Oman is the third-largest country in the Arabian peninsula having entrepreneurship and overseas trading long been existing in Oman for many centuries and its maritime trade used to touch the shores of Africa, Europe and China. Before the discovery of oil and gas, Oman was predominantly a rural and agrarian economy based on fisheries and agriculture. Once the oil was discovered in commercial quantities during 1964, Oman gradually moved from agrarian to an oil-based economy and production, and export of oil started dominating the government exchequer in Oman. Sultan Qaboos Bin Said took the reign of Oman in 1970 and ruled the country till his death in 2020. Under his visionary leadership, Oman has undergone a rapid socio-economic development while upholding its cultural heritage and was a constant source of motivation to foreign investors for doing business in Oman. Though oil and gas, reserves have rapidly boosted Oman’s economy, led by Sultan Qaboos the country actively implemented a forward-looking economic development plan focused on diversification and industrialization to reduce its dependence on oil and gas and invite foreign players for company formation in Oman.
Nil income tax on personal income, lower income tax on companies, tax relief on effective double taxation treaties Oman enjoys with more than 35 countries.
No import duty levied on Raw materials. plant and machinery for five years from the start of manufacturing activities.
No restriction on profit and capital repatriation and dividend transfers.
Oman allows 100% Foreign ownership in Free Zones and 70% in other regions.
Oman is the gateway to North American, European, African and Asian markets offering access to a large customer base.
Oman has a long reputation for political stability with controlled inflation and stable exchange rate, trade surplus and foreign currency reserves.
Oman is well-diversified industrially which facilitates business activities through a robust supply chain.
Oman has good infrastructure facilities like good roads, airports, ports with good communication networks.
Oman has a transparent and friendly legal system offering a conducive business environment.
Oman has ties with world economic bodies such as membership with WTO, GAFTA, GCC with free trade agreements with USA, Iceland, Singapore, Norway, Switzerland and many other countries.
Oman has ties with world economic bodies such as membership with WTO, GAFTA, GCC with free trade agreements with USA, Iceland, Singapore, Norway, Switzerland and many other countries.
Government leases the land with good amenities at discount.
English is widely used in business and commerce.
There are two most common ways of doing business in Oman and can further be classified based on company type and regulatory requirements
Usually, only the Oman citizens are allowed for single Proprietorship companies, GCC nationals can start a Proprietorship company under certain conditions and for specific activities.
Foreign entities are allowed to open representative offices however, with limited scope. A foreign company is only recommended to operate a branch that has secured a Government project contract and is only valid during the tenure of the contract.
A joint venture is formed through a joint venture agreement and by two or more entities performing a particular project. A JV has no legal status and is not registered. The Omani partner must own a minimum of 51% share.
The process of company registration in Oman is relatively simple and straightforward and the main process steps once the initial capital is paid, are as follows
An application needs to be submitted to the Ministry of Commerce and Industry (MOCI) with a uniquely chosen name for your company highlighting and branding your products or services as you feel appropriate.
Once MOCI registration is completed, you need to get your company registered with OCCI for complying with the commercial rules and regulations required for your company.
A company seal needs to be designed and issued from the registered authorized signatory of the LLC.
Once the company registration is over, all documents mentioned against point 4 needs to be obtained
There are three free zones and two special economic zones for attracting foreign investment in the country. Each zone has it’s own sets of incentives including Tax Holidays, Import Duty exemptions, Waiver on initial capital requirements and 100% foreign ownership.
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