Doing Business in Oman - RSM International

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Holding company The holding company is a Joint Stock Company or a Limited Liability Company which financially and administratively controls one or more other companies which become subsidiary to such company by means of its holding at least 51% of such subsidiary company or companies whether they are Joint Stock Companies or Limited Liability Companies. The capital of a holding company shall not be less than RO. 2 million and a holding company shall neither hold shares of General or Limited Partnership companies nor shall it hold any shares in other holding companies. Sole proprietorship A sole proprietorship is a form of business which can be carried out by Omani nationals or by GCC nationals pursuing certain economic activities. The minimum capital requirement to form a sole proprietorship is RO. 3,000. The proprietor is personally liable for debts to the full extent of his assets. Branch of foreign company A foreign company can set up a branch office in Oman if it has a contract with the Government or Government owned organisations. Banking institutions and insurance companies are licensed to operate as branch and certain professional services companies also may be permitted to set up branch offices. Branches are permitted only when their head office has been in operation for a minimum period of 10 years. The head office is required to submit a guarantee for the operations of the branch. Commercial representative office Foreign companies are permitted to have a legal presence in Oman for the purpose of conducting market research, general advertising, marketing and promotional activities and liaison with commercial entities in Oman. The Representative Office cannot undertake any commercial activities except importing samples for promotional purposes and can only be established by companies that have a head office and at least three branches in other countries. Commercial agent A Commercial Agent is appointed by foreign businesses to export goods and services to Oman. All agencies must be registered with the Ministry of Commerce & Industry. Non exclusive agencies are allowed even though there is no bar for imports through suppliers other than the official agents. 14 | DOING BUSINESS IN OMAN
2.3 Foreign investment entities Foreign investments through equity shareholding are allowed in the following types of legal entities: Joint stock companies Foreign equity participation up to 100% of the company’s capital is permitted for projects which contribute to the development of the national economy, provided the project’s capital is not less than RO. 500,000. The company will need Foreign Capital Investment Law licence, Commercial Registration and Oman Chamber of Commerce and Industry registration. Limited liability companies Foreign equity participation up to 70% of the company’s capital is permitted if approved by the Ministry of Commerce and Industry provided the minimum share capital is RO. 150,000. Foreign equity participation up to 100% of the company’s capital is permitted for projects which contribute to the development of the national economy, provided the capital of the company is a minimum of RO. 500,000. The company will need Foreign Capital Investment Law licence, Commercial Registration and Oman Chamber of Commerce and Industry registration. Branch office Foreign companies can setup branch offices for executing Government contracts or for businesses declared necessary for Oman by the Council of Ministers. A Commercial Registration and Oman Chamber of Commerce and Industry registration are necessary and sponsorship by Omani agents may be required in certain circumstances. Representative office Foreign companies can operate in the Sultanate through its representative office. Registration with Ministry of Commerce and Industry and Oman Chamber of Commerce and Industry are required to operate the office in the Sultanate. Activities which representative office can perform are in trade, industry and services sector. Agencies Foreign companies can operate in the Sultanate through its Agencies. Registration with Ministry of Commerce and Industry and Oman Chamber of Commerce and Industry are required to operate the office in the Sultanate. Agency agreements should be registered in the Register of Agents and Commercial Agencies. Activities which agencies can perform are mainly whole sale trade and export of goods. DOING BUSINESS IN OMAN | 15
Page 1 and 2: George Mathew & Co Correspondent fi
Page 3 and 4: Forward The aim of this publication
Page 5 and 6: Page Chapter 7 Chapter 1: General 1
Page 7 and 8: Chapter 1: General 1.1 Oman - an in
Page 9 and 10: 1.10 Government Oman is an absolute
Page 11 and 12: Chapter 2: Types of Business Entiti
Page 13: Closely held joint stock company -
Page 17 and 18: 2.6 Comparison of main investment v
Page 19 and 20: 2.8 Capital contribution For a Limi
Page 21 and 22: Chapter 3: Foreign Exchange Control
Page 23 and 24: Chapter 4: Taxation DOING BUSINESS
Page 25 and 26: University education, college or hi
Page 27 and 28: Rates of tax Every taxable entity i
Page 29 and 30: iv. Carrying on any other activity
Page 31 and 32: Non-deductible expenses The followi
Page 33 and 34: 4.10 Due date of tax returns filing
Page 35 and 36: Chapter 5: Employment Labour relati
Page 37 and 38: 5.8 Welfare benefits Social securit
Page 39 and 40: Chapter 6: Accounting DOING BUSINES
Page 41 and 42: Chapter 7: Intellectual Property Ri
Page 43 and 44: Chapter 9: Investing in Oman DOING
Page 45 and 46: Oman is ranked 3rd out of 17 countr
Page 47 and 48: i. Export insurance coverage to Oma
Page 49 and 50: Chapter 10: Listing Rules DOING BUS
Page 51 and 52: Regular market Shares of companies
Page 53 and 54: Chapter 11: Relevant Websites or Fu
Page 55 and 56: Chapter 12: Contacts DOING BUSINESS
Page 57 and 58: RSM Contacts RSM International Exec
Page 59 and 60: DOING BUSINESS IN OMAN | 1

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