Setting Up a Company in Oman has now become easier and more affordable, with prices starting at OMR 1999*. This is the best chance to start your business with 100% ownership, and Gryffin Capitalist will assist you in the business setup process.
With a free consultation, we are a one-stop solution, and our packages are customized as per your business requirements. We promise quality and reliability for doing business in the Sultanate of Oman.
Unlock Your Success in Oman's Thriving Business Landscape!
Business Setup in Oman is a lucrative option, to begin with, if you want to start or expand your business in the Middle East.
Entrepreneurs can run their businesses in a hassle-free manner. Being the Arabian Peninsula's third largest country, it is a desirable hub, particularly for trade and logistics in the Middle East.
Over the years, some international trade agreements signed by the government have increased FDI (Foreign Direct Investment) and the opportunities for SMEs (Small and Medium Sized Enterprises). The Sultanate's blueprint is the 'Oman Vision 2040.'
Being implemented in 2021, it will go on till 2040. Tourism, aquaculture, mining, manufacturing, shipping, and logistics are the major pillars of the government's diversification policy.
Business Setup in Oman – Reasons an Entrepreneur Can Consider for a Company Formation
It constantly encourages FDI and provides various incentives. Free zones provide an economic environment that is business-friendly.
The business potential scope is high in many industries like tourism, logistics, fisheries, manufacturing, and mining. Here are some of the benefits of a Company Registration in Oman.
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Emerging and Open Economy
The country's economy is new and diversified. Therefore, the option of emerging new opportunities is there.
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Free Access without Sanctions
As there are no sanctions in the country, it is advantageous for establishing growing economic relations.
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Political and Economic Stability
The business environment of the Sultanate of Oman is politically and economically stable, which helps investors and entrepreneurs achieve their goals.
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International Presence
International economic organizations are connected to Oman, and the country has memberships in the GAFTA, WTO, and GCC. It also has free trade agreements with Iceland, the United States, Switzerland, Singapore, Norway, etc.
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Tax Exemption
There is no personal income tax in Oman, but they have implemented VAT services because they are one of the GCC members.
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Import Exemptions
Import duty is not levied on raw materials, machinery, and plants for five years from the manufacturing activity commencement.
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Capital and Profit Repatriation
There is no restriction on dividend transfers as well as capital and profit repatriation.
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Foreign Ownership
Oman allows 100% foreign ownership in many activities. Connect with our experts for more information.
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Diversification
Industrially, Oman is very diversified, so the business activities are facilitated by a robust supply chain.
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The Business Climate in Oman
Under the new FCIL (Foreign Capital Investment Law), Oman will allow 100% foreign ownership for numerous activities. However, few of the commercial activities are not permitted to have full foreign ownership.
Some of them are mentioned below:
- Photocopying and Translation
- Automotive and Vehicle Repairs
- Drinking Water Sale
- Salon and Hairdressing Services
- Fishing
- Taxi Services
- Rehabilitation Centers.
A small part of the limited services contributes to Oman's economy, and promising fields will be opened for 100% foreign ownership by the new law. This will draw foreign companies into the country due to the key modernization initiatives taken under the new law.
The new FCIL law does not also prescribe a minimum share capital requirement, which could turn the foreign investment landscape of the country; however, as this is a brand-new regulation, it has to be reconfirmed based on each case by the MOCI (Ministry of Commerce and Industry).
The law does not mandate the requirement for minimum share capital, and this step can prove to be a turning point in terms of FDI for the country. However, this new regulation has to be reconfirmed in each step by the MOCI (Ministry of Commerce and Industry).
This new law will provide countless opportunities for foreign business owners and investors.
All about the Corporate Entities in Oman
Choosing a corporate entity for doing business in Oman can be categorized according to the business type and requirements. There are various forms of locally incorporated companies: Limited Liability Companies, Proprietorship Companies, Free Zone Companies, Holding Companies, Joint Stock Companies, Limited Partnership Companies, Joint Ventures, General Partnership Companies, etc.
