INVESTOR`S GUIDE

This guide is being published as part of the efforts of Oman chamber of commerce and industry aimed at boosting the private sector`s activities ,both local and foreign ,with the laws pertaining to carrying out business activities in the sultanate .

In addition, it`s contains details of the procedures, terms and conditions of registration of various types of companies as different government department.

Types of commercial companies:

  1. 1-general Partnership Company

General partnership company is acommercial company formed by two or more natural or juristic persons and which aims at practicing business under a certain trade name .the partners of ageneral partnership company shall be jointly and severally liable for the general partnership company`s debts to the full extent of their property

  1. Limited partnership company

One or more general partners who shall be jointly and severally liable for the limited partnership company`s debts to the full extent of their property

One or more limited partners whose liability for the partnership company`s debts shall be limited to the amount of their contribution to the partnership company`s capital.

The capital of it shall not be less than O.R 2million.

The limited partnership company is a commercial company that comprises tow categories of partners:

3-joint stock company:

Ajoint stock company is acommercial company whose capital is divided into equal negotiable shares pursuant to the commercial companies’ law in Oman.it is formed by minimum three natural or juristic persons.

4-holding company:

Aholding company is either ajoint-stock company or limited liability company with financially and administratively controls one of more other companies that become subsidiary to such company by means of its holding AT LEAST 51% OF SUCH company or companies whether they are joint companies or limited liability companies.

5-limited liability company:

Is a commercial company with affixed capital divided into equal shares .it consist of two or more natural or juristic persons whose liability is limited to the nominal value of their shares in the capital of the company .the number of partners of it shall not exceed 40(forty)partners.

6-joint venture

It is a commercial company formed by two it is a commercial company with affixed capital divided into equal shares and consists of two or more natural or juristic persons whose liability is limited to the Omani value of their shares and their number shall not be exceed 40(forty)partners.

Seconded ministry of commerce and industry registration formalities:

1-registration of proprietary business:

  • Completion of the relevant registration form
  • Submission of copies of the identity papers of the proprietor and the authorized signatories
  • Completion of the specimen signature form attached to the application form
  • Payment of the specified fees.

Note:

The approval of the concerned entity for carrying out the activity should be submitted before submitting the registrationapplication.

Completion of the forms pertaining to the departments in one-step-shop.

License for these companies shall be issued by all the government departments participating in the one-stop-shop(investors service department).as far as the applicants from gulf citizens are concerned ,the dealing with them will be same as Omanicitizens.

2-registration with the assets of an existing proprietary business:

  • Official sales deed attested by a notary public or by the ministry of commerce and industry
  • Writing consent of the mortgager if the establishment was mortgaged
  • Original copy of the commercial registration
  • The company`s memorandum of incorporation.
  • New specimen signature form.
  • Approval of the concerned entities if the establishment`s activity prior to the sale.
  • Payment of the specified fees.

3-registration of an Omani company with Omanipartners:

  • Completion of the relevant registration form
  • Completion and signing of the memorandum of incorporation.
  • Copies of the identity papers of the papers of the partners and authorized signature.
  • Completion of the specimen signature
  • Payment of the stipulated fees.

4-registration of an Omani company with GCC partners:

  • Completion of the relevant application form.
  • Completion and signing of the memorandum of incorporation
  • Copies of the identity papers of the papers of the partners and authorized signature.
  • Completion of the specimen signature

Note:

The percentage of the share that can be owned by the GCC partners in Omani companies shall be subject to the laws ,in most cases will be 50% but some activities such as contracting,…. etc. GCC citizens are allowed to own up 100%

Companies to be registered asOmani-GCC joint companies don’t require submitting any b bank proofs.

5-registration of aGCC commercial office:

  • Completion of the relevant application form.
  • A copy of attested articles of association or memorandum of incorporation.
  • An attested authorization by the head office in the name of the branch manager to manage the office in Oman.
  • Copies of identity papers of the authorized signatories.
  • Specimen signature.
  • Payment of the specified fees.

6-registration of accompany coming under thepurview of foreign capital investment law:

  • Completion of the relevant application form.
  • Completion and signing of the memorandum of incorporation.
  • Copies of identity papers of the authorized signatories.

7-registration of a branch of a foreign company:

  • Completion of the relevant application form.
  • Completion and signing of the memorandum of incorporation.
  • An attested letter by the head office undertaking the responsibility of the jobs carried out by its branch in Oman, and the names of the managers who manage the branch in Oman.
  • Acopy of agreement signed between the company and the government body.
  • Copies of identity papers of the authorized signatories.

8-registration of foreign commercial office:

  • Completion of the relevant application form.
  • A copy of attested articles of association or memorandum of incorporation.
  • An attested letter by the head office undertaking the responsibility of the jobs carried out by its branch in Oman, and the names of the managers who manage the branch in Oman.
  • An attested certificate showing the registration of the head office of the establishment or the company (in the country of origin).
  • An attested authorization issued by the head office in the name of the branch manager(s) to manage the office in Oman.
  • An attested certificate showing the company has been registered in its country of origin before ten years.
  • Copies of identity papers of the authorized signatories.
  • Specimen signatures.
  • Payment of the specified fees.

