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Mainland Company Formation in Oman
How to Form a Mainland Company in Oman
Before proceeding with Mainland Company Formation in Oman, it is important to know the basic information about this legal entity. This article will give you a brief understanding of what a Mainland Company is, the types of licenses that can be granted to a business, and what benefits you can expect from forming a Mainland company in Oman. After that, you can start the company formation process by collaborating with a business professional.
What Is a Mainland Company?
What is a Mainland Company in Oman? Put, an onshore company with all the necessary power to carry on business activities. Oman is one of the world’s leading business hubs, with opportunities for both free zone and mainland companies. To establish a company in Oman, you will need to obtain different licenses, which grant you the authority to carry out various business activities.
Among the benefits of having a company in Oman, being a foreigner is not as difficult as you might think. There are dedicated zones for foreign investors, ensuring you receive the support you need. And if you have already established a business in Oman, you can expand your operations there. Then, you can incorporate your company in a Free Zone in Oman, as long as you cross-check the records of your previous companies before submitting them to the authorities.
There are two types of joint-stock companies in Oman. One joint-stock company is called an SAOG (Society Anonyme Omanaise), and the other is a private joint-stock company. An SAOG can have either a private or public joint-stock company and is ideal for those who don’t want to raise public funds. The capital requirements for both types of companies are the same.
Types of Business Entities in Oman
Oman has three types of business entities: general partnerships, limited liability companies, and sole proprietorships. Public alliances are formed by two or more entities, while limited liability companies comprise one or two people. The government of Oman owns many joint-stock companies. Limited liability companies are the most common type of business entity in Oman. There are many advantages to every kind of business entity. Here are some things to consider when determining which will work best for you.
Limited liability company: An LLC is a legal entity in which shareholders are personally liable only for the number of shares they own. To establish an LLC in Oman, you must have at least two shareholders – one Omani national, one GCC national, and one US citizen. The minimum share capital is OMR 150,000. Oman’s legal requirements also require you to have one director. Oman’s capital laws are quite favourable to foreign investors.
Commercial agency: As the name suggests, this type of entity is a contract with an Omani agent to conduct business activities in Oman. Its purpose is to export goods or services to Oman or establish a presence in the country. The Commercial Code, part of the Royal Decree 55/90, governs commercial agents. A commercial agent must have a local representative based in Oman.
Types of Licenses Issued in Oman
Many different licenses must be obtained when establishing a mainland company in Oman. While branch offices are extensions of foreign parent companies and can perform profit-making activities, representative offices may only conduct marketing activities. The most popular type of mainland company formation in Oman is the limited liability company. To open an Oman company, you must secure one of the various trade licenses that the Ministry of Commerce and Investment issues.
Oman’s law allows for a broad interpretation of large portions of the law based on the civil law tradition. The General Provisions Section of the CL begins with the chronological structure of a company and covers its foundation and the various valid types of companies. It then outlines the different kinds of capital and corporate classes and finishes with provisions relating to criminal offences under corporate law.
Free zone companies enjoy special benefits. They can be 100 per cent foreign-owned but must still employ at least 10% Omanis. These companies want favourable tax and business incentives and can operate within a limited number of sectors. However, they are subject to certain regulations, including restrictions on foreign transactions. Those businesses that register in a free zone can expect to be exempt from tax and import duties.
Benefits of Mainland Company Formation in Oman
Mainland companies, also known as onshore companies, can conduct business outside of their home region. The Sultanate of Oman offers several opportunities for mainland company formation, including free zones. Commitbiz is an experienced service provider and mentor who helps business owners get started and navigate legal procedures. If you are interested in establishing a business in Oman, contact Commitbiz for more information. It offers one-on-one mentoring and guidance to help entrepreneurs get their companies.
There are numerous advantages to choosing the Omani Mainland. One of these is the ease of incorporation. After registering your firm with the MOCI, the Rest paperwork must be submitted. Once you have received your registration, it can take anywhere from four to six weeks to complete the process. For this reason, Oman Legal Services offers its services to help investors with their paperwork and formalities. Foreign investors can focus on their business rather than worry about company paperwork and formalities.
Another benefit of Mainland Company Formation in Oman is that it offers multiple benefits. Aside from being a free zone, it provides several tax advantages. For example, a local company will be able to apply for Oman tax residency, which will allow it to bid for lucrative government tenders. And because the government spends so much money in Oman, you can also benefit from this.
