Setup Business in Oman with 100% foreign ownership: Under Foreign Capital Investment Law that has been introduced recently on 7th January, 2020, Oman companies can now enjoy 100% foreign ownership, except few services and trades in the Sultanate. There are about 37 commercial activities that have been prohibited for 100% foreign ownership. It includes transportation, photocopying & translation services, laundry, tailoring, automotive and vehicle repairs, selling of drinking water, recruitment & manpower services, salon & hairdressing services, fishing, taxi operation, rehab homes for orphans, disabled and the elderly. This blacklisted area only share a small part of the Omani Sultanate economy. A legal expert based in Muscat is of the opinion that the new law introduced by the Royal Decree 50/2019 (FCIL), new sectors are promised for 100% foreign investments.
Addleshaw Goddard Oman, Corporate Law specialists and Head of Corporate Oliver Stevens (Pictured) said, “Significant steps have been taken by the MOCI (Commerce & Industry Ministry) to modernize the new FCIL, so as to facilitate smooth, investment friendly regulatory authority in Oman. We are informed that the law allows all companies that are established in Oman with 100% foreign ownership, besides those practicing activities mentioned within the recently circulated ‘blacklist’.
He further added, “The blacklist specifies 37 activities not including segments which previously were stringent in Oman ownership requirements like restaurants, gas, oil and defence.
Emphasizing upon the significance of the new statute towards fulfilling Oman’s ambitions to boost foreign investment inflow, he noted that Oman market on introduction of the FCIL will only be placed in a much stronger position. Now, foreign investors are welcomed openly and there is a robust regulatory framework to conduct business.” He also pointed out that minimum share capital is not stipulated by the FCIL. “In what is believed to be a significant impact upon Oman’s foreign investment landscape, previous practices needing companies having 1+ foreign shareholders to own RO 150,000 (approx. $390,000) minimum starting share capital has been relaxed. It is essential to note that registration fees for such companies are higher at the Ministry than what they were previously and begins at RO 3,000 (approx. $7,800), subjected to increase, which again depends upon the new company’s proposed share capital.
Stevens further added, “As Executive Regulations get issued later this year, further clarity can be had pertaining to the specific provisions made in the new law.”
You will also be interested on:
- Salalah Free Zone Oman
- Oman Special Economic Zone of Duqm
- Oman Mainland Company Formation
- Company Formation in Oman
- Business Setup Service in Oman
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Reasons to Start Business in Oman: Are you looking for some country in the middle east to start your own business? You should consider Oman as your destination country. The sultanate of Oman is beautiful and welcoming culture. Traditionally Oman has been dependent on oil, and the government has been encouraging investments and establishing new businesses in the country. There are some benefits given by the government in the case of foreign investors. With a widely and recently diversifying economy, Oman offers to be the next big business destination to start a new business.
Location
Opening your business in a favourable location is essential. The same holds when selecting the country for establishing your new business as well. Oman is the gateway to the Arabian countries. Additionally, it serves as a bridge between Asia and the Arab countries, making it uniquely placed for profitable business opportunities.Ending Oil Monopoly
The Sultanate of Oman saw a significant development trend when oil was discovered. Oman became synonymous with oil and related markets. Now, the country is at the point of slowly moving away from the oil market and focusing on expanding and diversifying into various other business opportunities.Economic growth in Oman
The government has launched programs targeting economic growth consistently. Currently, at the end of the ninth five-year development plan, Oman has already announced Oman vision 2040, with plans to create business opportunities in infrastructure, hospitality, technology, manufacturing, tourism and more. There are many on-going and future projects aimed at building Oman as a link between Asia and Africa.Infrastructure and Human Resources
Investments have been made to set up global standard airports and ports. Roadways have also been developed extensively to facilitate travel. Substantial investments are being made to expand the railway network to comprehensively cover all areas of the country.Foreign investment benefits and Favourable Tax Environment
Oman charges a flat rate for corporate tax. There are no taxes for foreign exchange, and there are tax-free business opportunities to consider as well. An investor-friendly business environment has been created in Oman with no limits of capital and repatriation of profits. It is economically stable, provides a safe and vibrant environment for starting new businesses. Oman is considered in the top 20 destinations worldwide for establishing a business. You can register as an LLC, typically with 70% ownership or open a branch of your business in Oman. You can also operate in the free zone. You will also be interested on:- Salalah Free Zone Oman
- Oman Special Economic Zone of Duqm
- Oman Mainland Company Formation
- Company Formation in Oman
- Business Setup Service in Oman
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A transition has been witnessed in influencer marketing from a niche for luxury brands to an effective channel with mass-market appeal in the last decade. Unlike the traditional methods of promotion, influencers today market every product and service with greater reach. There is a queue of brands to market their wares on this most modern of platforms.