Note:

Foreign commercial offices are allowed to carrying out only the activities mentioned in the ministerial decision No.22/2000.

9-registration of foreign commercial representation office:

  • Completion of the relevant application form.
  • A copy of attested articles of association or memorandum of incorporation.
  • An attested letter by the head office undertaking the responsibility of the jobs carried out by its branch in Oman, and the names of the managers who manage the branch in Oman.
  • An attested certificate showing the registration of the head office of the establishment or the company (in the country of origin).
  • An attested authorization issued by the head office in the nam of the branch manager(s) to manage the office in Oman.
  • An attested certificate showing the company has been registered in its country of origin before ten years.
  • Copies of identity papers of the authorized signatories.
  • Specimen signatures.
  • Payment of the specified fees.

10-registration of acommercial agency:

  • Completion of the application form with the finance stamp affixed on it.
  • Original+copy of the agency agreement attested by the Omani embassy and the chamber of commerce and industry in the country of the principal.
  • An Arabic translation of all pages of the agreement attested by the stamps of the company in all pages.
  • Acopy of OCCI certificate.
  • Payment of RO(1.400) RIAL OMANI ONE AND BAIZA FOUR HUNDRED AS REGISTRATIONFEE
  • Payment of RO10 to Oman chamber of commerce and industry.

Note:

If Omani embassy is not available in the country of the principal,the authorization can be attested by the embassy of an Arab country available there.

11-registration of acommercial agency:

  • Completion of the renewal application form.
  • Acopy of the OCCI subscription certificate.
  • Payment of OR 50/- as the renewal fee.

Note:

If the renewal application was not submitted in due date, delay penalty ofOR50/- shall be levied ,starting from the first day from the date of expiry of the registration of the commercial agency.

If the previously registered deed had expired, adocument showing the continuity of the agency shall be submitted with an Arabic translation and approved by the principal and duly attested as required.

12-registration of atrade mark:

  • Completion of the prescribed official form and affixing revenue stamps on it.
  • Acopy of CR and computer sheets
  • Payment of OR25/400

Note:

If the trade mark registration applicant was aforeign company the following should be submitted additionally:

  • A dully attested power of attorney in favor ofa person resident in Oman.
  • An official extract of the CR.
  • An official translation of the power of attorney of the extract of CR if it was not in Arabic.

13-cancellation of a commercial agency :

  • A letter from the principal or the agent for canceling.
  • Original agency license issued by the ministry of commerce and industry.

14-procedures related to general partnership, limited partnership and limited liability companies:

Adding an activity:

Written approval of the mortgage if the company was mortgaged.

Addition form.

Copy of OCCI subscription certificate.

Increasing capital:

  • Amendment deed of article 3and4 of the memorandum of incorporation.

Reducing capital:

  • Amendment deed of article 3and4 of the memorandum of incorporation.
  • Investment license amendment fee should be paid if it had foreign partnership.

Changing the trade name:

  • Amendment deed of article 1 of the memorandum of incorporation.
  • Approval on the new trade name.

Liquidation completion of the preprocess:

  • Minutes of the partner meeting showing their approval on the result of liquidation.
  • Acopy of the liquidator`s report
  • Acheque for OR 50/- favoring the official gazette for publishing the announcement in it.

Renewal of the commercial registration:

  • Completion of the relevant registration form>
  • Submission of copies of the specimen signature
  • Copy of OCCI subscription certificate.

Cancellation of a proprietorship business:

  • Completion of the cancellation application form.
  • Submission of original CR.

Guidelines for leasing industrial lands at industrial estates:

  1. Obtaining approval from the ministry of commerce and industry
  2. Environmental permit for the ministry of regional municipalities and environment.
  3. Obtaining form for establishing new industrial project.

Guidelines for obtaining environmental permits:

Group one:industrial projects; includes the following projects:

  • Chemical and petrochemical projects.
  • Oil and gas projects.
  • Water purification and desalination plants.
  • Power generation station.
  • Textile projects.
  • Organic fertilizers.
  • Training and leather manufacturing projects.
  • Metal smelting and refining.
  • Other projects as determined by the ministry.

General requirements that apply to all the projects listed within this group:

  1. The applicant should submit completed application form of the environmental permit.
  2. Conduct an environmental impact assessment study.
  3. The applicant should attach documents specifying the production process.
  4. The applicant should attach an ownership deed and copies of all the permits.
  5. He is fully financially and legally responsible for any environmental damages resulting from the project.
  6. Consider coastal setbacks.
  7. Should provide a copy of permit to store chemical issued by directorate general of civil defense.
  8. Based on the nature of the project and its location the ministry may have additional requirements.

Group two:mining projects

  • Quarries.
  • Crushers.
  • Gypsum production(decorationornamental sheets).
  • Marble,floor tiles production and ceramic factories.
  • Extraction of minerals.
  • Other projects as determined by the ministry.

