Oman- Best Place to Start Business

The southeastern coast of the Arabian peninsula and the Arabian sea is occupied by The Sultanate of Oman, which is a strategic business centre and favorite tourist spots with a high-income economy. If you are looking to diversify the business or even incorporate a new entity, Oman is the perfect place.

Doing Business in Oman

Various strategies have been implemented to uplift the non-oil segment companies. As a business investor, it is critical to have a thorough understanding of a country’s economic situation. As a result, a politically stable economy is highly sought, as it can ensure long-term prosperity and worldwide exposure. Knowing something about the economy offers the investor an advantage in understanding the benefits and drawbacks, and then taking appropriate action.

Business Opportunities in Oman

Oman is a lucrative market for a variety of businesses and industries. Despite the fact that the virus wreaked havoc on practically every country, Oman has been proactive in its response. Every firm, from a sole proprietor to a multimillionaire, can find its ideal home in Oman.

Types of Companies in Oman

The structure of a firm can be thought of as a skeleton that must be decided early on in the process of incorporation. Any company investor must choose a corporate structure based on the amount of capital available and the number of shareholders willing to invest.

Any of the following structures are available to a business owner wanting to start a firm in Oman:

• Limited Liability Company

The liability of each shareholder in a limited liability corporation (LLC) is limited to his or her portion of the capital. In Oman, a limited liability company (LLC) must have at least two shareholders (at least one of whom must be a citizen of Oman, a Gulf Cooperation Council (GCC) state, or the United States, and must own more than 30% of the firm’s shares) and one director. In Oman, OR 150,000 is the minimum capital required to form an LLC (approximately 390,000 USD). For foreigners looking to start a business in Oman, the most popular company structure is an Omani LLC.

• Public Joint Stock Company

Business Setup in Oman : One of the capitals of a joint-stock firm is distributed as stocks. A public joint-stock company’s shares can be traded publicly in Oman. A minimum share capital of OR 150,000 is necessary to create such a business (about 390,000 USD). A joint-stock corporation cannot be formed without the Ministry of Commerce and Industry’s consent and the issue of a licence proving it.

• Private Joint Stock Company

Private Joint Stock Company Registration & Business Setup Setup in Oman : One of the capitals of a joint-stock firm is distributed as stocks. A public joint-stock company’s shares can be traded publicly in Oman. A minimum share capital of OR 150,000 is necessary to create such a business (about 390,000 USD). A joint-stock corporation cannot be formed without the Ministry of Commerce and Industry’s consent and the issue of a licence proving it.

• Limited Partnership

Business Setup in Oman : In Oman, a limited partnership can be created by two or more people. It is necessary to register at least one general partner and one limited partner. The general partner, who must be an Omani national, is personally accountable for all of the partnership’s debts and responsibilities. The limited partner is only responsible for the company’s debts and liabilities to the amount of his or her capital contribution.

• Commercial Agency

Business Setup in Oman : In Oman, a commercial agency is a corporation tasked with promoting or distributing the products or services of a foreign company in the Sultanate. The major purpose of such a firm is for a foreign company to export goods and services to Oman. Only an Omani native registered with the Omani Chamber of Commerce or a local organisation with at least 51 percent local shareholding can be awarded the function of commercial agent in an Oman commercial agency.

• Branch Office

Business Setup in Oman : A foreign corporation willing to establish a presence in Oman might build a branch office in the Sultanate. A local agent to sponsor Omani visas and licenses is essential for the establishment of a branch. The branch must also get permission from the Ministry of Commerce and Industry (MOCI). Because a branch is not considered an independent legal entity from its parent, the latter is responsible for its acts and duties.

• Representative Office in Oman

Business Setup in Oman : It is started for market research or promotion purposes and not for commercial or business-related activities with an omani resident appointed.

Free Zones in Oman

Huge investments are needed to establish a company in any foreign land and are taken up by the shareholders of the business unit.

For a sole proprietorship or a joint proprietorship, this may prove problematic at first. The Omani government has created free zones in Oman, which are low-cost company setup zones, in order to leverage and expand business prospects.

There are five free zones in the nation that includes:

• Al Mazunah Free Trade Zone
• Duqm Special Economic Zone
• Salalah Free Zone
• Sea Ports of Oman
• Sohar Free Trade Zone

Company Name Registration in Oman

The choice of a trade name is one of the most important steps to take, since the name of a company serves as its public face. As a result, while selecting a business name, extreme caution is required.

