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Company Registration in Oman

All business sectors and corporate structures, including the Free Zones, are served by RegisterKaro’s company creation and management services in Oman, together with the government relations and employer support services necessary to reach long-term viability.

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An overview of Company Registration in Oman

Oman, the third-largest nation on the Arabian Peninsula, has a rich history of foreign trade and enterprise dating back many centuries. Its marine trade formerly reached the borders of China, Europe, and Africa. Prior to the discovery of oil and gas, the economy of Oman was mostly centered on agriculture and fishing in rural and agrarian areas. Oman gradually transitioned from an agrarian to an oil-based economy and production when oil was discovered in commercial quantities in 1964, and oil exports began to dominate the country's government coffers.

Company Registration in Oman

An overview of Company Registration in Oman, the third-largest nation on the Arabian Peninsula, has a rich history of foreign trade and enterprise dating back many centuries.

Types of Companies in Oman

There are following forms of company structure available for registration in Oman:

Omani Limited Liability Company [LLC] : A Limited Liability Company limits each shareholder's liability to the amount that they have invested in the business. In Oman, an LLC requires the participation of two individuals, one of whom must be an American or GCC national and hold at least 30% of the company's shares. The other must be a director, who may also be a shareholder. The minimum capital needed to incorporate an Omani LLC, the most popular company type among foreigners looking to establish a business in Oman, is 150,000 Omani Riyals, or roughly 390,117 USD. Manufacturing and trading operations benefit from this kind of corporate structure.

Wholly Foreign Owned LLC : In accordance with Omani law, foreign nationals who wish to establish a corporation and hold 100% of the shares must apply for permission from the Ministry of Commerce and Industry. A company must submit a comprehensive business plan with all the information about the capital investment and the anticipated benefits to the national economy—including the anticipated number of jobs that will be created locally—in order to receive approval. In addition, the firm needs a minimum capital of one million Omani Riyals, or roughly 2600780 USD, and at least two shareholders as well as one director.

Joint Stock Company : A Public Joint Stock Company (SAOG) is a Joint Stock Company that trades its shares in the open market. A SAOG needs two primary items. 1. A minimum share capital of 390,117 USD, or OR 150.000. Nevertheless, a Private Stock Company (SAOC), a type of joint stock company that does not sell shares to the general public, needs a minimum capital of OR50,000, or about $130,000 USD. In addition, the firm needs a minimum of three shareholders, with one of them having to be an Omani national and owning 30% of the total shares. Regardless of its nature and with involvement from foreign nationals, any joint-stock firm must do the next two actions. Must request permission from the Ministry of Industry and Commerce. A minimum capital of OR150,00, or around $390,117 USD, is required.

The Oman Free Zone Company : Three main requirements are met by a company that incorporates in an Omani free zone. 1. Being fully owned by foreigners; 2. Being allowed to transact business with clients in the area; and 3. Not requiring a minimum investment. A free zone business in Oman is also exempt from corporate income tax and has a lower employment threshold (10%) for Omani nationals. For manufacturing enterprises looking to use the nation as a base to extend their operations in the Middle East, free zones are typically advised.

Limited Partnership [LP] : An LP is a business entity that needs to have at least one registered general partner and one registered limited partner. An altered general partnership is an LP. While the general partner is accountable for the partnership's debt to the full amount of the partnership's investment, limited partners are only accountable for the money they contributed to the partnership. The limited partnership entity must be registered with the Oman Commercial Register by the Omani general partner.

Branch Office : An expansion of a multinational corporation that has a contract with the government or one of its agencies and is authorized to open and run a foreign branch in Oman. The license is only good for the term of the project, and a branch office must also get MOCI permission. The MOCI needs a 390,000 USD bank guarantee for this procedure.

Representative Office : The Omani representative branch office is not permitted to conduct direct sales within Oman, while being fully owned and controlled by a foreign entity. An Omani representative office can only conduct the following tasks: i) market research; and ii) commercial advertising for the parent company.

Commercial Agency : Foreign businesses can conduct business through local commercial agents in Oman if they are interested in doing so but aren't sure if they want to create a local branch or corporation there. It is necessary to register an agreement with the local agency with MOCI. Clients of commercial agencies are still required to pay annual tax reports and corporate income tax on their Omani revenue.

Types of Companies in Oman

Post Registration Compliances

Following the conclusion of the Omani company registration process, a number of post-incorporation tasks must be fulfilled in order for the business to abide by Omani rules and regulations. The following are some of the main steps that an Oman-registered company must take after being incorporated:

Post Registration Compliances

Tax Registration: Companies in Oman are required to get a Tax Card from the Tax Authority within 30 days of registering. For the purpose of creating bank accounts, executing contracts, and filing tax returns, the Tax Card is essential.

Social Security Registration: Companies in Oman are required to register their employees with the Public Authority for Social Insurance (PASI) within 15 days of the employee's start date. The social security fund is something that employers must contribute to on behalf of their employees.

VAT Registration: In Oman, businesses who have yearly sales more than OMR 38,500 (about USD 100,000) are required to register for VAT. Getting a VAT registration number and filing regular VAT returns are steps in the VAT registration procedure.

Other Licenses and Permits: Companies in Oman could require extra licenses and permits to operate, depending on the nature of the enterprise. For instance, the Ministry of Housing and Urban Planning may be required to provide a building permit for a construction company.

