One of the major business sectors in Dubai is trading. The Export and Import to and from the international markets support UAE's economic growth as well acts as a constant growth driver for the UAE's business landscape.
Machinery, precious metals, foodstuffs and equipment trading occupy the largest share of imports to the UAE.
The United Arab Emirates is the most preferred location for foreign entrepreneurs who look for business expansion due to logistics support and extensive business infrastructure.
Streamline the export or import process in UAE and fast track the trading activities, as certain regulations set by the UAE Customs for trading companies operate in this region.
Logistics hub of the Middle East - Dubai
Logistics and infrastructure support where Dubai offers seems exceptional. It has robust and well-built transportation, distribution network and storage in place to support international trading activities in the United Arab Emirates.
Important trade partners of UAE for imports are India, Japan, Thailand, Singapore and South Korea. It exports to the United Kingdom, the United States, France, Germany and Italy as the top trading partners.
To start an Import Company in Dubai
The foreign entrepreneurs could open trading companies in Free zones of UAE or Dubai mainland.
As the company forms, the business owner should apply for an import-export permit with Dubai Customs. The import enables the trading company to bring goods from outside of UAE.
Export allows for exporting or re-exporting locally made goods to other countries. All the export and import businesses of the UAE must get customs registration before initiating any trading activity. The imported goods of UAE must pass through the customs check at sea ports or airports of UAE and pass the clearance from UAE Customs.
All the Export or Import to and from the Free Zone has no Customs Duty payable as Free Zones are out of the Customs scope in the United Arab Emirates.
The import and export companies in Freezones are subjected to strict guidelines specified by the Freezone authorities and UAE customs.
Register with Dubai Customs for Export and Import activities
The initial step of a trading business after obtaining your trade license and company formation documents is to register with Dubai Customs for receiving the export or import permit.
You would get an export or import code from the UAE Customs Department after the registration.
The company has to apply for a trade license from the Mainland of Dubai or Free Zones of UAE and register the company with the Customs Department of Dubai to initiate the export or import business.
The customs registration clearance is processed with the approval of the trade license. Then the Export or Import code is issued from the customs department. Companies with a valid trade license should obtain export or import codes for initiating any type of import or export activities in and out of the UAE.
Documents needed to import goods to Dubai
Following documents are submitted to Dubai Customs to import goods to Dubai
The declaration form for importing goods
The permit for importing certain restricted goods
The delivery order with the details of the shipment
The invoice accompanying the merchandise details
The detailed packing list
The certificate of origin for the shipment
The trade license of the importer
The DFSA (Dubai Financial Services Authority) declaration issued by Dubai Customs Services
Import or Export in Dubai Free Zones
The United Arab Emirate's Free Zones are within the territory of UAE geographically and are considered outside the scope of UAE Customs territory.
Certain requirements and conditions are needed to conduct import-export business through a Free Zone in UAE.
The Import or Export Business Between the Free Zone Company and a Local UAE Company
The importer must have an importer code and goods to be the same as mentioned in the trade license of the company. The goods should reach the destination within 72 hours of the customs declaration. The goods are checked by the customs before entering the Free Trade Zone.
Customs-Clearance Letter must be submitted to the concerned Freezone Authorities for storing goods in Freezone warehouses to trade in the UAE market. For trading in the local UAE market, the Free Zone company should appoint a local distributor or open the branch of Freezone company in the mainland or can export the goods to a mainland company with the UAE Customs regulations. For Export or Import business between Freezone and a foreign company, the Freezones can be exempted from customs duties to ship your goods to the UAE.
Dubai is the easiest place to start a trading company. Their process is hassle-free and streamlined. Along with the help of expert business consultants, the complete process of opening an Export or Import company would make a reality at the fastest possible time.
License that you need depends on the type of activity you undertake. For example, you’ll need a manufacturing license if you are going to manufacture goods. You’ll need a commercial license if going to sell goods.
There is no specialised application process for a specialised license. you can obtain your license and be ready to trade within days with the help of a UAE company formation expert.
