Entrepreneurship in Oman

The general conditions of entrepreneurship in Oman

Oman seeks to attract foreign investment by creating various incentives, such as:

Competitive services’ prices, tax exemption for 5 years which in certain circumstances can be longer,

There is no income tax for individuals,

Freedom of capital transfer and freedom of exchanging currency with a fixed exchange rate,

Foreign property right (foreign investor after obtaining the ministers’ council consent can have from 70% to 100% ownership of capital),

One stop shop service: it helps the investor to get the answers to the trading questions which he/she needs as soon as possible,

Opening new office or representative office for foreign companies in Oman: Companies that run their businesses with the Government are allowed to open new offices or commercial representative offices in Oman

Business entities can form more than one legal entity in order to organize their businesses. These entities include: public joint stock companies, public closed cooperation, limited liabilities companies, and holding companies.

But keep in mind that before taking any action, you must have a good knowledge of the area so that you can do extensive research on the desired jobs. Investing in Oman requires a good business plan in this country which includes studying the market conditions in Oman and your predicted results. In order to start a business in Oman, you must have a local partner who can control the business. The local partner can be a natural person or a legal entity. This is if there is no need for a local partner to participate at the beginning of the investment and no need for his/her financial participation. It is worth mentioning that a local partner in some provinces and states is under supervision to encourage foreign investment. Once your business is registered, you must show to the Department of Commerce that you have a significant amount of money to invest in this country. The required amount varies between provinces. In most cases, it ranges from $ 10,000 to $ 50,000. Note that this amount may be confiscated or forfeited as a guarantee for your debts, although this money may be repaid. Therefore, due to this complex and risky financial process, the local knowledge of investors is very important.

In addition to these difficulties, there are some advantages for foreign investors, many people have been able to develop successful and profitable jobs in Oman. New business and operations are encouraged by the authorities of this country and having a local partner can be a positive point for you. Export and manufacturing industries can receive special government support, especially when it comes to the acquisition of a land for the construction of factories. If you start such businesses in the free trade zone which there are many in the region, you will be exempt from paying import duties, exports duties, trade taxes, building permit fees and land taxation and the capital transfer restrictions.

Another option for starting a new business is to buy an ongoing business. This is an easier process because it does not require investment, sponsorship or company registration. All you have to do is agree on a price and transfer the ownership of the business. Local chambers of commerce can advise on starting a business and help you to select potentially profitable innovations in the area.

In the Comments section, you can also ask your questions and answer them in a short time.

Topics reviewed in this article:

• Investment opportunities in Oman
• Entrepreneurship ideas in Oman
• Entrepreneurship stages in Oman

Investment opportunities in Oman

In Oman, the government has Stressed on the importance of economy variation and magnifying the benefit of the strategic position of the Sultanate, besides to the consideration of the benefits gained by the foreign investment, the Government has adopted the idea of establishing some free zones in different parts of the Sultanate. These zones are:

 Slalah Free Zone.

Slalah Port.

Sohar Industrial Port.

Sohar Free Zone.

Mazyona Free Zone.

Masandam Free Zone.

These areas are considered as attractive areas for investment due to having complete infrastructures. There are also a variety of opportunities in the field of infrastructures services projects, educational projects, oil, gas, health, tourism and technology.

Entrepreneurship ideas in Oman

The government of Oman has decided to focus on developing its foreign investment. If you are planning to enter Oman as a foreign investor, you can implement some of the following business ideas in Oman.

• Tourism and travel

One of the most important changes that Oman is making is that this country is expanding its tourism industry, so small business ideas in the field of tourism and travel can be very beneficial for you in this country. While Oman is not currently a tourist attraction but there is great potential in this field. The applicants for entrepreneurship in Oman can start their investment by creating a travel agency in the field of tourism in Oman and provide amenities such as accommodation services for tourists. Sight-seeing tours of this country’s attractions and even souvenir shops can also be a good option.

• Technology-based startups

What is obvious in this world is that the entire world has moved to the digital phase. Almost everything can be done digitally. So it comes as no surprise to see that Oman is also leaning toward the technology based industry. Investing in the technology based startups in a country like Oman is much more efficient and profitable than investing in a country like the United States or United Kingdom, because the progress in Oman is a little slower and this makes it perfect to invest in technology based startups. Business services such as food delivery, app based transport, grocery stores and so on are among the great potentials that can be used.

• Event management

What is abundant in Oman is rich people who have a lot of money and that is why they always host parties and events. Starting an event management company that provides services in accordance with international standards in the field of top decorations can make you a lot of money.

• restaurants

Investing in a restaurant is the safest thing that you can do in a foreign country. The reason for this is that foreign investors can introduce their local foods in the new country. Opening a new restaurant in Oman can be a smart move and lead you to make good money on your investment.

• gas station

Oman is heavily linked with the dealings of oil and other refineries. You cannot provide all of the oil resources for a country like Oman, but you can invest in filling stations. There are many oil companies and they have their own filling stations so it is wise to invest in one of the local filling stations. This assures you that you are a part of the main businesses in Oman without investing much.

Entrepreneurship stages in Oman

Registering a company in Oman has some prerequisites, such as having at least two shareholders and at most one manager who can be of any nationality. The registered address of the office and also having at least 150,000 Omani rial as the company’s capital are other prerequisites. Organizing a company is a process in which a physical foundation is created for a business entity. To start the process, a legal entity must first be defined for the company, so first of all, the required documents must be sent. These documents include:

Memorandum of Understanding and articles of association of the owners of the company’s capital, as well as the shareholders’ registration certificate

 Opening a Capital Account After submitting the documents, a capital account must be opened to deposit fees.

In the next step all of the employees must apply for a visa and the employees are certified and approved as a part of the business entity, because is required to register employees under the company’s name.

After that, the commercial capital credit must be converted into a current account in order for the trading transactions to be successful.