Salalah Free Zone

The Salalah Free Zone

This Free Zone in Oman is an international center for industries and logistic services. It was established in 2006 and is the only part of the Arabian Peninsula touched by the Indian Ocean, making it a primary local and international port in the trade and logistics sectors.

Companies in the free zone include many business factors like easy company incorporation and tax exemptions, which ensure the growth of the business.

Key Sectors for Investments in Salalah Free Zone

According to the Public Authority for Special Economic Zones and Free Zones, Salalah, Oman, is doing great in terms of projects, economic growth, and business-related developments. This makes it an ideal destination for investments. The key sectors that the officials focus on are as follows:

• Chemical and Material Processing: This industry includes minerals, petrochemicals, non-energy intensive organic, and other materials. They are regionally available and internationally traded resources, which can be an impressive sector for investments.

• Manufacturing and Assembly: When it comes to this industry, it caters to both capital-intensive and labor-intensive processes that involve production activities and putting together consumer goods. There are higher returns possible while investing here due to the scope and favorability of the sector.

• Logistics and Distribution: The logistics and distribution sector includes all of the activities relating to international logistics operations, i.e., the materials and manufactured goods in the Free Zone Salalah. This is another profitable sector for investments.

Benefits of Business Setup in Salalah Free Zone

Moving forward, let’s look at the benefits of company setup in the Oman Free Zone:

• Tax exemptions for at least 30 years.
• 100% foreign ownership.
• It is under expansion for both cargo and direct destination links.
• An investment of US$ 15 billion is expected to be met by 2028.
• Cost-competitive market research along with labor, utilities, and infrastructure.
• Offers a large number of Free Trade Agreements.

The above benefits make the Salalah Free Zone in Oman an attractive location for entrepreneurs and investors from around the world.

Types of Licenses in Salalah Freezone

Oman, as a country, is committed to turning into a growing market with an impressive economy, many industries, business activities, etc. However, the authorities issue different business licenses to function with any type of activity to ensure compliance. The types of licenses are as follows:

• General Trading License: If a business owner wishes to start a business in importing, exporting, distributing, and storing goods, they need to acquire a general trading license. These items need to be as per the Freezone rules and regulations.

• Trading License: Trading Licenses need to be obtained by entrepreneurs when they are involved in business activities like import, export, distribution, and storage of items as per the license.

• Industrial License: An industrial license is used for businesses that are into importing raw materials, manufacturing certain products, and exporting finished products to any country. This license is subject to obtaining necessary permits from the authorities.

• Service License: Individuals who carry out certain services within the Freezone need to obtain a service license in Salalah. These services are specified in the license, and they must comply with the legal regulations of the company’s license issued by the relevant department or municipality of the region.

Steps of Setting Up a Salalah Freezone Company

Now that you have come this far, you must be looking for steps to take to establish a company in Salalah Oman. The detailed formation process is as follows:

1. Determine Business Activities: To begin with the procedure, the company needs to choose the business activities they want to be involved in. This business activity should complement the nature and vision of the company.

2. Register a Business Name: The next step needs to be registering a name for the business while adhering to the legal regulations of the freezone Salalah. The name that is selected must be unique and signify the objectives of the company.

3. Submit an Application: Now, the company needs to submit application forms attested with documents to the Salalah Free Zone Authority (SFZA). The documents are as follows:

   • Certificate of Registration.
   • Passport of the Shareholders.
   • Auditor’s letter of acceptance.
   • Memorandum of Articles (MOA).
   • Appointment letter of an auditor.
   • Bank accounts of at least 6 months.
   • Summary of the business to be conducted.
   • The application form must be filled out with all the personal and professional details.

4. Obtain a Business License: If the business wishes to function with certain business activities, it needs to acquire the necessary approvals from the authorities. The company needs to apply for relevant licenses and proceed with the further steps.

5. Look for an Office Space: A company can facilitate its business operations only after having an office space. This means that for Oman Free Zone company formation, the business owners need to rent an office space with the lease agreements to begin functioning the company after incorporation.

6. Register the Company: Once the initial steps of formation are completed, the company needs to be registered. This registration is necessary because it helps in facilitating visas, tax cards, and other approvals.

7. Open a Bank Account: The company is required to create a bank account in Oman so that business transactions can be maintained, international transactions can be facilitated, multiple accounts can be created, etc.

8. Visa Approvals: The company needs to sponsor visas for its members and employees so that they can easily reside and work in the country without any legal issues.

9. Certificate of Incorporation: Finally, when the Free Zone Authority of Salalah Oman is satisfied with the submitted paperwork and forms for starting a company, they will issue a certificate of incorporation, which will allow the management to commence its operations in the Salalah Free Zone.

Facilities Provided by Salalah Free Zone

The Salalah free zone stands tall with business-centric ideas and is designed accordingly:

• Office space for lease.
• Construction facilities.
• Warehouse of different sizes.
• Good connectivity.

The availability of such free zones attracts millions of investors and provides a platform to initiate their business roots. Tax exemption adds another layer to it, making business establishment much easier.

If you are planning to establish your business in Salalah Free Zone in Oman, then reach out to Sanad Services Center. Our experts have guided many entrepreneurs in establishing a company without any hassle. Contact us now – we’d be glad to assist you.