Business Setup in Sohar Free Zone2024-10-03T14:37:41+04:00

UAE MAINLAND

BUSINESS SETUP IN SOHAR FREE ZONE

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

Sohar, one of the world’s fastest-growing free zone and port developments, has plenty of area that is easily accessible and quickly filling up.

BUSINESS SETUP IN SOHAR FREE ZONE

UAE Mainland

Sohar, one of the world’s fastest-growing free zone and port developments, has plenty of area that is easily accessible and quickly filling up.

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

Sohar Port and Freezone is a deep-sea Port and Freezone in the Sultanate of Oman, managed by Sohar Industrial Port Company (SIPC), a joint venture between the Port of Rotterdam and the Sultanate of Oman. Together with the Port, the 4,500-hectare Freezone project has drawn approximately US$27 billion in foreign investment. The Public Authority for Special Economic Zones and Free Zones (OPAZ) was founded by Royal Decree No. (105/2020) to serve as the official regulator of the country’s free zones and special economic zones, including the Sohar Free zone.

It is one of the fastest-growing ports and free zone developments in the world, with international investments totalling over US$26 billion to date. It is located at the hub of major global trade routes connecting Asia and Europe. Originally, the port was constructed around three industry clusters: logistics, petrochemicals, and metals. Recently, Sohar Food Zone launched, adding a fourth cluster. The Food Zone provides the first agro bulk port in the area, complete with integrated capabilities for food production, packaging, and logistics.

Unique access to the rapidly expanding economies of the Gulf States is made possible by Sohar, which avoids you the extra expense of navigating the heavily trafficked Strait of Hormuz. Direct connections to every GCC nation are made possible by the current road network, the airport, and the upcoming rail system. Sohar has top global partners that run its container, dry bulk, liquid, gas, and general cargo terminals, including Hutchison Ports Oman, Vale Oman, Oiltanking & Co Terminals, and C. Steinweg Oman. These partners are equipped with deep-water marinas that can handle the largest ships in the world.

Sohar, one of the world’s fastest-growing free zone and port developments, has plenty of area that is easily accessible and quickly filling up. Three years ahead of plan, the Freezone’s first phase is nearly completely leased out, and about 26 businesses are already benefiting from the unmatched access to land, affordable energy, and a trained labor force. The Freezone has ambitions to expand and grow further in the future Phase 2 due to foreign investment in Phase 1. The free zone presents an attractive value proposition with special incentives for investors to run their operations in a setting suitable to commercial success, with ease and flexibility.

 

Advantages Of Business Setup in Sohar Free Zone

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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.

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.

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.

 

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:

 

Why To Start Your Business In Sohar Free Zone?

Sohar Free Zone has options for hire pre-built warehouses and commercial offices, as well as 100% foreign ownership, 0% import or re-export duties, 0% personal income tax, corporate tax holidays of up to 25 years, and a dedicated One-Stop-Shop for all relevant permits and clearances. One of the most stable and business-friendly climates in the Middle East can be found in Oman, and the Sohar Free Zone has grown to be a preferred location for local and foreign businesses seeking the perfect Middle East hub for trade, commerce, and industry.

Corporate parks (FZC) are ready to host your trading business by hiring an office space and obtaining a General Trading License. An approximate of 145 companies has been established for trading activities.

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 Sohar Free Zone

Is Sohar Free Zone safe for investment?2024-07-01T12:34:13+04:00

Yes, Sohar Free Zone operates within Oman’s stable political and economic environment, providing a secure and predictable environment for long-term investment and business growth

What are the advantages of Sohar Free Zone for logistics and trade?2024-07-01T12:34:46+04:00

The zone benefits from its closeness to Sohar Port, one of Oman’s major ports, offering duty-free import and export of goods, facilitating cost-effective logistics and enhancing trade operations.

Does Oman’s policy of economic diversification include the Sohar Free Zone?2024-07-01T12:35:22+04:00

Sure, the Sohar Free Zone is crucial to Oman’s attempts to expand its economy beyond the oil and gas industry by drawing in capital from a variety of sources and boosting its industrial capacity

Does Sohar Free Zone support Omanization?2024-07-01T12:37:11+04:00

Yes, while allowing up to 85% foreign employees, companies can extend their tax benefits by gradually increasing their Omanization levels over time, supporting local employment and skills development.

How can companies open operations in the Sohar Free Zone?2024-07-01T12:37:42+04:00

By registering with the Sohar Free Zone Authority, which manages licenses and helps during the startup procedure, businesses can begin operations.

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