In the past few decades, Oman has reinvented itself as one of the essential countries to make business transactions all around the world. This dynamic country, due to its strategic location, can control one of the most crucial naval trade routes (between the Indian Ocean and the Arabian Gulf). The Sultanate of Oman, initially, relied heavily on the revenue from their oil assets but is now gradually focusing on diversifying its revenue sources.
The government is also working towards the growth of its economy via attracting foreign investors by providing a plethora of incentives which include exclusions of customs duty, subsidized income tax rates, infrastructural amenities, etc. this along with the political stability of the nation, the ease of doing business and the business-friendly environment makes setting up a business in Oman a very fetching option for you. Let’s have a glance at the pre-requisites.
To effectively run a company in Oman, you are required to register the company, and this process has its pre-requisites that need to be followed which are:
- There should be at least 2 Shareholders
- There should be 1 Director who can be of any nationality
- A Registered Address of your Office
- The minimum capital requirement of OMR 150,000 is to be met
After fulfilling the requirements, you need to collect all the required documents which would be needed while registering your company.
Documents Required to Set Up a Business in Oman
The following are the documents that would be required while registering a business:
- Copy of the Passport or any other Identity Card of the Shareholders
- Copy of the Passport or any other Identity Card of all Authorised Signatories
- The Initial Capital Deposit Certificate
- Names and Signatures of the authorised signatories produced on an approved authorised signatory form
- Standard Company Registration forms
- Company Statues
- Affiliation certificate from Chamber of Commerce and Industry
Once you have all the required documents, it is time to get the ball rolling and initialise the company registration process.
Procedure to Incorporate a Business in Oman
Now let’s look at the steps that you are required to follow to set up a business in Oman.
1.Decide on a Company Name
You are required to submit an application to the Ministry of Commerce and Industry (MCI) stating the name of the company. You must keep in mind that it must be one of a kind and it must adhere to the Omani Law.
2.Make a Deposit in the Local Banks
After choosing the name, you need to deposit in the local bank which would form the capital of the business, which is an important step the Omani Government can cease the procedure.
3.Apply for Permits / Licences
The business must apply for a licence or a permit in the field it wants to conduct business so that it could be considered as a legal business entity.
4.Register for Taxes
After applying for permits, your company must register itself with the Tax branch of the Finance Ministry.
5.Sign Up with the Necessary Authorities
Omani law requires all the foreign organisations the company to be registered with the relevant authorities. This includes organisations like:
- Royal Police of Oman
- Ministry of Manpower
- Public Authority for Social Insurance (PASI)
6.Make Company Seal
The seal of the company is to be designed, and it should consist of the name and logo of the organisation.
By following the process as mentioned above, you or any foreign national can easily set up a company in Oman and start reaping the various benefits as provided by the nation, or you could hire an expert who will handle all the requirements of you and your company.
We at Business Setup Worldwide would love to help you in this matter. Our business setup experts will take care of all your Legal and Licensing formalities, without letting you worry about the red tape and legal procedures. We also provide a variety of services that will help you in your future endeavours. To know more about the various services we offer, do reach out to us- we’d be glad to assist.
What are the advantages of setting up a business in Oman?
The benefits of setting up a business in Oman are,
A booming economy
Presence of multiple business structures
Global talent pool
Multiple tax exemptions
List out a few of the most favourable business structures in Oman.
A few of the most favourable business structures in Oman include:
Limited liability company
Free zone company
Which is the most common type of business entity used in Oman?
The Limited Liability Company (LLC) is Oman's most common business entity.