Oman’s Economic Growth: Impact on the Business Entities in Oman

by commitbizadmin 29, Jun 2020

Oman’s Economic Growth: Impact on the Business Entities in Oman

Holding a rich history, the Sultanate of Oman shares its borders with the United Arab Emirates. Known for providing a wide range of experience from exploring the incredible mountains to swimming in the wadis, the region offers an unforgettable experience to the worldwide visitors. Over the period, the Sultanate has diversified its economy and has established itself as one of the booming business grounds today. Continuous developments initiated by the Omani Government has been grabbing the attention of the worldwide audience. They focus on providing a modern touch to the original Arab culture. The nation focuses on building itself as a game-changer in the year 2020, which turns out to an excellent opportunity for the business investors to come forward and invest in.

This guide has been curated to provide the core essentials that a business investor should be aware of. According to the latest report published by Doing Business 2020, Oman grabs the rank of 68th among 190 nations. If you are a businessman looking forward to expanding your business or invest in a foreign country, then Oman stands as a practical choice.

Oman Vision 2020

Alike Dubai, who is keen on inaugurating the World Expo 2020, Oman to has got a formalized structure to uplift the region’s growth to the next level. The 9th Five-Year Development Plan initiated in the year 2016, is about to shape the nation. Multiple strategies and reports would be scrutinized by the governed authorities at different periods to take the necessary steps.

The core objectives of Oman Vision 2020 include:

  • Identifying the potentials of every targeted sector locally and internationally.
  • Formulating attractive policies and regulations to utilize the potential of each sector fully.
  • Infusing the private sector into the national development programs and the encouragement of the strategic partnership with the private sector.
  • Encouraging Omanization in the private sector

Oman’s Vision 2020 is a massive step towards re-defining the economy and step towards “economic liberalization” and “business and investment policies”. The Government has been taking multiple steps towards grabbing the attention of the global business investors to come forward and invest in. Apart from the usual business focus, the vision also focuses on the following parameters:

  • Increasing the women’s participation rate in the economy
  • Encourage the SMEs to move towards megaprojects
  • Boost competitiveness in the private sector

It is clearly visible that the ground holds enormous scope for the business industries and the investors.

How to Incorporate a Business in Oman?

To proceed ahead towards the company incorporation process in Oman, the business owners need to follow the below-mentioned process.

1.Selection of a Business Structure

This is the first and foremost step that you need to take ahead based 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.Reservation of Your Business Trade Name

The company name stands as a brand for your business. However, there are certain restrictions that need to be followed while choosing a name for your business.

  • The selected name can’t be a copy of the existing competitors
  • A name which might sound offensive in multiple ways 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

Documentation plays a vital role in building the foundation for any business. When it comes to business entity incorporation in Oman, you need to present the below-mentioned documents:

  • 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.Registration 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

Based on the business activities to be performed by a business entity, relevant approvals need to be obtained from various departments that include:

  • 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

The last step of the process is to obtain the company seal.

Now, since you are clear about the process, let’s take a step forward and understand the benefits that you can avail by investing in Oman.

Benefits of Setting up a Business in Oman

By starting a business in Oman, business investors and owners can avail the following benefits:

  • Exemption from personal tax
  • Oman holds a strategic location that is beneficial for business expansion
  • The region has got multiple Double Taxation Agreements with foreign countries
  • Stands as an international gateway
  • Robust development of the infrastructure and network connectivity
  • Focused as a future-oriented business platform

Now, it is clearly understood that investing in Oman is a profitable move for business professionals. However, proceeding ahead alone to clear the legal proceedings turns out to be a tough task. To carry out the process in a smooth manner, it is recommended to proceed ahead with the guidance of a certified business consultant who is well-versed with the company incorporation procedure.

Reasons to Avail Professional Services

Business owners prefer to utilize their time in the wisest and productive way. Hence, they focus on the following rights that provoke them to outsource the tasks to the professional experts.

  • The tasks get completed at a faster pace
  • The records are maintained in a professional manner
  • The legal documentation process gets handled
  • Minimizes the burden of the business owners and investors
  • Available resources can be utilized in the most productive way

How Can We Help?

Intending to provide one of the best business incorporation services, Commitbiz Consultants offer hassle-free setup solutions that will help you to transform your business idea into reality. Since inception, we have been assisting multiple business investors across UAE, Oman, Qatar, Bahrain to establish their business entity at ease. Our experts are well-equipped with the business incorporation proceedings in the UAE and can help you by providing tailored solutions suiting your business needs.

In case you hold any queries regarding establishing your business in Oman, feel free to have a word with our experts. Contact us today-we’d be glad to assist.