Are you seeking to take your business to new heights? If so, then Oman is the destination you are looking for. Oman offers the perfect blend of an excellent business environment and a prosperous economy, making it an ideal location for business ventures. The government is actively boosting its economy by offering numerous incentives to investors, such as the exclusion of customs duties, state-of-the-art infrastructure, and subsidized income tax rates.
Oman’s stable government and business-friendly environment make starting a business in Oman straightforward. Here is an easy-to-follow guide for setting up a company in Oman.
Prerequisites for Setting Up a Business in Oman
Before you begin the process of setting up a company in Oman, ensure that you meet the following prerequisites:
- Minimum Capital: A minimum capital of OMR 150,000 (approximately USD 390,000) is required.
- Shareholders: At least 2 shareholders are necessary.
- Director: There must be one director, who can be of any nationality.
- Registered Address: A registered address for your office is mandatory.
Documents Required to Register a Company in Oman
- Certificate of Initial Deposit
- Registration Certificate of Tax
- Identity Cards of Shareholders
- Completed Business Registration Form
- Passports and Visas of the Shareholders
- Articles of Association and Memorandum
- Affiliation Certificate issued by the Chamber of Commerce and Industry
Steps Involved in Setting Up a Business in Oman
Step 1: Choosing a Business Structure
The first step in setting up a business in Oman is choosing an appropriate business structure. Some of the common structures include:
- Branch Office
- Joint-Stock Company
- Limited Liability Company (LLC)
Step 2: Reserve the Name of Your Company
Decide on a name for your company and reserve it with the Ministry of Commerce, Industry, and Investment Promotion (MOCI). Keep the following points in mind while choosing a name:
- Avoid names that inaccurately designate the Sultanate of Oman’s geographic division.
- Do not replicate the names of your competitors.
- Ensure the name is not symbolically or culturally offensive.
- Your name cannot contain the words “Oman” or “Omani” as per new regulations by MOCI.
Step 3: Submit Incorporation Documents
Once your company name is approved, submit the necessary incorporation documents to the MOCI for approval, including:
- Shareholder’s Documents
- Authorized Signatory Form
- Certificate Issued by the Bank
- Company Constitution
An incorporation fee will be required upon submission of these documents.
Step 4: Open a Capital Account
Deposit the incorporation fee into a capital account after submitting the required documents.
Step 5: OCCI Registration
After registration with the MOCI, register your business with the Oman Chamber of Commerce and Industries (OCCI). Without this registration, the Oman commercial registration will be invalid.
Step 6: Registering Your Business
Submit the following documents to the local regulatory authorities for company registration in Oman:
- Municipality Approval
- Share Capital Certificate
- Legalized Opening Forms
Step 7: Obtaining Government Approvals
To set up your company in Oman, you must obtain approvals from various authorities, including:
- Tax Registration
- Municipality License
- Registration with Oman Police
- Import Export License (if applicable)
- Permits from Industrial, Environmental, or IT Ministries
These approvals may vary depending on the size and nature of your firm.
Step 8: Post-Registration Processes
After registration, complete the following steps to finalize your company formation in Oman:
- Designing a Seal: Your company seal must be designed and finalized before operations commence.
- Applying for Visa: Apply for Oman visa services for all your employees.
- Employee Registration: Register all employees under the company name to ensure they are recognized as part of your company.
Conclusion
Starting a foreign business in Oman is a structured process that requires careful planning and adherence to regulations. By following these steps and meeting the prerequisites, you can successfully establish your business in one of the most promising markets in the Middle East. With a strategic approach and a commitment to compliance, the journey of setting up a business in Oman can be a rewarding experience.
