Oman, also known as the Sultanate of Oman, is a strategically located growing business center. It is one of the growing GCC nations that is also an established home to foreign ex-pats with a lot of business opportunities.
We give you an overview as to why you chose this country as an investment location. In this guide, we will get to know the process of company registration in Oman.
The Omani Government has been continuously progressing toward the nation’s development and has initiated multiple steps to comfort the foreign ex-pats and grab more foreign investors. If you plan to diversify your business internationally, then this is a location that you can count on.
The nation is located on the southeastern coast of the Arabian Peninsula. With a population of more than 6.5 million, the country has marked a transformational shift when it comes to leveraging the nation’s economy.
Although the nation holds a strong oil economy, with tireless efforts, the region has strengthened its non-oil segment, contributing significantly to leveraging its revenue and growth.
Why Start a Business in Oman?
The growing destination of Oman provides multiple benefits to the global business investors that provokes them to proceed with the business incorporation process. Some of the benefits that you can avail yourself by setting up a business in Oman are:
1. A Booming Economy
Oman is regarded as a future-oriented country that is looking forward to growing at a rapid speed. The region has liberalized its markets, opening up new business opportunities for global business investors. The region is a perfect choice for business owners and investors from multiple industries. Some of the critical sectors in Oman are:
- Tourism and Travel
- Oil and Gas
- Food Processing
- Logistics etc.
2. Holds a Strategic Position
The ground of Oman holds a coastline of over 1700 km, which benefits the region to stand as one of the booming marine trade routes in the world. It stands as an international gateway to the Arabian Gulf and the Indian Ocean. Also, the region holds accessibility to the neighbouring countries covering Saudi Arabia, UAE, Qatar, Bahrain etc. This turns out to be profitable for the business investors at a later part to expand their business in the neighbouring locations.
3. Availability of Wide Talent Pool
Holding a high population of about 6.5 million (as of Jan 2020), the region has got a massive portion of the community as a working employee. This eases the business entities to hire talented professionals at ease, who can contribute their best to leverage the maximum benefit of the company. The nation has also got a strong point when it comes to the Research and Development (R&D) domain.
4. Robust Infrastructure
Oman ranks as one of the fastest developing countries when it comes to infrastructure development. This initiative by the Omani Government allows the business entities to carry out the operations at ease. The nation holds a firm ground when it comes to the different mediums that include the road, sea, and airports. According to a recent report, the
5. Business-Friendly Nation
With the massive implementation of the strategic business process, the region has stood as a business-friendly region. It has got a strong business network with neighbouring countries. Additionally, the state also holds more than 35 Double Taxation Agreements (DTAs), which signifies that the business owners and investors can carry out business transactions with more than thirty-five nations, without paying the import-export charges.
6. Tax Exemption
In Oman, there is no personal tax, which means that the business professional is free from the payment of income tax. However, being a part of the GCC region, the nation has accepted to implement the VAT services by the start of 2021.
You can see that the business incorporation proceedings involve multiple levels of documentation clearance, which might turn out to be a robust process if you are not aware of the legal proceedings. By outsourcing the incorporation services, you can set yourself free of unwanted tension and can focus more on building business strategies. Parallelly, the available time and resources get utilized most profitably.
Prerequisites for a Company Registration in Oman
The following requirements should be met:
- Minimum one director (can be of any nationality)
- Minimum of two shareholders
- Registered office address
- Minimum capital of OMR150,000*.
*Kindly connect with us for confirmation.
How to Proceed with a Company Formation in Oman?
Just like the other GCC countries, the Oman company registration process requires the involvement of a few steps that need to be cleared accordingly. Company formation in Oman is a process wherein the business entity is given a physical platform.
To start the process, there are certain steps that need to be followed accordingly. Below mentioned are the steps related to the incorporation as well as post incorporation process that you need to follow once you have decided to open a company in Oman.
Select a Business Structure
The first and foremost step in incorporating a business entity in Oman is to select a relevant business entity structure. 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.
Decide on a Trade Name
A trade name must be unique and related to the business. Decide on a name and submit the application to the Ministry of Commerce and Industry.
