Opening a company in Oman can be the beginning of a new successful business venture if done correctly. Oman is known for its business-friendly environment, encouraging foreign-owned companies to establish themselves in the country. It hosts a few free zones and implements various national strategies that aim to strengthen the economy and provide valuable business opportunities. Not only that, but Oman is also the ideal gateway for GCC markets, making it the perfect starting point for foreign companies aiming to expand their reach.
Therefore, continue reading to discover our realistic tips on how to open a company in Oman and some mistakes to avoid. Ensure you follow our guidelines to open a company in Oman smoothly and efficiently.
Before Opening a Company in Oman: Practical Tips and Must-Knows
As you plan to open a company in Oman, take into account the following tips for a seamless business setup:
1.Choose the Right Business Structure
Business structure is the legal and organisational framework that defines how a company is operated, owned, and taxed. It also determines the roles of the owners and how profits are distributed. In other words, the type of business structure you choose is a key determiner of your company’s success. So, it is important to choose the right structure before opening a company in Oman.
Bondoni’s team of experts assist foreign companies in choosing the most suitable structure for their business and long-term goals. Discover Bondoni’s Business Entity Selection services now for more details.
2.Understand Foreign Ownership Rules
Before opening a company in Oman, businesses must understand all local rules and regulations regarding foreign ownership. Generally speaking, foreign ownership is allowed in most sectors according to the 2020 Investment Law, which includes mainland and free zone companies. However, some business activities are strictly dedicated to local Omani companies. Therefore, it is best to work with professionals like Bondoni to receive insights and guidance regarding this matter and all other steps of business setup in Oman.
3.Register with Relevant Authorities
When opening a company in Oman, it is essential for each business to register with various authorities and departments, which will vary based on their specific field and business activities. Doing so will ensure legal compliance and smooth operations. With Bondoni, you can rest assured that all legal requirements are met and that your company gets registered with the right, relevant authorities.
4.Prepare Legal and Financial Documents
The type of legal and financial documents you will need to open your company in Oman depends on your company’s business activities. However, there are some documents that are commonly and widely needed across all sectors, some of which are the tax registration certificate, shareholders’ visas and passports, a Chamber of Commerce and Industry affiliate certificate, and identity cards for the shareholders.
Planning to open a company in Oman? Contact Bondoni today to receive legal services, company registration services, and other relevant guidance and professional advice.
5.Follow Omanisation Rules
Omanisation requires employers to hire Omani nationals according to a certain quota, ensuring that locals get trained and hired while simultaneously reducing reliance on foreign labour. The Omanisation quota differs from one sector to another, and non-compliance leads to penalties and fines. Therefore, it is best to work with professionals like Bondoni to follow through with the Omanisation rules and remain compliant with any updates.
6.Work with a Local Consultant or PRO Service Provider
The process of opening a company in Oman can be complex to navigate. This is exactly why it is recommended to work with a local consultant and PRO service provider like Bondoni. Equipped with many years of experience, Bondoni offers expert consultations to deliver tailored solutions fit for your niche needs, in addition to reliable PRO services that simplify your business setup in Oman and ongoing company management.
Discover the wide range of services covered under PRO services by Bondoni today to outsource your back office operations and focus on your core business activities instead. With Bondoni, rest assured that you are taking the right steps in the right direction when opening a company in Oman.
Potential Pitfalls When Opening a Company in Oman and How to Avoid Them
There are some common missteps that foreign-owned companies should be aware of before they open a company in Oman. The following points are some of the errors you should watch out for:
1.Ignoring Legal Requirements
Legal requirements include obtaining the correct licences and permits, meeting the Omanisation quotas, and complying with sector-specific regulations. Failing to adhere to any of these requirements or others can lead to delays, fines, and even the suspension of business activities in some cases.
2. Choosing the Wrong Local Partner or Relying on Unqualified Advisors
A common error when opening a company in Oman is choosing the wrong local partner and working with unqualified advisors. Agreements with an unsuitable partner can expose you to legal risks and unreliable support. Equally as risky is working with unqualified consultants or service providers. You can avoid legal issues and complications by working with reputable professionals such as Bondoni, as they will guide you to the right partnerships and suitable authorities based on your business activities and needs.
3. Underestimating Omanisation Obligations
As mentioned previously, Omnisation is a national strategy aimed at training and hiring more Omani locals across various fields within the private sector. Therefore, each sector has its own specified quota that employers must fulfil. Failing to do so leads to cumulative fines based on the number of each Omani that should have been hired. Additionally, temporary bans can be imposed in order to prevent recruitment of foreign workers and prioritise that of Omanis.
4. Incomplete Documentation
Missing papers and incomplete documentation can lead to legal issues, delays, and complications. If you are opening a company in Oman, working with Bondoni ensures your paperwork is handled smoothly, correctly, and timely. Bondoni’s team not only manages the full documentation process with all required papers but also registers your company with the appropriate authorities according to your business activities.
5.Poor Market Research
Market research is a key step in opening a company in Oman, as it helps you make informed and strategic decisions that take into account the Omani market’s special dynamics and demands. With thorough research, you should gain knowledge regarding local demand, competition within your sector, and sector-niche regulations. Plan for long-term and sustainable growth with the right guidance from Bondoni today so you set yourself up for success in the upcoming years.
6. Overlooking Post-License Compliance and Renewals
Many investors may assume that once the business setup is complete, the compliance responsibilities are over—which is not true. On the contrary, foreign-owned companies must renew their documents annually to assure business continuity and legal compliance. Some of these documents include commercial registrations, trade licences, and permits. That said, Bondoni’s team handles all document renewals in Oman on your behalf, ensuring proper document reviews, preparations, submissions, and follow-ups for timely renewals.
Do you want to open a company in Oman? Contact Bondoni now to get started. The team will provide you with all the support and guidance you need from start to finish, in addition to professional PRO services to enjoy seamless operations and management.