The OMAN Free Zone Company
Free Zone Company in Oman
With exciting business invitations like tax-free zones, Free zones have always been the eye-catching factor for investors to establish a business in the GCC countries.Free zones always invites international investors to start a business in Oman.
The Sultanate holds four free zones for importing raw materials, processing, assembling and packaging, exporting finished products, storing and warehousing products to develop different business sectors and activities.
- Al Mazunah Free Zone
- Salalah Free Zone
- Sohar Free Zone
- Duqm SEZ
The free zones have been categorized accordingly based on the business sectors they support. One should select a zone according to one’s industry and business needs. There are 4 free zones in Oman:
1. Al Mazunah Free Zone
Established in 1999, Al Mazunah is located close to the Yemeni border, making it the Gulf gateway to enter the Republic of Yemen and East African countries. This zone is a hub to commercial, service and industrial sector.
Al-Mazunah Free Zone offers investment opportunities for the following businesses:
Commercial Sector: It includes trading and storing of goods, spare parts, cars, machine equipments, fruits and vegetables.
Light Industrial Sector: Plastic, Foodstuff, Clothes, Wood.
Assistance Service Sector: Distribution & Clearing, Transport, Translation Office, Restaurants, Fax, Printing, etc.
- 100 percent Foreign Ownership
- Excellent communication network
- Minimum capital not required
- Personal Income Tax not levied
- Approximately, 30 years of Initial Tax-Free Zones
- Yemeni Nationals permitted to work here without applying for work permits or visas
2. Salalah Free Zone
This free zone offers solutions to businesses that have a plan to expand their business into the Middle East, Africa, Southern Europe, and Asia. The location becomes an attractive destination due to low cost in terms of labor, utilities, and infrastructure
Salalah Free-Zone focuses on: Distribution and logistics, Assembly and manufacturing & Material and chemical processing.
- Exemption from tax for a minimum thirty years period.
- Is currently under expansion to allow both direct and cargo destination links.
- Cost competitive Market Research combined with infrastructure, utilities and labor.
- Provides FTA (Free Trade Agreement) in large numbers.
- By 2028, there is expected to flow US $15 billion investment.
Permits & Licenses
- General Trading License: This license is to export, import, store and distribute items according to set Free-Zone Authority rules and regulations.
- Trading License: This license is to manage export, import, distribute and store items which are mentioned clearly in the license.
- Industrial License: This license is to establish industries, to carry out assembling and manufacturing processes, import raw materials and export produced goods to different nations.
- Service License: This license is to carry out particular services, but within Free Zone limits. It is the parent company that grants this license and the concerned government authorities are to issue it
- Summary of business to be set up.
- Filled up application form with, necessary professional and personal details.
- MOA (Memorandum of Articles)
- Registration Certificate
- Shareholders’ passports
- Appointment letter from an auditor
- Letter of acceptance from an auditor
- Minimum 6 months bank account
- Submitting Company Essential documents.
- No Objection is to be derived from the concerned Authorities at Salalah Free Zone.
- Obtaining company due diligence to avoid unwanted offences, of any type.
- Selecting a plot to establish the company.
- Fee payment.
- Obtain special permits and licenses from concerned authorities for carrying out state business activities.
- Collect Registration Certificate from Registrar Office.
- Different sized warehouses
- Office space available for lease
- Excellent connectivity
- Construction facilities.
3. Sohar Free Zone
It is a 4,500-hectare deep-sea port that attracts almost US$26 Billion and is one of the fastest growing ports in the world. The port is expected to take responsibility for managing Oman’s National Food Reserve.
Sohar Port Free-Zone focuses on: Ceramics, Furniture, White goods, Grains, Auto parts, Aluminum, iron & steel, Plastic & Petrochemicals.
- 100 percent Foreign Ownership
- 25 year Tax Exemptions
- Relaxed Omanization Rates
- After 10 year period will reach 25% Omanization
- After 15 year period will reach 35% Omanization
- After 50 year period will reach 50% Omanization
- Free Trade Agreements
- 0% Personal Income Tax
Permits & Licenses
- General Trading License
- Service Provider License
- Logistics License
- Industrial License
- Assembly and Light Manufacturing License
- Application form is to be submitted for company incorporation. The PAF (Plot Application Form) is to be filled up completely and submitted.
