Chinese how to register a company and bank account in Oman

Oman, known as the "Sultanate of Oman", is located at the southeastern tip of the Arabian Peninsula, bordering the Gulf of Oman and the Arabian Sea, with significant location advantages. Its political situation is stable, its social order is orderly, its legal system is sound, and its economy is relatively developed. In 2018, the GDP was US$75.2 billion, an increase of 2.1% year-on-year, the people's living standards were better, the cultural quality was higher, and the per capita GDP was also among the top in the Arab countries.

Oman is rich in oil and gas resources, with crude oil and condensate reserves of 4.79 billion barrels and natural gas reserves of 23.93 trillion cubic feet as of the end of 2018. Mineral resources found in Oman also include copper, gold, silver, chromium, iron, manganese, magnesium, coal, limestone, marble, gypsum, phosphate, quartzite, kaolin, etc., but no precise exploration and deep development have been carried out. Oman is a typical resource-exporting country, the crude oil and natural gas industry is the backbone of the national economy, the output value of nearly 30% of the GDP, export revenue in the government revenue accounted for nearly 70%.

In recent years, Oman has made every effort to promote the strategy of economic diversification, vigorously optimize the investment environment, actively build five non-oil and gas industries such as manufacturing, logistics, tourism, mining, and fisheries, and strive to change the single economic structure that relies too much on the oil and gas industry. Since the second half of 2014, the international oil price downturn has brought a negative impact on the Omani economy, the Omani government has made full use of fiscal, taxation, financial and other measures, actively strive to deal with it, with Duqum and other special economic zones, industrial parks as the carrier to attract foreign investment, with new airports, highways and other major projects as the focus to improve infrastructure, to adjust the corporate income tax rate to broaden the source of finance, the overall economic situation remains stable.

With the rise of international oil prices, many economic measures have been effective, Oman's economy is showing a clear upward trend, the International Monetary Fund, the World Bank and other international institutions expect Oman to grow by 2.5% and 1.3% in 2019 and 2020, ranking first in the Gulf region. 2019 marks the 40th anniversary of the establishment of diplomatic relations between China and Arab States. Over the past 40 years, China-Arab economic and trade cooperation has developed rapidly, involving many fields such as energy, telecommunications, infrastructure, fisheries and commerce. Dali Petroleum, a joint venture between PetroChina and local enterprises, has become the third largest oil producing company in Oman, and the mainland oil and gas engineering service and equipment supply enterprises have also become an important supporting force in Oman's oil and gas sector. In the field of telecommunications, huawei has become a major equipment supplier in Oman's telecommunications industry after more than ten years of hard work, and its share in the Oman telecom market has firmly ranked first.

China's fishery cooperation with Oman has been carried out for many years, and Chinese-funded companies such as China Aquatic Products have carried out diversified businesses such as fishing, acquisition and processing in the local area, and have a good cooperative relationship with Omani fishermen and fishing enterprises. In terms of infrastructure, Chinese-funded companies have undertaken large-scale projects such as high-grade highways, sewage pipelines, independent power plants, and cement plants. At the same time, private enterprises have actively explored the Omani market and invested in projects in oil pipe, building materials, packaging, retail and other industries, and have also achieved good results. On May 25, 2018, the two heads of state exchanged congratulatory messages and jointly announced the establishment of a China-Arab strategic partnership, creating a more favorable political environment for all-round cooperation between China and Arab countries. In the same year, the two countries also signed a memorandum of understanding on jointly building the "Belt and Road", which laid a good foundation for bilateral pragmatic cooperation.

Judging from the development plans, industrial structure, and market demand of China and Argentina, the economic and trade cooperation between the two countries has great potential and bright prospects. First, the national planning fit is high. The key areas and cooperation models involved in the "Belt and Road" initiative are very consistent with the long-term plans of Afghanistan's "2040 Vision" and "Ninth Five-Year Plan", and the Omani government is highly concerned and actively docking with China. Second, the demand for commodity market is huge, Oman's crude oil is Just needed by China, because of its industrial structure characteristics, China's various types of manufactured products can meet the needs of all grades of income groups, China International Import Expo will become an important new channel for the export of high-quality non-oil products to China. Third, the results of investment cooperation can be expected. Oman's energy resources development, chemical, manufacturing, marine industry has a high degree of openness, good cooperation policies, and is also the field of expertise of Chinese professional enterprises, and the two sides can combine their respective advantages to conduct convergence discussions. Fourth, infrastructure cooperation is expected to deepen. In the coming period, Oman's power, communications, seawater desalination and other projects will still maintain a large scale of contract issuance, Chinese-funded enterprises can continue to track, BOT, PPP and other new cooperation models must also be paid attention to.