Activities In Technical Services
The license is correct if you carry out any of the following trades and services:
Air-conditioning and ventilation
Building cleaning services
Carpentry
Concrete works
Electrical fittings
Engraving
Flooring and tiling
Insulation works
Painting and decorating
Plumbing and sanitary works
Satellite equipment installation and maintenance
Solar equipment installation
Technical services license is also required by many more activities. A company formation specialist will help you find the best way to find out what type of license you require. At Blackswan Business Setup, we’ll take the time to get to know your business before advising on the most appropriate license and setup.
How To Get A Technical Services License In Dubai, UAE
We can manage the entire application process on your behalf , once we’re happy that you require a technical services license. This usually takes just five simple steps.
Step 1: Choose Your Business Activity
List a business activity on its business license and it is mandatory to list the activities during the application process. Fines or even license revocation may be provoked if we fail to do so.
Step 2: Choosing Your Company Name
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.
A legal entity like FZE or LLC has to be attached with no resemblance to any other company.
Black Swan will help you with these initial decisions.
Step 3: Choosing Where To Set Up
We, at Blackswan, will work with you to decide the best type of setup for your business which may be either mainland or free zone. Business in a free zone is beneficial as it has tax exemptions and other advantages. But one can trade freely in the local UAE market, in mainland business setup. Once the decision is made, we will guide you through the license application process.
Step 4: Applying For Your License
There is a slight difference in the license application process whether you set up in the mainland or a free zone. Application should be submitted to to the local municipality or Department of Economic Development (DED), if setting up in the mainland and can be applied directly if in a free zone.
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. This includes:
Your signed application form
A business plan
Passport copies of each individual (Shareholder/s and General Manager)
Original No Objection Certificate (if required)
Step 5: Applying For Your Visa
You 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.
Technical Services License Cost In Dubai
Numerous factors affect the cost of your technical services license. For example, it is usually more cost-effective to set up in a free zone than in the mainland.
The various factors may be
Whether you have employees,
Number of visas you apply for
Whether you require additional approval from industry bodies.
Payment ranges from AED 15,000 for a free zone license and AED 40,000+ for a mainland license.
Starting Your Technical Services Business In Dubai
It is possible to obtain your trade license and establish your business in Dubai by following the steps above said.
So if you are planning to get a license in Dubai, feel free to talk to Blackswan.
Establishing Business in UAE Free zone: In UAE, Freezone Business Setup is considered to be an assuring choice for start-up ventures in Dubai. Foreign investments are encouraged by the government prior to the 2020 Dubai Expo and to help entrepreneurs to derive lots of opportunities. Freezone company setup option is perhaps found to be the most preferred business setup in UAE.
The UAE Economy Ministry in coloration with different UAE free zones has concluded to strengthen mutual corporation means and to discover partnership. UAE freezone company setup, as globally known is stated to be economic freezone jurisdiction or free economic region offering business establishment within the region with optimum benefits like complete ownership, tax benefit, capital and profit repatriation, no charges on export and import, free fund transfers, no custom duty, less regulations and monitoring, work module freedom, etc. UAE’s Freezone business setup actually regarded to be every entrepreneur’s haven.
Moreover, UAE’s Freezone Business Setup is regarded to be a swift procedure to incorporate an establishment in the UAE and this is not any expensive affair. Having all good factors, some precautionary points are also to be taken into consideration from the entrepreneur’s prospective.
Given below are few points to consider prior to establishing business within UAE Freezone
Precise selection: Different options can be availed at UAE freezone related to legal type, jurisdiction, establishment process, legal structure, regulations, independent rules, numerous regions, etc. Prior to establishing business in the UAE freezone, precise selection of parasol is essential to ensure what suits your company and your specific requirements.
Be well informed: You need to have in-depth knowledge pertaining to company formation process in the freezone and about timely indication of implemented laws, which can prove to be an advantage. In such scenario, the best option is to avail proper guidance from the organization’s company formation advisors. You can now better focus upon your business, while your consultants will take care of the business formalities. This indicates business setup witnessing pattern changes and assures deriving the latest services.
