Step-by-Step Process For Company Registration in Oman

The journey of company registration in Oman for an entrepreneur is a muster of numerous ideas, thoughts, and relevant actions. Establishing a company requires considerable analysis, and the moment you select the correct zone, you are halfway there.

Sprouting the business idea in the most favorable zone, especially at an international level, can help you to go forward with global competition at ease. For example, the Sultanate of Oman is an emerging country preferred by business magnets in the Middle Eastern region.

Surrounded by Saudi Arabia, the United Arab Emirates, and Yemen, it grabs international investors' attention in one shot. Business setup in Oman is one of the most intelligent decisions an investor can make, as the ground allows new companies to emerge and expand branches.

However, before entering into the core grounds, let's look at the imperative dots to be understood!

Benefits of Doing a Company Formation in Oman

Below is the list of benefits that one can enjoy by doing a company formation in Oman;

Oman is situated very close to major business centers such as Asia, Europe, and North America; this strategic position enhances the exports of non-oil products to around 176 countries. This position of oman attracts investors and entrepreneurs to do a business setup in Oman.

After the COVID-19 pandemic, a year-long tax exemption plan in Oman was proposed for certain industries such as agriculture, tourism, fishing, mining, logistics, and services.

The government of Oman has liberalized the foreign direct investment (FDI) in Oman. You can do 100% investment in most of the sectors. 

This results in no need to hire a local sponsor or local agent; you will be the 100% owner of your business.

Company registration in Oman under an LLC business entity has become the most used entity in Oman. Compared to other entities, LLCs can be formed with ease.

Along with the company registration in Oman, you will have access to the free trade agreement. One such agreement is the US-Oman agreement. 

Investors in the US can take advantage of this agreement since no tariff will be imposed on the trade between us and Oman.

Process of Company Registration in Oman

A few pointers are connected when it comes to the Oman company registry.

The registration process involves the following steps:

Incorporating a business entity requires a business investor to choose the respective business entity structure based on the available capital and the total number of shareholders.

For setting up a business in Oman, an investor has the following options to choose from:

  • Sole proprietorship
  • General partnership
  • Limited partnership
  • Joint Stock Company
  • Holding Company
  • Branch Office
  • Representative Office

It is worth noting that the business name stands as the company's face. So, if I talk about certain big brands like Coca-Cola and Walmart, what comes to your mind?

A bottle of Coke and a shopping space, right? 

So, you are sitting right here, reading this article piece. But the moment you heard the brand name, a picture popped into your mind.

Selecting a trading name might sound simple, but it is not very easy in reality. First, you need to make sure that your brand name stands unique from the other competitors in the market.

At the same time, you also have to make sure that the selected business name doesn't sound offensive or hurt religious sentiments.

Any business is to be incorporated where the target audience holds a majority. However, at the same time, one also needs to ensure the investment proceedings that the investors have to bear at the initial stage.

Oman has dedicated zones that one can focus on according to their respective business budget.

For example, if an established business is looking forward to expanding its operations, it can set up a business unit on the Mainland.

On the contrary, if a budding entrepreneur is planning to incorporate a business, then Free Zones in Oman turn out to be the favorable option as it turns out economical.

A few of the essential documents include the following:

  • A duly filled application form
  • All the Documents of all Shareholders 
  • Memorandum and articles of association (Mom & AoA)
  • Tax residency certificate
  • Certificate of initial deposit
  • Chamber of Commerce and Industry Affiliation Certificate

Make sure to cross-check the records before you hand them over to the respective authorities.

Another crucial aspect that needs attention is Oman Commercial Registration. Ensure that you register with the Oman Chamber of Commerce and Industry (OCCI) to meet compliance requirements.

Every business needs to deal with business transactions, and for that, it is essential to hold a business bank account.

It is favorable to proceed with in-depth market research regarding the banks available and then select the one that meets the business requirements.

You need to open a capital account to deposit the initial business incorporation fee at the initial stage.

A company seal can be referred to as a business entity's signature, ideally used on the letterhead. This is essential when dealing with the company shareholders and protects the relevant business documents against forgery.

Business Structures for Doing a Company Registration in Oman

Below is the list of eligible business structures for doing a company registration in Oman;

  • General Partnership
  • Limited Partnership
  • Limited Liability Company (LLC)
  • Joint Venture
  • Joint Stock Company
  • Holding Company 
  •  Branch Office
  • Representative Office 

Documents Required to Setting up a Company in Oman

Follow the list below to avoid missing out on the required documents;

  • Passport and Visa of all the shareholders
  • Memorandum of Association (MoM)
  • Article of Association (AoA)
  • ID cards of all shareholders
  • Tax registration certificate
  • Certificate of initial deposit
  • Registration form duly filled
  • Certificate from Chamber of Commerce 
  • Tax registration certificate

Company Registration Cost in Oman

The business setup in Oman's cost depends on the type of business activity you choose to be involved in. In general, the cost will be approximately 350 OMR approximately.

End Note

At BSW, our experts are here to hear you and provide you with suitable, customized solutions to grow your business globally.

Please reach out today if you want to take a step ahead and be a part of this journey. Contact us today. Our Experts will be happy to assist you in fulfilling your dream of doing a company registration in Oman!

FAQs

1. Can a foreigner own a company in Oman?

As per the Foreign Investment Law of January 2020, the foreign investors are eligible to proceed for 100 per cent ownership of LLC's incorporated in Oman.

2. Can the word "Oman" be used as a trading name?

The word Oman / Omani can be used by business entities as a part of the trade name only if their capital is RO 500,000 or above.

3. What are the business structures that can be incorporated in Oman?

Any investor planning to incorporate a company in Oman can choose from the following business structures:
• Joint Stock Company -Closed
• Joint Stock Company- Public
• Holding Company
• Limited Liability Company (LLC)
• General Partnerships

4. What is the full form of SAOC and SAOG?

SAOC stands for Societe Anonyme Omanaise Close and SAOG- Societe Anonyme Omanaise Generale, and they fall as the sub-segments of a Joit Stock Company.

5. How many free zones are there in Oman?

The Kingdom of Oman has three free zones Salalah Free Zone, Sohar Free Zone and Al Mazunah Free Zone.