Free zones have always been the eye-catching factor for investors to establish a business in the GCC countries. These zones have played a great role in bringing international businesses to their respective countries as certain areas they hold stand as tax-free zones. Starting a business in Oman has always been a favorite spot for international investors because of the availability of the free zones. If you are planning to expand your business in Oman, then you can definitely opt for Oman free zones. This guide will give you an overall idea regarding company formation in Oman free zones.
Industrial Free Zones in Oman
The Sultanate holds four free zones that focus on the growth of different business sectors and activities. The zone allows importing raw materials, processing, assembling and packaging, exporting finished products, storing and warehousing products. The free zones have been categorized accordingly based on the business sectors they support. One should select a zone according to one’s industry and business needs. There are 4 free zones in Oman:
1. Al Mazunah Free Zone
Established in 1999, Al Mazunah is located close to the Yemeni border, making it the Gulf gateway to enter the Republic of Yemen and East African countries. This zone is a hub to commercial, service and industrial sector.
2. Salalah Free Zone
This free zone offers solutions to businesses that have a plan to expand their business into the Middle East, Africa, Southern Europe, and Asia. The location becomes an attractive destination due to low cost in terms of labor, utilities, and infrastructure.
3. Sohar Free Zone
It is a 4,500-hectare deep-sea port that attracts almost US$26 Billion and is one of the fastest growing ports in the world. The port is expected to take responsibility for managing Oman’s National Food Reserve.
4. Duqm SEZ
One of the future’s biggest economic zones lies in Duqm SEZ. With an area of almost 1,745 sq.km, the zone has been divided into 8 sub-zones that hold different grounds of investments such as industries, sea-port, and dry-dock, tourism, fisheries, etc.
Now, let’s have a glance at the benefits that you can derive by establishing a company in Oman.
Benefits of Setting Up a Company in Oman Free Zone
- Investors get 100% ownership
- No Minimum Share Capital requirement
- No Corporate tax for a period of ten years
- No duties are imposed on import and export procedures
- Minimum 5 years of lease
- Trade can start within Oman without a local agent
How to Set Up a Business in Oman Free Zone?
For an investor, one must follow the below-mentioned process to incorporate one’s business in Oman free zone:
- Submit the Plot Application Form
- Reach an agreement on the Commercial Terms
- Submit a No Objection Letter to the Ministry of Environment and Climate Affairs
- Clear the due diligence process
- Select a plot and get an approval for its application
- Pay the lease, incorporation and license fee
- Collect the Certificate of Incorporation
- Sign the lease agreement
Documents Required to Set Up a Business in Oman Free Zone
- Name of the investors along with their country of origin
- Plot size required to set up business
- Business Plan along with Capital Investment
- A figurative representation of total employment generation
- Total electricity and water requirement
- Contact details of the investor
- Projected cargo volume
Fees Required to Set Up a Free Zone Company in Oman
|
Activities |
Fee |
|---|---|
|
Business Registration |
OMR 1,050-1,550 |
|
Commercial/ Logistics License |
OMR 385 (annual) |
|
Industrial/ Manufacturing License |
OMR 385 (annual) |
|
2-Year Visa |
OMR 201 |
Summarizing the overall information, we can say that Oman free zones are heading towards progress and are also providing a great platform for business investors to invest in. The location holds a great potential for both established as well as startups and also provides an opportunity for investors to expand their business to the neighboring countries. To initiate the process, it is recommended to have a word with a business consultant who is well versed with the Omani legal rules and regulations, business setup processes. This will help you to incorporate the entity at a faster pace and in a hassle-free way. Wondering whom to approach? Don’t worry. We’ve got your back.
Commitbiz
Commitbiz has been helping firms and entrepreneurs in establishing their business in Oman. Our experts are well-versed with the Omani business framework and will cater to your needs accordingly. To proceed towards starting a business in Oman today, do contact us. We’d be happy to assist.