Common Challenges in Company Registration in Oman and How to Overcome Them

Oman is a country located in the Arabian Peninsula along the Arabian Sea. The country has an abundance of natural resources and sea ports which are popular trading hubs from ancient times. The country is an absolute monarchy and offers stable governance.

The Government has recently brought many changes to attract foreign businesses to invest and grow in Oman. The regulation changes are brought to incentive investments and divest from the crude oil-based economy which forms a significant percentage of Oman's GDP. As part of the exercise, Oman has opened many free zones to enable investors to start businesses in Oman. However, the investors must be aware of possible challenges associated with company registration in Oman and ways to overcome them. Let's learn more about the challenges.

1) Decide between the Oman Mainland and Oman Freezones:
There are more than 5 Oman free zones ( https://www.gryffincapitalist.com/freezone/company-formation-in-oman ) that are situated closer to the seaports. The free zones are governed autonomously by Freezone authorities with different rules and regulations. Investors must carefully consider starting the operations between the Mainland and free zones to register the company in Oman. The factors include the business activity, type of marketplace, ownership, and other rules and regulations.

2) Type of the Company:
In line with other locations worldwide, investors can open different company structures like Limited Liability Companies, Branch Offices, Sole proprietorship in Oman ( https://www.gryffincapitalist.com/om/sole-proprietorship-spc-in-oman ), etc. However, for a foreign company to open a branch office in Oman, they can do so only when they have signed a contract with the Government entities. The branch office of a foreign company is valid only till the end of the contract period. Investors must thoroughly understand the provisions of the company laws before proceeding with company registration in Oman

3) Company Ownership:
Foreign investors are entitled to full ownership in the free zone companies. However, in Oman Main land, certain business activities require a local partner/sponsor. Hence, it is recommended to understand whether you require a local Omani citizen as a partner for the Oman company.

4) Completing other formalities of Company Registration:
After obtaining your Oman trade license ( https://www.gryffincapitalist.com/om/oman-trade-license ), the investor must complete Chamber of Commerce registration and registration with the Royal Oman Police, etc. In Oman, the tax rates depend upon the revenue of the company, and accounting and bookkeeping requirements should be taken care of by the owners. Foreign investors must be aware of these procedures to avoid legal and corporate governance troubles in the future.

5) Business Activity:
Foreign investors need to select the business activity and confirm if the business activity is open for foreign investment. Certain business activities such as manpower agencies are only reserved for the Omani citizens. Hence, the investors must verify if the business activity is allowed before starting company registration in Oman.

Investors must follow these steps carefully when registering a company in Oman ( https://www.gryffincapitalist.com/om ). They can also seek assistance from Oman company formation specialists like Gryffin Capitalist.

Level 9, Rolex Tower, Sheik Zayed Road,
Near Financial Centre Metro Station,
Dubai, UAE

Gryffin Capitalist assists startups, SMEs, and professional intermediaries in setting up their companies in the best jurisdiction at economical rates within less time.

This release was published on openPR.