How to Start a Business in Oman?

Are you looking for a strategic location that offers you a stable economy and streamlined regulations for your business venture? Providing easy access to the Middle East and North America (MENA) region, the Sultanate of Oman is the perfect destination to launch or scale your business. Its well-developed infrastructure and pro-business environment have promoted foreign investments, making it profitable to start a business in Oman.

In this article, we provide you with all the necessary information about the regulations involved during a company formation in Oman to ensure a smooth process.

Process to Setting up a Business in Oman

Are you planning to invest in Oman? Adhering to local laws and regulations not only promotes good relationships with legal authorities but also ensures smooth business operations.

Mentioned below are the steps you must follow to streamline your business setup in Oman:

1. Choose Jurisdiction

The two jurisdictions in Oman are the free zone and the mainland. Each jurisdiction has different regulations and requirements. A mainland business setup offers you access to local markets, while Oman-free zones provide you with better networking opportunities. You need to analyze the benefit each jurisdiction has to offer in order to optimize your business operations.

2. Select Appropriate Business Structure

Choosing an appropriate legal entity is important, as it determines the overall structure of your business in Oman. This step will affect the liability, ownership, and control over management. Some of the common business entities in Oman are:

• Branch office
• Sole proprietorship
• Joint-stock company
• Representative office

3. Trade Name Approval

Choose a unique business name for setting up a company in Oman. Obtain the trade name certificate by following the regulations set by Oman’s Ministry of Commerce, Industry, and Investment Promotion (MOCIIP). You can complete the entire process digitally via the government’s e-services portal ‘Invest Easy’.

4. Documentation

Preparing the proper documents is essential to ensure a smooth registration process for your business in Oman. The documents vary depending on your chosen jurisdiction and business activity. However, some of the standard documents required for a company setup in Oman are the Memorandum of Association (MoA), Article of Association (AoA), and shareholders identification card, among others.

5. Application

Register with the Oman Chamber of Commerce and Industry (OCCI). Obtain the application form and submit it with the required documents. This process will help streamline your commercial registration and licensing process.

6. Approval Process

After obtaining approvals from the OCCI and MOCIIP, you must obtain additional approvals from the relevant regulatory bodies for your business in Oman. The approval process depends on the nature, size, and the business activities performed. For example, you need to get approval from the Import-Export Authority of Oman if your business is involved in trading activities.

7. Bank Account Opening

Open a bank account to fulfil capital requirements and streamline all your business-related transactions. You will obtain a capital deposit certificate and bank certificate after depositing the required capital. The capital amount may vary depending on business activity and jurisdiction.

8. Tax Registration

Submit all the required information to the Oman Tax Authority (OTA) to obtain your tax identification number (TIN). The TIN is a unique number that helps the OTA ensure a smooth taxation system. You can use the Oman Tax Identification Number to pay taxes and file tax returns digitally.

9. Licensing

Obtaining a license is crucial to operate legally within the country. Every business in Oman has a relevant license authorising them to conduct their operations. The MOCIIP issues the license and company seal after you submit the capital deposit certificate. Some common licenses in Oman are:

• General Trading License - This license authorises your business to trade a wide range of goods.
• Service License -  The service license, also known as the professional license, allows you to offer different services utilising your knowledge and skills.
• Industrial License - This license enables your business to engage in industrial and manufacturing activities like setting up plants and warehouses.

10. Visa Requirements

Complete all the visa requirements for your employees and ensure compliance with local laws. The Oman Ministry of Manpower regulates the necessary labour permits for expats, while the Royal Omani Police's immigration department processes employment visas.

How Can Commitbiz Help?

With over 17 years of experience, we streamline your company registration in Oman. Our consultants at Commitbiz LLC go beyond customary consulting norms to provide you with a personalised experience. Our comprehensive and customised services are designed to solve all your business setup challenges. From documentation to helping you with licensing, we allow you to focus on core business operations while handling all the back-end tasks. Contact us to learn more about our services and turn your business dreams into a reality!