Overview of Company Registration in Oman
The official sultanate of Oman is another name for Oman. It exists on the Arabian Peninsula. Geographically, this nation borders Yemen, Saudi Arabia, and the United Arab Emirates. A few indicators that this nation is evolving quickly are economic growth and diversification. The incorporation process can be completed by an investor seeking company registration in Oman without their physical presence. Such a procedure can be completed in a short amount of time. For this, a company incorporation agent will be appointed in Oman.
Overview
In several industries, foreign direct investment is permitted. The government of Oman has liberalized international investment, in contrast to several other Gulf nations. The majority of industries accept 100% foreign investment. For different types of investors, this is advantageous. A resident of Oman or the appointment of a nominee shareholder are not prerequisites for incorporation. However, it is always appropriate to name a nominee shareholder who is a local because of cultural differences. In Oman, there is no minimal share capital needed to establish a corporation. An investor may choose from a variety of business structure types. One shareholder and one director are all that are required to create an LLC (Limited Liability Company) in Oman.
It is not necessary to have an Oman-based shareholder or director. There is therefore flexibility in how a foreign shareholder conducts business. Foreign investors in Oman are eligible for a variety of benefits, including interest-free loans and various subsidies. In addition, international businesses are excused from paying taxes. Numerous free trade agreements have been signed between Oman and other nations. One such free trade pact is with the United States. Since there is a sizable market available to US citizens, this is quite advantageous for investors from the US. Additionally, there are no trade barriers between Oman and the USA. As a result of the aforementioned factors, an investor should proceed with Oman company registration.
Advantages of Omani Company Registration
- Foreign Direct investment- Since the year 2000, Oman has liberalized international direct investment. Foreign investment is accepted in certain industries. The government of Oman has liberalized international investment, in contrast to several other Gulf nations. The majority of industries accept 100% foreign investment. For different types of investors, this is advantageous. To incorporate a corporation here, you are not required to name a nominee shareholder or an Omanite.
- LLC Establishment- One of the most common business structures in Oman is an LLC. Due to the fact that there is only one shareholder and one director, this company can be formed easily. This kind of entity is simple to form.
- Free Trade Agreements- Oman has signed numerous free trade agreements with various nations with success. The US-Oman accord is one such free trade pact to bring up. Since there is a sizable market available to US citizens, this is quite advantageous for investors from the US. Additionally, there are no trade barriers between Oman and the USA.
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No resident shareholder is necessary- The selection of an Omani resident shareholder is not required. The appointment of a foreign stakeholder increases a company's compliance burden in Oman. Therefore, an investor would not need to fulfil the aforementioned condition. An investor is required to register a company in Oman because of all the benefits mentioned above.
Business Structures that can be used to Register a Company in Oman
The following business structures are acceptable for registering a corporation in Oman:
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General Partnerships- Two or more partners who share limitless responsibility make up this type of company. A general partnership can be established with no minimum capital requirement.
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Limited Partnership- Under limited partnerships, there are two categories:
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General Partners who are equally and severally liable for their obligations to the partnership. This would imply that each spouse bears equal responsibility.
- A partner or partners whose liability is constrained to a specific capital contribution. The capital contribution is the only sum for which this partner is liable.
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Limited Liability Company (LLC)- There are two to fifty people working for this type of company. This type of entity's liability is constrained to a specific sum. If the regulatory body's consent is necessary for this company in any way, it must be obtained. For the creation of this kind of entity, the following minimal capital is needed:
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OMR20,000 (for residents of Oman or the GCC)
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OMR 150,000 (for a mixed shareholding with international shareholders) (for a mixed shareholding with foreign shareholders).
- Joint venture- An agreement between two or more individuals to form a firm for a specific project or purpose is referred to as a joint venture. A joint venture business in Oman is not required to have any minimum capital. If it is for a specified period of time or a specific project, an applicant seeking business registration in Oman may use the aforementioned structure.
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Joint Stock Companies- These businesses are established with the bare minimum of funding. Shares of Joint Stock Companies may be made available to the general public. To create this type of organization, there must be a minimum of three shareholders. A joint stock firm must have the following minimal capital:
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OMR2 million for Public Joint Venture Company;
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OMR 500,000 for a Closed Joint Venture Company.
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OMR1 million converted from another format.
- Branch Office- A branch office is only an overseas parent company's extension. These businesses are capable of producing money.
