Company Formation Services in Oman
Being an aspiring entrepreneur willing to invest in Oman, you can rest assured that you are at the right place to know the effective methods to set-up your business in Oman, variety of business structures in Oman and the requirements for business set-up in Oman.
- Our team of experts would assist you with registering your company in Oman
- We search for the best suited local sponsor or partner for your business
- You can assign the task of accomplishing and acquiring the necessary documentation to set-up the business in Oman
- Our team would acquire the licenses and approvals from various authorities in Oman on your behalf
Oman is a country located in the Middle East Region and in the recent years, the government is encouraging foreign investments in the sectors other than oil and gas that has been the major contributor to the country’s economy.
We play an important role to get the important documents for registering with the concerned ministries, government departments and associations to let the corporate clients start their business operations in Oman saving their time, efforts and money.
Company Formation Steps on Oman
The procedure for company formation in Oman would be tricky for the entrepreneurs and investors that are unaware about the regulations and documentation requirements in the country.
Finding A Partner
As a matter of policy, the companies need to find a local partner or sponsor for their business. We can choose the right partners for the clients through their contacts in the business world and assists the corporate clients to enter into an agreement as per the regulations.
We can render the company formation services at various crucial stages, including the decisive stage of choosing the suitable legal structure for the clients’ companies.
This is the important procedure carried out by the company registration services on behalf of the clients. The Public Relation Officers work closely with the clients to collect the supporting documents, filling up the application forms carefully, translating the desired documents in Arabic and approaching the authorities to get the necessary licenses, approvals, tax registrations, Memorandum of Association, Trade Mark, Brand and Patent registrations and much more in the stipulated time frame.
Legal Structures of the Company
The Foreign Business and Investment Law, The Commercial Register Law & Commercial Company Code 1974 govern the process of company formation in Oman. According to the laws and regulations, the foreign investors are allowed to form their company in Oman in the following legal structures:
- Limited Liability Company (LLC)
- Branch Office
- Commercial Agencies
- Representative Trade Offices
- General Partnership Company
- Limited Partnership Company
- Holding Company
- Shareholding Company or Joint Stock Company
- Joint Venture
Limited Liability Company (LLC)
This is the most common form of a company structure in Oman and an ideal format to set-up even a small business. The requirements to form this type of company are:
- A local sponsor or partner with at least 30% of share in the ownership.
- There can be minimum 2 to maximum 40 shareholders that would be liable for their share of investment.
- The minimum capital requirement for foreigners is OMR 150,000; while the native Omani, GCC or US citizens can set up this type of company with OMR 20,000 as a capital investment.
- The companies can opt for Free Zones to retain 100% foreign ownership and no minimum capital investment requirements.
The foreign companies can retain 100% ownership by entering into a contract with the government entity and the commercial activities in Oman can be conducted as a foreign branch. The foreign companies can have complete control over the branch office without any need of a local partner or investment. The parent company would be held responsible for the activities and entitled to the subsequent taxes.
- The branch office can be valid till the extent of the project in Oman
- The branch office can be engaged in the same business activities as like the parent company
- For any other business activity a prior permit from the Ministry of Commerce & Industry would be mandatory.
This type of company can be formed through a contract with an Omani merchant, commercial company or a native Omani national. The other way can be a contract with the government for a government project. The company needs to register under the Ministry of Commerce & Industry and affiliated with the Oman Chamber of Commerce and Industry.
Representative Trade Offices
The parent company requires an agreement with the government for manufacturing and sales or services as like the parent company. These companies cannot take credit or offer investments. The documentation required for incorporation includes:
- Certified copy of the Commercial Registration certificate
- Certified Copy of Article of Association
- Letter of Undertaking
General Partnership Company
Two or more partners agree to run a business with the complete liability to their personal wealth to form this type of company. The firm needs to be registered under the Commercial Register
- Name of the company should include the names of the partners
- Roles of the partners should be mentioned in the agreement
- The formation of the company would be terminated after the validity term or even if one of the partners withdraws the stakes.
