Oman is an attractive option for entrepreneurs due to its favourable business environment with numerous legal structures available for company formation. Among the available business structures, a joint stock company in Oman is the most preferred, given its benefits. Read the article to get insights if you are looking for company formation in Oman.
What is a Joint Stock Company?
Also known as a joint stock corporation, it is a legal business structure where the shareholders have the ability to sell or purchase the shares of the company.. In Oman, there are two types of joint stock companies:
- Societe Anonyme Omanaise Generale (SAOG)
- Societe Anonyme Omanaise Close (SAOC)
SAOG is a public joint stock company whereas SAOC is a closed company. The shares of SAOG can be traded publicly while the capital investment of SAOC is divided among the shareholders.
Features of a Joint Stock Company
There are certain features of a joint stock company in Oman. Some of them are mentioned below:
- The issued share capital for an SAOG should not be less than 200,000 Omani Rials (OMR) while for an SAOC it is 50,000 OMR.
- SAOG must have at least three founders as per rules set forth by the Capital Market Authority (CMA) in Oman. An SAOC requires a minimum of two founders.
- 30 percent of shares of a joint stock corporation must be held by Omani shareholders.
- The name of the company should not include a person's name or imply anything about its goals, identity, or members.
Process of Opening Joint Stock Company in Oman
To set up a joint stock company in Oman, you must follow a specific process. Let us take a look at the steps:
Select Trade Name
The primary step is to determine the trade name for the joint stock company by complying with the legal regulations set forth by the authorities.
Obtain Initial Approval
Submit the application with specific documents like a Memorandum of Association (MoA), Articles of Association (AoA), and a bank certificate to the Capital Market Authority (CMA) to avail initial approval.
File Application
Fill out the application form and submit copies of CMA approval, MoA and AoA to the Director General (DG) of Commerce to obtain the ministerial resolution.
Apply for Prospectus
Submit Minutes of the Meetings (MOM) of the company founders and Minutes of the elected board of directors to obtain the prospectus. This needs to be done after getting approval from the Ministry of Commerce and Industry (MOCI).
Company Registration
Apply for the Commercial Register (CR) to the Ministry's Commercial Register or any of its regional directorate branches to register the company in Oman. Following that, obtain the certificate by paying the requisite fee.
Advantages of Setting up a Joint Stock Company
There are numerous benefits of starting a joint-stock business in Oman. Some of them include:
- Enjoy 100 percent ownership.
- JSC in Oman is governed by the CMA ensuring transparency and accountability.
- Allows different types of ownership and voting rights.
Avail BSW Assistance
Business Setup Worldwide offers a wide range of services for company registration in Oman, including accounting and bookkeeping, Intellectual Property, and corporate secretarial services, among others. Our business advisors in Oman are well-versed in the legal framework and can guide you in navigating the process efficiently. If you are looking to set up a joint stock company in Oman, contact us today. We would love to support you on the entrepreneurial journey!
