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 country is working on 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 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, but any marketplace, the first being market analysis, studying the opportunities and scope for the business one wants to start. The second one being, competitor analysis, exploring the firms that are directly or indirectly in competition to the business one wants to start and also to 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 for your company and its needs. For such assistance, Commitbiz is one of your best options. We also help you with your incorporation needs.
There are various options one can choose from onshoring to offshoring to free zone companies.
On-shore business formation in Oman
Limited Liability Company (LLC)
Representative Trade Office
Free Zones in Oman
The Free Zones in Oman primarily focus on logistics, industry, metals, and petrochemicals and are situated away from the country’s capital, Muscat. The four operations free zones in Oman are
Benefits of doing business 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.
- Availability of natural resources
- Fast Developing Economy
- Government’s support to boost new businesses
- No personal tax
- Emerging market in the non-oil sector
- A strategic business location
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 to be a severe offence, and 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.
Starting the business in Oman
Like any other GCC nation, Oman also has a few rules and regulations to be followed to establish a company.
Prerequisites for registration of a company in Oman
- Minimum one director (can be of any nationality)
- Minimum of two shareholders
- Registered office address
- Minimum capital of OMR150,000
Oman company registration process
The incorporation process for a company establishing in Oman has three steps to be followed.
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
- Memorandum and Articles of Association
- Tax Registration Certificate
- Certificate of Initial Deposit
- Shareholders’ Visa and passport copies
- Filed company registration form
- Chamber of Commerce and Industry Affiliation Certificate
- Identity cards of the shareholders
2. Capital Account Opening
A capital account has to be opened to deposit the initial incorporation fee after the documentation process.
This step involves the submission of the essential documents.
- Share Capital Certificate
- Municipality Approval
- Legalized Opening Forms
Registration of all the employees under the company name is needed as the employees must be acknowledged as a part of the business entity.
Apply for Visa
Apply for Visas through Visa services for all your employees. You may have a word with visa consultants for the service at a faster pace.
Conversion of Bank Account
The business capital account needs to be converted into a current account to ease the business transactions effortlessly.
What we can offer you
We, at Commitbiz, come up with a business setup solution package which includes the below-mentioned services.
- Company Incorporation and Registration Services
- Local Sponsorship Services
- Accounting and Bookkeeping Services
- Tax Consulting
- VAT Registration Services
- Intellectual Property Services
- Public Relations Officer (PRO) Services
Commitbiz has been one of the best business consultants in Dubai, with professionals helping out our various clients to 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 on 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 for your business needs.