Difference between FZCO & FZE: Getting to understand the difference between Freezone Company Formation and Freezone Establishment will be essential prior to formation of freezone company. Freezone company is considered to be a limited liability organization, bound by two or more share holders, while the Freezone Establishment is sole entity established and has just one shareholder. The major difference noticed is share capital requirements, although both offer similar operational recompenses.
Company Registration in Mauritius : Mauritius is an island country in the Indian Ocean that has become a premier, international business center. This country in the last two decades has enjoyed unprecedented socio-economic development and growth, while emerging as a stable political democracy. It wholeheartedly welcomes foreign businesses and investors to be a part of its rising economy. For offshore business formation, Mauritius has rather become a trustworthy and credible jurisdiction, providing investors with greater security and reliability through flexible regulatory framework.
Foreign investment as well as offshore activity is encouraged actively by the Mauritian Government through the Investment Board. Different types of incentives have been introduced by the government for attracting foreign investments. Moreover, consolidation of fiscal and legal framework has only resulted in more user friendly and modern legislation, thereby contributing towards rise of the country as an important offshore financial service center. Development strategies brought out by the government focuses mainly on foreign investment. This in turn has resulted in Mauritius being able to successfully attract offshore entities in thousands.
The country’s credibility for offshore investments is further solidified due to adherence to the latest international requirements that involves fighting money laundering and financial terrorism. It has only facilitated Mauritius to enjoy enhanced reputation as a well-regulated and trustworthy offshore center offering guaranteed confidentiality.
Benefits of registering company in Mauritius
Company formation in Mauritius is considered to be a straightforward and simple process, irrespective of you select an Offshore company (GBC2) or a Resident Company (GBC1 Company). The Mauritius Company, if structured correctly is regarded to be a low cost, efficient, legally tax-efficient entity to conduct business. Several benefits can be derived by incorporating GBC2 & GBC1 Company in Mauritius.
Benefits & Features of GBC1 Companies
GCB1 companies have been provided treatment as tax residents. They have the liability to pay taxes upon their earnings. This automatically entitles them to derive benefits offered by the extensive Double Tax Mauritian Treaties. GBC1 can be a foreign company’s branch or a company incorporated locally. Business needs to be conducted using foreign currency, while business cannot be engaged in Mauritius.
2 shareholder minimum required of any nationality, not necessarily be a Mauritian resident. There are permitted Corporate Shareholders.
Minimum 1 Director required who needs to be natural person (nominee Directors can be provided by Eltoma)
There is required resident Company Secretary (Eltoma can offer this).
GBC1 Companies have been considered as resident and hence, provided with the benefit of Double Mauritian Tax Treaties. Tax treat is favorable specifically with India. For holding companies, including those investing or trading in India can find Mauritius to be a popular location.
Business could be internationally conducted.
GBC1 companies are eligible to use unilateral foreign-tax credit standing currently at 80 percent of Mauritian Tax Rate, thus leaving behind 20% residual liability of Mauritian rate, equal to 3%. Current discussions can be made on future potential reductions on the rate.
No limit on carrying forward the tax losses.
No withholding of taxes or capital gains levied.
No withholding of tax on interests, dividends, and redemption proceeds payment and royalties.
Tax exemption on interest received upon Mauritian bank account deposits.
Entitled to tax credits upon dividends, in case, Investee Company shareholding is more than 5%.
No registrar levies or duties and stamp duties.
Estate and gift tax and inheritance tax not applicable
The foreign company’s branch may have better access to tax treat network. But to avail this opportunity the local authorities need to be satisfied that the foreign branch’s control and effective management is in Mauritius.
Features & Benefits of GBC2 Companies
GBC 2 Companies are considered to be private entities which conduct business outside the country. However, GBC2 Company cannot conduct business within Mauritius. It can be registered as foreign company branch or locally incorporated. One major benefit derived by GBC2 is confidentiality, while the beneficial owner’s identity is kept largely confidential. The GBC2 is also stated to be a good structure to manage and hold private assets.
No stamp duty levied upon share transfer.
No withholding tax upon dividends.
