Guide for starting a business in Oman

Starting a Business in Oman for Foreigners

by Zaara 18, May 2020

Oman, the country bordered by the UAE to the north-west, Yemen to the south-west, and Saudi Arabia to the west, Muscat, the capital city to the south-east coast, Sohar and Sur to the North, and Salalah in the south, is currently experiencing economic growth and is encouraging businesses and new industries to flourish in the country. In addition to its oil and natural gas industries, the government is developing other sectors, including mining, construction and infrastructure, import and export trade, and agriculture.

Oman is one of the most developed and stable economies in the Arab world, with the country’s political and social fabric being solid and the government focusing on the growth and development of the country.

Although there are several limitations and requirements to be considered, foreign citizens can establish a business in Oman. The country has strong laws and regulations that are amended constantly to avail a flexible and up to date legal framework to do business.

One must carry out a few steps before they enter and start a business at not just Oman. Still, any marketplace, the first being market analysis, studying the opportunities and scope for the business one wants to start. The second one is competitor analysis, exploring the firms directly or indirectly in competition to the business one wants to create and cover the businesses that might affect ours.

Once the analysis part is done, you must now understand the types of companies one can establish in Oman and decide on the best one compatible with your company and its needs. For such assistance, Commitbiz is one of your best options. We also help you with your incorporation needs.

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Business Setup in Oman - Establishment Options

There are various options one can choose from onshoring to offshoring to free zone companies.

Onshore Business Formation in Oman

  • Limited Liability Company (LLC).
  • Representative Trade Office.
  • Branch Office.

Free Zones in Oman

The Free Zones in Oman primarily focus on logistics, industry, metals, and petrochemicals and are situated away from Muscat’s capital. The four operations free zones in Oman are

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Benefits of Company Formation in Oman

After deciding on all the factors mentioned above, understand what benefits you can expect from your Omani company. There are several reasons to start a business in Oman; read about eight of those in our blog. The benefits you can expect from doing business in Oman are as follows.

  1. Government’s support to boost new businesses.
  2. Emerging market in the non-oil sector.
  3. Availability of natural resources.
  4. A strategic business location.
  5. Fast Developing Economy.
  6. No personal tax.
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Choose the Right Omani Partner

While choosing a partner for your venture, understand that an Omani partner can be in the form of an individual Omani citizen or wholly Omani owned company. More often than not, having an Omani company as a business partner is a more secure and robust solution for the foreign company, and there are several established companies with the sole purpose of assisting international companies in developing their business presence in Oman; click here to know more about this service.

Also, it is worth noting that if a business were to fail, there is a personal risk to the owner, as debt and financial irregularities are considered a severe offence. The person may not be allowed to leave Oman. This risk increases if the loan is availed from an Oman-based bank rather than from a home-country bank.

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Starting a Business in Oman

Like any other GCC nation, Oman also has a few rules and regulations to establish a company.

Prerequisites for Registration of a Company in Oman

  • Registered office address.
  • Minimum of two shareholders.
  • Minimum capital of OMR150,000.
  • Minimum one director (can be of any nationality).
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Process of Company Registration in Oman

Incorporation Process

The incorporation process for a company formation in Oman has three steps to be followed:

1. Documentation

In this initial process of incorporating a company in the country, the necessary documents need to be submitted to initiate the process. The documents essential in this step are:

  1. Chamber of Commerce and Industry Affiliation Certificate.
  2. Memorandum and Articles of Association.
  3. Shareholders’ Visa and passport copies.
  4. Identity cards of the shareholders.
  5. Filed company registration form.
  6. Certificate of Initial Deposit.
  7. Tax Registration Certificate.

2. Capital Account Opening

A capital account has to be opened to deposit the initial incorporation fee after the documentation process.

3. Incorporation

This step involves the submission of the essential documents:

  • Municipality approval.
  • Share capital certificate.
  • Legalized Opening forms.

Post-Incorporation Process

1. Employee Registration

Registration of all the employees under the company name is needed as the employees must be acknowledged as a part of the business entity.

2. Apply for Visa

Apply through the visa services in Oman for all your employees. You may have a word with visa consultants for the service at a faster pace.

3. Conversion of Bank Account

The business capital account needs to be converted into a current account to ease the business transactions effortlessly.

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What we can offer you?

We, at Commitbiz, come up with a business setup solution package that includes the below-mentioned services.

  • Company incorporation and registration services.
  • Accounting and bookkeeping services.
  • Public Relations Officer (PRO) services.
  • Intellectual property services.
  • Local sponsorship services.
  • VAT Registration services.
  • Tax consulting.
  • Auditing.

Commitbiz has been one of the best business consultants in Dubai. It has professionals helping our various clients grab the best business opportunities in the UAE region, establish and run their dream company. We are a team of well-versed experts that have an excellent command of the Omani business framework and the country’s economy to help you deal with your business in a hassle-free manner. For further information or queries or assistance in your company needs, contact us. We at Commitbiz are pleased to guide you with your business needs.

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