Company branch registration in Oman
Oman is one of Iran’s business partners that provides favorable services to foreign investors. This country enjoys a strategic position and has good access to global markets. Therefore, entering this country is considered a very suitable option for the development of companies’ business. Because the existence of an international branch, even in a country like Oman, has a significant effect on improving the position of a commercial company. In addition, by registering the company in Oman, communication and financial exchanges with foreign customers are facilitated. In addition, by opening a branch in Oman, the company’s shareholders can use the benefits of obtaining a one-year residency in Oman for themselves and their families. Especially, since 2020, the new FCIL law will be implemented in this country, according to which foreign investors do not need an Omani partner in certain areas.
The difference between a branch and a company representative
Before entering the topic of registering a company branch in Oman, it is necessary to explain the difference between a branch and a representative in legal terms. In the Companies Registration Law, the branch of a company is completely under the management of the company center and has no independent powers. According to these conditions, the difference between the branch and the representative office of the company, the legal consequences of the operation of the branch of a company will also be the responsibility of the main center of the company. But with the establishment of a representative office of a company, part of the main company’s duties are entrusted to its legal representative. Therefore, although the representative office of a commercial company operates under the management of the main center, it is responsible for its performance and must be responsible for the legal consequences of its work.
Company registration process in Oman
Submitting the company’s business plan to the Oman Chamber of Commerce and Industry (OCCI) and the Ministry of Trade and Industry (MOCI)
Depositing company capital in a local bank
Renting company premises in accordance with the laws of Oman
Obtaining permits related to the field of work
Obtaining municipal permits
Registration at the tax office
Register with the Royal Oman Police
Obtaining permission from the Ministry of Manpower to hire labor and receive social insurance for employees
Documents required to register a company branch in Oman
At the very beginning, to register a company branch in Oman, complete company documents must be submitted to the Ministry of Trade and Industry as follows:
The name and purpose of the company, the official license of the company, the address of the main place of the company and its communication methods (telephone and email).
Identification documents of founders, partners and CEO of the company
Documents related to determining the time of establishment, period of activity and financial year of the company
Documents related to determining the number of shares of partners or founders and their powers
Documents related to determining the amount of the company’s capital (cash and non-cash)
Documents that must be submitted in Oman to establish a company branch
The image of the registration certificate of the main company and its type of activity
Image of foreign company registration documents in Oman
Delegation of authority from the company’s headquarters to the manager or managers of the relevant branch
Declaration of the main company accepting responsibility for the branch’s activity
The image of the identification card of the authorized representatives
Confirmation of all the above documents in the competent authorities of Oman
Investment tips in Oman
In recent years, changes have been made in the law of registration of foreign companies in Oman, and in some economic fields, the presence of an Omani partner is not necessary.
In other areas, generally only 30% of the shares should be owned by the Omani shareholder. In addition, the Omani shareholder does not have the right to interfere in the management of the company.
To register a company in Oman, you must choose one of the types of companies in Oman, which are named as high-level, first-level, second-level, third-level and fourth-level companies. The registration conditions of each of these companies are different in terms of the number of partners and the minimum capital.
The benefits and conditions of registering a company branch in Oman are different in different regions of this country. For example, registering a company in Oman’s free trade zones is accompanied by a 50-year tax exemption.
Before taking any action, check the foreign company registration law in Oman together with the company’s lawyer. Of course, due to the complexity of legal texts, it is recommended to use the services of legal institutions active in the field of investment in Oman.