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Business Setup in Al Mazunah Free Zone2024-10-03T14:37:00+04:00

UAE MAINLAND

BUSINESS SETUP IN AL MAZUNAH FREE ZONE

What is the significance of having a UAE mainland firm, and what does it represent?

Al Mazunah Free Zone is an ideal option for many businesses because it permits a wide range of commercial activity, such as manufacturing, commerce, and services.

BUSINESS SETUP IN AL MAZUNAH FREE ZONE

UAE Mainland

Al Mazunah Free Zone is an ideal option for many businesses because it permits a wide range of commercial activity, such as manufacturing, commerce, and services.

What is the significance of having a UAE mainland firm, and what does it represent?

Al Mazunah Free Zone, the first of its kind in the Sultanate, was set up in 1999 and is located near the Yemeni border in the southern province of Dhofar, Oman. The free zone’s advantageous position gives it the Gulf’s entry point for transit trade with the Republic of Yemen and the nations of East Africa. Al Mazunah Free Zone is granted motivations, bonuses, and other relevant services by the Free Zones Law No. The Sultanate of Oman’s free zones are established and administered according to the same regulation, which also offers advantages and allowances to investors.​

 

Advantages Of Al Mazunah Free Zone

Tax and Customs Benefits

Profits are relieved from income tax for 30 years without the need to provide an income declaration. No customs duties on imports and exports. Also, the Issuance of National and Foreign Origin Certificates of origin for products, whether from the free zone or of foreign origin. Factories in the free zone can obtain a national certificate of origin.

Ownership and Investment Flexibility

Investors can fully own their projects without restrictions. And No Minimum Investment Requirement also can freely use foreign currencies.

Operational and Financial Flexibility

Flexible processes for remittance and dealing in foreign exchange. Businesses are exempt from the law of commercial agencies.

Labor and Employment Benefits

Yemeni workers can work in the free zone without the need for entry visas or permanent residence permits. The requirement for Omani workforce stands at a manageable 20%.

Trade and Import Benefits

This freezone have a permission to import all eligible goods into Oman. There is an availability of Omani and Yemeni products at affordable prices through a single common market.

Administrative and Regulatory Support

Here, Allows residence visas for non-Omani investors. And allowing the establishment of a representative office within the customs territory of Oman.

Business Setup and Operation

It has a simplified and efficient business registration and licensing processes with the availability of modern infrastructure, office, and warehouse spaces.

Strategic Location and Market Access

It have a strategic location near the Yemeni border, ideal for accessing Yemeni and GCC markets. It is a Gateway to Regional Markets which allows easy access to markets in the Gulf Cooperation Council (GCC) and Africa.

Tax and Customs Benefits

Profits are relieved from income tax for 30 years without the need to provide an income declaration. No customs duties on imports and exports. Also, the Issuance of National and Foreign Origin Certificates of origin for products, whether from the free zone or of foreign origin. Factories in the free zone can obtain a national certificate of origin.

Ownership and Investment Flexibility

Investors can fully own their projects without restrictions. And No Minimum Investment Requirement also can freely use foreign currencies.

Operational and Financial Flexibility

Flexible processes for remittance and dealing in foreign exchange. Businesses are exempt from the law of commercial agencies.

Labor and Employment Benefits

Yemeni workers can work in the free zone without the need for entry visas or permanent residence permits. The requirement for Omani workforce stands at a manageable 20%.

Trade and Import Benefits

This freezone have a permission to import all eligible goods into Oman. There is an availability of Omani and Yemeni products at affordable prices through a single common market.

Administrative and Regulatory Support

Here, Allows residence visas for non-Omani investors. And allowing the establishment of a representative office within the customs territory of Oman.

Business Setup and Operation

It has a simplified and efficient business registration and licensing processes with the availability of modern infrastructure, office, and warehouse spaces.

Strategic Location and Market Access

It have a strategic location near the Yemeni border, ideal for accessing Yemeni and GCC markets. It is a Gateway to Regional Markets which allows easy access to markets in the Gulf Cooperation Council (GCC) and Africa.

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Legal Forms For Business Setup In Oman

One of the first and most critical decisions you will need to make when registering a company in Oman is selecting the appropriate business structure. The Sultanate offers various options, each with its own legal implications, ownership structures, and liability considerations. The most common business structures in Oman include:

 

FZCO (Free Zone Company) ( FZ- LLC)

An FZCO is essentially a multiple shareholder or a partnership freezone firm where there is more than one shareholder in the company with a maximum of 50 shareholders.

Free Zone Establishment (FZE)

A Free Zone Establishment (FZE) registration allows for a single shareholder to form a company. This shareholder can be an individual (person) or a corporate shareholder.

Limited Liability Company (LLC)

This is formed by 2 or more founders, with no more than 40 partners. The shareholders have limited liability, up to the amount of the capital they invest in the business.

