travel
- Oil and Gas
- Food Processing
- Logistics etc.
2.Holds a Strategic Position
The ground of Oman holds a coastline of over 1700 km, which benefits the region to stand as one of the booming marine trade routes in the world. It stands as an international gateway to the Arabian Gulf and the Indian Ocean. Also, the region holds accessibility to the neighboring countries covering Saudi Arabia, UAE, Qatar, Bahrain etc. This turns out to be profitable for the business investors at a later part to expand their business in the neighboring locations.
3.Availability of Wide Talent Pool
Holding a high population at about 6.5 million (as of Jan 2020), the region has got a massive portion of the community as a working employee. This eases the business entities to hire talent professionals at ease, who can contribute their best to leverage the maximum benefit of the company. The nation has also got a strong point when it comes to the Research and Development (R&D) domain.
Oman ranks as one of the fastest developing countries when it comes to infrastructure development. This initiative by the Omani Government allows the business entities to carry out the operations at ease. The nation holds a firm ground when it comes to the different mediums that include the road, sea, and airports. According to a recent report, the
With the massive implementation of the strategic business process, the region has stood as a business-friendly region. It has got a strong business network with neighboring countries. Additionally, the state also holds more than 35 Double Taxation Agreements (DTAs), which signifies that the business owners and investors can carry out business transactions with more than thirty-five nations, without paying the import-export charges.
In Oman, there is no personal tax, which means that the business professional is free from the payment of income tax. However, being a part of the GCC region, the nation has accepted to implement the VAT services by the start of 2021.
You can see that the business incorporation proceedings involve multiple levels of documentation clearance, which might turn out to be a robust process if you are not aware of the legal proceedings. By outsourcing the incorporation services, you can set yourself free of unwanted tension and can focus more on building business strategies. Parallelly, the available time and resources get utilized most profitably.
How Can We Help?
Commitbiz Consultants has been continuously delivering the best business incorporation services across UAE, Oman, Qatar and Bahrain. Since inception, it has been intending to simplify the business setup process and has been helping numerous business investors, entrepreneurs and professionals to implement their business ideas. Our business advisors are well-versed with the company setup proceedings and can guide you effectively by providing tailored solutions. In case you hold any queries, feel free to have a word with our business advisors. Contact us today-we’d be glad to assist.