There are three ways to do business with a foreign entity: Branch Office, Commercial Agency, and Representative Office.
Limited liability companies are the most common type of corporate entity, and they require a minimum of two and a maximum of forty founding members.
Oman partnership companies have some characteristics, being formed by two or more stakeholders, and they require registration within a month of the cooperation contract being signed. If individual interests are transferred, it requires all partners' approval and should clearly indicate its partnership nature. Any partner disputes can dissolve the partnership unless all others agree to continue.
The proprietorship business structure is generally restricted to Omani citizens, although other GCC citizens may also be allowed under specific conditions and activities.
Foreign organizations can also start representative offices in Oman. They are allowed to set up a branch office only if a project contract is received by the government, which is valid for the term of the contract.
A joint venture agreement by two or more entities undertaking a particular project forms a joint venture company. It is not registered, has no legal status, and an Omani partner must own at least 51% of the shares.
Documents Required for Company Formation in Oman
Setting Up a Business in Oman requires the following required documents:
- Memorandum and Articles of Association
- Shareholders' Visas and Passports
- Tax Registration Certificate
- Chamber of Commerce and Industry affiliation certificate
- Identity Cards of Shareholders
- Certificate of Initial Deposit
- Filled Company Registration Form
Free Zone Company Formation in Oman
Oman has three free zones: Salalah Free Zone, Sohar Free Zone, and Al Mazunah Free Zone, and two special economic zones, Knowledge Oasis Muscat and Duqm SEZ, that aim to attract foreign investment.
There are also many industrial parks in Oman, such as Rusayl, Sohar, Raysut, Sur, Nizwa Al Buraimi, Sumail, and Al Mazunah, and they offer attractive land rental rates, certain reductions for machinery & equipment and tax exemptions.
Company Registration in Oman – The Key Steps
Connecting with a business setup expert and proceeding with your company formation comprises five key steps.
Selecting the Suitable Business Entity: Choose a suitable business structure per your company requirements and the jurisdiction, i.e., whether to start your business in the mainland or a free zone.
Choosing a 'Trade' Name: We will find and register your 'trade' name in Oman via the MOCI trade register.
Prepare and Submit the Documentation: Prepare and submit the important documents and make the payment for a Business Setup in Oman to obtain your company license.
Make Company Seal: Every company in Oman needs a company seal, which the authorized signatories of the company issue. First, you will need to get and submit documents like a Certificate of Membership of the Chamber of Commerce & Industry, an Authorized Signature Sample, and a Certificate of Initial Capital Deposit.
Open a Corporate Bank Account: Opening a business bank account is essential to your company's transactions.
Business Setup in Oman – The Post-Incorporation Process
Once you are done with your Company Formation in Oman, there are several steps you need to follow to ensure that you are compliant with the country's laws and regulations.
Step | Process |
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Getting a Tax Card | The tax card must be collected from the Revenue Authority for every business within 30 days of its registration. This is because signing contracts, filing tax returns, and opening a bank account require a tax card. |
Registering Your Employees with PASI | PASI (Public Administration of Social Insurance) registration is mandatory for all employees recruited in Oman within 15 days from the initiation of their recruitment process. Contributing to the Social Security Fund is mandatory for all employers. |
Registering for VAT | VAT registration is mandatory if a company's annual turnover is more than 38,500 OMR. The process includes obtaining a VAT registration number and submitting a regular VAT return. |
Applying for Additional Permits | You may require additional licenses and permits, depending on the nature of your business. For instance, a building permit will be required if you've incorporated a construction company. |
Avail of Our Services for Your Company Registration in Oman
Gryffin Capitalist is recommended for its professional services for Setting Up a Business in Oman. We'll assist you with the following:
- Finding and selecting an appropriate partner or sponsor in Oman
- Establishing your business as per the requirements
- Tax and licensing registration
Reach out to us without any further delay, and our business setup experts will provide you with quick solutions and customized packages for your Company Formation in Oman.