Oman, one of the Arabian countries situated in the southeastern Arabian Peninsula, has always been on the priority list of international investors and business owners. Be it for a new business setup in Oman, or expansion, and the location allows investors to opt for any of them.
Apart from the partnership firms, the location also encourages individuals to come forward and initiate a one-man company with low capital, also known as a sole proprietorship in Oman. Several robust incentive schemes in the Sultanate of Oman attract foreign companies to invest in the country, ranging from customs duty and income tax exclusions to subsidized interest rates.
By the end of the article, you will get a clear picture of the necessary steps to be taken.
A Sole Proprietorship or a Single-Person Company in Oman
A sole proprietorship is one of the company frameworks in that a person acts as the sole owner and initiates. A person trades on his account and, on his behalf, obtains a business license.
The establishment does not have an independent legal body from its owner because it assumes the full amount of assets and liabilities.
Key Features of an SPC, Oman
Being one of the rising GCC nations, it is also an ancestral home to foreign ex-pats with many business opportunities in Oman. The key features of a single-person company are as follows:
• One person owned
• No restrictions on opening or closing
• Owner has total control
• Reduced formation and compliance costs
• The owner is responsible for all liabilities.
• The owner is responsible for all gains and losses.
• No special laws exist.
As you have noted the key features, the next step you should be aware of is the documents you must possess and the process to open a sole proprietorship in Oman.
How to Register a Sole Proprietorship or a One-Person Company in Oman?
The process of sole proprietorship company registration in Oman involves way fewer steps as compared to the other business entities. The core steps include the following:
1. Register with a Minimum Capital
Now, to initiate a sole proprietorship firm, the first and foremost thing that an individual needs to do is register the business entity with a minimum capital of OMR 3000.
2. Submit the Documents Required
The documents mentioned below must be presented at the Ministry of Commerce and Industry (MOCI) to initiate the registration process.
- Public Key Infrastructure (PKI) enabled ID Card
- Public Key Infrastructure (PKI) enabled Resident Card
- Authorized Signatories Form
- Individual’s identity card.
3. Register Your Business Name
A crucial step in registering any business is selecting a name. The procedure can be completed quickly and online in Oman. On the Ministry of Commerce and Industry website, it is possible to verify whether the chosen business name is available.
The reservation is free, and no paperwork is necessary. On the ministry website, you can register your business name.
4. Registration of the Tax Identification Number (TIN)
You must register on the Secretariat General for Taxation website to get your tax Identification number (TIN). You can do it in person as well.
The webpage lists the ranges for tax collecting amounts given in Omani Rials. On the internet, a tax refund request can also be made in addition to registration.
The request must be made no later than three months after the year for which it is being made has ended. The reimbursement happens no later than six months after the request is made.
5. Register with the Royal Oman Police
It becomes necessary that the individual ensures registration of the business entity with the ROP and obtains a good standing certificate. Certain government approvals are required to complete the registration process.
Trade licenses will be issued by the Oman Ministry of Commerce and Industry. Once obtained, the core business practices can be commenced.
Now, once you are on the field with the business operating its relevant activities and earning profits, you can even convert your one-man company to a partnership firm. Yes! According to the Omani law Article 13 Bis1 of the Sultanate Decree of 1974 Commercial Company Law, it is permissible to convert a one-man company to other corporate structures.
Due to the sole proprietorship's quick and simple incorporation process compared to that of an LLC, it is typical practice in Oman for individuals first to establish a sole proprietorship and then transform the business into an LLC.
So, what are you waiting for?
It is beneficial to take the help of company advisors to launch a business from the very beginning. The main reason for this is that company advisors are right in recognizing the particular legislation that must be maintained by each business enterprise when starting up a business in a foreign land.
Commitbiz is here to help you with this process. We provide our clients with integrated services as luxury business consultants in Oman and set the critical foundations of accounting, tax, legal, visa, etc.
Our business experts will value your requirements and respond to them. To know more in detail, do contact us – we’d be delighted to guide you.
What are the key features of a sole proprietorship firm?
The key features are as follows:
- One person owned
- No restrictions on opening or closing
- Owner has total control
- Reduced formation and compliance costs
- The owner is responsible for all liabilities
- The owner is responsible for all gains and losses
- No special laws exist.
What is the minimum capital to initiate a sole proprietorship firm in Oman?
Which Omani law allows the conversion of a single-person company to other corporate structures?
According to the Omani law Article 13 Bis1 of the Sultanate Decree of 1974 Commercial Company Law, it is permissible to convert a one-man company to other corporate structures.
Which authority issues the ‘Certificate of Good Standing’?
The Royal Oman Police.
Which authority issues the trade licenses for a sole proprietorship in Oman?
The Oman Ministry of Commerce and Industry.