The Duqm Special Economic Zone was established by the SEZ Authority of Duqm (SEZAD), a government agency, with the responsibility of developing and administering the zone to become a regional maritime and transit-trade hub, an important complex for export-oriented industries, and an attractive tourism destination on the Arabian Sea. The Zone offers an attractive package of investment incentives and tax cuts that aim at enhancing the business environment for the private sector and improve its competitive standing in the Middle-East market.
The Sultanate of Oman is best known for its pro-business incentives, a Stable Government with Liberal Policies toward the businesses, and Strategic International Trade Relationship with the neighboring countries. These conditions make the Duqm Port Oman and SEZ ideal to become a major Import, Export, and Trans-shipment hub in near future in the Middle Eastern region.
Benefits of Setting Up a Company in Duqm SEZ
- Exemption from corporate tax for 30 years
- 100% ownership by the foreign shareholders
- No minimum capital requirement
- No currency restrictions
- Free repatriation of capital and profits
- Free movement of goods inside the zone
- Freedom to open a representative office
- Easy Omanization requirements & fast processing of expatriate manpower visa applications
Conditions to Avail the Incentives
To avail the aforementioned incentives, a company must satisfy the following conditions:
- It should be registered in the Duqm Free Zone and subject to the free zone rules and regulations in force
- It must conduct its activities inside the free zone
- It must maintain the mandatory minimum 10% Omanization rate stipulated by SEZD Board
How to Set Up a Company in Duqm SEZ?
Investors are free to take advantage of the Duqm’s prime location who are looking up to set up their company in Oman. Predominantly seeking to import raw materials, or use locally available raw materials, create value in production processes and re-export their products to local or international markets, investors can enjoy all these and much more if they form a company in this zone. If you want to know the process of setting up a business in Duqm Oman, here’s a guide for you:
- Submit an application form, called the Plot Application Form (PAF), after filling all the necessary details about the company
- Make an agreement on Commercial Terms, which is, deciding the land lease price and the contract term, to avoid the unnecessary deployment of resources with all parties involved
- Obtain a No Objection Letter (NOL) from the Ministry of Environment and Climate Affairs (MECA). The total time to process and obtain the letter requires one week
- Perform the Due Diligence on the main shareholders/promoters of the proposed Free Zone Working Company. For stock listed companies it will be quite basic and therefore quick
- The Duqm Special Economic Zone Authority requests payment of the first quarter lease (regardless of the effective date of the contract), as well as the incorporation and license fees
- Incorporation of the new company will include registration with the Ministry of Commerce and Industry (MCI), membership in the Oman Chamber of Commerce and Industry and the Issuance of the free zone license
SEZAD has many competitive advantages to its credit when compared to the other free zones which qualify it to become a logistics and marine hub not only for Oman but for the Gulf region on the Arab Sea outside Hormuz Straight. Duqm Economic Zone can be also an ideal destination for those seeking tranquility and peace of mind as it enjoys modest climate during summer as well as winter in addition to the natural beauty of the region.
We at Business Setup Worldwide are here to help you set up your business in the Duqm Special Economic Zone. Our advisors in Oman are well versed with the procedure to start a business here and will leave no stone unturned to complete the process smoothly and on time. If you are interested in setting up your business in the special economic zone of Duqm, do contact us today, and we will guide you through the whole process of incorporation. Not just this, our services in Oman also include accounting, bookkeeping, IP protection, visa, and corporate secretarial services.