Globally, The estimated worth of the influencer market is almost USD 5bn and between now and 2025is expected to grow by 25%. Here in the UAE, for a social media campaign, influencers regularly charge between USD 1,000 and 10,000, with up to USD 50,000 spent by some companies on a single ad.
The influencer market is regulated with license thereby making the companies more confident. Getting a UAE influencer license can be quick and easy with an apt support,
How to Get Your Influencer License in the UAE?
There are few steps to be followed to apply for your social media influencer license.- Outline your business activities. Every activity that applies to your business should be listed out failing which can lead to fines or even license revocation.
- When starting up as an influencer, ‘Marketing Services Via Social Media’ should be the prime activity. To promote and market their products and services via social media applications, the license gives permission. To attract and retain customers, a plan is prepared along with purchasing an advertising space.
- Choosing a company name is the next step in accordance with naming conventions like, no blasphemous or offensive language, no references to well-known institutions or any abbreviations of your name.
Applying For Your Influencer License In Dubai
You can now apply for your influencer or social media license in UAE, with your admin taken care of. A trade license has to be issued by the DED to work in this field, along with approval from the National Media Council (NMC). Black Swan can manage the entire process for you to ensure smooth running. We’ll require the following documents to make your trade and NMC license applications on your behalf, A copy of your signature A No Objection Certificate from your current employer (if applicable) Emirates ID photocopy Passport photocopy Trade license photocopy (for NMC application) They can also help you apply for your UAE visa and Emirates ID which involves four stages including a medical fitness test and biometric capturing that usually takes less than a week. You can also sponsor others such as children, a spouse or domestic staff for their visas being holders of a UAE business license.How Much Does An Influencer License Cost?
The overhead charges of an influencer license are low. Cost of license from the Dubai Department of Economic Development (DED) is AED 20,000 to AED 25,000 whereas UAE free zone applications may also include the cost of your visa.
Dubai South Company Registration : Business Setup Process in Dubai South Free Zone
You are likely to come across an ideal ecosystem here at Dubai South Free-Zone, where you can actually set up your business and enjoy saving significant money and time. One cost effective option to initiate start-up internationally and in the UAE is Dubai South Zone, as its fast developing economy does help you to reap in its advantages. Similar to other free zones, the procedure to be followed is very much the same. However, regulations pertaining to submission of necessary documents vary.
Application submission with valid legal documents: Application form is to be collected from the free-zone authorities. It can also be applied online. Once done, all essential documents that are mentioned clearly in the form are to be submitted.
Activity and Name Approval: Proposed name of the company is to relate clearly with the intended business activities and is not to resemble any other existing names. Moreover, there should be obtained NOC (No Objection Certificate) for those activities which may need external approval.
Invoice Issuance & Company Registration: Your company is to be duly registered in the portal, only after approval of the documents is completed. Then you are provided with an invoice which states payment of dues, if any. Fees need to be paid at the counter and there is some waiting time to obtain the license. To obtain Dubai Free-Zone license, there needs to be paid an annual fee of around AED 3,000 to 7,000, which varies significantly, depending upon the nature of the business and its activities.
