The legal and business framework of Oman is meticulously designed to accommodate a wide range of corporate structures, making it an attractive destination for investors globally. The country is recognized as a burgeoning platform for business establishment, thereby enhancing its appeal in the contemporary business landscape.
For those interested in establishing a business, whether as an investor or an owner, the option to incorporate a Joint Stock Company (JSC) in Oman is available.
Understanding Joint Stock Companies
A Joint Stock Company (JSC) represents one of the primary business structures, wherein shareholders possess the authority to purchase or sell company shares. Essentially, a JSC is a corporation where the capital is allocated into shares that are traded on the open market. Let us delve into the specifics of Joint Stock Companies in Oman.
Overview of Joint Stock Companies in Oman
Oman provides an ideal environment for business investors and owners to establish a JSC. Companies that offer their shares to the public are referred to as Public Joint Stock Companies (SAOG), whereas those that do not are classified as (SAOC). In accordance with Omani regulations, certain prerequisites must be met:
- The minimum share capital requirement is OMR 1,50,000.
- A minimum of two shareholders is mandatory.
- An Omani shareholder must own a minimum of 30 percent of the shares.
- Approval from the Ministry of Commerce and Industry is necessary.
The process of incorporating a company is significantly influenced by the documentation required. Below are the essential documents necessary for establishing a Joint Stock Company in Oman.
Documents Required to Start a Joint Stock Company in Oman
In the process of registering a Joint Stock Company (JSC) in Oman, the following documents are necessay, similar to those required for the registration of any other company. These documents are as follows:
- Legal Guardian Consent for Omani Citizens
- Memorandum and Articles of Association, in conjunction with the Feasibility Study Report for the company
- Drafting of the Company's By-laws
- Bank Certificate Confirming the Deposit of Initial Capital
- Non-Objection Letter from the Sponsor Affirming the Relation to the Residents of Oman
- Copies of Passports for Foreigners
- Criminal Record Clearance Certificate for Foreign Applicants
- Evidence of Financial Stability
- Certificate of Registration of the Company
- Minutes of the Company's Initial Board Meeting for Omani Companies
Now, we will proceed to discuss the process of establishing the company.
Process of Establishing a Joint Stock Company in Oman
For engaging in business activities within Oman, it is imperative to adhere to specific procedures. The following steps outline the process:
1. Selection of Business Name
Reserve a name for the business entity. It is essential to comply with relevant regulations to ensure adherence.
2. Submission of Required Documents
Submit the necessary documents to the Director General of Commerce (DGC) for review. Payment must be made at this stage. The DGC will respond within a period of 30 days following receipt of the application, confirming the formation of the company.
3. Conduct a Meeting and Finalise the Members
Organize a Constitutive General Meeting (CGM) to align the necessary actions prior to the registration process. This includes the election of board members and auditors.
4. Completion of Registration Form
Submit a commercial registration form in Arabic, which must be signed at the Registrar's Office. Upon approval, the Company Registration certificate will be issued.
With this information, you now possess a comprehensive understanding of the process involved in establishing a company in Oman. As an investor, it is crucial to be aware of the benefits that come with investing or establishing a Joint Stock Company (JSC) in Oman. Below, we will explore the benefits you should be cognizant of.
Advantages of Establishing a Joint Stock Company in Oman
The benefits that can be obtained through the establishment of a Joint Stock Company in Oman include:
- Full ownership.
- Absence of personal and corporate taxation in Oman.
- Strategic positioning, which facilitates entry into other Middle Eastern nations.
- A rapidly developing economy.
- Proactive government initiatives.
- A substantial reserve of natural resources.
- Superior infrastructure.
The oil and gas sector has evolved into a multifaceted business hub. The government has been diligently implementing various measures to enhance the attractiveness of the location for foreign investors. Now, is an opportune moment to commence the process of company formation in Oman. With the assistance of business consultants, the process becomes more straightforward and manageable.
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FAQs
What is the minimum share capital required for Oman Joint Stock Company?
- The minimum share capital required is OMR 150000
How many shareholders are required for a Joint Stock Company in Oman?
- A minimum of 2 shareholders are required.
Whose approval is required to start a Oman Joint Stock Company?
- You need to get permission from the Ministry of Commerce and Industry
How much will it cost to incorporate a Joint Stock Company in Oman?
- It depends on several aspects and in general, the price starts from 3,750 OMR
How many days will it take to start a Joint Stock Company in Oman?
- It takes 30 – 35 days.