Limited liability enjoyed by GBC2 company without requiring any paid-up capital (as there is not required any minimum capital)
GBC2 companies offered legal tax exemption. However, no access is provided to Mauritian Double-Taxation Treaty.
There is required just one Shareholder and One Director.
Formation of Mauritius company allows 100% foreign ownership. This means, there is not required any local nominee.
Privacy protection offered to a greater extent (through use of shareholders and nominee Directors)
No reporting or accounting requirements, thus reducing maintenance expenses.
No taxation on Capital Gains
There is permitted conversion to GBC1
There will be required agent and registered office in Mauritius.
Directors and shareholders can meet anywhere.
There is permitted migration to/from Mauritius from any foreign company.
Budding capitalists vouch by UAE as the business paradise due to its pro-business and tax-free free zones. The commercial and legal frameworks are simple and straightforward thereby attracting many budding entrepreneurs. UAE is slowly gaining an economic foothold in the international and local market and hence is known to provide an encouraging scenario for the new startups.
The current prevailing market trends attract diverse sectors for investment from set up of incorporated businesses to export and import sector. An encouraging market scenario and infusion of newer technology tools attract business owners with a futuristic vision. Business owners are hence required to adhere to the futuristic business requirements.
This necessitates that one appoint a professional consultant well-versed in the technological trends that a business needs to abide by, who will be able to provide expert guidance in this regard.
To set up a consultancy company in the UAE, one has to acquire a large clientele base besides providing business provisions like stable profits and growth incentives. Consultancy business is a flourishing opportunity in Dubai. If you set it up in one of the Free Zones, you would reap greater benefits. Follow the information to know what it takes to start a consultancy firm in Dubai Outsource Free Zone.
About Dubai Outsource Free Zone(DOFZ)
Knowing more about what Dubai Outsource Free Zone offers for your business helps you in planning your set up of consultancy company in Dubai.
DOFZ is a specific economic zone aiming to pool pioneers and individuals from the consultancy sector at one place to offer quality infrastructure and premium standards of service. DOFZ provides a tax-free dominion besides offering legal protection and economic stability for setting up a consultancy company. Significant types of business activities that are set up in DOFZ include:
Outsourcing Services,
Professional Consulting Services,
Remote Outsourcing Services and
Professional training.
Setting up your Consultancy Company in Dubai Free Zone
Setting up your company in DOFZ requires you to provide a name to your company (which is not already registered with DOFZ) and register it with DOFZ.
This registration should be followed up with formalities to obtain a Professional Service License or PSL from the DOFZ. This license is mandatory to provide professional consulting services to clients.
This license will also entitle you to retain 100% ownership and capital repatriation. To obtain the PSL you must have a Local Sponsor or Local Service Agent that is, a business partner. You may choose to have LSA as a sleeping partner. A sleeping partner does not claim any authority over your business decisions, profits and shares.
How does Blackswan help you?
Blackswan is a pioneer in the business consultancy sector in the UAE. We have assisted reputed clientele in setting up their business in this region. If you are an interested investor seeking consultancy firm ventures in Dubai Free Zone, we can help you with the acquisition of the license, follow up of protocols and procedures. Do talk to us to seek expert advice. We are just a call away.
We are a leading business consultancy in UAE with a reputation for assisting various clients in setting up their businesses across the region. If you want to set up your consultancy firm in Dubai Free Zone, then Blackswan can help you with the license acquisition and business setup procedures. Please take out a moment to talk to our experts who are available at your service just a call away.
A power of attorney is a very effective legal instrument that provides safety and stability to the business transactions of an establishment. It also covers directions to handle an emergency medical situation, financial and personal obligations as well as other legal matters. Here we draw attention to the importance and potential of a power of attorney as a useful legal instrument that supports businesses.
Many situations in life require sudden decisions to be made. So, even though it may be difficult to consider such situations, it has to be deliberated as it greatly affects your financial security and also of your dependents. What this means is that that better to be safe than sorry. Therefore, it would be prudent to plan ahead with regard to matters like preparing a will and taking an insurance policy. A ‘Power of Attorney’ which states clearly who takes the decisions on your behalf in case you become injured or disabled is another important matter to consider.