- Submission of core documents as per regulations to complete registration procedure. Shareholder’s Passport copy.
- No Objection Letter should be obtained from MECA (Environment & Climate Affairs Ministry)
- Due Diligence Process is performed on the FZ Company’s promoters and shareholders and for clients’ information, past projects and background checks conducted.
- Agreement signing between new Free-Zone Company & Sohar Free-Trade Zone Authorities.
After the procedures following documents are issued:
- O. Box No. for 1 year period
- Oman Chamber of Industry & Commerce issuing Affiliation Certificate
- Commercial Registration Certificate
- Availability of Rental Commercial Offices
- Excellent and smooth road connecting with Saudi Arabia
- Modern infrastructure
- Land available for logistical or industrial use
- Pre-built warehouse available for Lease
- Direct highways that connect with Muscat and the UAE.
4. Duqm SEZ
One of the future’s biggest economic zones lies in Duqm SEZ. With an area of almost 1,745 sq.km, the zone has been divided into 8 sub-zones that hold different grounds of investments such as industries, sea-port, and dry-dock, tourism, fisheries, etc.
SEZAD (Duqm SEZ Authority) focuses on: Tourist resorts, Logistics Village and warehousing, Real estate development, Fishery industries, Mining, Malls and markets, Therapeutic and health services, Logistics and transport, Petrochemical industries, Refining, oil storage and refineries & Residential complexes and commercial offices.
- No restriction on currency
- No restriction on minimum capital requirements
- 10% Omanization rate mandatory as SEZAD Board stipulated.
- 100% Capital & profit repatriation invested & earned.
- 100% foreign ownership available
- Tax exemption for 30 year period
- Flexible free goods movement within the zone
- Business activities enjoying politically stable zone
- Easy availability of Expatriate Visa
- Foreign workforce issued necessary permits by concerned Labor Department present here.
- Smooth network link with international and Gulf markets
- Freedom to setup Representative Office
- ID copies of Founders, Partners, Owner and others
- Investment Application & Signatories signature as per Annex (1) of
- Investment Project decryption with its needs, as per Annex (2) of Investment Application
- Articles & Memorandum of Association
- If partner is a legal person, then partner’s share along with minutes of minute to be submitted
- The parent company is to issue a letter stating taking responsibilities of all business activities that are conducted at the branch office, if a Branch office is to be opened.
- Company’s Registration Certificate
- Establishment Owner providing official letter requesting Branch Office registration
- If applicant is on work visa, a No Objection Letter from current sponsor is needed.
- Application form submission also referred to as PAF (Plot Application Form) by filling up all essential details.
- Draft an agreement based upon the Contract Term, Land Lease Price and Commercial Terms.
- No Objection Letter from MECA (Environment & Climate Affairs Ministry).
- Due diligence process on promoters and main shareholders.
- Payments to be cleared
- After completing the payment procedure, there is to be obtained from Oman Chamber of Industry & Commerce, company incorporation certificate.
- Marine & Logistics Hub.
- Diversified environment offering opportunities for different business activities.
- Huge ground covering to enable business setup.
- No Minimum Share Capital requirement
- No duties are imposed on import and export procedures
- Trade can start within Oman without a local agent
- 100% investor ownership
- No Corporate tax for a period of ten years
- 5 years minimum lease
- Name of the investors along with their country of origin
- Plot size required to set up business
- Capital Investment and Business Plan
- A figurative representation of total employment generation
- Total electricity and water requirement
- Investor contact details
- Projected cargo volume
- Submission of Plot Application Form
- Reach an agreement on the Commercial Terms
- Submission of No Objection Letter to the Ministry of Environment and Climate Affairs
- Clear the due diligence process
- Select a plot and get an approval for its application
- Pay the lease, incorporation and license fee
- Collect the Certificate of Incorporation
- Sign the lease agreement