Advantages of Opening a Company in IFZA free zone

Setup Business in Oman with 100% foreign ownership: Under Foreign Capital Investment Law that has been introduced recently on 7th January, 2020, Oman companies can now enjoy 100% foreign ownership, except few services and trades in the Sultanate. There are about 37 commercial activities that have been prohibited for 100% foreign ownership. It includes transportation, photocopying & translation services, laundry, tailoring, automotive and vehicle repairs, selling of drinking water, recruitment & manpower services, salon & hairdressing services, fishing, taxi operation, rehab homes for orphans, disabled and the elderly. This blacklisted area only share a small part of the Omani Sultanate economy. A legal expert based in Muscat is of the opinion that the new law introduced by the Royal Decree 50/2019 (FCIL), new sectors are promised for 100% foreign investments.

Addleshaw Goddard Oman, Corporate Law specialists and Head of Corporate Oliver Stevens (Pictured) said, “Significant steps have been taken by the MOCI (Commerce & Industry Ministry) to modernize the new FCIL, so as to facilitate smooth, investment friendly regulatory authority in Oman. We are informed that the law allows all companies that are established in Oman with 100% foreign ownership, besides those practicing activities mentioned within the recently circulated ‘blacklist’.

He further added, “The blacklist specifies 37 activities not including segments which previously were stringent in Oman ownership requirements like restaurants, gas, oil and defence.

Emphasizing upon the significance of the new statute towards fulfilling Oman’s ambitions to boost foreign investment inflow, he noted that Oman market on introduction of the FCIL will only be placed in a much stronger position. Now, foreign investors are welcomed openly and there is a robust regulatory framework to conduct business.” He also pointed out that minimum share capital is not stipulated by the FCIL. “In what is believed to be a significant impact upon Oman’s foreign investment landscape, previous practices needing companies having 1+ foreign shareholders to own RO 150,000 (approx. $390,000) minimum starting share capital has been relaxed. It is essential to note that registration fees for such companies are higher at the Ministry than what they were previously and begins at RO 3,000 (approx. $7,800), subjected to increase, which again depends upon the new company’s proposed share capital.

Stevens further added, “As Executive Regulations get issued later this year, further clarity can be had pertaining to the specific provisions made in the new law.”