It is not only a necessity in personal life but also for business. In the UAE, given its development as a popular international business hub and the huge number of dealings that take place here, having a power of attorney has become very much significant. It one of the most trusted documents while setting set up a business establishment there. This invaluable legal instrument helps to manage the business from any part the world and is extremely advantageous not only in terms of its practicality but also in terms of the peace of mind it provides.
Let’s discuss the essential queries associated with getting a power of attorney for your specific requirements in the UAE.
Why do You Need a Power of Attorney?
A power of attorney is a legal document which has to be signed before a Notary Public. Using this document, a person, gives another individual, the right to perform legal transactions as his/her agent. The agent will have the permission to provisionally manage your dealings in your absence or in case you become physically, mentally compromised, incapacitated or find yourself in a situation where you are unable to act for yourself as you normally would.
As per the law in UAE your agent has to be of sound mind. and over the age of 21 years. It depends on the scope of your power of attorney, to decide who the agent can be, a business partner, relative, employee, friend, or even your lawyer.
A power of attorney is a tremendously potent legal record. For getting the benefit from this, it is essential that the agent you choose is a trusted person, who you can be confident, will always protect your best interests.
Understanding the Different Types of Power of Attorney
Based on the scope of power intended, an entity can apply for any one of the two types of power of attorneys authorized by the government in the UAE. The two types of power of attorney are described below
General Power of Attorney
This is the most wide-ranging type of authorization which allows the person appointed as agent to conduct almost all kinds of transactions or dealings on behalf of the primary person known in legal terms as the principal. The responsibilities of the agent include but are not restricted to, standing in for the principal before the ministries, government departments, in all legal issues, in real estate dealings, and with utility and telecom service providers, settling bills and claims, signing documents and contracts etc.
The validity of a general power of attorney ceases as soon as the principal dies, becomes disabled or when the power of attorney is rescinded.
Limited Power of Attorney
This type of power of attorney is also called a Special Power of Attorney, this is limited to specific legal acts or one-time transactions. The limited power of attorney stipulates the very specifically, all the transactions that an agent is authorized to commence on behalf of the principal. Limited power of attorney usually covers sale or purchase of shares, vehicles, real estate or legal entities. In all cases, the details of the entire transaction need to be recorded and documented properly.
The Process of Arranging a Power of Attorney in the UAE
Notably different power of attorneys may have additional or different requirements based on the purpose it is meant to serve. A limited power of attorney for the sale of a vehicle, for example, will require the car registration papers to be submitted at the time of attestation.
The law in UAE necessitates that the power of attorney is written in Arabic with a translation in English, which has to also be prepared, for the convenience of non-Arabs. The documentation has to be notarized and three copies of the document are signed at the office of the Notary Public. Two copies in all are given back to the principal while one is kept with the notary public for the purpose of certifying and record-keeping.
Located at the south-east of the Arabic Peninsula Sultanate of Oman is the gate to the Arabian Gulf through the Strait of Hurmuz connecting to the Arabian Sea. One-third of petrol traded by sea passes through the Strait of Hurmuz, making it an important place in the world for international trade.
The Sultanate has a coastline of 2,092 Km open towards the Indian Ocean. This enables the establishment of free and industrial zones in cities along the coast as well for other countries, presenting Oman as a secure place for investment. Oil and gas are the main source of income for the Oman government. Besides this, Oman is developing in the sectors of fishing, mining, tourism, manufacturing, logistics, other sources of income as well as encourages foreign investors to invest in these fields.
The Oman government has been making huge investments in the public transportation network that includes a railway project to connect Oman with other GCC member states providing an option for the movement of goods and people between the Gulf states.
Oman has an increasing number of international agreements like FTA and WTO agreements with the United States. The additional FTA is negotiated with the European Union for contributing to the enhancement of the legal framework to invest in Oman. The agreements provide incentives to investors from countries to those agreements having lower tax rates, customs exemptions, and similar treatment to put these investors on par with nationals.
Here we outline the various structures and corporate forms for setting up the business in Oman that depends on products or services the business offers. Two main options for investors to start the business are: mainland Oman and the free zones of Oman.