General requirements that apply to all the projects listed with in this group:

  1. Applicant should submit an approval from, department of mines and quarries of the ministry of commerce and industry.
  2. Completed application form for the environmental permit.
  3. The proposed project site should be located outside the protected areas.
  4. He is fully financially and legally responsible for any environmental damages resulting from the project.
  5. Consider coastal setbacks.
  6. Control the noise pollution.
  7. The applicant for a quarry/crusher projects is required to provide a bank guarantee of OR.5000/- VALID FOR THE PERIOD OF APPROVAL.
  8. Based on the nature of the project and its location the ministry may have additional requirements.

GROUP THREE: AGRICULTURE PROJECTS.INCLUDES THE FOLLOWING PROJECTS:

  • Poultry farms (poultry, broilers and chicken rearing).
  • Livestock pens.
  • Slaughterhouse.
  • Agriculture products and animal fodder.
  • Other projects as determined by the ministry.

General requirements that apply to all the projects listed within this group:

  1. The applicant should submit completed application form of the environmental permit.
  2. Should submit an approval of ministry of agriculture and fisheries department of mines and quarries
  3. The project shall be located far from residential areas and main roads.
  4. He is fully financially and legally responsible for any environmental damages resulting from the project.
  5. Population control.
  6. The applicant shall not commence operations before obtaining the necessary approvals.
  7. Based on the nature of the project and its location the ministry may have additional requirements.

Group four:food projects,its include the following projects:

  • Dairy production.
  • Bakeries.
  • Food production and packaging.
  • Flour mills.
  • Other projects as determined by the ministry.

General requirements that apply to all the projects listed with in this group:

  1. The applicant should submit a completed application form for the environmental permit.
  2. Submit an approval from ministry of commerce and industry.
  3. The proposed project should be located in the area designated;agriculture,commercial or industrial.
  4. He is fully financially and legally responsible for any environmental damages resulting from the project.
  5. Should attach technical information describing production process such as machinery catalogues, floor plans and production process.
  6. Should provide the designated ministry`s staff with unrestricted access to the project site.
  7. The company shall collect solid non-hazardous waste and dispose at a site approved by the local municipality.
  8. Industrial wastewater shall be discharged into a septic tank annexed to a holding tank
  9. Non-hazardous solid waste shall be collected from the site and dispose immediately in the designated site.
  1. Based on the nature of the project and its location the ministry may have additional requirements

Group five:service projects; include the following

  • Roads
  • Water supply system.
  • Commercial and residential complex.
  • Storage and recharge dams.
  • Hospitals and health centers.
  • Electric supplies and telephones.
  • Permanent and temporary labour camps.
  • Wastewater treatment plants.
  • Other projects as determined by the ministry.

General requirements that apply to all the projects listed within this group:

  1. The applicant should submit a completed application form for the environmental permit .
  2. Aletter from the project owner shall be submitted.
  3. The project designed shall be providing all concerned government approvals.
  4. The project owner is fully financially and legally responsible for any environmental damages resulting from the project.
  5. Should provide the designated ministry`s staff with unrestricted access to the project site.
  6. Based on the nature of the project and its location the ministry may have additional requirements

Group six:marine and coastal projects this group includes the following projects:

  • The applicant should submit a completed application form for the environmental permit.
  • Aletter from the project owner shall be submitted.
  • The project designed shall be providing all concerned government approvals.
  • Based on the nature of the project and its location the ministry may have additional requirements

Group seven:tourism projects include the following

  • Hotels.
  • Temporary tourist camps.
  • Tourist resorts and villages.
  • Tourist boats.
  • Other projects as determined by the ministry.

General requirements that apply to all the projects listed within this group:

  1. The applicant should submit an approval from the ministry of tourism.
  2. The applicant should submit a completed application form for the environmental permit and if necessary attach an environmental impact assessment study.
  3. The proposed project should be located in an area designated tourism or commercial
  4. The project designs shall be submitted.
  5. Care should be taken during construction to avoid damage to the roads and creating traffic jams.
  6. The project owner is fully financially and legally responsible for any environmental damages resulting from the project.
  7. The company should ensure that the proposal location comply with coastal setbacks specified in the ministry`s regulation.
  8. The company shall control the construction dust with water spraying or other method approved by the ministry.
  9. The applicant should provide the designated ministry`s staff with un restricted access to the project site to ensure that all relevant environmental impacts of the projects are being considered.
  10. Based on the nature of the project and its location the ministry may have additional requirements

Group eight: light industries it’s include the following projects:

  • Small brick factories.
  • Gas cylinders storage and sale.
  • Car wash, oil change and car repair workshops.
  • Other projects as determined by the ministry.

General requirements that apply to all the projects listed within this group:

  1. The applicant should submit an approval from the ministry of commerce and industry
  2. The proposed project should be located in areas designated (industrial).
  3. To submit acopy of the site ownership.
  4. To submit an application form for the environmental permit.
  5. The applicant should ensure that the noise levels don’t exceed the level determined in the ministry noise pollution control regulations.
  6. The applicant should provide the designated ministry`s staff with un restricted access to the project site to ensure that all relevant environmental impacts of the projects are being considered.
  7. The company shall ensure that work is not being carried out during the late night and rest hours.
  8. Based on the nature of the project and its location the ministry may have additional requirements.

Guidelines for obtaining initial approval for agricultural, animal and fisheries projects: