Situated adjacent to the Port of Salalah and one of Dhofar's most important industrial zones, Salalah’s free trade zone is the second-largest city in Oman. It offers cheaper labor and development costs than other regions to draw investors in the chemical and materials production, manufacturing, assembly, and logistics industries.
Oman has, in due time, been one of the desirable choices for corporate investors. Establishing a business in Oman turns out to be a versatile choice as it provides several free trade locations known as 'free zones' aimed at various industries. The 'Free Zone of Salalah' stands out as one such free zone.
With more than US$3.5 billion of foreign investment, they have built a pioneering light and massive industrial zone with proximity to East-West trade lanes, as well as to the booming markets of the Indian Subcontinent, East Africa, and the broader Middle East.
Salalah Free Trade Zone has also formed a financial framework to link investors with entrepreneurs to help them set up the company or finance their business needs.
Key Development Sectors in Salalah Free Zone
Designed precisely, the Free Zone Salalah focuses on three primary industries:
- Chemicals and Materials Processing
- Production and assembly
- Logistics and Trading
Let's look at the advantages that an investor can take advantage of by setting up a company in the Salalah Free Zone.
Advantages of Setting up a Company in Salalah Free Zone
- 100 percent resettlement of revenue and profit
- Up to 30 percent waiver from income tax available
- It is acceptable to have full foreign ownership
- There is no minimum capital needed to set up a business in this free zone, and there are flexible rates of Omanization applicable to such companies.
- No Personal Income Tax
- Customs tariffs zero for imports and exports.
Types of Licenses in Salalah
To carry out the business operations, SFZ offers the following licenses for investors.
1. General Commercial License
The licensee can import, export, sell, and store goods according to the Free Zone Authority's defined laws.
2. Trading License
The trading license holder has the versatility to import, export, distribute, and store products mentioned in the license.
3. Industrial License
Allows the holder to set up factories, import raw materials, carry on the production and assembly process and export them to different countries.
4. Service License
This license allows the license holder the right to provide particular services within the Free Zone. The parent company should authorize it, and the respective government agencies should issue the license.
There are some essential aspects to be provided in the process of establishing a company. Below are a few documents that you need to keep ready for the establishment process before going further.
Documents Required to Establish a Company in Salalah Free Zone
- Overview/outline of your company you are going to operate in the free zone
- Application form complete with all the personal and professional information
- Owner / Manager passport copy
- Memorandum and Article of Association
- Certificate of Incorporation
- Bank account reports for the last six months (if applicable)
- Letter of appointment for local audit, and approval by auditors of the same
How to Establish Up a Company in Salalah Free Zone?
The government also announced a one-stop-shop (OSS) in the Salalah free zone, just like the Sohar free zone. It includes the registration of an online business that takes about three days, the deposit of an initial deposit in the bank, the incorporation with the Ministry of Commerce and Industry (MOCI), and all the required procedures that make the OSS simple and useful at the same time. The process for registering your business in oman are:
1. Submission of Corporation Essentials
All the required documents mentioned above must be submitted to initiate approaches to the next stage,
2. Obtain No Letter of Objection
In the next step, the Salalah Free Zone Authority must obtain a No Objection Letter indicating that they have no objection for setting up your business in their free zone premises.
3. Organization Due Diligence
The third step is to have the corporation’s due diligence conducted to prevent some offense.
4. Plot Selected
Once completed, it is essential to select the appropriate plot size.
5. Fee Payment
It would help if you switched to the next level of fee payment for the premise chosen once.
6. Obtaining licenses and permits
Outstanding claims and permits must be received from the relevant authorities following payment to carry out business activities.
7. Collect Authorization Certificates
The Registration Certificate must be obtained from the Registrar's Office after obtaining the necessary licenses and permits.
Now, let’s have a look at the services that are provided by the Salalah Free Zone.
Services Provided by Salalah Free Zone
- Office space for rent
- Construction services
- Warehouses of various sizes
- Strong connectivity
It can be summarized in a nutshell that these free zones are industry-centric and are planned accordingly. These free zones draw millions of investors and offer a forum to establish the origin of their companies. Tax deduction adds another layer to it, which makes it much easier to start businesses. If you are planning to establish your place in Salalah Free Zone in Oman, contact us-we’d be glad to assist you.