Free zones have consistently attracted the attention of investors when considering the establishment of a business within the GCC countries. These zones have significantly contributed to the influx of international enterprises into their respective nations, particularly due to the presence of certain areas designated as tax-free zones.
The process of forming a company within the Oman Freezone has been a preferred option for international investors, primarily due to the accessibility and facilitation of business expansion within these zones. Should you be planning to expand your business operations, Oman Freezones offer an attractive opportunity.
This guide aims to provide a comprehensive understanding of the company formation process within Oman Freezones.
Advantages of Establishing a Freezone Company in Oman
There are numerous advantages that can be accrued through the establishment of a freezone company in Oman. The following are the primary reasons that incentivize investment in Oman:
- A minimum lease period of 5 years is required.
- The absence of corporate tax for the duration of 30 years.
- Investors are granted complete ownership of their ventures.
- There is no stipulated minimum share capital requirement.
- Trade operations can commence within Oman without the necessity of a local agent.
- No duties are levied on import and export activities.
Industrial Free Zones in Oman
The Sultanate of Oman is home to four industrial free zones, each dedicated to the expansion of various business sectors and activities. These zones facilitate the importation of raw materials, processing, assembly, packaging, exportation of finished goods, and the storage and warehousing of products.
These free zones have been strategically categorized based on the sectors they cater to. It is advisable for investors to select a zone that aligns with their industry and business requirements.
For those considering Oman freezone company formation, there are four free zones available:
The Sohar Free Zone |
This port, spanning 4,500 hectares, is a deep-sea facility that has drawn in nearly USD 26 Billion in investment and is recognized as one of the world's most rapidly expanding ports. Furthermore, it will be tasked with the management of Oman's Food Reserve. |
The Salalah Free Zone |
This complimentary zone provides a range of services pertaining to incorporation and business relationship management for enterprises intending to expand their operations into the Middle East, Africa, Southern Europe, and Asia. The allure of this location stems from its competitive advantage in terms of labor, utilities, and infrastructure costs. |
The Al Mazunah Free Zone |
Established in the year 1999, the Al Mazunah Free Zone is situated in proximity to the Yemeni border, thereby serving as the gateway to the Gulf region for the entry into the Republic of Yemen and countries in East Africa. This zone is recognized as a commercial, service, and industrial hub. |
The Duqm SEZ |
One of the prospective major economic zones is situated in Duqm Special Economic Zone (SEZ). Spanning an area of approximately 1,745 square kilometers, the zone has been segmented into eight sub-zones, each designated for various investment sectors including industries, seaports, dry-docks, tourism, fisheries, among others. |
Process for Establishing a Company in Oman Free Zone
For investors interested in establishing a company within the Oman Free Zone, it is imperative to adhere to the following steps:
1. Submission of Plot Application Form
Submit the designated form and negotiate the commercial terms of the agreement.
2. Preparation of Essential Documents
The requisite documents for company formation in Oman Free Zone include:
- A No Objection Letter to the Ministry of Environment and Climate Affairs.
- A figurative representation of the total employment generation potential.
- The names of the investors along with their nationalities.
- A business plan accompanied by the required capital investment.
- Details regarding the total electricity and water consumption.
- Contact information for the investors.
- An estimation of the projected cargo volume.
3. Completion of Due Diligence Process
Select an appropriate plot, obtain approval for its application, and ensure the completion of the due diligence process.
4. Payment of Oman Free Zone License Fee
Establish your company in Oman, commencing operations from OMR 1999, and avail our services for the registration of your company.
5. Finalization of Procedures
Acquire the Certificate of Incorporation and sign the lease agreement.
In summary, the Oman Free Zone is evolving and presents a promising platform for business investors. The location offers significant potential for both established and emerging businesses, facilitating the expansion of operations to neighboring countries. To initiate this process, it is advisable to consult with a business consultant who is well-versed in the legal framework and business establishment procedures of Oman. This consultation will expedite the incorporation process and ensure a smooth operation.
Feel Free To Reach Out To Us For More Information On Company Formation Oman With Innovative Digital . Our Dedicated And Experienced Team Will Respond To Your Inquiry Within The Next 24 Hours. Call Or Whatsapp Us +968 7110 6867 Or Email: Info@innovativedigital.om
FAQs
How many free zones are there in Oman?
There are four free zones in Oman:
- The Al Mazunah free zone
- The Salalah free zone
- The Sohar free zone
- The Duqm SEZ
What are the essential documents for an Oman Free Zone company?
The subsequent documents are of paramount importance:
- The names of the investors, accompanied by their respective countries of origin.
- The business plan, inclusive of the capital investment.
- A symbolic depiction of the total employment generation potential.
- The comprehensive requirements for electricity and water.
- Contact information for the investor.
- An estimation of the projected cargo volume.
- A No Objection Letter to be submitted to the Ministry of Environment and Climate Affairs.
What benefits can be availed from incorporating an Oman Free Zone company?
The subsequent advantages are available:
- Investors are granted complete ownership.
- There is no requirement for a minimum share capital.
- A period of 30 years is exempt from corporate tax.
- Duties are waived for import and export processes.
- A lease of at least 5 years is mandatory.
- Trade operations may commence within Oman without the necessity of a local agent.
What is the Duqm SEZ an important free zone?
The significance of this area, spanning nearly 1,745 square kilometers, is underscored by its division into eight sub-zones, each offering distinct investment opportunities. These include industries, seaports, dry docks, tourism, fisheries, among others.
What are the different free zone business activities allowed in Oman?
The free zones facilitate the importation of raw materials, processing, assembly, packaging, exportation of finished products, and the storage and warehousing of goods, among other activities.