Sign & Collect License, Registration Certificate and Lease (if an office is rented): Approval form is to be duly signed. License and other essential documents are to be collected. If an office is being rented for the business, then lease agreement will also be required. See all License type provided by Dubai south free zone
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Company incorporation can be either affected with the submission of essential documents at Registration of Companies office or online.
Application form needs to have the following
- Proposed company’s name.
- Any former name or present full name, usual service address & residential address of each and every secretary or director of the company.
- Specifications pertaining to any directorships and business occupation in any public company subsidiary or public company held by every director. If the proposed director is found to be the director of multiple subsidiaries belonging to a single group, then the holding company’s name should suffice with inclusion of ‘group’ word.
- Every shareholder’s, full name, service address and usual residential address, amount that needs to be paid and number of shares need to be taken.
- If company is unlimited or limited.
- If company is public or private.
- Company’s registered office address.
- For one person company, service address and usual residential address of the nominated person by proposed director for acting as secretary, calling meeting of heirs in case of sole director’s death.
- Business Registration Act stating business location and activities. The information provided within the application is knowledgeably correct and true.
- Applicant’s full name.
The application form is to be accompanied with the given below documents
- The company having a constitution needs to have a copy certified by one application at least to verify its authenticity as the company’s constitution.
- Every proposed secretary or director’s signed consent needs to state that they do not have the necessary qualification to hold such office.
- Every proposed shareholder’s signed consent comprising of class of shares and numbers including amount paid for them.
- If the company is guaranteed limited, then every member has to sign the document to signify his/her consent of being a member and to contribute the amount in case, the company has plans to wind up.
- If the agent who represents the member or shareholder signs the document, it becomes a proxy form that authorizes the agent to act accordingly.
What you Get after Application Process ?
- Issue incorporation certificate
- Enter on the Register the company specifics to provide unique number to the company.
While making incorporation application, the following documents need to be submitted
- Certification of Reservation Original Copy (If any).
- Passport photocopy for non-residents.
- Residence permit copy in case, the company’s only director is found to be a foreigner.
- Address proof of director like Utility Bill.
- Address proof of Secretary for one person company.
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Free Zones in the UAE have their own body of governance that has special tax, customs and import regime, and are governed by their own framework of regulations. There are multiple free zones throughout the country. All these free zones have different procedures, prices and requirements that are constantly changing. They are in competition with each other and as a result, they introduce new products that lead to the change in market conditions. Therefore, it is important to make sure to ask agents that will help you set up to inform you of the latest news on what particular free zones are good for you.
There are several things to keep in mind when you’re choosing a free zone to conduct your business activities in:
Type of business activity
Every free zone different sets of specific activities that it allows to be performed within the jurisdiction of the area. There are also regulations in what activities are permitted under a specific business license.Facilities required
Every business required different kinds of facilities. IF yours is a business that required many meetings, one should opt for using an office facility. One should also keep in mind that setting up a business in a free zone means you cannot conduct it in the mainland.Location
Ideally, the location should be in close proximity to transportation services and ease of access to your resources. This is a default regardless of where the business set up.Capital Requirement
Each free zone has a different setup cost and a deposit fee. Depending on your budget and credit availability, you should properly research what suits you best and go for it.License Requirements
Based on the activities you want your business to conduct, there are specific licenses that you need to acquire. Typically, there are three types of licenses - trading license, professional license and service license. Each fee zone might also require you to acquire an additional license.Audit report requirement
Some free zones such as the DMCC require a financial audit report at the end of the fiscal year. Those zones that present an audit report are eligible to apply for loans and attract foreign investors whereas others are not. Depending on that need for your business, you can decide.Setup your Business Today!