The company name needs to be chosen wisely, as it will stand as a brand for your business. However, certain restrictions need to be followed while selecting a name for your business.
- The selected name can’t be a copy of the existing competitors
- A name that might sound offensive in a multiple-way 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.
Submit Documents of Incorporation
This is the initial stage where all the necessary documents need to be submitted to initiate the incorporation process. The essential documents required are:
- Memorandum and Articles of Association
- Shareholders’ Visas and Passports
- Tax Registration Certificate
- Identity Card of Shareholders
- Certificate of Initial Deposit
- Filed Company Registration Form
- Chamber of Commerce and Industry Affiliation Certificate.
Capital Account Opening
Once the documents have been submitted, a capital account needs to be opened to deposit the initial incorporation fee.
Register with the Chamber of Commerce
Register with the Oman Chamber of Commerce and Industry (OCCI) for compliance with the commercial rules and regulations required of a corporate in Oman.
Register the Business
This step involves the submission of the essentials:
- Legalized Opening Forms
- Municipality Approval
- Share Capital Certificate.
Gather the Required Approvals
Apart from the registration with the OCCI, necessary approvals need to be gathered from the relevant government authorities. Now, the approval process depends on the nature, size, and business activities that get carried out in the organization.
However, the list includes:
- 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 the import-export of goods
- Industrial, environmental, and other relevant permits.
Get the Company Seal
Last but not least, you need to hold the company seal, which is important for the business entity while drafting the business documents.
After these steps, three post-incorporation steps are a must.
Apply for Visa
The next step after the incorporation process is to apply for visa services in Oman, for all your employees. You can have a word with visa consultants to avail of the visa services at a faster pace.
The employees must be acknowledged as a part of the business entity, and for that, registration of the employees under the company name is mandatory.
Conversion of Bank Account
The business capital account needs to be converted to the current account so as to ease the business transactions successfully.
Our Services for Business Setup in Oman
Commitbiz comes with a business setup solution package that includes the following:
- Company Incorporation and Registration
- Local Sponsorship
- Public Relations Officer (PRO) Services
- Accounting and Bookkeeping
- Tax Consulting
- VAT Registration
- Intellectual Property Services.
Commitbiz has been one of the best business consultants in Dubai, helping out various clients to establish and grab business opportunities in Oman. Our experts are well-versed in the Omani business framework and will help you to deal with it in a hassle-free way.
To proceed towards starting a business in Oman today, do contact us. We’d be happy to assist.
Can a foreigner own majority shares in an Omani company?
The Sultanate of Oman encourages foreign capital that will enhance the overall development of the country.
What are the prerequisites to start an LLC company in Oman?
To start an LLC company in Oman, at least two shareholders, one director and minimum share capital of OR 150,000 is required.
What are the investment incentives offered in Oman?
Investment incentives include providing plots for nominal lease charges in specified areas and reducing utility charges and exemption from taxes.
Is a foreign company allowed to open a branch and representative office in Oman?
Companies conducting business through special contracts or agreements with the government can establish a branch in Oman.
How many industrial estates, free zones, special economic zones are in Oman?
There are six industrial estates in Oman managed by the Public Establishment for Industrial Estates.
Is there any restriction on repatriation?
Oman is a free economy and does not restrict the remittance abroad of equity, debt, capital, interest, dividends, profits and personal savings.
What are the criteria for getting a residential and investors' visa?
An investor visa is granted to a foreigner who intends to invest his money in Oman according to certification in this respect from the authority concerned.
What is the corporate tax rate in Oman?
A uniform 12% tax rate is applicable for all companies irrespective of nationality and size, and profit up to OMR 30,000 is exempt from tax.
Is it mandatory to have a resident shareholder or director for a business setup in Oman?
No. resident shareholder or director is not needed to establish a company in Oman. However, many companies require at least one Omani or GCC citizen or corporation to hold 35% of the company's shares.
How long does it take to form a company in Oman?
If all documents and other prerequisites are in order, company formation in Oman takes about 8 to 10 days.
Is Value Added Tax applicable in Oman?
A Value Added Tax (VAT) shall probably be introduced in Oman from 2019.