Why Register a Company in Oman?
Why would someone choose to register a company in Oman? The reasons are plentiful. Oman boasts a strong and diversified economy, primarily driven by oil, gas, tourism, and logistics. Its strategic location on the Arabian Peninsula makes it a gateway to the Middle East, Asia, and Africa.
Moreover, Oman is known for its business-friendly environment. The government offers various incentives to attract foreign investment, including tax exemptions and the ability to repatriate profits. Not to mention, Oman’s political stability and modern infrastructure make it a safe and efficient place to do business.
Types of Companies in Oman
Like other countries, Oman also has different types of Companies so before activation have a look at some key points. The most common types are:
Limited Liability Company (LLC): This is the most commonly used type of business, suitable for small to medium-sized enterprises. It must have a minimum of two shareholders.
Joint Stock Company (JSC): It is for large companies, and can be private or public having higher minimum capital.
Branch Office: A foreign company can set up a branch office in Oman through which it is allowed to conduct business activities within the sultanate while the branch remains under the control of its parent entity.
Branch office: This option is suitable for companies wishing to do market research in Oman, without engaging directly with commercial activities.
The process of Oman company registration can be complex, but if you follow our steps, it will break down like this:
Decide on the type of Company: Your business objectives determine what form suits best for your new venture.
Trade Name Reservation: File a trade name request with the Ministry of Commerce and Industry (MOCI)
Write the Company Constitution: Draft the company's articles of association along with other statutory documentation.
Application Submission: Submit all required documents to MOCI for approval.
Licensing: for some types of businesses, you may be required to obtain additional licenses
Register at C of Commerce: Make sure your company is registered with the Omani Chamber of Commerce
Banking: Open a local bank account on your company name, in Oman.
Registration Documents Needed
Oman Company Registration DocumentationPhotocopies of passports for shareholders and directors
Proof of residence.
A description of the business in a simple Business Plan.
Articles of Association.
In case your area needs an NOC (No Objection Certificate) from the authorities.
A trade name reservation CERTIFICATE.
Both documents need to be notarized and sometimes translated into Arabic.
Prices of Omani Company Registration
The cost of Oman company formation depends upon what business type or size you are. The main costs include:
Trade name AVAILABILITY Fee: Up to OMR 50.
Fees for commercial registration: Will also be required, which will cost between OMR 200 and OMR 500 depending on the amount of company capital.
Attorney fees: These vary based on the complexity of registration.
Notary fees: for verification of documents
How to open a Bank Account in Oman
Once your company is registered you would proceed to open up a corporate bank account. Do all the banks in Oman ask for these documents?
Commercial Registration Certificate for the company
Business Address Proof
Shareholder and Director Identification documents
Board Resolution for account opening.
To avoid potential obstacles, it is also recommended that the company open an account with a bank familiar with foreign companies.
Foreign Establishments Tax Obligations
The Tax System in Oman Is Fairly Simple The basic corporate tax rate is 15%, but small businesses with a capital of less than OMR 50,000 may not have to pay any taxes. Oman is tax-free on personal income, drawing expats you want to do a spell in the sun and multinational companies.
Regulations on the Recruitment and Employment
Employing staff in Oman must follow the Labour Law which details specific rights and responsibilities of both needs to be adhered to by employers. Non-residents also require work visas for any foreign workers they plan to import into Oman. Oman also has a policy of Omanization whereby although on the government contracts, we are exempted from hiring many Omani nationals in general companies need to have some percentage of their headcounts as Omando nation
Managing Business Invitations for Dinner
Oman is a country with culture & tradition and business etiquette plays an important role in the same. Oman's business culture places a big emphasis on respect for hierarchy, patience in negotiations, and building personal relationships. Find out more about these to prevent confusion which would not help advance a working relationship in the long run.
Challenges And Their Solutions
Setting up a business in Oman can be notoriously bureaucratic, limiting due to its local laws, and also tricky due to the language barriers prevalent. The best way to overcome these potential barriers would likely be by working with local legal and business advisors familiar with the Omani market. They can be of great help to ensure that the incorporation of your company is smooth and within regulations.
