5 Points to Remember when Setting up your Company in Oman
When you start a business, you want it to succeed. Otherwise, why would you bother? But, while you may know what you need to do to set up for success at home, setting up somewhere unfamiliar can be somewhat trickier. When it comes to starting a business in Oman, there is plenty to keep in mind if you want to succeed. So, what do you need to know?
1. Research, Research, Research
Just as you would at home, you need to put in the research before you start a business in Oman. Take time to find out more about the region to uncover where opportunities lie. Undertake extensive research within the sector you aim to operate in. Create a viable business plan, taking into account market conditions, the competition, and your forecast results. You will also need to consider forms of investment, and whether you will be eligible for any grants as an expat investor.
2. Local Partner Requirements
Depending on the type of business you choose to set up – and the location you choose for your business – you may need a local partner. That local partner will need to own a minimum stake in the company, but does not necessarily need to have say in the day-to-day running of the business. However, choosing the right local partner, should you need one, is essential.
Opt for a local partner that has experience in running a business, with a good knowledge of Oman, its customs, and its requirements for foreign investor business ownership. It’s also worth bearing in mind that all business registrations through the government are conducted in Arabic, so having a partner who is fluent in both written and spoken Arabic is recommended.
With a clear understanding of how to successfully set up a business in Oman, Fusion is the local partner you can rely on. Not only will Fusion make sure you follow all required steps to ensure you stay on the right side of the law, they will take the stress out of starting a business in an unfamiliar environment, while covering essentials such as visa applications and government paperwork.
3. Company Type
The type of business you plan on doing in Oman will determine the type of company you choose to set up. The limited liability company (LLC) is a popular option for foreign investors, but there are other options such as the branch office and representative trade office, which can offer an alternative depending on what you want your company to achieve. Again, Fusion can assist you in making the right choice for your business to set you on the right track.
4. Choice of Location
No matter where you start a business, location is key. Obviously, you will need to think about what kind of business you will be doing, to then choose a location that suits your requirements. For example, setting up a restaurant would have very different requirements from a location than a factory. Take into account free zone options, as free zone operation can offer benefits such as exemptions from import and export duties, commercial taxes, building and property licence fees, land tax and restrictions on the transfer of capital invested in the zone.
Doing business with local Omanis may be different to doing business at home. With that in mind, it’s a good idea to find out more about the local culture before starting a business here. When doing business with Arabs, you will usually find their negotiating skills to be exceptional. For the most part, Arab business owners meet their obligations fully, and as you build up trust, your relationship should be long-lasting. Bear in mind you are unlikely to hear ‘no’ to a proposition, but if you hear, ‘I’ll think about it’ or ‘leave it with me’, you may choose to take that as a no instead.
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