Oman as a jurisdiction is an attractive destination for investments; it plays a major role in developing economies and is considered one of the most economically vibrant countries in the Middle Eastern Gulf region. The country has managed to cultivate a pro-business climate, diversifying its economy and making it open to foreign investments and incorporation of businesses. The country is currently under a sultanate regime whereby the country is currently directed towards sustainable growth and business-friendly practices. Foreign Investors who have chosen to incorporate in Oman are allowed to tap plenty of resources offered by the different ministerial bodies of Oman to help assist with the development of businesses, allowing for companies to make the most of wealth opportunities that Oman provides. One such initiative provided by the jurisdiction is the development of Oman Free Zones that allow for tax benefits and various other incentives to firms incorporated in those areas. Before you proceed to register company in Oman, allow Tetra Consultants to share 5 advantages of Oman free zone company.
1) What are Oman Free Zones and Their Advantages
Before sharing about the advantages of Oman free zone companies, it is important to know and understand what constitutes the Oman free zone and what are the effects of it. A free zone is usually an area within which goods, products and businesses can be conducted without intervention of customs authorities, as opposed to operating in a non-free zone area. The primary purpose is to remove from high tariffs and complex custom regulation, which attracts a lot of foreign investors given the incentives provided. As Oman is located on the south-east coast of the Arabian Peninsula, it provides a strategic location to act as a commerce centre for markets to connect Europe, Africa and Asia. Realising the benefit of its location, the government of Oman has designated three different free zones as of date as part of the country’s national development plan. The three free zones in Oman are namely the Sohar Free Zone, Salalah Free Zone and the Almazunah Free Zone, each with their unique incentives catered towards different industries which will be further discussed later.
In general, setting up a Oman free zone company will grant your business 5 different advantages which are:
1) Tax exemption for up to 30 years
2) 100% foreign ownership
3) Capital and profit repatriation
4) Transparent legal system
5) Custom Exemptions
2) Sohar Free Zone Incentives:
Registering a Oman free zone company in the Sohar Free Zone is ideal for investors who are involved in the field of steel and metals, logistics and supply chains as well as food sectors. Firms will be able to benefit from a profitable outreach to both regional and international markets from accessing global shipping routes, particularly to the Middle East, Indian and East-African markets. The specific Sohar Free Zone incentives entails 100% foreign ownership, corporate tax holiday for up to 25 years, 0% import and export duties, 0% personal income tax as well as free trade agreements with the United States (US) and Singapore. Additionally, investors do not need to meet a minimum share capital requirement prior to incorporating in the Sohar Free Zone area.
3) Salalah Free Zone Incentives:
Registering a Oman free zone company in the Salalah Free Zone is ideal for investors who are involved in the industrial estate business, supply chain and logistics, tourism and other mixed-use developments. The Salalah Free Zone issues various types of licenses that allows for ease of trading and doing business. A General Trading License will allow the holder to import, export, distribute and store goods according to the Free Zone rules and regulations. A Trading License grants the holders similar rights as a General Trading License, except that the items are specified and not as flexible as the General Trading License. An Industrial License will grant the holder clearance to import raw materials and carry out manufacturing of specific products without the need of permission from respective ministries.
4) Al Mazunah Free Zone Incentives:
Registering a Oman free zone company in the Al Mazunah Free Zone is ideal for investors who are involved in the industry of warehousing, food processing and industrial sectors. The Al Mazunah Free Zone is located in Oman’s southern area, close to the Yemeni borders. This allows for a strategic trade transit between the Republic of Yemen and other countries of East Africa. Similar to the Sohar Free Zone incentives, companies incorporated in the Al Mazunah Free Zone are exempt from paying custom fees on imports and there is no capital requirement. Investors will be able to enjoy a 30 year tax holiday when operating within the Al Mazunah Free Zone area.
Engage Tetra Consultants as we guide you on how to register a company in Oman through a smooth and hassle-free process. The team provides a comprehensive service package that includes planning and strategizing with our clients to select a suitable business entity, completing the registration and documentation processes, obtaining required licenses, opening a corporate bank account, and ensuring your compliance with the government regulations.
Contact us to find out more about company registration in Oman and our dedicated and experienced team will revert within the next 24 hours.