Company Record Maintenance: In Oman, businesses are required to keep complete and accurate records of all of their financial activities, including contracts, invoices, and receipts.

Documents you would need

The following crucial paperwork is required for company registration in Oman:

1 : Certificates of Memorandum

2 : Articles of Association,

3 : Tax Registration,

4 : Passports and Visas for Shareholders, and

5 : Affiliation with the Chamber of Commerce and Industry

6 : Certificate of First Deposit

7 : Shareholder Identity Cards

8 : Completed Company Registration Form

Documents you would need

Process of Company Registration in Oman

You may follow the given step by step instructions for Company Registration in Oman:

Step 1: Choose Company Structure

Selecting the right kind of company is crucial when registering one in Oman. There are multiple structures available in Oman jurisdiction such as Branch office, Sole proprietorship, Commercial agency, Joint-stock company, Representative office, Limited liability company, etc.

Step 2: Select the company name

A trade name needs to be distinct and associated with the company. Choose a name, then send the application to the Ministry of Industry and Commerce. Since your company name will serve as a brand for your enterprise, it is important to choose it carefully. But, there are some guidelines you must adhere to while choosing a name for your company.

Step 3: Submit the documents

This is the crucial step in the incorporation procedure, when all required paperwork must be filed. The necessary fundamental documents must be prepared and submitted such as Certificate of Affiliation with the Chamber of Commerce and Industry Memorandum and Articles of Association, Passports and Visas for Shareholders, completed and submitted the company registration form, the shareholders' identity cardInitial Deposit Certificate, and Certificate of Tax Registration, etc.

Step 4: Bank Account Opening

After the paperwork is turned in, the first incorporation fee must be deposited into a capital account after opening the bank account in the Oman Mainland.

Step 5: Register the Business

To comply with the business laws and regulations that apply to corporations operating in Oman, register with the Oman Chamber of Commerce and Industry (OCCI). The steps entail submitting the necessities such as Municipality Approval, Share Capital Certificate, and Legalised Opening Forms

Step 6: Company Seal

In Oman, a company seal issued by the company's authorized signatory is mandatory for all businesses. A certificate of initial capital deposit, an authorized signatory form, and an affiliation certificate from the Chamber of Commerce and Industry must first be obtained and submitted. Tetra Consultants will help you design and order a company seal from a third-party supplier in addition to helping you complete these duties.

Why Choose RegisterKaro for Company Registration in Oman?

RegisterKaro has been one stop solution for Company Registration in Oman for the varied ranges of benefits such as:

Why Choose RegisterKaro for Company Registration in Oman?

Pool of Experts : RegisterKaro holds a large pool of experts from all over the world. Our team of experts makes sure that your work is taken care of in the most effective manner possible.

Cost-effective : RegisterKaro company registration services are of premium quality at the most efficient rate, which suits the client's pocket, making sure that quality service is not the only thing the client gains on our platform.

Client-oriented approach : Our team of experts is well trained and equipped with a client-oriented approach, keeping in mind that the process must be client-centric, focusing on meeting all the requirements of their business and, therefore, satisfying their needs.

Process Alteration : For the fact that we focus on a Client-centric approach, we keep our process structurization open for the client to alter it as per their need, requirements, and vision. For us, obtaining the best results is the focus, along with the Client satisfaction.

Why RegisterKaro?

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FAQs

How much does it cost to register a company in Oman?

The following fees are associated with registering a company in Oman: LLC: about 350 OMR, SAOG/SAOC: approximately 1,500 OMR, Foreign firm branch: around 1,500 OMR.

How can I register a company in Oman?

In Oman, a company seal issued by the company's authorized signatory is mandatory for all businesses. A certificate of initial capital deposit, an authorized signatory form, and an affiliation certificate from the Chamber of Commerce and Industry must first be obtained and submitted.

Can Indians start a business in Oman?

Yes, it is possible to launch your own company in Oman. However, the Ministry of Commerce and Industry will need to provide you with a business registration if you are a foreign national.

How can a company be formed in Oman?

In Oman, a private joint-stock company needs to have a minimum of three shareholders and a minimum share capital of OR 50,000, or roughly $130,000 USD. One of the owners must be an Omani citizen and hold at least 30% of the total shares.

What is the business tax rate in Oman?

The corporate tax rate in Oman is 15% for domestic businesses, permanent establishments (PEs), and international company branches.

Is it a good idea to start a business in Oman?

With its strong economy, advantageous location, and business-friendly atmosphere, Oman offers special benefits to individuals thinking about starting or growing their businesses.

What is a Grade 4 company in Oman?

In Oman's company rating system, the lowest rating is Grade 4, with the highest being Excellent. Each transaction in a Grade 4 company is limited to 20,000 Omani Rials.

How much does it cost to register a company?

The fees associated with registering a Private Limited Company (Pvt Ltd) in India range from INR 6,000 to INR 30,000, depending on factors such as the number of directors, authorized share capital, and professional expenses.

Can foreigners own a business in Oman?

Yes, foreigners can establish a firm with 100% ownership in Oman, but there are rules and prerequisites that need to be met, including obtaining a commercial registration (CR) from the Ministry of Commerce and Industry.

What is the minimum capital requirement in Oman?

For an LLC with foreign involvement, the minimum capital requirement is OR 150,000; for a SAOC, it is OR 500,000; and for a SAOG, it is OR 2 million. The minimum capital requirements may vary based on the type of business or projects the company plans to undertake.

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