To open a representative office in Oman, it is required to follow the regulatory procedures and requirements set by the Omani government. It is highly recommended to work with our lawyers in Oman, who are knowledgeable about the country’s business laws and regulations. They can help you explain the legal requirements, assist with document preparation, and ensure that you comply with all local laws.
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Requirements for opening a representative office in Oman
A representative office in Oman is a business structure that allows an established foreign company to conduct non-transactional operations in the Omani market. Liaison offices in Oman are generally 100% foreign-owned and controlled. The activities are restricted to certain non-transactional functions, including promoting the parent company and conducting market research.
The Omani representative office must appoint at least one individual who is a resident of Oman. It is also allowed for the office to hire and sponsor employees and you can talk in more detail about this with our immigration lawyers in Oman.
Process of setting up a liaison office in Oman
The steps involved in setting up a representative office are typically the following:
- Deposit the initial capital in a local bank account after registering the company name with the local registrar;
- Obtain the necessary business licenses and permits required for your specific activities;
- Prepare and submit the required documents;
- After obtaining permits, apply with the tax department of the Finance Ministry;
- Obtain a municipality license;
- Register your business entity with the Royal Oman Police, which is mandatory for all foreign companies;
- Register with the Ministry of Manpower to access local resources, keep track of the number of local and foreign employees, and manage your workforce;
- Register your company for social protection and complete the registration process with the Public Authority.
Setting up a liaison office can be a complex process, but our company formation specialists in Oman can take care of the registration for you.
Documents needed to open a representative office in Oman
Our lawyers in Oman will also help you with completing and submitting the necessary documents for opening a liaison office in Oman. Here is a list of generally required documentation:
- Certified copy of Articles and Memorandum of Association;
- Certified copy of Commercial Registration Certificate;
- Authorization letter for the manager of the representative office in Oman;
- Letter of undertaking, stating that the liabilities of the representative office will be supported by the parent company;
- Certificate proving the existence of the parent company;
- Copies of IDs for the individuals authorized to represent the representative office;
- Specimen signatures of directors.
Why open a liaison office in Oman
Opening a liaison office in Oman can be a strategic move for international businesses seeking to establish a presence in the region without engaging in direct commercial activities. The office primarily serves as a communication bridge between the parent company and potential partners, clients, or government entities in Oman.
It is a great way to conduct market research, monitor local developments, and explore opportunities for expansion or collaboration. This approach provides valuable insights and can be valuable for investors deciding to set up a company in Oman.
Additionally, several key statistics and data can be valuable for planning your market entry strategy. Here are some statistics that can provide valuable insights in this context:
- Oman’s GDP in 2022 was evaluated at 114,67 billion dollars;
- The industry sector accounted for the largest share of Oman’s GDP, contributing with 56.98%;
- The services sector contributed approximately 44.48% to the GDP;
- In 2022, Oman imported approximately 36,89 billion dollars worth of goods.
Overall, setting up a representative office in Oman depends on your specific business goals, industry, and market strategy. Contact our lawyers in Oman to make an informed choice and help you with the registration process.