Being one of the flourishing business platforms in the Middle-East region, Oman opens a gateway for business owners to setup a business either from the very scratch or expand the well-established entities. One of the forms by which an established business expands itself or enters into a new market is through incorporating a representative office. This composition will give you a clear idea of how you can incorporate a representative office in Oman that will accelerate your business growth globally. Let’s start with…
What Is a Representative Office?
A representative office is one of the business structures formed by a well-established company to carry out its non-transactional operations in a new market. Under Omani Law, a representative office turns out to be 100% foreign-owned and controlled and is restricted to make direct sales within Oman. They are governed by Representative Office Regulatory Law, promulgated by Ministerial decision number 22/2000. Its activities are limited to:
- Promotion of parent company
- Market research
Now, it becomes a mandate for the Omani Representative Office to appoint at least one individual who turns out to be a resident of Oman. Now, arranging the documents in a sequential way and keeping them at hand makes the incorporation process much easier. Do check below the necessary documents that you need to present.
Documents Required to Set Up a Representative Office in Oman
- Certified copy of Articles and Memorandum of Association from the parent company
- Certified copy of Commercial Registration Certificate
- Authorization letter for the manager of the representative office
- Letter of the undertaking which states that the liabilities will be borne by the parent company
- A certificate that proves the existence of the parent company
- Copies of ID for the authorized signatories
- Specimen signatures of the directors
Once presented, you need to head towards the core establishment process of your representative office in Oman.
Process of Setting Up a Representative Office in Oman
Now, in order to initiate, you need to follow the below-stated process. It starts with…
1. Deposit Initial Capital
This is the first step that you need to start with. An initial stated capital needs to be deposited in the local bank after registering the company name with the registrar.
2. License and Permit
A business can have a diverse range of activities that require special permits. All you need to do is obtain the business license and permits to kick-start your organizational activities.
3. Application with the Tax Department
Once you receive the permit, next you need to apply with the tax department of the Finance Ministry.
4. Obtain Municipality License
Moving ahead, municipality license needs to be obtained.
5. Enroll with the Royal Oman Police
You should keep in mind that your business entity needs to get registered with the Royal Oman Police, and this turns out to be a mandate for all foreign companies.
6. Register with the Ministry of Manpower
Next, you need to register with the Ministry of Manpower to avail the local resources. It also helps to keep a count on the number of local and foreign employees and gives a picture of whether more resources are to be hired or not.
7. Social Protection
This is the final step that ends your representative office registration in Oman. You need to register your company for social protection and comes to an end with the Public Authority.
Why Invest in Oman?
Being a business investor, you should look forward to the benefits that you will be deriving by making a huge sum of investment. Now, by investing in Oman, you will be able to avail the following:
- Strategic location to enter other Middle-East countries and expand your business
- Huge availability of natural resources
- One of the fastest developing economy in economic and social domains
- Massive innovative steps are taken by the government to boost the economy
- World-class infrastructure
You can see that the idea of a company setup in Oman turns out to be extremely beneficial. If you want to set up your representative office in Oman, Commitbiz can help you with you. A team of experts dedicated to professionalism, helping business owners and entrepreneurs to setup their firms with accounting, legal, taxation, accounting, and visa services. To know more, do contact us – we’d be happy to assist.