Company registration in Oman
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| How to register a company in Oman |
Let go in detail to discuss on Company registration in Oman as foreigner, LLC, branch office. The most popular company format adopted by foreign companies wishing to set up a business presence in Oman is the limited liability company (LLC). A limited liability company in Oman must be registered under the Ministry of Commerce and Industry, and the Chamber of Commerce and License. It must have a minimum of 2 shareholders or up to 40 shareholders, one of which must be an Omani citizen.Under the Omani Foreign Capital Investment Law, companies with a foreign shareholder must hold at least RO150, 000 (approximately 390, 000USD) from which the Omani shareholder must hold at least 30% of the company shares. This means that a foreign shareholder may only hold up to 70% of the company shares. As part of the Governments Omanization Policy, the Omani ‘sponsor’ although a legal shareholder may opt out of contributing financially to the startup or operations of the company yet still have a major share and say in the company: This means that having a reliable local partner is crucial in registering a LLC in Oman. Americans and citizens of countries under the Gulf Cooperation Council (GCC) are however exempted from this rule and are allowed to own 100% of a LLC.
An important aspect of Oman’s business friendly policy is the setting up of a its one-stop center for company registration which links the Ministry of Commerce and Industry (MOCI) Other organs such as the Ministry of Civil Defense, Chamber of Commerce, (ROP) Royal Oman Police, MRM (Ministry of Regional Municipalities), Ministry of Environment as well as Water Resources, Ministry of Manpower and Muscat Municipality. Provided that all conditions are met and relevant documents are submitted, the one-stop center expedites the registration process with MOCI to only 3 working days.
INITIAL CAPITAL AND SUBMISSION OF COMPANY NAME
Before registration of a LLC commences, the minimum capital must be fully paid by the shareholders and deposited into a bank account. After the capital is deposited to a bank account, a proposed company name can then be submitted to the Ministry of Commerce and Industry online to be approved. An online check can be done to ensure that the proposed company name is not a duplicate of other registered company name in the office record. It must be noted that companies with certain words such as “Oman” require a higher share capital than others without and this is how to register a company in Oman as foreign investor.
REGISTRATION FORM AND ACCOMPANYING DOCUMENTS
The following documents must then be submitted to the one-stop center accompanying the registration applicationonce the company name is approved MOCI:
1. Certificate of capital deposit from bank
2. Standard company registration forms
3. Copy of constitutive contract and articles of association
4. Licenses or application for licenses
5. Copy of shareholders and intended signatories’ identity card or passports
6. Approved signatory form with names sample signatures of authorized signatory
A fee of OMR 40 (for a 5 year business registration) and OMR 128 to the Chamber of Commerce must be paid during the submission of the registration form.
RELEVANT FEES ACCORDING TO COMPANY GRADE
Registration fees payable to MOCI depends on the grade of the company which is determined by the company’s startup capital deposited in the bank as follows:
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Company Grade
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Payable Fees
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Excellent Grade(minimum
startup of OMR 250,000)
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Registration : OMR
585
Annual renewal: OMR
279
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First Grade(minimum
startup of OMR 100,000 to 249,000)
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Registration:
OMR 225
Annual renewal: OMR
108
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Second Grade (minimum
startup of OMR 50,000 to
99, 000)
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Registration : OMR
128
Annual renewal: OMR
73
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Third Grade (minimum
startup of OMR 25,000 to
49, 000)
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Registration : OMR 78
Annual renewal : OMR
45
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Fourth Grade (minimum
startup of OMR 3,000 to
24, 000)
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Registration : OMR 33
Annual renewal: OMR
25
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LICENSE FROM THE MUNICIPALITY OF MUSCAT
Once the MOCI has issued the applicant with an affiliation certificate, an important step in the process is obtaining license from the Municipality of Muscat, the capital of Oman. This can be done by submitting the MOCI affiliation certificate along with the company’s lease agreement, any applicable company certificates, and company statutes and articles of incorporation. The cost of license application from the municipality is OMR15.
INCOME TAX REGISTRATION AND MINISTRY OF MANPOWER REGISTRATION
All LLC incorporation applicants must register their company at the Tax Department of the Finance Ministry in compliance of the Oman Government Income Tax Law by submitting a completed Declaration of Business Particulars form.
Although all Omani employees are registered automatically with the Public Authority and Social Insurance since December 2015, all LLC are required to register every worker employed with the Ministry of Manpower for employee’s social security registration. This is done by submitting a copy of the employment contract to the Public Authority for Social Insurance at the Ministry of Manpower desk at the MOCI one-stop center. Registration with the Ministry of Manpower ensures that companies comply with government approved employee’s retirement benefits, and foreign workers labor clearance and visas.
COMPANY SEAL
During the 3 day registration process, all LLC applicants is required to make a company seal or stamp according to the design issued by its registered authorized signatories. It is advisable that the design submitted to the seal maker be accompanied by an attested signature specimen confirming the authority of the person ordering the company stamp or seal.
POST REGISTRATION
Apart from the procedures, documents and applications stated above, all LLC’s are required to obtain the following documents depending on the nature of its business activities in Oman:
1. Registration with the Royal Oman Police
2. Municipality license
3. License for import/export activities
4. Permits for environmental, industrial and other applicable agencies
I guess, no more questions on company registration in Oman being foreigners.
Note: Contact us for: (1) Private Limited Company Registration in Oman (2) Income Tax (3) Accounting (4) FDI guide (5) Business advisory (6) Company Secretarial