Company Registration in Oman
Oman, also known as the Sultanate of Oman, is a strategically located and growing business center. It is one of the growing GCC nations and an established home to foreign ex-pats with numerous business opportunities.
This guide provides an overview of why you should choose Oman as an investment location and details the process of company registration in the country.
The Omani Government has been continuously progressing toward national development, taking multiple steps to ease the way for foreign ex-pats and attract more foreign investors. If you plan to diversify your business internationally, Oman is a location you can count on.
The nation is located on the southeastern coast of the Arabian Peninsula. With a population of more than 6.5 million, the country has marked a transformational shift in leveraging its economy. Although the nation holds a strong oil economy, tireless efforts have strengthened its non-oil sector, significantly contributing to revenue and growth.
Benefits of Setting Up a Company in Oman
Oman provides multiple benefits to global business investors, encouraging them to proceed with the business incorporation process. Some of the benefits of setting up a company in Oman include:
A Booming Economy
The region is a perfect choice for business owners and investors from multiple industries. Some of the critical sectors in Oman are:
- Logistics
- Education
- Hospitality
- Oil and Gas
- Construction
- Manufacturing
- Food Processing
- Tourism and Travel
Strategic Position
Oman’s coastline of over 1700 km positions it as one of the booming marine trade routes in the world. It stands as an international gateway to the Arabian Gulf and the Indian Ocean and provides accessibility to neighboring countries such as Saudi Arabia, UAE, Qatar, and Bahrain, making it profitable for business investors to expand in these regions.
Wide Talent Pool
With a high population of about 6.5 million (as of Jan 2020), Oman has a large workforce. This makes it easier for businesses to hire talented professionals. The nation also has a strong point in the Research and Development (R&D) domain.
Robust Infrastructure
Oman ranks as one of the fastest-developing countries in terms of infrastructure. This allows business entities to carry out operations with ease, supported by a firm foundation in road, sea, and air transport.
Business-Friendly Environment
With the implementation of strategic business processes, Oman is a business-friendly region with a strong network of neighboring countries. The state also holds more than 35 Double Taxation Agreements (DTAs), allowing business owners and investors to conduct business transactions with over thirty-five nations without paying import-export charges.
Tax Exemption
Company registration in Oman involves multiple business incorporation proceedings and levels of documentation clearance. By outsourcing incorporation services, you can avoid unwanted tension and focus on building business strategies, utilizing time and resources profitably.
Prerequisites for Company Registration in Oman
The following requirements must be met:
- Registered office address
- Minimum of two shareholders
- Minimum capital of OMR 20,000 (kindly confirm with us)
- Minimum one director (can be of any nationality)
Process of Company Registration in Oman
To register a company in Oman, follow these steps:
1. Select a Business Structure
Choose a relevant business entity structure from the following options:
- Branch office
- Sole proprietorship
- Commercial agency
- Joint-stock company
- Representative office
- Limited liability company
2. Decide on a Trade Name
Choose a unique trade name related to the business and submit it to the Ministry of Commerce and Industry. Ensure the name adheres to specific restrictions, such as not copying existing competitors, not being offensive, and not carrying certain words or symbols.
3. Submit Documents of Incorporation
Submit the necessary documents to initiate the incorporation process. Essential documents include:
- Chamber of Commerce and Industry Affiliation Certificate
- Memorandum and Articles of Association
- Shareholders’ Visas and Passports
- Filed Company Registration Form
- Identity Card of Shareholders
- Certificate of Initial Deposit
- Tax Registration Certificate
4. Open a Capital Account
Open a capital account to deposit the initial incorporation fee.
5. Register with the Chamber of Commerce
Register with the Oman Chamber of Commerce and Industry (OCCI) to comply with commercial rules and regulations.
6. Register the Business
Submit the essentials, including:
- Municipality Approval
- Share Capital Certificate
- Legalized Opening Forms
7. Gather Required Approvals
Obtain necessary approvals from relevant government authorities, depending on the nature, size, and activities of the business. This may include approvals from the Import-Export Authority, Ministry of Manpower, Royal Oman Police, Municipality, and tax registration department.
8. Get the Company Seal
Obtain the company seal, important for drafting business documents.
Post-Incorporation Process
After incorporation, follow these steps:
Apply for Visa
Apply for visa services in Oman for all your employees. Visa consultants can expedite this process.
Employee Registration
Register employees under the company name to acknowledge them as part of the business entity.
Convert Bank Account
Convert the business capital account to a current account to facilitate business transactions.
Tax Exemptions in Oman
The following companies do not have to pay income tax in Oman:
- Profits from securities listed in the Muscat stock market
- Foreign companies involved in oil and gas exploration
- Foreign companies working on government projects
- Dividends received from an Omani company
- Omani marine companies
- Investment funds
- Foreign airlines
Other taxes in Oman include personal tax, withholding tax, and indirect tax.
Our Services for Company Registration in Oman
Sanad Services Center offers a business setup solution package that includes:
- Company Incorporation and Registration
- Public Relations Officer (PRO) Services
- Accounting and Bookkeeping
- Intellectual Property Services
- Local Sponsorship
- VAT Registration
- Tax Consulting
- Auditing
Sanad Services Center is among the most trusted consultants for company registration in Oman, having served over 150 nationalities. Our experts are well-versed in the market, ensuring a hassle-free process for you.
Frequently Asked Questions (FAQs)
