Company Formation in Oman

Do you a plan to company formation in Oman

Step by step guide for company formation in Oman

Company formation in Oman is easy with the help of Setup Bahrain Business Consultancy. the setup Bahrain is your comprehensive resource for understanding the process and benefits of establishing a company in Oman. Setup Bahrain is here to assist you every step of the way. This guide provides valuable insights into the legal requirements, registration procedures, and key considerations for successful company formation. From choosing the right business structure to navigating government regulations, entrepreneurs and investors can unlock the vast opportunities available in Oman’s thriving business landscape with the support of Setup Bahrain. Discover the strategic advantages, economic incentives, and investment-friendly policies that make Oman an attractive destination for company formation. Whether you’re a local entrepreneur or an international investor, this guide, along with the expertise of Setup Bahrain, equips you with the knowledge and tools to embark on a successful business venture in Oman. Maximize your potential and seize the rewarding possibilities of company formation in Oman with this comprehensive guide and the support of Setup Bahrain Business Consultancy.

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Company Formation in Oman Presentation

Here is a Step-by-Step Guide that will Help You Explore the Possibilities of Setting up a New Business in Oman

Overview

Oman is a country with a rich history of entrepreneurship and overseas trading. Over the centuries, Oman’s maritime trade has extended its reach to Africa, Europe, and China, cementing its position as a strategic hub.

Oman’s economic landscape has evolved significantly. While it was once predominantly a rural and agrarian economy centered around fisheries and agriculture, the discovery of oil and gas in commercial quantities in 1964 transformed the nation into an oil-based economy. The production and export of oil became a key driver of Oman’s economy, contributing significantly to the government’s revenue.

Under the visionary leadership of the late Sultan Qaboos Bin Said, who ruled from 1970 until his passing in 2020, Oman experienced rapid socio-economic development while preserving its cultural heritage. Sultan Qaboos spearheaded an ambitious economic diversification and industrialization plan to reduce reliance on oil and gas. This forward-looking approach created opportunities for foreign investors to establish businesses in Oman.

In this guide, we will explore the legal requirements, registration procedures, and key considerations for company formation in Oman. We will also highlight the government’s emphasis on economic diversification, inviting foreign players to contribute to Oman’s growth and development. By providing valuable insights and expert guidance, this guide empowers you to seize the opportunities and embark on a successful business venture in Oman’s dynamic and evolving economy.

Why Start a Business or Company Formation in Oman?

Oman has many untapped investments and business potential in many industries such as tourism, mining, fisheries, logistics and manufacturing and the government always encourages foreign direct investment and offers various incentives and free zones to promote a business-friendly economic environment and lure foreign entrepreneurs for doing business in Oman.

There are several benefits of starting a business in Oman. Here are some of them:

Strategic Location:

Oman is strategically located at the crossroads of Asia, Africa, and Europe. It has access to major shipping routes, making it an ideal hub for trade and logistics.

Stable Economy: 

Oman has a stable and diversified economy. It is less dependent on oil revenue compared to some of its neighboring countries. The government has implemented economic diversification plans, encouraging investment in sectors such as manufacturing, tourism, logistics, and fisheries.

Ease of Doing Business:

The Omani government has taken steps to improve the business environment and streamline administrative procedures. Starting a business in Oman has become easier, with simplified processes for company registration, licensing, and permits.

Investment Incentives:

Oman offers various investment incentives to attract foreign investors. These include tax exemptions, customs duty waivers, and land lease options. The government has also established special economic zones, such as the Duqm Special Economic Zone, offering additional incentives and benefits.

Free Trade Agreements:

Oman has signed several free trade agreements (FTAs) with countries worldwide, including the United States, the European Union, and other Gulf Cooperation Council (GCC) countries. These agreements provide preferential market access, reducing trade barriers and facilitating international business.

Skilled Workforce:

Oman has a well-educated and skilled workforce. The government has invested in education and vocational training programs to develop a competent workforce that meets the needs of various industries.

Infrastructure Development:

Oman has made significant investments in infrastructure development, including transportation, logistics, and telecommunications. The country has modern ports, airports, road networks, and industrial parks, facilitating business operations and connectivity.

