Different types of financial institutions, including banks, are required to obtain a financial license in Oman before they can start engaging in their specific activities. The license is issued by the Central Bank of Oman (or other financial supervisory agencies, as described further down in this article).
Our lawyers in Oman can assist investors interested in setting up a company that offers financial services. Understanding the local laws and regulations is essential before starting the process for company formation in Oman and our team can answer personalized questions in this sense.
Table of Contents
What are the types of activities that require a financial license in Oman?
Companies involved in the following types of activities have to be properly licensed in Oman:
- Banking;
- Insurance and reinsurance;
- Securities trading and brokerage;
- Leasing and credit card companies (these can be referred to as non-banking financial institutions);
- Investment advisory services and others.
In addition to the mandatory licenses required for the aforementioned business sectors, companies also observe the guidelines and the regulatory regime in place for their industry. For example, an insurance company will be asked to obtain a financial license in Oman and then function as per the regulations set forth by the Financial Services Authority.
What agencies issue financial licenses in Oman?
Entrepreneurs can apply to obtain a financial license in Oman from the Central Bank of Oman or the Financial Services Authority of Oman, depending on the activities they will engage in.
The Central Bank issues licenses for banking activities, however, a commercial bank may also be involved in investment banking activities if its license provides for these.
Any changes brought to the activities for which a license is issued require prior approval by the Central Bank or the issuing agency.
What are the main steps for financial license applications?
A business owner interested in obtaining a financial license in Oman will prepare the required set of documents and submit them to the authority that issues the license. Processing times may vary, and they can be hindered by incomplete submissions.
Below, our team lists some of the most important documents required for an insurance company license:
- The company’s Articles of Association and information about the parent company (if the licensing is for a branch in Oman belonging to a foreign insurance company);
- Statements from the company founders and their certificates of no criminal record;
- Economic feasibility study and business plan for the intended insurance business;
- Three-year financial forecasts;
- Information about the company managers and their experience;
- Details about the company’s board members and the founders;
- A letter requesting the approval to undertake insurance business in the Sultanate.
Our experts incompany formation in Oman can assist you with financial license applications as well as other license and permit submissions for your company.
How are financial companies regulated in Oman?
When setting up a company in Oman, investors follow the incorporation requirements and the ongoing reporting and compliance requirements. Some of the most important concerns are the company’s taxation regime, which is briefly summarized below by our team:
- Standard corporate income tax of 15%;
- Standard VAT rate of 5% and a reduced rate of 0%;
- 0% dividend withholding tax.
Financial companies also observe the annual reporting and tax return submission deadlines. This is a service with which our accountant in Oman can assist with upon request.
In addition to the solutions presented herein, our immigration lawyers in Oman can also answer questions about how to immigrate to Oman.
Contact us for more information and assistance if you have to apply to obtain a financial license in Oman.