Here’s what you need to know!
Over the past several years, Oman has been able to establish itself as a new business hub, encouraging business and new industries to flourish in the country. In addition to oil, Oman has been working hard to develop other industries such as mining, construction, import and agriculture.
If you are thinking of operating a new business in Oman, then starting with setting up an LLC company might be the right choice. There are a few simple steps that you must follow first before you can start your LLC company in Oman.
How to setup an LLC in Oman
Registering the Company (NEWCO)
The first part of the process is to establish the local company (NEWCO) There is a clear process that you and your advisers need to follow in order to achieve this in a professional manner.
- Select the appropriate business activities.
- Draft the Constitutive contract (Memorandum of Articles) for the new organisation.
- Assess the Grade of company LLC (based on activities) and strategic intentions.
- Draft the Shareholders Resolutions.
- Submit the application to the MOCI.
- Obtain the Company Registration document and the Chamber of Commerce certificate.
Get Ready to Trade
On receipt of the Company registration documents (CR) there are several additional hurdles that need to be systematically followed before you are ready to trade.
Every company in Oman requires the services of a Public Relation Officer (PRO) who must be an Omani citizen.
PROs are responsible for processing government documents and paperwork such as visa applications and company registration documentation and approvals.
You can either fully employ one or outsource it to qualified PROs and companies that will represent you.
There are several registrations and deliverables that the PRO will complete on your behalf:
- The first responsibility is to design and produce a bilingual stamp.
- Thereafter, you can complete the other tasks which include finding a suitable workplace This is necessary as the tenancy agreement along with your address and telephone number will be required to register with the local Municipality. The other registrations for tax, visas and health can then be completed.
Only once these tasks are completed can you apply for your visas.
Once the PRO has completed these tasks you will then be in a position to open your bank account.
There international and national banks in Oman for you to choose from. All of them are highly regulated so the compliance system demands a great deal of paperwork from the international investor and the newly established business, some documents need to be attested.
The government has also significantly increased the costs of establishing a business. They may not be so punitive for large companies, but SMEs need to be committed with a decent business plan and well prepared.