How To Start Freezone Company In Oman

Investors have consistently found free zones to be an attractive option when considering business establishment in the GCC countries. These zones have significantly contributed to attracting international enterprises, primarily due to their tax-exempt status in specific areas.

The process of forming a company in Oman’s free zones has become particularly appealing to global investors, thanks to the advantages these zones offer for business development. If you are looking to expand your operations, exploring the free zones in Oman could be a viable option.

This guide aims to provide a comprehensive overview of the company formation process within Oman’s free zones.

Advantages of Establishing a Freezone Company in Oman

There are numerous advantages associated with forming a freezone company in Oman. Here are some compelling reasons to consider investing in Oman:

• A lease duration of at least 5 years.
• Zero corporate tax in Oman for a period of 30 years.
• Investors enjoy complete ownership at 100 percent.
• There is no requirement for a minimum share capital.
• Businesses can commence operations in Oman without needing a local agent.
• There are no duties applied to import and export processes.

Industrial Free Zones in Oman

The Sultanate of Oman features four distinct free zones, each designed to promote the development of various business sectors and activities. These zones facilitate the importation of raw materials, processing, assembly, packaging, exportation of finished goods, as well as storage and warehousing solutions.

Each free zone is categorized based on the specific business sectors it serves. It is essential to choose a zone that aligns with your industry and business requirements.

Oman offers four free zones where company formation can take place.

The Sohar Free Zone	This deep-sea port spans 4,500 hectares and draws nearly USD 26 billion in investment, making it one of the fastest-growing ports globally. Additionally, it will oversee Oman’s Food Reserve management.
The Salalah Free Zone	This free zone provides services for incorporation and support to companies looking to grow their operations in the Middle East, Africa, Southern Europe, and Asia. Its appeal is enhanced by the low costs associated with labor, utilities, and infrastructure.
The Al Mazunah Free Zone	Founded in 1999, the Al Mazunah free zone is situated near the Yemeni border, serving as the Gulf's entry point to the Republic of Yemen and East African nations. This zone functions as a center for commerce, services, and industry.
The Duqm SEZ	The Duqm Special Economic Zone (SEZ) is poised to become one of the largest economic hubs of the future. Spanning nearly 1,745 square kilometers, this zone is segmented into eight distinct sub-zones, each catering to various investment sectors, including industry, seaports, dry-docking, tourism, and fisheries.

Steps for Establishing a Company in Oman's Freezone

Investors interested in forming a company in Oman's Freezone should adhere to the following procedure:

1. Submit the Plot Application Form  

Complete and submit the application form, ensuring that an agreement is reached on the commercial terms.

2. Prepare the Necessary Documentation 

The following documents are required for company formation in Oman's Freezone:

• A No Objection Letter from the Ministry of Environment and Climate Affairs  
• A detailed representation of anticipated employment generation  
• Names of the investors along with their countries of origin  
• A comprehensive Business Plan including Capital Investment  
• Total requirements for electricity and water  
• Contact information for the investor  
• Projected cargo volume  

3. Complete the Due Diligence Process  

Choose a plot, obtain the necessary approvals, and finalize the due diligence process.

4. Settle the Oman Free Zone License Fee  

Establish your company in Oman starting at OMR 1999* and take advantage of our services for company registration.

*Prices may vary. Please contact us for the latest information.

5. Conclude the Final Steps  

Obtain the Certificate of Incorporation and execute the lease agreement.

In summary, Oman’s free zones are advancing and offer an excellent investment opportunity for business investors. The region presents significant potential for both established enterprises and startups, enabling investors to extend their operations into neighboring markets.

To kick off the process, it is advisable to consult with a business expert familiar with Omani legal requirements and business establishment procedures. This will facilitate a quicker and smoother incorporation of your entity.

Unsure about whom to contact? Rest assured, we are here to assist you.

Get your Company Registration in Oman with help of our professionals. To get free quote get in touch with us today.

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 documents listed below are crucial:

• Names of the investors and their respective countries of origin
• Business Plan including Capital Investment
• A visual depiction of overall employment creation
• Total requirements for electricity and water
• Contact information of the investor
• Estimated cargo volume
• A No Objection Letter addressed 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 can enjoy complete ownership.
• There is no minimum share capital requirement.
• A corporate tax exemption is granted for a duration of 30 years.
• No duties are applied to import and export processes.
• A minimum lease term of 5 years is required.
• Trade operations can commence within Oman without the need for a local agent.

What is the Duqm SEZ an important free zone?

The significance lies in the fact that the region, covering nearly 1,745 square kilometers, has been segmented into eight sub-zones, each offering diverse opportunities for investment in sectors such as industry, seaports, dry-docking, tourism, and fisheries.

What are the different free zone business activities allowed in Oman?

Free zones facilitate the importation of raw materials, as well as the processing, assembly, and packaging of goods. They also support the export of finished products and provide storage and warehousing services for various items.