Oman also known as the Sultanate of Oman, is a country on the south-eastern coast of the Arabian Peninsula in Western Asia. Located in a strategically important position at the mouth of the Persian Gulf, Oman is a growing business center. It is one of the growing GCC nations that is also an established home to the foreign expats with a lot of business opportunities. The Omani Government has been continuously proceeding towards the nation’s development and has initiated multiple steps to give comfort to the foreign expats and grab more foreign investors. If you are planning to diversify your business at an international level, Oman is a location which you can count on.
The Sultanate of Oman has been taking all kinds of efforts to support the businesses in the country, by focusing on diversification of economy, facilitating infra structure, privatization and fast industrialization.
The location of the Oman, near to Persian Gulf makes it naturally a strategic location for all kinds of businesses. Since 1970s, Oman is witnessing continuous and extensive economic reforms which changes the economy and business. At one side, development of tourism and real estate sector move forward in a fast pace. Now days, Sultanate makes all efforts to attract maximum foreign investment, paving the way for even more business opportunities in Oman.
There are many reasons by which foreign companies are showing interest to start new business ventures in Oman. Firstly, Oman is the third biggest country in the whole Arabian Peninsula. Secondly, there is political stability in this nation which means business trades can go on easily. The social strength likewise causes remote entrepreneurs to work with no object. The legislature is centered around the monetary advancement and they have gone ahead to make a business-friendly climate. This has prompt more foreign investors being urged to inject the capital in Oman.
Know Business Factors in Oman
Oman is a member of the Arab League and part of the Gulf Cooperation Council (GCC). Economy and businesses are governed by the Sultanate of Oman’s Commercial Law, which are similar in nature to other Middle Eastern countries. The country has initiated various economic reforms and novel policies to attract foreign investments in a wide variety of industries in the last few decades. Still there are some of the issues which has to be foreseen by companies. In particular, many international firms must face Oman’s policy of Omanization, which involves setting quotas for Omani nationals that must be filled for most industries.
The type of investment vehicle chosen by a foreign business depends on the industry or service, geographical market, and whether importing or manufacturing is involved. You must have a good knowledge of the region. Be prepared to undertake extensive research into the business sector you aim to operate within.
Location will be another factor. Separate cities and regions may have different rules, costs and availability. Although Oman is a geographically small country, it is always recommended to seek advice from relevant professionals, such as business or legal advisors, accountants and others depending on your needs.
Arabic is the official language used in Oman. English, Baluchi, Urdu and some Indian dialects are spoken as well as secondary languages. English is generally taught at school from a young age and used widely in the business community, where business is conducted largely in Arabic, English or both.
Benefits of Establishing a Company in Oman
Doing business in Oman turns out to be a good opportunity for the foreign expats. There are several reasons to start a business in Oman. The ground provides the following benefits:
- Oman is a strategic business location in GCC.
- Enough availability of natural resources
- Fast developing economy
- Government support to boost new business
- No personal tax
- Emerging business in the non-oil sector
How to Start a Business in Oman?
In order to successfully run a company in Oman, all foreign investors are required to register their companies. While registering a company in Oman, there are certain requirements such as documents and paper works that need to be submitted to the authorities.
Just like the other GCC countries, the process of setting up a business in Oman requires the involvement of a few steps that need to be cleared accordingly. Before we move towards the concrete process, let’s have a look at the basic requirements that turns out to be a must.
Types of Business Entities in Oman
The location of Oman is well-suited for the following business structures:
- Sole Proprietorship
- Joint Stock Company
- Branch Office
- Representative Office
Prerequisites for Registering a Company in Oman
- Minimum 2 shareholders
- Minimum 1 Director (can be of any nationality)
- Registered Office Address
- Proof of Funds
Oman Company Registration Process
Company Registration is a process wherein the business entity is given a physical platform. To start the process, there are certain steps that need to be followed accordingly. Below mentioned are the steps related to the incorporation as well as post incorporation process that you need to follow once you have decided to set up a business in Oman.
The initial step of enrolling an organization in Oman is to secure an organization name. One needs to hold their organization name with the Ministry of Commerce and Industry. Remember that this name can’t be like what is as of now in presence and must be one of a kind. There are sure words and terms which are denied in Oman which can’t fit the bill for organization names. In the event that the names are not acknowledged by the Ministry of Commerce and Industry then the foreign investors should submit new alternate names.
Deposit Security Amount
Once the name has been chosen, the subsequent stage requires the foreign gatherings to make a deposit in the local bank. This deposit will be none other than the required capital of the business. The whole sum required to fund the business ought to be kept otherwise the enlistment procedure will be halted.
Apply for Business Licenses and Permits
The third procedure includes applying for business licenses or permits. There are diverse sorts of business exercises that an outside organization can do in Oman. In light of those exercises the substance needs to apply for that particular business permit. This is another essential piece of the organization consolidation on the grounds that without the allow, the organization won’t have the capacity to do their exercises lawfully. Once the permit application is done, the foreign company is relied upon to document their organization with the Tax branch of the Finance Ministry. Enlisting an organization in Oman requires the organization being referred to get a Municipality License.
Enroll with Royal Oman Police
Any new Organization in Oman requires to enroll with the Royal Oman Police. This is one of the state prerequisites of Oman. This is required for all foreign organizations.
Register in Ministry of Labor
Registration with the Ministry of labor is the subsequent stage. This enrollment essentially keeps record of what number of local workers the foreign organization is wanting to contract and what number of expats will be included in the organization too.
Make Organization Seal
The last stride including the organization enlistment is to make an organization seal. This organization seal should contain the name of the remote organization and the organization logo. This is how to register a company in Oman as foreigner as pvt ltd company or any other format as FDI law.
Written by: Ahmed Rashid, MBA-Bedfordshire, UK
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