Oman is a gateway of opportunities for international investors and business dreamers. It is one of the open economies of the world that provides a wide range of opportunities for different corporate structures.
To stimulate the region as investor-centric, it offers several Free Zones. One such free zone turns out to be Sohar Free Zone. If you are an investor and planning for Sohar free zone company formation, this article will take you through the essentials you need to know before you take your initial step of the establishment.
Investment Opportunities in Sohar Free Zone
The Sohar Free Zone offers multiple business opportunities to multiple industries. The core industries include:
- Iron, Steel, Aluminum
- Auto Parts
- White Goods
The industries mentioned above are one of the dominating players in this FZ. The region offers multiple benefits to investors as well. Let’s have a glance at them.
Benefits of Setting Up a Company in the Sohar Free Zone in Oman
Just like any company registration in Oman, company registration in Zohar free zone also has its benefits.
1. 100% Foreign Ownership
This is one of the parameters that easily grabs the attention of investors at an international level. Investors enjoy 100% Foreign Ownership while setting up a business in Sohar Free Zone.
2. Tax Exemptions for almost 25 years
Investing in Sohar Port means you don’t need to bother with any tax payments. It is exempted for at least 25 years.
3. Free Trade Agreements
Investors investing in Sohar Port Zone enjoy free trade with US and Singapore as the location provides the option of Free Trade Agreements
4. 0% Personal Income Tax
Tax is a big burden. The port offers a tax exemption for personal income tax, import, and re-export duties.
So, by now, you have a clear idea of why the Sohar Free Zone in Oman ranks in the priority list. To move on to the next level, you need to know about the necessary licenses and permits.
Licenses and Permits Possible in Sohar Free Zone in Oman
These are specifically related to the nature of the business and the activities to be carried out in the Sohar free zone in Oman. Let’s have a look at them.
Types of Licenses Provided in Sohar
- Industrial License
- Light Manufacturing and Assembly License
- Logistics License
- General Trading License
- Service Provider License
Types of Permits Provided in Sohar
- Sohar Work Permit
- Common Area Work Permit
- Special Transport Permit
Now, let’s head on to the company setup process.
Process of Sohar Free Zone Company Formation?
The formation of an Oman free zone company demands certain procedures. Let's look at the steps of the Sohar Free Zone company formation are:
1. Submit the Application
The very first thing that you need to go through is to submit the company incorporation application form. A filled Plot Application Form (PDF) needs to be submitted.
2. Submit the Essential Documents
Once the application is submitted, some core documents are to be submitted accordingly to complete the registration process. Below-mentioned is the different documents that you need to present.
Documents Required to Set Up a Company in Sohar Free Zone
- Filed and Signed Investor’s form by the shareholders
- Copy of Shareholder’s Passport
In case if the shareholder is from outside Oman, the following documents are to be submitted:
- Commercial Registration of the company
- Board Resolution of the Free Zone Company
- Articles and Memorandum of Association
3. Obtain a No-Objection Letter from the MECA
A No-Objection Letter needs to be collected from the Ministry of Environment and Climate Affairs (MECA), which clearly states that there is no objection to the commencement of the project.
4. Due Diligence Process
This will be performed on the shareholders and promoters of the FZ Company. A background check, past projects, and client information will be investigated.
5. Signing of the Agreement
Once done with the above processes, the final step includes signing the agreement between the Sohar Free Trade Zone Authority and the new Free Zone Company.
Toward the completion process, the following will be issued:
- Commercial Registration Certificate
- Affiliation Certificate to Oman Chamber of Commerce and Industry
- PO Box No. for one year
All the free zones in Oman do provide certain benefits. Alike Al-Mazunah FZ, the Sohar FZ also offers certain facilities for its investors to commence their business operations smoothly.
Facilities Provided by Sohar Free Zone in Oman
Sohar free zone in Oman caters to several facilities to its investors, and they are
- Available land for industrial or logistical use
- Pre-built warehouse for Lease
- Commercial Offices for Rent
- Modern Infrastructure
- Direct highways connecting UAE and Muscat
- Road Connection with Saudi Arabia
Thus, the Free Zone comes with many investment options and multiple benefits to attract foreign investors. Now, the company incorporation process becomes much easier if you have a guide who is well-versed in the legal laws of the particular region.
Commitbiz aims to provide the best business incorporation solutions to business investors and entrepreneurs to transform their business dreams into reality. Contact us today to know more-we’d be happy to assist you.