The business and legal framework in Oman has been designed in a flexible manner such that its business area can be fit easily by any corporate structure. Oman is found to be a developing platform to establish, the reason why it compels investors from every part of the world to come here. In current times, the location is in great demand. In case, you are an owner or investor, eager to start a new business in Oman, Joint Stock Company is one option that you can plan to incorporate. On going through the article, you will be clear about how initial steps should be taken in this direction. Let’s begin the journey..
About Joint Stock Company
The Joint Stock Company is considered to be a business structure, where power to sell or purchase the company shares is held by the shareholders. In short, JSC can be termed to be a company, where capital has been divided into shares to be shared at the open market. Take a clear look at Oman’s JSC.
Joint Stock Company in Oman
For owners and entrepreneurs alike, Oman does hold the best platform to initiate Joint Stock Company venture. Companies publicly trading their shares are referred to as SAOG (Public Joint Stock Company), while the ones which do not are referred to as SAOC. There are certain essentials to be followed, according to Omani rules, which are given below:
- Least share capital is to be OR 150,000
- Minimum 2 shareholders
- Minimum of 30% of shares to be held by an Omani shareholder
- Approval to be derived from Commerce & Industry Ministry
When company incorporation process is concerned, documentation does plan a crucial role. Given below are few essential documents which are necessary to establish a Joint Stock Company in Oman. Check out for..
Documents required to set up JSC in Oman
- For Omani citizens will be necessary Legal Guardian consent
- Company Feasibility Study + Articles of Association + Memorandum
- Proposed company by-laws
- Bank certificate clearly stating initial capital deposit
- Sponsor for Omani residents providing no objection letter
- Foreign persons carrying passport copy
- Foreigners requiring certification of criminal record clearance
- Financial stability proof
- Certificate of company registration
- Meeting minutes for Omani company
Procedure to establish JSC in Oman
- Reserve name for business entity
- Provide aforementioned documents for application to the DGC (General of Commerce Director)
- Make necessary payments. Response will be made by the DGC within 30 days period with regards confirming company formation
- Conduct CGM (Constitutive General Meeting) to align necessary actions to be taken prior to registration procedure
- Auditors and board members election
- Proper filling up of commercial registration form in Arabic and duly signed at Registrar Office
- On approval, it is necessary to collect Company Registration
So, the above can give a clear idea on the procedure to follow with regards to company formation in Oman. Being an investor, there is a genuine need to understand the benefits which comes through JSC establishment or investment in Oman. Go through the below details to identify the benefits which you need to be aware about.
Setting up JSC in Oman and its benefits
There are several benefits to be derived with the establishment of JSC in Oman, some of which are given below:
- 100% ownership
- There is no personal or corporate tax levied
- Being a strategic location, it allows entering into other Middle East countries
- Very fast developing economy
- World class infrastructures
- Huge amount of natural resources
Oil and gas industry over the years has managed to become a multi-business hub. Multiple steps are being taken relentlessly by the government to attract foreign investors and to make this location all the more feasible for business. In case, you plan to start a business and move ahead with the process of formation in Oman, it is definitely the best time to do so. The procedure can be made easier and simpler taking help of the business experts. OCR can help transform your dream into a grand reality. We are among the top UAE based business consultants helping our clients with their business incorporation procedure. Our services also include legal services, taxation, visa and accounting.