The Sultanate of Oman offers numerous Free Zones that has been one of the eye-catching parameters that attract international business investors in its ground. Just like the Sohar and Salalah Free Zones, there comes another zone referred to as the Duqm Special Economic Zone. This treaties will give you a clear picture of Duqm Oman and the various facilities that it provides. If you are an investor and looking for businessinvestment opportunities in Oman and is titled towards industrial aspect, you can count on Duqm SEZ. Let’s start with…
What is a Special Economic Zone?
A Special Economic Zone (SEZ) is an area that deals with business and trade laws that are slightly different from the normal company incorporation ground and is located within the country’s national boundary. The SEZ aims at increased trade balance, increased investment, job creation, and effective administration. Now, let’s understand more about Duqm Special Economic Zone Authority and its investment opportunities.
Investment Opportunities in Duqm Special Economic Zone
The Special Economic Zone Authority at Duqm (SEZAD) provides attractive opportunities to investors to unlock their business projects. Like the other free zones, there lie many investment opportunities in Duqm SEZ like:
- Refineries, oil storage, and refining
- Petrochemical industries
- Transport and Logistics
- Heath and Therapeutic Services
- Market and Malls
- Fishery Industries
- Real-Estate Development
- Warehousing and Logistics Village
- Tourist Resorts
- Commercial Offices and Residential Complexes
Now, before you make any move whether to invest or not, let’s have a glance at the different benefits that you being an investor will derive.
Benefits of Setting Up a Company in Duqm SEZ
- Exemption of tax for a period of 30 years
- Availability of 100% Foreign Ownership
- No restriction in terms of minimum capital requirement
- No currency restrictions
- 100% Repatriation of capitals and profits invested and earned
- The flexibility of free movement of goods inside the zone
- Visa for Expatriates is easily available
- Easy network link with the Gulf and International markets
- Presence of Labor Department to issue the necessary permits for foreign workforce
- Politically stabled zone for business activities
- Mandatory of 10% Omanization rate stipulated by SEZAD Board
- Freedom to establish a Representative Office
Before you proceed towards the core company setup process, it becomes essential for you to know that different business licenses are to be obtained before one initiates the business activities. These licenses are issued by different departments such as:
- Ministry of Commerce and Industry
- Capital Markets Authority
- Ministry of Health
- Capital Markets Authority
- Ministry of Information
- Ministry of Education
- Ministry of Tourism
Next, let’s have a close look at the essentials required to set up a business in Duqm SEZ.
Documents Required to SetUp a Company in Duqm SEZ
- Copy of Owner’s ID, Partners, Founders etc.
- Signature of the Signatories according to the Annex(1) of the Investment Application
- Description of the Investment Project and its needs according to the Annex (2) of the Investment Application
- Memorandum and Articles of Association
- In case if a partner is a legal person, minutes of the meeting along with the partner’s share needs to be submitted.
- In case of a Branch office, a letter from the parent company is required that states the responsibility of the business activities are to be taken care of by the Parent company.
- Certificate of Company Registration
- Official letter from the owner of the establishment requesting registration of Branch Office
- If the applicant holds a work visa, a No-Objection Letter from the current sponsor is to be submitted
The next question you might be having in your mind is…
How to Set Up a Company in Duqm SEZ?
Well, setting up a business in Duqm SEZ involves a few steps:
- Submit an application form, known as Plot Application Form (PAF) by filing the necessary details
- An agreement needs to be drafted based on the Commercial terms, Land Lease Price, and Contract Term
- A No Objection Letter needs to be obtained from the Ministry of Environment and Climate Affairs (MECA)
- Due diligence process is to be performed on the main shareholders and promoters
- Necessary payments need to be paid accordingly
- Once paid, the company incorporation certificate needs to be collected from the Oman Chamber of Commerce and Industry.
Facilities Provided by Duqm SEZ
- Enormous ground spread up to 2000 sq.km. for business setup
- A diversified environment for different business activities
- A Logistics and Marine hub
In a nutshell, we can say that Duqm stands to be a strong pillar when it comes to Free Zones in Oman. It ends up providing multiple benefits to foreign expats and therefore the Omani Government has been continuously taking the necessary steps to turn the Free Zone as one of the largest free zone, diversified in multiple business directions. If you are planning to set up your business in Duqm SEZ, contact us today-we’d be glad to assist you.