THE ART OF BEING LOCAL
IN OMAN
Company formation in Oman
Setting up a company in Oman offers a wide range of opportunities. The country on the south-east coast of the Arabian Peninsula has developed into an important business centre in the region in recent years. This has made it increasingly attractive for foreign investors. There are various incentives, facilitations and tax advantages for companies. In addition, the country offers a well-developed infrastructure that facilitates business operations. Modern means of communication, well-developed infrastructure and a stable financial system help companies to operate successfully in Oman. Before setting up a company or branch in Oman, it is best to contact InterGest Oman. The company was founded in 2023 to support foreign companies in planning and realising a business base in Oman.
Dr. Lilian Akkouch has been working as a management consultant in the SME sector since 2018, focusing on international company settlements, project implementation and medical consultations. She is your competent contact person and speaks German, Arabic, French and English.
What are the advantages of setting up a company in Oman?
- Stable economy: Oman is experiencing positive economic development. The government is focussing on diversification and promoting various sectors such as tourism, logistics and manufacturing.
- Favourable tax conditions: There is no income tax on corporate profits and no VAT in Oman. This makes the country particularly favourable from a tax perspective.
- Promotion of foreign investment: The Omani government offers investors various incentives, including tax concessions and customs duty relief. Online services for business start-ups have been introduced to make the investment process more efficient.
- Modern infrastructure: In Oman, modern harbours, roads and airports support trade, logistics and business operations.
- Strategic location: Oman's location on the Persian Gulf makes the country an important trading hub and a bridge between Asia, Africa and Europe.
- Hardly any foreign exchange controls: Oman has no restrictive foreign exchange controls, which facilitates international trade and capital movements.
- Growing market: With a growing population and demand for products and services, the Omani market offers a good environment for business growth.
- English as a language: English is widely accepted in the business environment in Oman, which facilitates communication and business transactions for international companies.
- Political situation: Compared to other countries in the region, Oman enjoys political stability, which is a positive factor for business activities.
Oman is a promising location for companies wishing to expand in the region or become internationally active. Contact InterGest Oman for administrative support for your business start-up in Oman.
What types of companies are there in Oman?
In Oman, there are various company forms that entrepreneurs can choose from when setting up their business. The two most common company forms are:
1. Limited Liability Company (LLC):
The LLC is one of the most popular forms of company in Oman. It requires at least two founders, but can have up to 40 shareholders. The liability of the shareholders is limited to their respective capital contributions. As a rule, an Omani citizen or an Omani company must hold at least 30 % of the share capital.
2. Public limited company (SAOC – Joint Stock Company)
A SAOC is a company whose capital is divided into shares. It requires at least five shareholders and a minimum amount of capital depending on the type of business. The liability of the shareholders is limited to their respective shares in the share capital. It is possible for foreign investors to establish a SAOC, subject to certain restrictions and authorisations.
There are also specialised company forms that are suitable for certain sectors or purposes:
3. Sole proprietorship:
A sole proprietorship allows one person to run a business without a partner. Liability is personal and unlimited.
4. Branch of a foreign company:
Foreign companies can establish a branch in Oman to conduct business. The branch office is subject to the laws of the home country and requires a licence from the Omani government.
Before setting up a company in Oman, find out about the specific requirements and conditions of the respective company form. You can obtain more information on this from InterGest Oman, based in the capital Muscat.
What needs to be considered when setting up a company in Oman?
After selecting the appropriate legal form for a company in Oman, the next step is to register with the relevant authorities. This includes submitting all the necessary documents and fulfilling the legal requirements. Co-operation with a local business partner may be necessary, especially if foreign investors are involved. InterGest Oman has the necessary networks and experience to make it easier for companies to enter the Omani market.
Roadmap for setting up a company in Oman
- Select the appropriate legal form.
- Partnership with locals: In many cases, it is necessary for foreign investors to work with a local partner, especially when setting up an LLC.
- Register the company name: The chosen company name must be registered with the relevant authorities in Oman. It is advisable to ensure that the desired name is unique and meets the legal requirements.
- Fulfil capital requirements: Ensure that you fulfil the minimum capital requirements for the legal form you have chosen. This may vary depending on the type of company.
- Prepare documentation: Gather all necessary documents, e.g. deeds of incorporation, articles of association, founders' IDs and other required documents.
- Obtain official authorisations: Applying for the necessary official permits and licences can vary depending on the industry and type of business.
- Clarify tax matters: Find out about the tax regulations in Oman and make sure you make all the necessary tax registrations.
- Work permits: If you want to employ foreign staff, you should familiarise yourself with the regulations for work permits in advance and apply for them accordingly.
- Cultural sensitivity: You should know and respect the business customs in Oman. Working with local partners often requires an understanding of the local business culture.
Compliance with these steps and strict adherence to the legal regulations are crucial to ensure a successful company formation in Oman. It is advisable to seek professional advice from specialised companies with the necessary knowledge to set up a company in Oman. InterGest Oman is the right partner for you.
Outlook: Foundation in Oman - with InterGest
Overall, setting up a company in Oman offers the opportunity to benefit from a growing market and favourable conditions in a prosperous environment. With careful planning and compliance with all legal requirements, companies in Oman can successfully gain a foothold and establish themselves in the country's dynamic economic environment. This is especially true if you rely on the expertise of InterGest Oman before setting up a company. As an administrative partner, InterGest Oman supports you in company formation and administration. Its core competences include bookkeeping, accounting, import, export and administrative work, business accounting with invoicing, dunning and debt collection, controlling, project management, cash and credit management, personnel recruitment and administration, payroll accounting, contract review, legal and tax advice and support in setting up sales.
Where to find Intergest Oman?
InterGest Oman is located in the heart of Muscat, on the famous 18th November Street (a date on which the founder of the new Sultanate of Oman - the late Sultan Qabus bin Said - the predecessor of the current Sultan - was born), which is one of the best locations in the capital of the Sultanate of Oman.