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Representative Office- A representative office is merely an addition to the overseas parent firm, much like a branch office is. The representative office is not allowed to engage in any profitable endeavours. The representative office is limited to performing tasks that advance the marketing and foreign parent firm.
- General Partners who are equally and severally liable for their obligations to the partnership. This would imply that each spouse bears equal responsibility.
- A partner or partners whose liability is constrained to a specific capital contribution. The capital contribution is the only sum for which this partner is liable.
- OMR20,000 (for residents of Oman or the GCC)
- OMR 150,000 (for a mixed shareholding with international shareholders) (for a mixed shareholding with foreign shareholders).
- OMR2 million for Public Joint Venture Company;
- OMR 500,000 for a Closed Joint Venture Company.
- OMR1 million converted from another format.
Minimum Requirements for Oman Company Registration
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Obtaining a Trade License- Most international business owners who register their companies in Oman do so through a limited liability corporation. A trading license from the Ministry of Commerce and Investment is required before an LLC can operate (MOCI). Different types of licenses are offered by the MOCI for conducting business in Oman. However, the specific license must be obtained depending on the applicant's requirements.
- Shareholders at a minimum- For a firm, a minimum number of shareholders must be chosen. An Omani joint stock corporation, for instance, is required to have a minimum of three shareholders. Similar requirements for shareholders must be met in order to register a firm.
- Minimum Directors- A firm must have at least one director appointed. A minimum of one director is required for an LLC to operate.
- Reservation of Name- The MOCI must hold the name in reserve. The LLC's name must accurately describe the kind of activities it engages in. The name must adhere to the MOCI's guidelines. There must be no violations of any trademark, copyright, or other applicable intellectual property laws. The name must not mislead the public and shareholders.
How to Register a Company in Oman?
Foreign investors typically incorporate a Limited Liability corporation in Oman (LLC). Therefore, creating an LLC would follow the below method for company registration in Oman. A person seeking to register a business in Oman must complete the steps below:
Selecting the tasks performed in the businessFirst and foremost, the applicant must decide what tasks the LLC will perform. The applicant would need permission from the Ministry of Commerce and Investment to conduct banking and insurance activities.
Registering the CompanyThe applicant would need to submit an application for a trade license to the Ministry of Commerce and Investment before registering the business. The applicant could additionally need to get additional permits.
Present DocumentsIt could take some time for the Ministry of Commerce and Investment to respond to the application. The applicant would need to make sure that all of the paperwork for Oman LLC registration is in order during this time. The company's articles of association and memorandum of association are two examples of vital documents.
Reserved NameThe applicant must then select an appropriate name for the LLC. The company's goals and ambitions must be reflected in the name. It must also be available in Arabic and have legal significance in that language.
Incorporation CertificateAfter completing the aforementioned stages, the applicant will get a certificate of incorporation.
Compliances needed for Omani Company Registration
For a corporation to be registered in Oman, the following requirements must be met:
- Corporation taxes- For the purpose of submitting corporate taxes, all businesses must register with the Ministry of Finance. Corporations are subject to a 15% corporate income tax.
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Tax on Small Businesses- If a company's authorized share capital does not exceed OMR 50,000, it is only necessary for SMEs and other types of companies to pay 3% corporation tax. The same would apply if their annual gross revenue was less than OMR 100,000.
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LLC Conformity- Any modifications to the LLC must be reported to the Ministry of Commerce and Investment.
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Annual General Meeting- Every year, an annual general meeting must be convened.
Documents Needed
- Articles of Association
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Shareholder Information
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Memorandum of Association, and Visas
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Tax Registration Certificate
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Shareholder Identity Card
- Chamber of Commerce and Industry
- Affiliation Certificate of Initial Deposit
- Filed Company Registration Form
Getting in touch with Estabizz for Oman Company Registration
- Fill the form.
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Get a call back.
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Submit the required documents.
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Track the progress of your application.
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Get the expected results.
FAQs
- LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.
- The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.
- The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
- Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
- Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.
Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.
LLP form is a form of business model which:
(i) is organized and operates on the basis of an agreement.
(ii) provides flexibility without imposing detailed legal and procedural requirements
(iii) enables professional/technical expertise and initiative to combine with financial risk-taking capacity in an innovative and efficient manner
- Under “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner.
- Under LLP structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful acts or misconduct
- A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 1956) whereas for an LLP it would be by a contractual agreement between partners.
- The management-ownership divide inherent in a company is not there in a limited liability partnership.
- LLP will have more flexibility as compared to a company.
- LLP will have lesser compliance requirements as compared to a company.
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