The Legal structures
Three main legal structures are available to companies that provide a direct and indirect business presence in Oman. For a direct perspective, it comes through a sole proprietorship or a corporate entity. From an indirect perspective, business gets carried out through commercial agents.
The Sole Proprietorship
A sole proprietorship has a simple business method where an individual trades on his account under a trade license issued in his name. This type of business entity is said as 'establishment' beside the company and the sole proprietor is liable to the full extent of his assets for the liabilities of the business. The establishment does not have an independent legal entity from that of the owner.
The Omani nationals and the nationals of GCC countries are permitted to form sole proprietorships in Oman. The practice has arisen in recent years, where an Omani national obtains the trade license for a sole proprietorship and leases to expatriates who take the management functions of the business and retain all profits. This kind of arrangement is not recommended as it is unlawful and problems arise if the business relationship between the parties break down.
A legal holder of the license has 100% liability for debts about a third party, they don't know about private arrangement. The procedure for establishing a sole proprietorship is by applying the relevant documents to the One-Stop-Shop at the Ministry of Commerce and Industry. Here the Chamber of Commerce and the Municipality would have representation to issue relevant licenses with the main trade license issued by the Ministry of Commerce and Industry.
The Corporate Forms
Several legal forms are available for establishing a business presence in Oman. Overview of various corporate vehicles are available to set up in Oman along with certain comparative features of each that are based on the provisions of the Commercial Companies Law, Sultani Decree number 4/1964, as amended, the primary law governing corporate entities:
You have to apply with relevant documents to the One-Stop-Shop at the Ministry of Commerce and Municipality with representation to issue relevant licenses like the main trade license issued by the Ministry of Commerce and Industry.
The corporate forms: It has various legal corporate forms available for the establishment of a business presence in Oman. Overview of various corporate vehicles are available to set up in Oman and comparative features of each that are based on the provisions of the Commercial Companies Law and Sultani Decree number 4/ 1947 as the primary law governing corporate entities:
The personal name
The company must be confined to the relationship between the partners and would not be effective towards third parties. The existence of such a company is restricted to the arrangement between the partners and not to be made known to third parties. The arrangement would essentially be a partnership. Every partner who conducts the business will do in his name and would not declare the interest of other partners. The liability of partners who conduct business is unlimited, related to the liabilities of the company. When the liability of other partners is disclosed, the venture will be treated for every purpose as a general partnership.
The joint participation ventures seems popular with foreign companies who wish to set up in Oman on a short-term basis for carrying a specific project. They are formed when there is some participation by the government bodies. No registration formalities are needed for this type of company, as it does not have a distinct legal entity.
The Joint Stock Company
The Joint Stock Company (JSC) is governed by Commercial Companies Law (CCL), which defines a JSC as a " company whose capital is divided into equal value negotiable shares." The shareholder's liability gets limited to the paying of the value of shares that have subscribed, which is answerable for the debts of the company on the extent of the nominal value of shares to which he has subscribed. The JSC can be closed or public by the Commercial Companies Law (CCL).
The Public Joint Stock Company (PJSC)
The PJSC is similar to the public limited company in the United Kingdom. Based on CCL, the shareholders of PJSC are liable to the value of their shares in the capital of the company. The nominal value of each share of a PJSC must be less than 100 Baiza and not more than OMR 1, the minimum share capital requirement is OMR 2 million for a general company. The OMR 20 million for a banking entity and OMR 5 million for the insurance company.
The Closed Joint Stock Company
The closed joint-stock company is the same as a PJSC with differences like:
The minimum capital requirement is OMR 500,000.
Shares of a closed joint-stock company can't be offered to the public.
Shares of a closed joint-stock company are listed on the third market, while the shares of a PJSC are listed on the primary market.
The lower capital requirement of OMR is 500,000, and the closed joint-stock companies are popular with foreign investors. The procedures for setting up a closed joint-stock company are similar to a PJSC.