Political Stability and Security:

Oman has a history of political stability and security. The country maintains peaceful relations with its neighbors and has a low crime rate, providing a safe environment for businesses to operate.

Growing Domestic Market:

The Omani market is growing, driven by a rising population, increasing urbanization, and a growing middle class. This presents opportunities for businesses to tap into the local consumer demand.

Supportive Government Policies:

The Omani government has implemented various policies and initiatives to support entrepreneurship, innovation, and foreign investment. These policies aim to create a favorable business environment and foster economic growth.

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How to Proceed with a Company Formation in Oman?

Just like the other GCC countries, the Oman company registration process requires the involvement of a few steps that need to be cleared accordingly. Company formation in Oman is a process wherein the business entity is given a physical platform. 

To start the process, there are certain steps that need to be followed accordingly. Below mentioned are the steps related to the incorporation as well as post incorporation process that you need to follow once you have decided to open a company in Oman.

Select a Business Structure

The first and foremost step in incorporating a business entity in Oman is to select a relevant business entity structure. The region turns out to be a profitable zone for the following business entities:

  • Sole proprietorship
  • Joint-stock company
  • Branch office
  • Representative office
  • Limited liability company
  • Commercial agency.

Decide on a Trade Name

A trade name must be unique and related to the business. Decide on a name and submit the application to the Ministry of Commerce and Industry.

The company name needs to be chosen wisely, as it will stand as a brand for your business. However, certain restrictions need to be followed while selecting a name for your business.

  • The selected name can’t be a copy of the existing competitors
  • A name that might sound offensive in a multiple-way including religious, political, military, meaning, or content
  • An honorary sign or unique character in any of the regional, Arab, or international organizations
  • A name that carries the word “Oman” or “Omani.”
  • A name that denotes an incorrect geographical division of the Sultanate of Oman.

Submit Documents of Incorporation

This is the initial stage where all the necessary documents need to be submitted to initiate the incorporation process. The essential documents required are:

  • Memorandum and Articles of Association
  • Shareholders’ Visas and Passports
  • Tax Registration Certificate
  • Identity Card of Shareholders
  • Certificate of Initial Deposit
  • Filed Company Registration Form
  • Chamber of Commerce and Industry Affiliation Certificate.

Capital Account Opening

Once the documents have been submitted, a capital account needs to be opened to deposit the initial incorporation fee.

Register with the Chamber of Commerce

Register with the Oman Chamber of Commerce and Industry (OCCI) for compliance with the commercial rules and regulations required of a corporate in Oman.

Register the Business

This step involves the submission of the essentials:

  • Legalized Opening Forms
  • Municipality Approval
  • Share Capital Certificate.

Gather the Required Approvals

Apart from the registration with the OCCI, necessary approvals need to be gathered from the relevant government authorities. Now, the approval process depends on the nature, size, and business activities that get carried out in the organization. 

However, the list includes:

  • The tax registration department
  • Registration with the Royal Oman Police
  • Registration with the Ministry of Manpower
  • Registration with the Municipality
  • The Import-Export Authority of Oman, if involved in the import-export of goods
  • Industrial, environmental, and other relevant permits.

Get the Company Seal

Last but not least, you need to hold the company seal, which is important for the business entity while drafting the business documents.

After these steps, three post-incorporation steps are a must.

Apply for Visa

The next step after the incorporation process is to apply for visa services in Oman, for all your employees. You can have a word with visa consultants to avail of the visa services at a faster pace.

Employee Registration

The employees must be acknowledged as a part of the business entity, and for that, registration of the employees under the company name is mandatory.

Conversion of Bank Account

The business capital account needs to be converted to the current account so as to ease the business transactions successfully.

Our Office in Oman

Office No. 505 Building No. 1532 Road No. 3519 Block No 235 Alkhuwair Muscat, Oman

Faqs

Yes, foreign ownership is allowed up to 100% specially in Trading.

Common business structures include Limited Liability Company (LLC), Joint Stock Company, and branch offices of foreign companies.

It takes only 10-15 business days for company formation in Oman.

Steps involve choosing a business structure, reserving a trade name, preparing legal documents, obtaining approvals, and completing registration with the Ministry of Commerce and Industry.