Tax Exemptions in Oman
Oman’s Mainland offers tax exemptions for foreign investors in many sectors. In addition, you can benefit from free trade zones and government special land allotments. This country has proven itself in the global business arena with its macroeconomic environment ranking among the top twenty countries. Oman’s Ministry of Commerce and Industries continually seeks innovative ways to help new companies establish themselves in the country. The following are some of the most valuable tax benefits for Mainland company formation in Oman.
Salalah Free Zone: Located in the southern part of the Sultanate of Oman, Al Mazunah Free Zone is a free zone. This zone has the lowest infrastructure, human resources, and utility prices. In addition, you’ll enjoy duty exemptions and 30-year tax breaks. The country has good international relations with other countries and has invested USD 26 billion in new infrastructure.
Oman’s Joint Stock Companies: A Joint Stock Company (JSC) is a business entity with no minimum paid-up share capital requirement. In addition, a Single Person Company (SPC) can be created in Oman with no paid-up share capital. The two main JSCs in Oman are Public JSC and Private JSC. To create a company in Oman, you should first choose the correct type of SAOC.
Documents Required for Company Formation in Oman
To set up a business in Oman, you must prepare the following documents. The incorporation fee and shareholder documents should be submitted in a legalized form. You will also need to open a capital account for depositing the incorporation fees. To follow commercial rules, you must also register with the Oman Chamber of Commerce and Industry. In Oman, the registration process takes about three weeks.
Depending on the nature of your business, you may choose to form a limited liability company. A limited liability company (LLC) is a legal entity that can only operate in Oman. Oman requires a minimum capital of OMR 150,000, and part of this capital must be provided as proof of funds. A single shareholder or an LLC may also form an LLC. In Oman, it is mandatory to secure a trade license.
A Mainland company is also known as an onshore company. This type of company can carry on business activities outside the country where it was established. Free zones in Oman are a good option for budding entrepreneurs, but they should cross-check their records before submitting them to the authorities. It would help if you always got a legal consultation from an attorney before submitting your documents. You can also use the services of a local company formation company to get assistance.
Submit all necessary documents to start the incorporation process. These are the essential documents that you will need to submit:
- Memorandum of Association and Articles of Association
- Passports and Visas for Shareholders
- Certificate of Tax Registration
- Identification Card for Shareholders
- Certificate of initial deposit
- Filled Company Registration Form
- Certificate of Industry Affiliation and Chamber of Commerce
Mainland Company Registration Process in Oman
Process of Business setup in Oman
The Mainland Company Registration Process in Oman can be challenging, but it is not impossible. With a moderate population, Oman’s growth is spurred by international emigrants and the country’s protected climate and free trade zones. The Omani Government is putting forth its best efforts to foster new business ventures and help existing companies expand. Companies in Oman can also take advantage of the country’s protected climate, freehold properties, and high level of security of property rights.
The process of incorporating a company in Oman is quite simple. You don’t need to be physically present in the country to incorporate a company; you can even complete the process online. Once registered with MOCI, additional documentation is required, which can take from four to six weeks. If you are foreign and want to focus on growing your business instead of completing the formalities, you should use Oman Legal Services. They will handle all the paperwork and formalities on your behalf so that you can focus on your core business.
After obtaining your trade license, you need to secure other permits. The Ministry of Commerce & Investment takes some time to respond. It is important to check your company registration documents for errors and misinformation. Once your records are correct, you can choose a name for your LLC. Select a name that reflects your business goals and objectives. Make sure the name has a legal meaning. There are several important requirements to follow when registering a company in Oman.
1. Decide on the Trade Name
Trade names must be unique and relevant to the business. Please select a name and send it to the Ministry of Commerce and Industry.
2. Present documents of incorporation
Submit all necessary documents to start the incorporation process. These are the essential documents that you will need to submit:
- Memorandum of Association and Articles of Association
- Passports and Visas for Shareholders
- Certificate of Tax Registration
- Identification Card for Shareholders
- Certificate of initial deposit
- Filled Company Registration Form
- Certificate of Industry Affiliation and Chamber of Commerce
3. Funds Account Opening
After the documents are submitted, Open a capital account to deposit the initial incorporation fees.
Register with the Chamber of Commerce
Register with the Oman Chamber of Commerce and Industry to comply with Oman’s commercial regulations and rules.
Register the Business
Involves submitting the necessary documents:
- Legalized Opening Forms
- Approval of Municipalities
- Certificate for Share Capital