Oman’s legal and business framework is designed in such a flexible way 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 and so the location turns out to be in demand in the present times. If you are a business investor or an owner, who wants to set up a business in Oman, then you can opt for incorporating a Joint Stock Company. By the end of this article, you will get a clear idea as to how to take your initial steps. Let’s start with…
What Is a Joint Stock Company?
A Joint Stock Company (JSC) is one of the business structures in which the shareholders hold the power to buy or sell shares of the company. In short, we can say that 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.
JSC in Oman
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 Company (SAOG) and the ones who don’t are known as (SAOC). As per the Omani rules, certain essentials are:
- Minimum share capital should be OR 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 mentioned are the essentials documents required to set up a JSC in Oman. Do check…
Documents Required to Start a Joint Stock Company in Oman
- 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
- Reserve a name for the business entity
- Apply to the Director General of Commerce (DGC) with the aforementioned documents
- Payment needs to be made. The DGC would respond within a period of 30 days regarding the confirmation of the company’s formation
- Conduct a Constitutive General Meeting (CGM) to align the actions needs to be taken before the registration process
- Election of board members and auditors
- A commercial registration form needs to be duly filed in Arabic and signed at the Registrar Office
- Once approved, the Company Registration certificate needs to be collected
Thus, you have now got a clear idea regarding the company formation process in Oman. Now, being an investor, you must know the benefits that you can avail by investing or establishing a JSC in Oman. Do read below to figure out the benefits that 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 to a multi-business hub. The government has been tirelessly taking multiple steps to make the location more feasible for foreign investors. If you are planning to initiate the process of company formation in Oman, then it’s the right time to give a go. With the help of business experts, the process turns out to be simpler and easier. Commitbiz is here, to help you in transforming 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, legal services as well. Contact us today to initiate your first step – we’d be happy to assist you.