How to establish a company in Sultanate of Oman Step-by-Step Legal Guide
Permeable
In the third episode of this legal guide series on how to establish a company in the Sultanate of Oman, we stopped at the requirements that must be fulfilled before incorporation and preparation. We explained the capital requirements for each type of entity to be established, as well as the key documents that must be prepared and submitted at the beginning of the incorporation process for any entity.
Continuing from that point, we have seen it necessary to outline the incorporation process step by step in a concise manner. However, it should be noted that the incorporation process is divided into two parts:
- Procedures carried out at the Ministry of Commerce, Industry, and Investment Promotion (initial procedures).
- Registration with authorities other than the Ministry of Commerce, Industry, and Investment Promotion (secondary registrations). As detailed below:
Procedures at the Ministry of Commerce, Industry, and Investment Promotion (Initial Procedures):
1. Name Reservation and Initial Approval
The incorporation process officially begins with reserving the company name through the “Invest Easy” portal, which is Oman’s online business registration platform.
Applicants must propose threepotential names for the intended entity. One of these is approved by the Commercial Registry Department at the Ministry of Commerce, Industry, and Investment Promotion. Name reservation approvals are usually granted within one or two business days.
Afterward, investors must obtain preliminary approval from the Ministry of Commerce, Industry, and Investment Promotion to confirm their eligibility to engage in the proposed activities.
2. Submission and Authentication of Documents
Once preliminary approval is obtained, investors must submit the full package of documents to the Ministry of Commerce, Industry, and Investment Promotion. The Ministry reviews all documents to ensure compliance with applicable laws and regulations in the Sultanate.
This stage includes authentication of the key documents—particularly the Articles of Association and the Memorandum of Association—which must be signed by the investors in front of a notary public.
Some activities may require additional approvals from specific authorities, especially if related to ministerial or financial sectors, such as the Ministry of Health for medical activities or the Central Bank of Oman for banking and financial activities.
3. Commercial Registration and License Issuance
After verifying the documents, the Ministry issues the Commercial Registration Certificate, which legally establishes the commercial entity. This is referred to as the initial establishment. However, the investor cannot commence business activities under the Commercial Registration until a Unified Commercial License is obtained, which authorizes the practice of commercial activities.
The license specifies the permitted activities and may require further approvals depending on the sector, as mentioned earlier. The registration process typically takes between two to six weeks, though more complex applications or those requiring additional approvals may take longer.
Secondary Registrations:
After incorporation, companies must complete the mandatory secondary registrations with various government authorities, which include:
- Tax Registration: Register with the Tax Authority within 30 days of incorporation to obtain a tax card and tax identification number.
- Chamber of Commerce: Register with the Oman Chamber of Commerce and Industry to obtain a chamber membership card.
- Social Security: Register with the Public Authority for Social Insurance for Omani employees.
- Municipal Licensing: Obtain all required municipal licenses, such as approval for commercial premises, lease contract attestation, business activity permits, etc.
- Ministry of Labor: Register with the Ministry of Labor to obtain workforce planning approval, issue work permits, register employment contracts, and then issue visas.
We have outlined here the incorporation process step by step in a concise manner so that investors and readers can have a clear understanding of how to establish a business entity in the Sultanate of Oman. However, investors should take into consideration that there are compliance and operational requirements after incorporation, such as opening bank accounts and issuing visas, in addition to ongoing compliance obligations that must be adhered to. These will be discussed in detail, God willing, in the next episode. We hope you stay tuned for the upcoming episodes, God willing.