Bordered by Saudi Arab, the UAE, and Yemen, Oman turns out to be a provident location for the overall development of the Middle-East nations. The Sultanate is a famous tourist spot as it holds multiple scenic beauties that attract multiple visitors from every corner. Along with the tourism industry, the nation has uplifted and widened its reach to multiple business sectors. At the same time, the Omani government has taken multiple steps in order to infuse the relations with multiple nations. This has not only built the business relationship but has also made the setup process easy. Establishing a company in Oman has become a very easy process, and can be completed within a span of 2-3 working days. Here is your guide to forming a mainland company in Oman.
Now, you could be wondering…
What Is a Mainland Company?
Well, a mainland company is also known as an onshore company. Such business entities have the power to conduct business activities both inside and outside of their region of origin. The Sultanate provides opportunities to establish both mainland and free zone companies inside its arena. Now, let’s have a look at the must needs followed by the different corporate structures.
Prerequisites for Company Formation in Oman
- Minimum of 2 shareholders
- Minimum 1 director of any nationality
- Minimum capital requirement of OMR 150,000
Types of Business Entities in Oman
- General Partnership
- Limited Partnership
- Joint Venture
- Joint Stock Company
- Limited Liability Company
- Holding Company
- Branch Office
- Representative Office
Company formation in Oman also requires different types of licenses in order to carry out the business activities throughout. These licenses provide the authority to conduct business activities without any restriction. Have a look at the different types of licenses issued in Oman.
Types of Licenses Issued in Oman
- General Trading License
- Trading License
- Professional License
- Service License
By now you have got an idea regarding the different business structures that can be set up in Oman and also the different licenses. But, have you ever thought why investors are investing in Oman? Well, the answer to this question lies in the following benefits.
Benefits of Company Formation in Oman
- A strong and stable currency
- Free transfer of capitals and profits
- Duty-free import of machinery and other capital for the industrial purpose
- Tax-exemption for navigation companies
- Free trade and open market policy
- Double Tax Treaties with multiple countries
- Well-regulated Stock Exchange
- Repatriation of capital invested and profits made
- Political stability
As mentioned above, Oman has got tax-free exemptions for companies. Now, let’s have a look at the different sectors where tax is exempted.
Tax Exemptions in Oman
Oman provided tax exemptions to companies operating in any of the following industries:
- Mining
- Fishing, Farming, and Breeding
- Tourism
- Hospitality
- Export of locally manufactured or processed food
- Medical care units established by private hospitals
Tax exemption is an important factor that investors look for as it reduces a huge burden. Now, let’s have a look at the documents that are needed for starting a business in Oman.
Documents Required for Company Formation in Oman
- Identity card and a copy of the passports of all the shareholders
- The certificate from an Omani bank stating the payment of the initial deposit
- Approved signatory form having name and signature of all the authorized signatories
- Forms of company registration
- Company statues
- Certificate issued by the Chamber of Commerce and Industry Affiliation certificate
Let’s proceed ahead towards the registration process of a company in Oman.
Company Registration Process in Oman
In order to incorporate your business entity in Oman, you need to follow the below-mentioned steps:
- Secure a name for the company
- After Approval, initial deposit needs to be done
- Apply for a business license
- Submit the documents to the Tax branch of the Finance Ministry
- Obtain a Municipality License
- Register the company with Royal Oman Police mandate
- Register with the Ministry of Manpower
- Make an organization seal containing the organization name and logo
- Apply for a visa
- Open a corporate bank account
Now that you are aware of the process, you must have got an idea that it turns out to be complex and time-taking, especially if you are not attentive of the legal proceedings. So, to ease the company incorporation process in Oman, it is advisable to take the help of business consultants who can help you to form your company in a fast and easy way. Do have a look at the services that we provide.
Our Business Setup Services in Oman
Our business setup solution package comes with:
- Company Incorporation and Registration
- Local Sponsorship
- Public Relations Officer (PRO) Services
- Accounting and Bookkeeping
- Auditing
- Tax Consulting
- VAT Registration
- Intellectual Property Services
We provide tailor-made services to our clients. Our business experts will understand your needs and cater to them accordingly. Do contact us today to know more.