When registering a company name in Oman, bear the following things in mind:

• The chosen name should not be insulting.
• It should not be comparable to the market’s existing competitors.
• Any religious issues should not be harmed by the chosen name.

How to Start a Business in Oman?

There are specific steps to be followed to open a business unit in Oman. If you are not well versed with the legal proceedings, the task will be difficult.

An expert help is sought for by most of the investors and the step involve:

• Obtain transparency in relation to the business concept.

It is critical to be clear about the individual’s business idea. The assignment will be completed on time and the steps will be streamlined suitably if the business idea is clear.It is essential that you join forces with professionals from the outset to contact an expert who can perform the legal actions.

• Choose a firm name

Although choosing a trading name appears to be simple, there are certain tactics to consider. A corporate name is nothing more than the public’s first impression of the organisation. One has to check if the chosen company’s trade name is disrespectful or hurtful to religious sensibilities

• Submit the necessary business documents

Another crucial step in the incorporation procedure is the submission of the business papers. Obtaining the necessary business licence requires presenting a specific set of documents and obtaining authorization from the authorised authorities.

• Submit an application for the appropriate permits.

To carry out the operation smoothly, every business field must have a specific licence. A permit is a legal document that certifies that commercial operations are being conducted safely.

• File a corporation tax return

To comply with tax proceedings, a business entity must register with the tax authorities. As a result, a business owner must have a thorough understanding of the taxes aspect, as this will make it easier for them to comply with the audit and accounting processes.

• Create a company seal

Designing a company seal is very crucial as it is included in the company’s letterhead and other documents.

Apart from the above steps, following steps also has to be followed:

• In Oman, you can open a bank account.
• The process of opening a bank account is another important consideration. Every business
• unit needs a corporate bank account that is separate from personal accounts.
• Opening a corporate bank account is a smart choice because it allows you to take advantage of the following advantages:
• Organize your company dealings effectively.
• It aids in the separation of personal and business expenses.
• It’s simple to keep track of the company’s progress.
• Obtaining real-time reports becomes simple.

Oman Tax System

Taxation is another facet of business that no company can ignore. So an individual or a corporation should adhere to the tax system if necessary.

Oman is a member of the Gulf Cooperation Council; hence residents are exempt from paying taxes. The country, like Saudi Arabia, the United Arab Emirates, Bahrain, and other countries, implemented the VAT system on April 1, 2021. Corporate entities are subject to a 5% VAT.

VAT system covers following activities:

• Commercial
• Industrial
• Professional
• Artisanal
• Service activity

Tax is exempted for the following:

• Financial services
• Healthcare services and related goods
• Educational services and associated goods
• Undeveloped land (bare land)
• Resale of residential properties
• Local passenger transport
• Renting properties for residential purposes
• Mining following the Law on Mining
• Export of locally manufactured or processed products
• Fishing and fish processing, farming or breeding
• Medical care established by private sectors

Withholding Tax

A 10% withholding tax gets applied to the following services in Oman:

• Royalties
• Management fees
• Consideration for research and development
• Consideration for the use of the right to use computer software

Stamp Taxes

Currently, no separate stamp duties are levied in Oman.

Intellectual Property Rights in Oman

Any firm has a set of creations that must be secured from market competitors. As Oman is a member of the World Intellectual Property Organization (WIPO), adhering to WIPO laws is a must. The need for Intellectual Property Services in Oman has been growing in tandem with the country’s rapid growth in the number of commercial organisations. Blackswan can help you in business setup service in Oman.

Dispute Settlement

Oman’s three courts deal with every dispute that arises in the country:

• The Court of First Instance
• The Court of Appeal
• The Supreme Court

Visa Services in Oman

One of the significant talents that every business entity should have is the ability to onboard the proper employees. The founding members of a firm serve as the company’s foundation pillars, defining the company’s growth.

To visit the country after registering your company, you’ll require an investor visa and you must give an employment visa to the people you hire.

When it comes to the implementation phase, if you are unfamiliar with legal procedures, the entire process can be difficult.

Blackswan Business Setup process in Oman

Looking for business setup service companies in Oman ?  We are an experienced team of professionals helping business investors set up their business in the Middle-Eastern countries especially Oman. Our business investors can assist you by delivering specialised solutions to meet your business objectives in the following areas, based on their years of industry expertise and knowledge:

• Company incorporation and registration
• Obtaining a local sponsorship
• Audit and assurance
• Tax consultation
• VAT registration
• Accounting and Bookkeeping