Oman’s legal and business framework is designed so flexibly that any corporate structure fits in its business arena. Investors from every corner of the world find Oman as a growing platform for business establishment, so the location is in demand in the present times.
If you are a business investor or an owner who wants to set up a business, you can opt to incorporate a Joint Stock Company in Oman.
What Is a Joint Stock Company?
A Joint Stock Company (JSC) is one of the business structures in which the shareholders hold power to buy or sell company shares. In short, JSC is a company where the capital is divided into shares that can be shared in the open market. Moving on, let’s have a look at JSC in Oman.
Know About Oman Joint Stock Company
Oman holds a perfect platform for business investors and owners to initiate a JSC. Companies that trade their shares publicly are known as Public Joint Stock Companies (SAOG) and the ones that don’t are known as (SAOC). As per the Omani rules, certain essentials are:
- The minimum share capital should be OMR 150,000
- A minimum of 2 shareholders
- An Omani shareholder holding at least 30% of the shares
- Approval from the Ministry of Commerce and Industry
Documentation plays a very important role in the company incorporation process. Below are the essential documents required to set up a JSC in Oman. Do check…
Documents Required to Start a Joint Stock Company in Oman
Just like any other company registration in Oman, registering a JSC also requires certain documents and they are listed below.
- Legal Guardian consent for Omani citizens
- Memorandum + Articles of Association + Feasibility Study of the company
- Proposed by-laws of the company
- Bank certificate stating the deposit of initial capital
- Non-Objection letter from the sponsor for residents of Oman
- Passport Copy for foreign persons
- Criminal record clearance certificate for foreigners
- Proof of financial stability
- Company registration certificate
- Minutes of the meeting for an Omani company
Now, let’s move on to the company establishment process.
Process of Setting Up a Joint Stock Company in Oman
For doing business in Oman, you need to follow certain procedures and they are as follows.
Choose a Business Name
Reserve a name for the business entity. Certain regulations need to be followed make sure you abide by them.
Submit Relevant Documents
Apply to the Director General of Commerce (DGC) with the documents above. Make the payment. The DGC would respond within 30 days regarding the confirmation of the company’s formation.
Conduct a Meeting and Finalise the Members
Conduct a Constitutive General Meeting (CGM) to align the actions needed before the registration process. Election of board members and auditors
Fill out the Registration Form
A commercial registration form must be duly filed in Arabic and signed at the Registrar's Office. Once approved, the Company Registration certificate needs to be collected.
Thus, you now have a clear idea regarding the company formation process in Oman. Now, being an investor, you must know the benefits that you can avail yourself by investing or establishing a JSC in Oman. Read below to figure out the benefits you should be aware of.
Benefits of Forming a Joint Stock Company in Oman
The advantages that you can derive by establishing a Joint Stock Company in Oman are:
- 100% ownership
- No corporate or personal tax
- A strategic location as it opens gates to enter other Middle-East countries
- A rapid development economy
- Friendly Government initiatives
- A large pool of natural resources
- World-class infrastructure
The oil & gas industry has transformed itself into a multi-business hub. The government has been tirelessly taking multiple steps to make the location more feasible for foreign investors. If you plan to initiate the company formation process in Oman, it’s the right time to give it a go. With the help of business experts, the process becomes simpler and easier.
Commitbiz is here to help you transform your dream into a reality. We are one of the best business consultants in UAE engaged in the company incorporation process for our clients. Our services include accounting, visa, taxation, and legal services. Contact us today to initiate your first step – we’d be happy to assist you.
What is the minimum share capital required for Oman Joint Stock Company?
The minimum share capital required is OMR 150000
How many shareholders are required for a Joint Stock Company in Oman?
A minimum of 2 shareholders are required.
Whose approval is required to start a Oman Joint Stock Company?
You need to get permission from the Ministry of Commerce and Industry
How much will it cost to incorporate a Joint Stock Company in Oman?
It depends on several aspects and in general, the price starts from 3,750 OMR
How many days will it take to start a Joint Stock Company in Oman?
It takes 30 – 35 days.