Sole Proprietorship

This is a business form set up by a single individual. it can be seen as the Omani equivalent of the sole trader, as the founder is fully liable for the debts and obligations of the business.

General Partnership

This is formed by 2 or more business partners who are jointly responsible for the funds of the company as well as its debts.

Branch Office

This is formed as an extension of a foreign company, fully dependent on the parent entity. It can engage in commercial activities and generate revenue, but must be registered with the Ministry of Commerce, Industry, and Investment Promotion.

Representative Office

This is established by a foreign company to conduct market research and promote its products or services. It cannot engage in direct commercial activities or generate revenue, focusing solely on non-transactional tasks.

Joint Stock Company (JSC)

This is formed by at least 3 ordinary individuals, there is the closed stock company and the general stock company. A minimum capital of 500,000 OR is required for companies that do not contribute their shares.

Business Setup in Oman

Oman offers a total of three free zones and two specific economic zones, which provide additional advantages for foreign investors.

 

Al Mazunah Free Zone

Sohar Free Zone

Salalah Free Zone

Local License

Types Of License In Oman

In Oman, businesses can be divided into three main licenses depending on their activity type: Commercial,
Industrial and Professional. Below is a general look at each license type.

 

Commercial license

This license is issued to corporations involved in buying and selling activities. It allows businesses to engage in the trade of goods and commodities, including import and export operations. Typical holders of this license are retail stores, wholesalers, and trading companies.

Industrial license

This license is granted to corporations engaged in production activities. It covers businesses involved in manufacturing, processing, and industrial operations. Companies that produce goods, whether on a small or large scale, need this license to operate legally in Oman.

Professional license

This license is issued to service providers, artisans, and craftsmen. It applies to businesses that offer specialized services based on professional skills or expertise. Examples include consultancy firms, medical services, legal services, and skilled trades such as carpentry or electrical work.

Commercial license

This license is issued to corporations involved in buying and selling activities. It allows businesses to engage in the trade of goods and commodities, including import and export operations. Typical holders of this license are retail stores, wholesalers, and trading companies.

Industrial license

This license is granted to corporations engaged in production activities. It covers businesses involved in manufacturing, processing, and industrial operations. Companies that produce goods, whether on a small or large scale, need this license to operate legally in Oman.

Professional license

This license is issued to service providers, artisans, and craftsmen. It applies to businesses that offer specialized services based on professional skills or expertise. Examples include consultancy firms, medical services, legal services, and skilled trades such as carpentry or electrical work.

Additional Approvals for Business Setup In Oman

In Oman, businesses may need additional approvals beyond the essential business licenses. These additional approvals depend on the specific nature of your business activities. Here is a general overview of each type of additional approval:

 

Commercial Registration License

The essential license needed to launch a business in Oman is the Commercial Registration License, or CR License. The Ministry of Commerce, Industry, and Investment Promotion is the source of this license. It makes your company legal and gives you the ability to do business inside the nation.

Municipality License

Depending on the nature of your business, you may need to acquire a Municipality License. This license is obtained from the municipality where your business will be located. It guarantees adherence to regional zoning laws, health and safety guidelines, and environmental specifications.

Capital Market Authority License

A Capital Market Authority License is necessary for a number of commercial operations, including insurance and financial services. This license, which was granted from the Capital Market Authority (CMA), is intended to supervise and regulate the operations related to the insurance, securities, and capital market industries.

Commercial Registration License

The essential license needed to launch a business in Oman is the Commercial Registration License, or CR License. The Ministry of Commerce, Industry, and Investment Promotion is the source of this license. It makes your company legal and gives you the ability to do business inside the nation.

Municipality License

Depending on the nature of your business, you may need to acquire a Municipality License. This license is obtained from the municipality where your business will be located. It guarantees adherence to regional zoning laws, health and safety guidelines, and environmental specifications.

Ministry Of Manpower License

If your company hires workers, you need to apply for a Ministry of Manpower License. This license guarantees that your company conforms with Omani labor rules, particularly those regarding employment, working hours, payments and benefits for employees.

Other Industry-Specific Licenses

Your industry-specific requirements could determine the necessity for extra licenses or permissions. Businesses in the food industry, for example, could need a license from the Ministry of Regional Municipalities and Water Resources, while those in the healthcare industry might need authorization from the Ministry of Health.

Capital Market Authority License

A Capital Market Authority License is necessary for a number of commercial operations, including insurance and financial services. This license, which was granted from the Capital Market Authority (CMA), is intended to supervise and regulate the operations related to the insurance, securities, and capital market industries.

Ministry Of Manpower License

If your company hires workers, you need to apply for a Ministry of Manpower License. This license guarantees that your company conforms with Omani labor rules, particularly those regarding employment, working hours, payments and benefits for employees.

Other Industry-Specific Licenses

Your industry-specific requirements could determine the necessity for extra licenses or permissions. Businesses in the food industry, for example, could need a license from the Ministry of Regional Municipalities and Water Resources, while those in the healthcare industry might need authorization from the Ministry of Health.

