Reasons to Set-up a Business in Oman

Business Setup in Oman : Oman, has been a favourite choice for investment by international investors for a long time now. It is unique in that it shares borders with 5 other countries, namely, Yemen, Iran, Saudi Arabia, Pakistan, and the UAE. It is an Arab country and its capital is Muscat. Geographically, it falls to the south-east end of the Arabian Peninsula. Its present population is around 4.7 billion. The regime in Oman is a monarchy and quite open to promotion of business and commerce for the development of the country. The World Bank has ranked it 71st in the Ease of Doing Business in 2018.The country’s economy has been growing year on year. By 2040, we can expect Oman’s economy to grow by around 10%.

Are you interested to set up your business in Oman? If that is so, then you have come to the correct place. Here we share with your information on the many advantages of Oman as a hub of investment. Take a look at just some of the points given below and any doubts remaining in your mind will surely vanish.

The Ninth Five-Year Development Plan (2016-2020)

Vision 2020 aims at building a strong economy for the future by promoting business incorporation, developing human resource, diversification of the economy and accelerating privatisation. So, the Ninth Five Year plan (2016-2020) gives a lot of importance to the completion of projects set up through Public Private Partnerships.

Entrepreneurship & Start-Ups

International initiatives in dialogue, networking and trade agreements have expanded the potential for foreign investments in Oman. This helps even small and medium industries, start-ups in Oman to benefit from it. The government of Oman aims to build a smart-city that will support the entrepreneurs. The country has also taken initiative to educate and skill professional in the energy sector by starting the first ever oil and gas institute in Oman. Many more such forward thinking ideas expected to be implemented.

Company Formation & Ownership in Oman

There are 3 major options for company formation in Oman as per Omani Law: Open Joint Stock Company, Closed Joint Stock Company and Limited Liability Company (LLC). From among the three options these, an LLC is the most preferred type of company formed in Oman. Here, the ownership of a foreign investor is 70%, and in certain special cases, it can be extended further, even to 100%.

No Personal Tax

Oman comes as a tax-free zone. That’s right, one doesn’t need to pay multiple taxes like income tax on one’s business profits or any individual income tax. There is only, a flat 15% corporate tax to be paid for companies. Goods movement across the Gulf Cooperation Council (GCC) is free from customs duties. The taxation system has definitely been an incentive that attracts investment opportunities in Omani market.

Vision 2040

The oil and gas industry is said to be the backbone of Omani economy. So, this sector is quite well developed., Many initiatives have been proposed to develop the other sectors like infrastructure, tourism, technology, hotel, transport, manufacturing, mining and perfume industry. Also, Muscat could serve as a bridge for trade between Asia and Africa. This initiative foresees– Oman’s vision 2040 forecasts an increase of 31 billion riyals by 2040 leading to substantial growth.

Exporting Non-Oil Products

As per reports from Oman’s business news , there is an upsurge of 28% in exports from Oman in 2017-2018. Expanding the export of non-oil products is a priority for the Omani government. This creates a huge opportunity for sectors like fishing, manufacturing, pharmaceutical, mineral mining, etc.

Multisector Projects Started

The country is working towards the completion of various projects in different sectors for the expansion of the economy. Salalah LPG Project, Mina Sultan Qaboos Waterfront Project, and Extension of Muscat International Airport are ongoing projects, to name a few. These projects are expected to act as a catalyst to the development of Oman’s economy that is growing by leaps and bounds.

Multiple Advantages

Whether it is infrastructure, connectivity, security of life, property rights, or international network, the steps initiated by the Ministry of Foreign Affairs and Commerce in Oman have created a favourable environment for entrepreneurs interested in investment opportunities, to implement their business plans, and successfully move towards economic empowerment.

Hence, one can see that Oman is a suitable destination to set up a new business. The government supports investors and encourages them to invest in national as well as international projects, thereby offering a chance to be a valuable contributor in global economy. Business Setup Worldwide is a platform that can facilitate in establish your business in Oman. Our business support services include company registration, accounting, bookkeeping, tax advisory and intellectual property protection. For more details, do contact us. We would be happy help you set up establishment and be a part of your success story.

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Originally posted 2021-09-29 05:13:25.