Company Formation Services in Oman

A General Partnership Company in Oman is formed with at least two or more persons. Although a form of partnership, the liability of the partners towards the business is unlimited, which means, any liability resulting from the conduct of business can lead to the fullest extent of the partners’ personal worth as well. A General Partnership Company in Oman must be registered with the Commercial Register. The following requirements must be noted.

• Company name of a General Partnership Company in Oman must contain the name of one or more partners
• Work to be performed by each member shall be mentioned in the partnership contract
• General Partnership Company in Oman may come to cease when a new partner is added or an existing partner leaves the agreement or partnership
• General Partnership Company in Oman may also come to a cease when the partnership term ends.

In a Limited Share Partnership Company in Oman, there is two type of partners – a general partner and a limited partner. General partners are involved with all activities in the business, including daily management, while a limited partner’s role is limited to contributing to the capital. While a general partner has unlimited liability to the business, depending on the effect of his decisions on the business and its liability, a limited partner’s liability is limited to the extent of his investment in the business.

Similarly, a Limited Share Partnership Company in Oman do not have any limitations in terms of the maximum number of partners. Similar to any other partnership business, a Limited Share Partnership Company in Oman must be registered with the Commercial Register. It is mandatory for a Limited Share Partnership Company in Oman to have a minimum of two partners, including one general partner and one limited partner.

A Holding Company in Oman is usually formed to invest in other businesses. Otherwise known as a Joint-Stock Company, a Holding Company in Oman is used for controlling financial and administrative decisions of subsidiary companies. A Holding Company in Oman can have a maximum of 51% share in subsidiary companies. It is a mandatory requirement for a Holding Company in Oman to include “Holding Company” at the end of the company name. It is also a mandatory requirement in Oman for Holding Company to have a minimum capital of 2 Million Omani Riyals. Some benefits of Holding Companies in Oman are

• A Holding Company in Oman may engage in managerial decision-making in subsidiary companies
• A Holding Company in Oman may make investments in shares, securities, or bonds
• A Holding Company in Oman can offer and lend money to subsidiary companies
• A Holding Company in Oman may own the rights of the patients and trademarks owned by its subsidiary companies

A Shareholding Company or a Joint Stock Company in Oman is a company structure where share capital is distributed over a fixed number of shares, worth no less than RO 1 (Rials Omani One only). The minimum required capital for a Shareholding Company in Oman is RO 500,000 for a Closed Omani Joint Stock Company (a company that do not offer public shares). On the other hand, for a General Joint Stock Company that offer shares to the public, the minimum share capital required is RO 2,000,000 (Two Million Omani Rials).

All Shareholding Companies in Oman are subjected to the Muscat Securities Market Law, and should also register under the Commercial Register. As a mandatory requirement, a Shareholding Company in Oman should have a minimum partners of three, and should seek prior approval from the Ministry of Commerce and Industry in Oman before incorporation. Board of Directors are also mandatory for such Shareholding Companies in Oman who should work as per the contract agreement with the shareholders.

A joint venture in Oman is usually created between two parties (usually businesses) to achieve a common goal in business. It is usually formed by businesses to pursue a common interest or goal, such as research, or creating a new product or service etc. However, there is no limit set by the Omani law concerning the maximum number of partners. It is also not mandatory for a joint venture to register in Oman.

However, they require clear definition and clarification on rights and responsibility of every party involved in the Joint Venture, and how it distributes profits or losses. A joint venture is only valid up to the term mentioned in the contract or agreement between the parties.

Representative Trade Offices in Oman are used by companies to handle their business requirements in Oman, without registering an entire business in the country. A parent company may use a Representative Trade Office in Oman to promote their products and services, or facilitate market research and activities done by the parent company. Unlike other forms of businesses, Trade Offices in Oman have many restrictions on the tasks they can perform.

For example, a Trade Offices in Oman cannot offer credit or make offers, and it is mandatory requirement for a Trade Offices in Oman to appoint an authorised manager to work in the office. Helpline Group has its services designed to handle these requirements for Trade Offices in Oman.

It is a mandatory requirement for foreign businesses to have a commercial entity operating in Oman to handle its activities. Unless it is a government contract or an activity associated with a government project, there must be an agent working in Oman, for the foreign business. Such commercial agents must be registered under the ministry of Commerce and Industry and they shall have the responsibility of handling commercial activities of a company in Oman. For more information on how commercial agencies operate in Oman, please speak to a Helpline Group consultant today.

A company may establish a branch office in Oman and conduct their business activities without investing any share capital into the business, or appointing a local partner, as long as such operations are linked to government contracts and government controlled activities or projects. It means a parent company can have full control over the branch office and its activities in Oman.

However, it also means the parent company is wholly liable for any liabilities made by the business in the country. In addition to this, the validity of a branch office in Oman is only valid up to the term of the contract of the project. A brand office’s activities must reflect and is limited to the activities carried out by the parent company. Contact Helpline Group today for more information.