The Limited Liability Company (LLC)
The LLC is governed by the CCL. The LLCs seem to be a popular and suitable method of establishing business in Oman by foreign investors. LLCs are similar to private limited liability companies in the United Kingdom. The intended business has insurance, banking and investment activities conducted on behalf of third parties.
An LLC is not legally permitted to practise these activities. A PSJC must be established in this case. The CCL defines LLC as a company with a limited liability. The number of partners should not exceed forty and should not be less than two. Each partner must be liable to the extent of his share in the capital. The partners participation must not be represented by negotiable certificates.
The following steps about an LLC:
The public subscription for raising capital is not permitted
The foreign partner is permitted to own a maximum of 70 per cent of the capital of the company and the day-to-day management of the company may be vested in a foreign manager
The managers would be one or more of the partners or other parties that includes foreigners
National partners often play no part in the operations of the company and would give the foreign partner a power of attorney authorizing him to vote in the general assembly on behalf of matters permitted by CCL
It provides in the Memorandum (called the Constitutive Contract under CCL), the profit and losses will be shared in a ratio different from the share capital ratio
Appoint an auditor who are accredited in Oman
The auditor must be appointed by the general assembly (the meeting of all the shareholders of the company).
The Holding Company
The holding companies are not popular due to the high capital requirement and structure which is OMR 2,000,000.
The objects of a holding company should include the following:
managing subsidiary companies, or participation in the management of other companies which has shares
investment of its funds in bonds, shares, and securities
the provision of guarantees, loans and funding to its subsidiary, other companies and holding of trademarks, patents, concessions and other incorporeal rights, the exploration and the leasing out of the same to its subsidiary and other companies.
The rules are issued by the Ministry of Commerce and Industry, which regulates holding companies and their subsidiaries. The foreign investors don't choose the legal form during their initial investment until the business develops and there is a requirement to include one from the mentioned points.
The Branch Office of a Foreign Company
The popular way for foreign companies is to benefit from 100% foreign ownership and establish a branch office of the parent company.
The initiation of Foreign Capital Investment Law by Sultani Decree number 102/94, contains provisions that regulate the establishment of branch offices of foreign companies in Oman.
The branch office is legally part of an extension to its parent company; it does not have a legal identity from its parent company.
The name of a branch office is the same as that of the company of which it is a part. To establish a branch of a foreign company, the foreign company must have a contract with one of the government entities or companies wholly owned by the government.
The foreign company should provide an undertaking with the registration documents, that stipulates to bear the liabilities of the branch and the acts of its manager of the branch.
Usually the branch period is limited to the period of the project that is sufficient for its execution in Oman, and that is not permitted to carry out any other type of work for any third parties.
Activities of the branch must be similar to the activities of its parent company and it is not permitted to carry out any other activity until approved first by the parent company and then registered with the Ministry of Commerce and Industry.
The Representative Offices of Foreign Companies
The representative offices are governed by the Representative Office Regulatory Law, initiated by the ministerial decision number 22/2000. The representative office of a foreign company is legally distinct from a branch office of a foreign company, which is permitted to promote its parent company’s activities.
If the parent company deals in the sale and production of certain products and opens a representative office in Oman, the office will be able to market and promote the sale and production of such products and facilitate contracts in Oman, distinct from conducting the sale and production themselves.
It is noted that in addition to the mentioned limitations, representative offices have other restrictions that are not allowed to obtain credit facilities or put forward offers.
To establish a representative office in Oman, the parent company should provide a certified copy of the articles of association, authorization for the manager of the representative office and a certified copy of the commercial registration certificate to manage the office and a letter of undertaking to bear all liabilities of the office.
The Commercial Agents Foreign companies would trade in Oman through importers and traders. Such arrangements are not well suited to continuous, high volume trading.
The overseas manufacturers or traders wishing to import goods into Oman in large quantities and regularly can appoint a local trader or commercial agent through the establishment of a commercial agency.
The commercial agencies are registered in the commercial agency register maintained by the Ministry of Commerce and Industry.
The Registered Commercial Agent
The Registered Commercial Agency is defined by the Commercial Agency Law, Sultani Decree number 26/1977 as amended, (Agency Law), “the agreement by which a merchandise or a commercial company undertakes to promote or sell a product or provide services either his, or it's capacity as an agent or a representative or a mediator on behalf of the supplier or the principal in consideration to a commission or profit”. This would apply in particular.