Why To Start Your Business In Al Mazunah free zone?

Al Mazunah freezone’s infrastructure is strong, with advanced facilities and logistics support, which is essential for companies that depend on effective supply chains and distribution networks. Additionally, by streamlining the licensing and registration processes, the free zone decreases administrative obstacles and shortens the startup time.

Al Mazunah Free Zone is a highly attractive option for businesses wishing to increase their presence in the area because of its advantageous location, favorable regulatory framework, strong infrastructure, and economic incentives.

The Free Zone in Oman has seen growth in the economy compared to previous years. Various investment opportunities and modern infrastructure have increased in the zone, leading to more company formation in the Al Mazunah Free Zone. It is appropriately located with easy access to various markets in other countries. Businesses and entrepreneurs enjoy many benefits and gain profits by establishing companies here. The commercial mall, warehouses, administrative centers, Multi-Purpose Areas and Green Parking Zones are the other Business Attractive reasons here. But to know more about Al Mazunah Partner with Business Setup Consultants. Our Expertise will provide you with the needed information.

Basic Required Documents You Need To Setup License In Oman

Sure! Here is a list of the documents needed for setting up a business in Oman:

  • Passport copies of shareholders and managers.

  • Application Form

  • Partnership Agreement (if applicable)

  • Memorandum of Association (MOA)

  • Articles of Association (AOA)

  • Name Reservation Certificate

  • Application for Commercial Registration

  • Municipality License

  • Oman Chamber of Commerce and Industry (OCCI) Membership Certificate

  • Lease Agreement

  • Utility Connection Documents

  • Employee Contracts

  • Corporate Bank Account Application

  • Tax Identification Number (TIN) Application

  • VAT Registration (if applicable)

Guide To Setup Your License In Oman

Follow these important steps to guarantee an effortless company license and permit application procedure in Oman:

  • 1

    Determine the Business Activity and Legal Structure

  • 2

    Register the Business Name

  • 3

    Obtain the Initial Approval

  • 4

    Draft the Fundamental Documents

  • 5

    Register the Business

  • 6

    Obtain Additional Approvals and Licenses

  • 7

    Register with Tax Authorities

  • 8

    Register with Other Authorities

  • 9

    Open a Bank Account

  • 10

    Agreement on Business Properties

  • 11

    Commence Business Operations

We Business Setup Consultants will assist you to launch your project in the Oman from A to Z without any hassles and provide you post launch assistance for your visas and all corporate services that you might need in the future.

We Business Setup Consultants will assist you to launch your project in Oman from A to Z without any hassles and provide you post launch assistance for your visas and all corporate services that you might need in the future.

Frequently Asked Questions

Common Questions About Business Setup in Al Mazunah Free Zone

Does the Al Mazunah Freezone have any limits on the kinds of enterprises that can operate there?2024-07-01T10:59:31+04:00

Many sectors, including manufacturing, trading, logistics, and services, are allowed to operate in the freezone. The Oman Freezone Authority’s regulatory framework will determine any specific restrictions that apply.

Are there any labor regulations specific to Al Mazunah Freezone?2024-07-01T11:00:06+04:00

Even if the freezone’s labor laws follow Omani national laws, there can be extra rules or benefits for using foreign workers. For specific rules, companies ought to check with the freezone authority.

Which kinds of companies are present in the Al Mazunah Freezone at the moment?2024-07-01T11:00:57+04:00

A wide range of enterprises, including manufacturing plants, trading houses, logistics and distribution hubs, and service providers, are located in Al Mazunah Free Zone. The variety of enterprises shows the freezone’s adaptability.

Does the freezone offer any assistance to small and medium-sized businesses (SMEs)?2024-07-01T11:01:44+04:00

Yes, Al Mazunah Freezone provides SMEs with help in the form of finance opportunities, advisory services, and incentives specifically designed for them.  The goal is also to promote entrepreneurship and expand small and medium-sized enterprises in the area.

In what ways does the Al Mazunah Freezone facilitate global trade?2024-07-01T11:02:25+04:00

The freezone’s advantageous position close to the Yemeni border, along with its facilities and incentives, make it the perfect center for global trade. Simplified customs processes, tax breaks, and easy access to important markets within the GCC and abroad are beneficial for businesses.

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We give you a true “customer-focused” experience. Our dedicated team is committed to providing you with professional guidance tailored to your specific business needs. Your go-to company setup provider in Dubai Multi Commodity Centre (DMCC), IFZA Dubai south, DIFC, ADGM, RAKEZ, RAKICC and all other jurisdictions.

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About Us

We give you a true “customer-focused” experience. Our dedicated team is committed to providing you with professional guidance tailored to your specific business needs. Your go-to company setup provider in Dubai Multi Commodity Centre (DMCC), IFZA Dubai south, DIFC, ADGM, RAKEZ, RAKICC and all other jurisdictions.

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