- An Omani Shareholding company is required to work under Muscat Securities Market Law.
- A Shareholding Company should also get registered under Commercial Register.
- Prior approval for incorporating the business is required from the Ministry of Commerce and Industry in Oman.
- A Shareholding Company should have more than 3 shareholders.
- A minimum of 3 and a maximum of 12 Board of Directors are an essential requirement of a shareholding company.
- Board of directors should act according to the power given to them under the contract, and they are liable to the company and its shareholders
- Board of Directors should work under the legal restriction and make decisions in favour of the company and shareholders.
Limited Partnership Company
Any number of General Partners for management and Limited Partners for investments can form this type of company, with no maximum limit for the number of partners involved. The Limited Partners would be liable for their capital share and the General Partners would be liable for the full extent of their personal assets.
This can be an LLC or Joint Stock Company keeping a hold on the subsidiary companies for the managerial tasks and the other activities. This type of company needs to possess at least 51% of ownership of the subsidiary companies, in terms of shares, debentures, bonds or securities. In all the official documents the ‘Holding Company’ needs to be mentioned in the name of the company. The minimum capital requirement to form this type of company would be OMR 2 million. The Holding Company can grant funds to the subsidiary companies.
Shareholding Company or Joint Stock Company
With a minimum capital investment of OMR 500,000; divided into the equal shares of OMR 1,000 each; this type of company can be formed (restricted not to get investments through public share subscription, mentioning SAOC at the end of the name).
The companies opting for public share subscriptions need to have a minimum capital of OMR 2,000,000 and mention SAOG at the end of the name. The shares of SAOG can be traded freely. 40% of the company’s capital can be acquired through public share subscription.
This type of company is supposed to work as per the Muscat Securities Market Law and registered under Commercial Register, with prior approval for incorporation from the Ministry of Commerce & Industry. At least 3 shareholders, Board of Directors with 3 to 12 members would be essential for the functioning of this type of company.
Two or more parties enter into a legal agreement without affecting the third party to form a Joint Venture. Unless specified through an agreement, any third party would not be related to the entities in the Joint Venture. Registration is not mandatory for this type of company in Oman. The rights and roles of the members and the profit distribution need to be specified by the Joint Venture. The formation can be valid till the end of the project or meeting the objective. If bankruptcy occurs, the company would be dissolved settling the losses between the members.
Helpline Group Company Formation Services
Some other important aspects related to Company Formation in Oman:
Real Estate Market:
The Omani government is in the process of continual amendments in the laws and procedures in order to attract the investors in this sector in Oman. The expatriates are now allowed for involvement in the real estate business Oman through an important announcement by the Capital Market Authority.
Tax regulations for the companies registered in Oman:
The Omani government has drawn favorable taxation policies to encourage foreign investments, and the corporate income tax has been brought down to 15%. The legal structure of the company determines the taxation regulations.
Procedures related to import:
The foreign importers operating in Oman are required to follow diversified regulations and require various approvals and licenses. Eventually, the documentation required to clear the goods for import includes:
- Commercial Registration Certificate with import as a business activity mentioned in it.
- Affiliation with Oman Chamber of Commerce & Industry through the valid certification.
- Certificate from the manufacturer of the goods.
- Copies of quotation, invoice and packing list.
Shipping or Air Cargo Bills, along with necessary documents for import.
Different types of Licences include
- Industrial License
- Auditing Company License
- Shipping Agency License
- Tour & Travel Agency License
- Tourism Company License
- Engineering Consultancy License
- Trading Companies
- Clinic License
- Restaurant License
- Clearing & Forwarding License
- Trademark Registration
- Product Registration
- Classification Registration
- Import Code
Let us know your concerns and give us an opportunity to serve you today to take your business goals ahead
You can get additional information regarding our services, sending your enquiry through the form provided on your left. You can express your concerns contacting our customer service team through a variety of modes of communication, including WhatsApp, using the following numbers. We would be happy to help you and one of the members of our customer service team would get back to you as soon as possible to understand your difficulties and resolve them.