Now you can setup a Company in Oman with 100% Foreign ownership

Oman is also said to be an official sultanate of Oman. It is located within an Arabic Peninsular. Based on geographic aspects, Oman shares borders with Saudi Arabia, UAE and Yemen. Economic diversification and progress are the factors that lead to the development of the country at a rapid pace. The investor undergoing the process of Oman’s company registration can opt for the incorporation process without being physically present. These processes are carried within the limited time duration. An agent can be appointed for the incorporation process of Oman’s company.

Many sectors allow foreign direct investments. The Oman government has liberalised the foreign investments. A complete foreign investment is allowed for many sectors and they are beneficial for various investors. No need for a nominee shareholder or an Oman resident to incorporate the company.

But cultural differences lead to the appointment of a local nominee shareholder. No minimum share capital is required for forming a company in Oman. Several forms of business structures are utilized by the investor. Oman’s LLC can incorporate one director and shareholder.

But there is no need to have a director or a resident shareholder in Oman. They have flexible business to carry out through a foreign shareholder. Oman’s foreign investors get several benefits like interest free loans and different kinds of subsidies. Besides this, they also have tax exemptions.

Oman has several free trade agreements with foreign countries. One of them is having a free trade agreement with the U.S. It is highly beneficial for U.S investors, as they have wide market availability for US Nationals. No forms of tariff are imposed in trade between US and Oman.

Because of these above mentioned reasons, an investor can process the company registration in Oman.

Benefits Of Oman’s Company Registration Process

• Foreign Direct Investment

Since 2000, Oman has liberalised the foreign direct investments. Several sectors permit foreign investments. Oman’s government has liberalised the foreign investments. A complete foreign investment is allowed in most sectors. This benefits the investors in different forms. There is no need of appointing a nominee shareholder or Oman’s resident to incorporate a company in Oman.

• LLC Formation

LLC is the utilised business entity of Oman. It is a straightforward process, it has one shareholder and one director. This kind of entity is formed with ease.

• Free Trade Agreements

Oman has successful trade agreements with foreign countries. One such is the US-Oman agreement. It is beneficial for U.S investors as they can enjoy the wide market availability. No sort of tariff is imposed within Oman and the U.S.

• No Need For Resident Shareholder

No need to appoint any resident shareholder for Oman. Getting a foreign shareholder can be the compliance burden for any companies in Oman. Therefore an investor doesn’t need to carry the above requirements.

Business Eligibility For Oman’s Company Registration

Following are the eligible business structures for Oman’s company registration that are:

General Partnership

This form of entity can have two or more partners with unlimited liability. No minimum capital has to form a general partnership.

Limited Partnership

Two categories come under limited partnership like:

• General Partners having liability to joint partnership. All partners can be equally liable.
• Partner who have limited liability in capital contribution.

Limited Liability Company

This kind of company has two to fifty individuals. Liability with this form of entity is limited to a specific amount. If a company needs some type of consent, then getting consent from a regulatory body will be secure. For this kind of entity, the following minimum capital is required:

• 20,000 OMR (For GCC nationals or Omanis).
• 15,000 OMR (For mixed shareholding having foreign shareholders).

Joint Venture

It is the agreement of two or more people to form the company for a specific purpose or project. No minimum capital is needed for the joint venture company in Oman. Applicants going for an Oman’s company can use the above structure for a particular period or project.

Joint Stock Companies

These companies are made with a minimum capital amount. Joint Stock Companies offer shares to the public. A minimum of three shareholders can form this kind of entity. Following minimum capital is needed for a Joint Stock Company:

• Public Joint Venture Company must have OMR 2 million
• Closed Joint Venture Company must have OMR 500,000
• Converted from another form must have OMR of 1 million.

Holding Company

This should have some kind of control over subsidiaries and sister concerns. Almost 51% of ownership over subsidiary companies must be present. The holding company can have the LLC or a joint stock company. The minimum capital for the holding company is OMR 2 million.

Branch Office

The branch office is the extension of a foreign parent company. These offices carry out profit making activities.

Representative Office

Similar to the branch office, this is an extension of a foreign parent company. The representative office won’t carry out the profit making activities. Only activities that promote a foreign parent company and marketing will be carried by the representative office.

Minimum Eligibility For Oman’s Company Registration

Securing A Trade License

Foreign investors can go for a company registration in Oman to use the limited liability company. The LLC has to secure the trade license from the Ministry of Commerce and Investment. This has different types of licenses to carry out business in Oman. Depending on the applicant’s needs, a license can be secured.

Minimum Shareholders

The minimum shareholders are appointed for the company. For instance, a Joint Stock company in Oman can have the minimum of three shareholders. Likewise, the shareholders are sufficed for the company’s registration process.

Minimum Directors

Any minimum directors can be appointed for a company. The LLC must have at least one director for carrying out the operations.

Reserving Name

Name should be reserved with the Ministry of Commerce and Investment. LLC names can reflect the nature of activities that are carried by LLC. The name must not breach the rules related to copyright, trademark or intellectual property. Company names should not deceive the public and shareholders.

Protocol For Oman’s Company Registration

Oman foreign investors usually incorporate a Limited Liability company. So the below procedures are followed to incorporate an LLC in Oman.

Selecting activities to carry out business

Applicants can choose activities that are carried by the LLC. If insurance and banking activities are carried, then applicants need to take consent from the Ministry of Commerce and Investment.

Company Registration

Before company registration, the applicant has to apply in the Ministry of Commerce and Investment to get a trade license. Other permits are needed to get secured by the applicant.

Document Submission

It takes time for the applicant to get approval from the Ministry of Commerce and Investment. At this time, the applicant can have documentation to register a company in Oman. Essential documents are articles of association of company and memorandum of association.

Name Reservation

Applicants have to pick a suitable name for their LLC. The name should have objectives and goals of business. It should be in Arabic and have a legal meaning in Arabic.

Incorporation Certificate

Above steps when completed by the applicant, they get the certificate of incorporation.

Compliances Needed For Oman’s Company Registration

Following compliances are needed for Oman’s company registration.

Corporation Tax – companies should register with the Ministry of Finance for filing the corporate tax. Almost 15% of corporate income tax is levied by companies.

Small Business Tax – needs only 3% of corporate tax, when authorized share capital might not exceed OMR 50,000. In such a case, the gross income won’t exceed OMR 100,000.

LLC Compliance – Notify the Ministry Of Commerce And Investment, if there are any changes in LLC.

Annual General Meeting – is once per year.

Documents Required to Register a Company in Oman

• Memorandum Of Association
• Shareholders Information
• Articles Of Association
• Tax Registration Certificate
• Certificate Of Initial Deposit
• Identity Card Of Shareholders
• Form Of Filed Company Registration
• Chamber of Commerce And Industry Affiliation