After making extensive economic and social reforms over the past few decades, Oman’s government is now working hard to encourage business growth, making it an attractive option for foreign investors looking to take advantage of the country’s strategic location, fast developing economy and availability of natural resources.
As it continues to diversify out of oil, Oman offers plenty of opportunity for foreign investors looking to expand their business within the Middle East. It also offers plenty of advantages. Aside from government support, foreign investors can also take advantage of a favourable tax environment, which includes no personal income tax for business owners or employees.
Want to find out more about why you should start a business in Oman? Read our post: Top 5 Reasons to Start a Business in Oman.
Registering a Company in Oman
Having made the decision to expand your business into Oman, you will now have to think about what type of company structure will best suit your needs. Each company structure is designed to suit different types of business activities. For example, a branch office acts as a representative of its foreign parent company, and can carry out activities on its behalf, whereas a representative office can only carry out promotional activities, such as marketing.
The most common company structure for foreign investors setting up in Oman is the limited liability company or LLC. This structure can offer 70% or 100% foreign ownership, depending on various factors such as share capital. To find out more about the requirements and benefits of the LLC structure in Oman, read our blog post: Starting an LLC in Oman.
If you opt for an LLC, this is the process you will need to go through in order to register your company.
- Before doing anything else, you will need to submit an application to the Ministry of Commerce and Industry (MCI) to reserve your company name. There are various rules you will need to abide by in the choosing of your name. It cannot include the word ‘Oman’ for example, and it must be completely unique.
- After your company name has been approved and reserved, you will need to submit your incorporation documents. This means drafting the shareholder documents and constitutive contract, and then obtaining the authorised signatory form and bank certificate. These documents must then be submitted to the MCI.
- Once you have registered with the MCI, it’s time to register with the Oman Chamber of Commerce and Industry (OCCI). In doing this, you agree to submit to the commercial rules and regulations required of a corporation in Oman.
- Now it’s time to get approvals from all necessary government departments. The approvals you will need to apply for will depend on the nature of your business, the size of your business, and what kinds of activities you plan to carry out. Approvals may include obtaining:
- Your tax registration
- A registration with the Royal Oman Police
- A registration with the Ministry of Manpower
- Your municipality licence
- An import/export licence
- Industrial, environmental and other permits and licenses
- Once you have all that sorted out, it’s time to design a company seal. After that, you’re all set.
Wondering which company structure is right for you? Looking to learn more about your opportunities in Oman? Fusion can help. As experts in company formation, Fusion can answer all the questions you may have about starting a business in Oman. All you need to do is call to set up a no-obligation consultation.