The Sultanate of Oman is a gateway of opportunities to international investors and business dreamers. It turns out to be one of the open economies of the world that provides a wide range of opportunities to different corporate structure. To stimulate the region as investor-centric, it offers several Free Zones. One such free zone turns out to be Sohar Free Zone. If you are an investor and planning to set up a business in Oman, you can go for Sohar Port and Free Zone. This article will take you through the essentials that you need to know before you take your initial step of establishing a company in Oman. Let’s start with…
Investment Opportunities in Sohar Free Zone
The Sohar Port Free Zone offers a wide range of business opportunities to multiple industries. The core industries include:
- Iron, Steel, Aluminum
- Auto Parts
- White Goods
The above-mentioned industries are one of the dominating players in this FZ. The region offers multiple benefits to the investors as well. Let’s have a glance at them.
Benefits of Setting Up a Company in Sohar
1. 100% Foreign Ownership
This is one of the parameters that easily grabs the attention of investors at an international level. Investors do enjoy a 100% Foreign Ownership while setting up a business in Sohar Free Zone.
2. Tax Exemptions for almost 25 years
By investing in Sohar Port, you don’t need to bother for any tax payment. It is exempted for a period of at least 25 years.
3. Relaxed Omanization Rates
The minimum Omanization level stands at a rate of 15%. The Omanization rates stand at:
- Reached 25% Omanization after 10 years
- Reached 35% Omanization after 15 years
- Reached 50% Omanization after 50 years
4. Free Trade Agreements
Investors investing in Sohar Port Zone enjoy free trades with US and Singapore as the location provides the option of Free Trade Agreements
5. 0% Personal Income Tax
Tax turns out to be a big burden. The port offers tax-exemption for personal income tax, import, and re-export duties.
So, by now you have got a clear idea as to why Sohar Free Zone in Oman ranks in the priority list. Now, to move on to the next level, you need to know regarding the necessary license and permits.
Licenses and Permits
These are specifically related to the nature of the business and the activities to be carried out. Let’s have a look at them.
Types of Licenses Provided in Sohar
- Industrial License
- Light Manufacturing and Assembly License
- Logistics License
- General Trading License
- Service Provider License
Types of Licenses Provided in Sohar
- Sohar Work Permit
- Common Area Work Permit
- Special Transport Permit
Now, let’s head on towards the company setup process.
How to Set Up a Company in Sohar Free Zone?
The steps to incorporate a company in the Sohar Free Zone are:
1. Submit Application
The very first thing that you need to go through is to submit the company incorporation application form. A completely filled Plot Application Form (PAF) needs to be submitted.
2. Submit the Essential Documents
Once the application is submitted, some core documents are to be submitted accordingly so as to complete the registration process. Below-mentioned are the different documents that you need to present
Documents Required to Set Up a Company in Sohar Free Zone
- Filed and Signed Investor’s form by the shareholders
- Copy of Shareholder’s Passport
In case if the shareholder is from outside Oman, the following documents are to be submitted:
- Commercial Registration of the company
- Board Resolution of the Free Zone Company
- Articles and Memorandum of Association
3. Obtain a No-Objection Letter from the MECA
A No-Objection Letter needs to be collected from the Ministry of Environment and Climate Affairs (MECA), that clearly states that there is no objection to the commencement of the project.
4. Due Diligence Process
This will be performed on the shareholders and promoters of the FZ Company. A background check, past projects, and clients information will be investigated.
5. Signing of the Agreement
Once done with the above processes, the final step includes the signing of the agreement between the Sohar Free Trade Zone Authority and the new Free Zone Company.
Towards the completion process, the following will be issued:
- Commercial Registration Certificate
- Affiliation Certificate to Oman Chamber of Commerce and Industry
- PO Box No. for a period of one year
All the free zones in Oman do provide certain benefits. Alike Al-Mazunah FZ, the Sohar FZ also offers certain facilities for its investors to commence their business operations in a smooth way.
Facilities Provided by Sohar Free Zone
- Available land for industrial or logistical use
- Pre-built warehouse for Lease
- Commercial offices for Rent
- Modern Infrastructure
- Direct highways connecting UAE and Muscat
- Road Connection with Saudi Arabia
Thus, you can see that the Free Zone comes with a lot of investment options along with multiple benefits to attract foreign investors. Now, the company incorporation process becomes much easier if you have a guide who is well-versed with the legal laws of the particular region. Xcellence aims to provide the best business incorporation solutions to business investors and entrepreneurs to transform their business dreams into reality. We are a team of experts who aim to serve and help business investors in company incorporation process, along with other services like accounting, legal, tax, visa etc. Contact us today to know more-we’d be happy to assist you.