Unlocking Opportunities in Oman: A Comprehensive Guide for Foreign Investors
In the past four decades, Oman has witnessed remarkable economic growth and has emerged as a highly favorable destination for foreign investment in the Middle East. A host of factors contribute to Oman's attractiveness, including its business-friendly environment, political stability, world-class infrastructure, and ease of doing business. Furthermore, Oman offers enticing incentive schemes, such as custom duty exemptions, subsidized interest rates, and income tax exemptions, to encourage foreign investment.
The Foreign Capital Investment Law (FCIL): A Game Changer
The recent introduction of the Foreign Capital Investment Law (FCIL) on January 2, 2020, has further solidified Oman's commitment to enhancing its business environment. This law is designed to provide stability to foreign investments in Oman, offering numerous incentives and advantages to stimulate business activities within the country.
100% Foreign Ownership: A New Opportunity
With the implementation of the FCIL, foreign companies, investors, and citizens can now enjoy 100% ownership in numerous industries in mainland Oman. Although a few sectors in mainland Oman still require local ownership or a local partner with minority shareholding, there are approximately 37 activities now open for 100% foreign ownership. These activities range from transportation and manpower recruitment to translation services, automotive and vehicle repairs, and tailoring.
Consultancy Services in Oman: The Local Connection
For those offering consultancy services, it's essential to have a local Omani shareholder, whether a company or an individual. The local partner must hold at least 35% of the company's shares. It's worth noting that the minimum share capital requirement of OMR 150,000 has been relaxed, making it more accessible for investors.
Documentation Requirements for 100% Foreign-Owned Businesses
The establishment of a 100% foreign-owned business in Oman requires specific documentation:
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Passport Copy (for Individual Shareholders): Individual shareholders must provide a copy of their passport.
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Corporate Documents (for Corporate Shareholders): Corporate shareholders need to submit essential documents, including the memorandum of association, trade license, certificate of incorporation, certificate of incumbency, board resolution, and power of attorney for Oman company formation. These documents should be notarized, legalized, and attested by the country of origin and sent to the PPG in Oman for legal translation and stamping.
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Business Plan: A comprehensive business plan outlining investment costs, project description, and the project's commencement date is required.
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CR Application Form: The CR application form should contain details such as the proposed company name, shareholding structure, proposed company grade (ranging from 4 to 1, with 1 being the highest grade), financial year, intended business activities, and details of the company's manager and authorized signatories.
Step-by-Step Guide to Establishing an LLC Company in Oman with 100% Foreign Ownership
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Obtain Commercial Registration from the Ministry of Commerce and Industry, providing information about the trade name, business plan, and CR Application form.
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Obtain Chamber of Commerce Registration.
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Arrange for office or warehouse lease.
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Apply for a Municipality License.
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Register with the Ministry of Finance for annual audit and tax purposes.
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If necessary, apply for labor quotas or staff visas with the Ministry of Manpower.
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To apply for visas with the Royal Oman Police, ensure a PRO registration on the Commercial Registration.
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Depending on your business activities, seek any additional approvals that may be required.
Fees for Setting Up a 100% Foreign-Owned Company in Oman
With the enforcement of the new law, the government registration fee amounts to OMR 3,500, covering various authorities, including the Ministry of Commerce and Industry, Chamber of Commerce, Ministry of Finance, and Ministry of Manpower. Additionally, the cost of the Municipality License varies depending on the value of the lease and the company's activities. Finally, there is a registration fee of OMR 20 for Oman Customs Government.
How IMC Group Can Assist You
With over a decade of experience in the GCC, IMC Group is well-equipped to assist you in establishing a 100% foreign-owned company in Oman. We can provide guidance on shareholding percentage requirements for foreigners and other relevant business matters. Moreover, we can assist you in drafting incorporation documents, listing the required documents for filing, notarization, and other formalities. For more information, please get in touch with us.
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