Free zones have always been a draw for investors looking to start a business in the Gulf Cooperation Council (GCC) countries. As certain areas they hold stand as tax-free zones, these zones have played an important role in attracting international businesses to their respective countries. Because of the availability of free zones, Oman has always been a popular destination for international investors looking to start a business. If you want to expand your business in Oman, free zones are a great option. This guide will give you an overview of how to set up a company in Oman’s free zones.
Oman’s Industrial Free Zones
The Sultanate has four free zones dedicated to the development of various business sectors and activities. Importing raw materials, processing, assembling, packaging, exporting finished products, and storing and warehousing products are all permitted in the zone. Oman has many free zones.
The free zones have been classified according to the types of businesses they support. A zone should be chosen based on one’s industry and business needs. In Oman, there are four free zones:
Al Mazunah, which opened in 1999 and is close to the Yemeni border, serves as the Gulf gateway to the Republic of Yemen and East African countries. This zone serves as a crossroads for the commercial, service, and industrial sectors.
This free zone provides solutions for companies looking to expand their operations into the Middle East, Africa, Southern Europe, or Asia. Because of the low cost of labor, utilities, and infrastructure, the location becomes a desirable destination.
It is a 4,500-hectare deep-sea port that attracts nearly US$26 billion in business and is one of the world’s fastest-growing ports. The port is expected to assume management of Oman’s National Food Reserve.
Duqm SEZ (Special Economic Zone)
Duqm SEZ is home to one of the world’s largest economic zones in the future. With an area of nearly 1,745 square kilometers, the zone has been divided into eight sub-zones that hold various investment opportunities such as industries, seaports and dry docks, tourism, fisheries, and so on.
Let’s take a look at the advantages of establishing a business in Oman.
The Advantages of Starting a Business in the Oman Free Zone
- Investors get 100% ownership
- No Minimum Share Capital requirement
- No Corporate tax for a period of ten years
- No duties are imposed on import and export procedures
- Minimum 5 years of lease trade can start within Oman without a local agent
How do I start a business in the Sultanate of Oman’s Free Zone?
To incorporate a business in the Oman free zone, an investor must follow the steps outlined below:
- Submit the Plot Application Form
- Reach an agreement on the Commercial Terms
- Submit a No Objection Letter to the Ministry of Environment and Climate Affairs
- Clear the due diligence process
- Select a plot and get approval for its application
- Pay the lease, incorporation, and license fee
- Collect the Certificate of Incorporation
- Sign the lease agreement
Required Documents for Starting a Business in the Oman Free Zone
- Name of the investors along with their country of origin
- Plot size required to set up a business
- Business Plan along with Capital Investment
- A figurative representation of total employment generation total electricity and water requirement
- Contact details of the investor
- Projected cargo volume
Cost for Establishing a Free Zone Company in Oman
|Business Registration||OMR 1,050-1,550|
|Commercial/ Logistics License||OMR 385 (annual)|
|Industrial/ Manufacturing License||OMR 385 (annual)|
|2-Year Visa||OMR 201|
To summarise the information, we can say that Oman’s free zones are progressing and providing a great investment opportunity for business investors. The location has a lot of potential for both established businesses and startups, and it also allows investors to expand their businesses into neighboring countries. To begin the process, speak with a business consultant who is familiar with Omani legal rules and regulations, as well as business setup procedures. This will allow you to incorporate the company more quickly and without hassle. Are you unsure who to approach? Don’t be concerned. We’ve got you covered.
NextaOne Business Solutions Oman
NextaOne Business Solutions has been helping firms and entrepreneurs establish their business in Oman. Our experts are well-versed with the Omani business framework and will cater to your needs accordingly. To proceed towards starting a business in Oman today, do contact us. We’d be happy to assist.
Contact Us to set up your business in Oman:
Al Maha St, Al Khuwair, Muscat, Oman
Call: +968 9126 0908
WhatsApp: +968 9126 0908 (Click Here)