Procedures for registering a company in Oman and obtaining residence

Types of Companies in Oman

Oman allows the establishment of various types of companies, tailored to the needs of different investors:

Limited Liability Company (LLC): A popular choice for small to medium-sized enterprises (SMEs), where the liability of the shareholders is limited to their share in the capital.
Closed Joint Stock Company (SAOC): Requires at least three shareholders and is suitable for larger projects.
Open Joint Stock Company (SAOG): Can offer shares to the public and is required for certain activities, such as banking, insurance, and investment funds.
Branch of a Foreign Company: For companies looking to expand their operations in Oman without creating a separate legal entity.
Commercial Representative Office: Allows foreign companies to conduct market research and promote their products without engaging in direct sales.

Necessary Documentation

The documentation required for company registration in Oman typically includes:

A completed application form.
Copy of the shareholders’ passports or national IDs.
Articles of Association and Memorandum of Association.
Approval from the Ministry of Commerce, Industry, and Investment Promotion (MoCIIP) if required for specific activities.
Proof of initial capital deposit.
Lease agreement for the company’s office space.

Tax Considerations

Oman offers a competitive tax environment:

Corporate Income Tax: Generally, the corporate income tax rate is 15% on profits. Certain activities and SMEs may qualify for exemptions or reductions.
No Personal Income Tax: Oman does not levy personal income tax on individuals.
VAT: As of April 2021, Oman has implemented a Value Added Tax (VAT) at a standard rate of 5%, with exemptions for certain goods and services.

Registering a Company for Foreign People

Foreign investors are welcome to establish businesses in Oman under certain conditions:

Foreign ownership is generally allowed up to 100% in many sectors.
A local Omani partner is required for some activities, where the foreign ownership is limited to 70%.
Special economic zones and free zones offer incentives like 100% foreign ownership, tax exemptions, and repatriation of profits.

Benefits for Foreign Investors

Registering a company in Oman offers numerous benefits for foreign investors:

Strategic Location: Access to major shipping routes and proximity to Asian and African markets.
Political Stability: Oman is known for its stable political environment, enhancing business confidence.
Incentives: Tax incentives, no minimum capital requirement for certain types of companies, and exemption from customs duties in free zones.
Growing Economy: Diversification efforts are creating opportunities in sectors beyond oil and gas, such as tourism, logistics, manufacturing, and renewable energy.

Conclusion

Oman’s business-friendly environment, strategic location, and economic diversification efforts make it an attractive destination for foreign investors. Understanding the types of companies, necessary documentation, tax considerations, and specific requirements for foreign investors is crucial for a successful business setup. The benefits of registering a company in Oman, including the incentives offered to foreign investors, further enhance its appeal as a prime investment location.

When registering a company in Oman and seeking to establish a presence in the country, obtaining an immigrant card, commonly referred to as a residency visa, is a crucial step for foreign nationals. This process involves several stages, from initial company registration to applying for and receiving the residency visa. Here’s an overview of how to navigate this process after your company is registered in Oman.

Step 1: Company Registration

The first step is successfully registering your company in Oman, as outlined in the previous article. Once your company is legally established, you can proceed with the application for residency visas for yourself and your employees.

Step 2: Labor Clearance and Visa Quotas

Labor Clearance: Obtain labor clearance from the Ministry of Labor in Oman. This involves submitting an application that outlines the number and type of employees you plan to hire. The ministry will assess your application based on several factors, including the nature of your business and its contribution to the Omani economy.
Visa Quotas: Once labor clearance is granted, the ministry allocates visa quotas for your company, determining how many foreign nationals you can employ.

Step 3: Applying for Residency Visas

With the labor clearance and visa quotas in hand, you can now apply for residency visas for yourself, your family (if applicable), and your foreign employees. The application process involves:

Application Submission: Submitting the visa application to the Royal Oman Police (ROP) along with the required documents, such as passports, photographs, health insurance, and the labor clearance approval.
Medical Checkup: Undergoing a medical checkup in your home country or in Oman, as required by the ROP. This typically includes tests for communicable diseases.
Biometrics and Interview: Providing biometric data and possibly attending an interview at the ROP.

Step 4: Obtaining the Immigrant Card

Once the residency visa application is approved, the ROP issues an immigrant card, which serves as your residency permit in Oman. This card allows you to live and work in Oman, enter and exit the country freely, and access various services.

Required Documents

The list of required documents for the residency visa application may include, but is not limited to:

Passport valid for at least six months.
Passport-sized photographs.
Valid health insurance.
Labor clearance approval.
Company registration documents.
Proof of accommodation in Oman.
Medical checkup report.

Additional Considerations

Sponsorship: In Oman, your company acts as the sponsor for your and your employees’ residency visas. It’s important to maintain compliance with all sponsorship responsibilities, including renewing visas before they expire.
Renewal: Residency visas and immigrant cards typically need to be renewed every two years. Keep track of expiry dates to ensure continuous legal status in Oman.
Dependents: If you plan to bring family members, separate applications for their residency visas are required, sponsored by you as the primary visa holder.

Conclusion

Obtaining an immigrant card in Oman as a foreign company owner involves a detailed process, starting from company registration to securing labor clearances and applying for residency visas. It’s essential to follow each step meticulously and comply with Omani regulations to ensure a smooth transition for you and your employees. Consulting with legal and immigration experts in Oman can provide additional guidance and support throughout this process.