Apart from being transparent regarding the business idea that one plans to incorporate, a business investor also needs to have a crystal-clear idea regarding the business structure to start a business.
The selection of a corporate structure depends on the availability of shareholders and capital. Therefore, when an investor plans to start a business in Oman, he must decide the type of business entity.
Few of the corporate business structures that you can focus on while starting a business in Oman are:
This turns out to be feasible for the business investor who stands single. A sole proprietorship is a business procedure in which a trade license is issued in the owner's name and trading in that name. As compared to other entities, the capital requirement turns out to below.
Most business investors prefer to start a sole proprietorship company in Oman and transform into an LLC.
A few of the benefits that can be availed by incorporating a sole proprietorship company in Oman include:
- Control over the business as you are the sole owner
- Tax filing is easy
- Tax rates are low
- You can use any business losses to offset personal income from other sources
Another type of business entity that gets widely selected by business investors is the general partnership.
Omani citizens are allowed to be partners in a general partnership, as compared to foreign investors.
By doing so, an investor can gain the following benefits, which involves:
- The tax treatment can be done in a flexible manner
- The entire incorporation process turns out to be financially feasible
A limited partnership is a modified general partnership. The general partner, who is required to be an Omani national, is liable for the debts and obligations of the partnership without any limitations.
Whereas the limited partner only has limited liability and is only liable for the company's debts in the amount of his capital contribution.
Holding an LLP is effective for a business investment due to the following benefits:
- When it comes to investment, it becomes easier to market the interest of a limited liability partner
- Just like a General Partnership firm, an LLP also enjoys the advantages of tax treatment
- The general partners can use their expertise to make the essential decisions in managing the overall business.
4.Joint Venture Company
A Joint Venture is an organized legal business structure that gets established when two or three businesses come together and incorporate a business without affecting any third party. Business entities usually prefer this when they join hands to create synergy and gain a mutual competitive advantage.
5.Joint Stock Company
A Joint Stock Company or JSC is a legally authorized company where the capital is distributed into shares of equal value and can also be negotiated.
Coming to the incorporation part, a JSC can be divided into two types, namely:
- Public Joint Stock Company (PJSC)
- Closed Joint Stock Company (CJSC)
Most business investors prefer to proceed with a Joint Stock Company (JSC) as they can enjoy enormous capital benefits, and the company's shares can be easily transferred. Additionally, the risk involved in the process is comparatively less and can be borne at ease.
6.Limited Liability Company
This business structure turns out to be one of the highly opted options by the foreign investors that can be incorporated at ease. The maximum number of shareholders for an LLC is 40, and each of them can hold a maximum count of 70% of the company's capital.
The Sultanate of Oman allows a business investor to start a business with a minimum of OMR 20,000.
The concept of a holding company is all about business minds who wants to earn passive income. Yes, you heard it right!
A holding company is a legal business entity that controls or gains shares of other companies by owning a minimum of 51%.
Very few investors usually select these business structures as the investment is much higher than the other business entities.
A branch office is another segment that most foreign business investors get focused on who want to expand their business.
Due to corporate flexibility, most foreign investors prefer to open a foreign branch in Oman.
If you are looking to enlarge your business empire by targeting the GCC nations, Oman turns out to be a perfect gateway.
Another segment that can be focused on is incorporating a representative office that gets set up with the core aim of conducting research or promotions.
Such a business entity doesn't carry out any commercial transactions, and even the company registration process is much easier.
A foreign investor can wholly own a representative office, and the process can be completed without any share capital or local partner.
These are the various types of business entities and their respective benefits available to an investor in Oman.
Now all you have to do is to choose the best business structure which suits your needs, or you could let our business setup consultants do all the work for you.
The best and feasible way to do the same is to join hands with corporate experts who can guide you at every step.
Business Setup Worldwide, one of the top ten business consultants in Dubai, has been in the business of helping business minds to incorporate their business empires right from scratch.
If you are confused regarding the business structure to choose from, please have a word with our business experts.
Contact our business experts now-we'd be glad to assist!