Black Swan will help in your Business Set up of Registering Company in OmanYou will also be interested on:
JAFZA offshore Jebel Ali Free-Zone authority Regulations & Features
Jebel Ali Free-Zone Authority has framed several regulations to deliver efficiency and convenience of worldwide offshore locations exclusively to entrepreneurs planning to undertake Dubai offshore investments. Simultaneously, they tend to maintain very high standards and reputation with the international financial authorities, who are stated to have acted as critical determinant to take Dubai offshore to achieve sure success
The offshore company provides the privilege and capacity of a natural individual.
There is not required any minimum capital amount.
Upon allocation, all shares to be paid fully and there are not allowed any differential or bearer classes of shares.
Capital deposit in bank not necessary.
Director number should minimum be two. Secretary (preferably a UAE resident) probably also the Director of the organization is to be appointed by every offshore company.
There is permitted 100 percent foreign ownership
Greater flexibility offered to open up corporate bank account at Dubai.
Efficient regulatory regime offering complete exemption on duty and taxes.
There needs to be appointed registered agent like consultants, auditors, legal firms from approved registered agent list by the company that is maintained by Dubai / JAFZA. To set up Dubai offshore company, a registered and approved agent is Black Swan Business Setup Service.
Why Jebeli Ali Offshore is unique?
In JAFZ (Jebel Ali Free-Zone) is located Offshore domicile
DTAA (Double Taxation Avoidance Agreements) are being maintained with 40 countries by Dubai and the UAE.
UAE is not dependent upon any other country and also not any overseas territory.
Offshore company owners are permitted by the law to hold or own interest in Dubai based properties.
Oman is a wise choice if you’re planning to start setting up a business. Its many qualities will only make your business cross extensive bridges. The country provides favourable grounds to build upon - such as its well-equipped infrastructure and guarantee of security. Business owners can access many international networks and can enjoy the privileges of being in a tax-free zone.
Like in any other Gulf Cooperation Council (GCC) states, one has to adhere to a set of rules and complete necessary formalities to begin the incorporation of a business, regardless of the size and nature of the business.
Here are the steps that need to be followed
Reserving a company name
In order to begin the process and reserve a name for the company, an application needs to be filled and submitted to the Ministry of Commerce and Industry (MCI), while adhering to the Omani Law.
Putting together Incorporation Documents
After reserving the company name and getting it approved, one needs to create the constitutive contract and shareholder documents. This process remains incomplete unless an authorized signatory form and bank certificate are not obtained and submitted to the MCI.
Registering with the Omani Chamber of Commerce and Industry
Registering with the OCCI ensures that the business will yield to all commercial terms necessary for a corporate in Oman.
Getting Governmental Departments Approval
Keeping in mind the type of business owned, one will have to follow several procedures for approval by the government departments.
Tax registration
Municipality licence
Import/export licence, if required
Industrial, environmental and other permits and licenses
Registration with the Royal Oman Police
Registration with the Ministry of Manpower, to file for labour clearances and visas
Getting a Company Seal
A company seal refers to a logo. Getting a logo designed means having something to represent it by. A logo should incorporate the voice of the company.
While all these steps need to be followed, the business owner needs several documents to register a company in Oman:
The business owner needs a company registration form, along with valid Ids of all the shareholders. Authorized signatory form needs to be produced with names and signatures, and it needs to be approved. Finally, the company statutes, OCCI affiliation certificate and the certificate proving the initial bank deposit as capital need to be kept in hand.
Black Swan Business Setup service can help you in End to End Company formation in OmanYou will also be interested on:
You will have this Question in Mind when it Comes to Business Setup or Company Formation, That’s why we created a Business Setup Cost Calculator for you. It’s for free. It takes less than 25 seconds.
English
Arabic
Chinese (Simplified)
Dutch
Esperanto
Filipino
French
German
Greek
Hindi
Italian
Korean
Portuguese
Russian
Spanish