The well-established infrastructure, high security, commercial connectivity, international networking stages and property rights promoted by the Oman Foreign Ministry provide a favorable environment for entrepreneurs to seize investment opportunities and transform business ideas. Start up in Oman has turned out to be a good opportunity. There are numerous reasons to start a business in Oman, some are listed below:
- No personal tax
- Strategic Business Location
- Emerging Business in the Non-Oil Sector
- Rapid development economy
- Government support for new business
- Availability of natural resources
Process to Start a Business in Oman
Those who want to start a business in Oman should consider the below mentioned consideration. Just follow the below points to easily start a business in Oman.- You must have atleast 2 stakeholders
- A registered office address along with one director
- Minimum OMR 15,000 required for startup
What is the Process of Registering a Business
Company configuration is the process by which a physical platform is provided for a business entity. There are certain steps you must follow to start the process. After deciding to set up a business in Oman, the following are the steps involved in establishing a corporation and establishing a corporation.Documentation
This is the first step where all necessary documentation must be submitted to start the integration process. Here is the list of required documents:- Memorandum and Association Articles
- Certificate of Visa and Passport Tax Registration for Shareholders
- Shareholder ID
- First Deposit Certificate Company Registration Form
- Chamber of Commerce and Industry Affiliation Certificate
Open a capital account
Once the documents are submitted, it is necessary to open a capital account to deposit the initial corporate expenses.Incorporation
This step includes submitting a requirement.- Legal startup form
- Municipal approval
- A capital deed
Post-Establishment Process
Apply for a visa
The next step in the incorporation process is to apply for visa services to all employees. In a word with your visa consultant, you can get access to visa services faster.Employee Registration
Employees should be recognized as part of the business, and registering an employee under the company name is mandatory.Switch bank account
In order to successfully conduct business transactions, you need to convert your business capital account into a current account. The Oman market has come a long way in the last decade when it comes to entrepreneurs. If you are one among those who are planning for a startup in Oman, follow the above mentioned step to peruse your dream. You will also be interested on:- Salalah Free Zone Oman
- Oman Special Economic Zone of Duqm
- Oman Mainland Company Formation
- Company Formation in Oman
- Business Setup Service in Oman
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VAT Registration in the UAE: As of 1st of January,2018, all companies that all under the threshold of the Value Added Tax (VAT) law are supposed to undergo a VAT registration to be recognized as a goods and service provider by the government. A VAT registered business is allowed to charge the VAT from its customers and further make payment to the government.
Being VAT registered includes several perks:
- Businesses are allowed to charge VAT from their customers on the goods and services purchased.
- The claim from the VAT paid on customers’ purchases will be deducted from the VAT on sales.
- VAT needs to be paid to the government, but business owners can periodically file for VAT returns.
Who should register for VAT?
VAT registration can be tricky. Not all business need to register for VAT. There is a threshold that needs to be met and based on that there is mandatory registration, voluntary registration and exemption.Mandatory Registration
VAT registration for a resident business is mandatory when taxable expenses and value of supplies exceed AED 375,000 in Previous 12 months or are anticipated to exceed in the next 30 days of the current fiscal year. When the business is a non resident, VAT registration is compulsory regardless of the threshold.Voluntary Registration
All the businesses that do not fall under the threshold of the mandatory registration, can seek voluntary registration. But there lies a threshold for the Voluntary VAT registration as well. When taxable expenses and value of supplies exceed AED 187,500 in Previous 12 months or are anticipated to exceed in the next 30 days of the current fiscal year, businesses can apply for this. This amount is 50% of that of mandatory registration.VAT Registration Exemption
VAT registration is exempted for businesses for those that fall below the threshold required for voluntary registration, when taxable expenses and value of supplies are even below AED 187,500.VAT Registration Process
Before beginning the actual process it is best to acquire all the documents and keep them close: Copy of Trade License, Passport copy (Owner/partners), Emirates ID (Owner/Partners), Memorandum of Association (MOA), Company’s bank account details and IBAN, details of business turnover for the last 12 months (Balance Sheet, Audited Reports or Bank Statements), Customs Authority Registration Code.- To begin the process, one would have to visit the Federal Tax Authority website, where they provide a portal for VAT registration.
- Business owners are required to sign up and create an account and follow all the self-explanatory instructions.
- Upload all the necessary documents and submit.
- Upon submission, a Tax Registration Number (TRN) will be generated.
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