information regarding doing a business in oman
- Author- Vijaya
- Publish Date-
Today Oman is recognised throughout the world as a potent business destination. Over time, the country has diversified itself from its traditional agriculture, fisheries and of course oil revenue to a more industrialised and service economy.
Today Oman is seen as a business place not just for its residents but also by various foreign investors as well. Why wouldn't it be, the country has consistently improved in the ease of doing business rankings and has introduced various policies to boost the business opportunities in the country.
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WHY DO BUSINESS IN OMAN?
As an investor and businessman, you might be thinking about the merits of choosing to open a business in Oman. Today there are several Business opportunities in Oman.
The government of Oman is trying to open various opportunities for the enterprises in the non-oil sector to create a more diverse economy and is providing multiple incentives for enterprises to go on the path. This has created big opportunities for businesses and sectors like manufacturing, textile, pharmaceutical, etc to establish themselves in the country.
Among all the investment destination option presented to an investor, Oman boasts to have one of the most stable political frameworks. Oman is an absolute monarch state headed by the Sultan of Oman. A stable government ensures that the development projects are conducted efficiently which makes sure that the business in the star thrives and prospers.
NO PERSONAL TAX
Oman is a tax-free zone, which means you don't need to pay any income Or individual tax. The only major tax to be paid is a flat 15% corporate tax that is to be paid annually.
FREE TRADE AMONG THE GCC
If your business is established in Oman then you will enjoy open trade and customs duties and free trade across the Gulf Cooperation Council. Oman also shares a Free Trade Agreement with the US.
The excellent diplomatic relations of Oman with its neighbours and the western world will make sure your business growth transcends the national borders.
The Omani Government is undertaking some great infrastructure projects that will ensure that the country creates a whole ecosystem for the growth of industries and businesses.
Salalah LPG project, Muscat International airport Extension, and Mina Sultan Qaboos Waterfront Project are a few of the many development projects running in the country. Such development programmes will create an environment where your business will experience unprecedented growth.
STARTING A BUSINESS IN OMAN
Now you know why Oman is a great business destination, now it's time to know what is the procedure to start a business and various information regarding the establishment of it.
To start any sort of business obtaining a commercial registration from the Ministry of Commerce and Industry, the Chamber of Commerce and a licence from the Muscat Municipality is essential.
It is mandatory for any business to have an Omani resident as the owner of at least the 30% capital of the company. However foreign nationals are permitted to own 100% ownership of the company given that the minimum capital of the Business is OMR500000 and the business will contribute to the well-being and development of society. And for that getting approval from the Ministry of Commerce and Industries is necessary.
Foreigners can choose one of the following business types to operate in Oman:
1. Joint Stock Company
Forming a joint-stock company requires a minimum of three entities or individuals to tie up together. The nominal value of their share is the limit of their liability.
The constitutional documents to be submitted to MCI must mention the details given below:
- Names of the following:
- The company
- The head-office
- The branches
- The representative office
- List of activities related to business undertaken by the firm
- Value and methods of increasing or decreasing their charter capital
- Basic identification details of the company owner as a foreigner
- Owner's rights and undertaken obligations
- Structure of management
- The legal representative of the company
- Formality for the adoption of decisions
- Dispute resolution methods
- Method for calculating salary, allowance and bonuses of chairman, director or general director
- Principles for the distribution of profit and settlement of losses
- Procedures for dissolution or liquidation
2. Limited Liability Company (LLC)
- The formation process for LLC is quite similar to that of a joint-stock company.
- The minimum capital required LLC is OMR 20000
- The number of partners can only range between 2 and 40.
3. Foreign Branch/Representative office
4. Sole Proprietorship - Only for the GCC residents and US individuals under the Free trade Agreement.
5. Joint Venture
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Due to its geography and consistent effort by the Omani government, Oman proved itself as a business destination for foreign investors. So as an investor if you are blooming to explore this country, then this is the best time for that. If you are looking to establish any sort of business or enterprise in Oman then make sure you have a valid business/visit visa as you would need to visit the country quite often.
You can easily apply for the Oman Visa at Oman IE Visa. Approved by the Omani embassy, we provide you with a visa in the shortest possible time with the least hassle so that there is not a single day of productivity in your business.