Vertical Tabs

Branch Office in Oman

Oman is a nation advancing its market for an expansive range of organizations. The public authority of Oman expects to foster its economy through a progression of five-year plans under the umbrella system known as Vision 2020.

Investors all throughout the planet will profit from this arrangement as it will enlarge their business reach to Oman and the adjoining nations. There are numerous courses through which an investor can go into the Omani market, one of them being through company formation in Oman. In the event that a generally settled unfamiliar organization needs to enter Oman, they can do as such by setting up a branch office in the country.

A branch office is a branch of a foreign organization. A foreign organization that has gone into an agreement with the public authority or the quasi-government entity is qualified to enrol and work in Oman as a foreign branch.

Note that a branch period is restricted to the time of the task, which will be adequate for its execution in Oman, and accordingly, it isn't allowed to conduct some other kind of work in the private sector. There are multiple reasons to start a business in Oman, and you should definitely consider these while planning to invest.

Features of a Branch Office in Oman

  • Provision of 100% foreign ownership
  • A branch office is required to have a local agent to sponsor Oman visas and licenses
  • Minimum 12% tax is applicable on a foreign branch office
  • The Embassy of Oman must notarize all the documents of the parent company required to open a branch company

How to Incorporate a Branch Office in Oman?

The activities of a branch must be similar to the activities of its parent company, and it is not permitted to carry out any other activity unless approved first by the parent company and registered with the Ministry of Commerce and Industry.

The registration remains valid for the duration of the foreign company's contract performance, subject to the granting of extensions of time. Any such extensions must also be registered in the Commercial register of the Ministry. The procedure to register your branch office in Oman is as follows:

  1. Register your branch name with the Registrar of Oman.
  2. Draft a Memorandum of Association mentioning all the details of the shareholders.
  3. Submit all the necessary documents along with the Memorandum of Association.
  4. To get a valid license, the Ministry will ask you to submit the bank guarantee of US$39,000, after which you shall be provided with an operational license.
  5. After getting the approval and issuance of a license from the Ministry of Commerce and Industry, note that the license is valid only for the duration of the project.
  6. Along with the license, you are required to obtain a permit from the Municipality, Royal Police of Oman, Ministry of Manpower, and Industrial/Environmental authority.

Documents Required to Incorporate a Branch Office in Oman

  • Certificate of Incorporation of the foreign company from the country of incorporation
  • Memorandum of Association of the company
  • Specimen signature Certificate of the proposed manager or signatory on behalf of the foreign company
  • Passport/ID copies of the proposed manager or signatory on behalf of the foreign company
  • Undertaking (in the form of a board resolution) from the company's head office accepting full responsibility for any liabilities incurred by the branch office in Oman
  • Power of Attorney, executed in favour of the proposed resident manager of the branch office
  • A signed copy of the agreement entered into with the Omani government agency
  • A copy of the agency or the sponsorship agreement entered into with the local agent or the sponsor

After reading the information mentioned above, you must have understood the basics of starting a branch office in Oman, but forming a company is just the end of the legal procedure; you need to do other things after your company has been set up in Oman.

Why Us?

Business Setup Worldwide is a platform to help you start a business In Oman. If you are interested in incorporating a branch office of your company in Oman, worry no more because we are here to guide you through every step.

Our team of professionals who are experienced in this field will help you in the incorporation process, right from reserving your company name to getting all the necessary licenses and permits. Contact us today for more information.