What are the procedures for investing in a registered business in Oman?

1.1 Form of establishment of an enterprise

According to Oman's Commercial Companies Act and the Commercial Agency Act, the legal entities of Omani companies are mainly in the following forms:

【Individually Owned Company】A company set up by 1 person, the owner is fully responsible for all assets and liabilities, and the minimum capital requirement is 3000 riyals. A person can only register an individually owned company in his own name, and such a company form is limited to Omani and citizens of the GCC member States.

【Joint-stock company】More than 3 partners; its liability is limited to the notional value of the company's capital shares; If more than 40% of the company's shares are issued to the public for subscription, it is considered a listed joint-stock company; If the company's shares are not publicly issued, they are considered unlisted joint-stock companies. Companies engaged in insurance, finance or commercial air transport must be organized in the form of joint-stock companies.

【Limited liability company】Composed of at least 2 and up to 40 natural or legal persons; its liability is limited to the notional value of the shares held by the company's capital; If there is no foreign capital, the minimum registered capital is 20,000 riyals (about US$52,000), and if there is foreign capital, it must be more than 150,000 rials (about US$390,000).

【General Partnership】A general partnership consists of 2 or more partners; The partners are jointly liable for the company's assets and liabilities; No partner may transfer his or her shares without the consent of the other partners.

【Limited Partnership】One or more general partners, with their maximum property, jointly or individually bear the limited partnership debts; or one or more limited partners bear partnership debts to the extent of their partnership capital, which should be set out in the memorandum of the partnership agreement. The name of the company may consist of any word and may also include the names of one or more partners, which shall be suffixed "Limited Partnership".

[Holding company] means that a joint-stock company or a limited liability company holds at least 51% or more of the shares of another company (or companies), thereby controlling the finances and administration of other companies. The minimum registered capital is 2 million riyals (approximately US$5.2 million). A holding company may engage in the following businesses: managing a branch office or other company involved in the management of its shareholdings; Invest funds in stocks, stocks, securities; Providing loans, guarantees and financial support to its branches; Owns patents, trademarks, franchises, and other intangible powers that may be used and leased to its subsidiaries or other companies.

【Professional Service Company】Qualified professionals may establish a professional services company alone or jointly with one or more other professionals, or they can form a professional services company with a foreign company. Omani and GCC citizens are allowed to set up professional services companies individually or jointly. Professional services firms include 4 areas: engineering consulting, auditing and accounting, legal consulting, and other consulting (economics, management, finance, marketing). According to the relevant laws and regulations, the legal entities of foreign enterprises in Oman are as follows:

【Joint venture】That is, an enterprise jointly funded by a foreign enterprise and a local enterprise in Oman, the investment ratio of foreign enterprises generally does not exceed 49% of the total investment, and can be relaxed to a maximum of 70% with the approval of the Minister of Commerce, Industry and Industry. The registered capital of the joint venture shall not be less than 390,000 US dollars.

[Sole proprietorship] refers to enterprises established by foreign enterprises in Oman alone, which should be recommended by the Minister of Commerce, Industry and Industry, approved by the Cabinet, and have a registered capital of not less than US$1.3 million. Some foreign enterprises that have obtained oil or gas exploration and development concessions in Oman may set up wholly owned enterprises in Oman.

【Branches】A foreign company may set up a branch in Oman to engage in relevant business activities in the following circumstances: (1) signing a special contract or agreement with the government; (2) enterprises established in accordance with the Sultan Qaboos Order; (3) Engage in business activities declared by the Cabinet of Ministers of Oman that are essential to the development of the national economy. Foreign companies participating in the International Tender project of the Omani Government or the Project Tender of oman Petroleum Development Company (PDO) and Oman Liquefied Natural Gas Company (LNG) may register and establish a branch in Oman after receiving the notice of winning the bid.

【Representative Office】According to Ministerial Decree No. 22 of 2000 issued by the Ministry of Commerce and Industry of Oman, foreign companies and institutions engaged in trade, industry and service industries may open a representative office in Oman, allowing the promotion of products or services produced by their companies and direct contact with users; It is not allowed to import, export or sell its products. The representative office may obtain the necessary visas for its foreign employees, subject to the Omani regulations on employment.

1.2 The acceptance authority of the registered enterprise

The Ministry of Commerce and Industry of Oman is the main department responsible for the registration of foreign enterprises. In order to facilitate investors to set up enterprises, the Ministry has set up a special window at its office location to provide one-stop service "One-stop-shop" (OSS) for setting up enterprises in the Muscat area, where the Ministry of Commerce and Industry, omani chambers of commerce, Muscat MunicipalIty, Ministry of Tourism, Ministry of Environmental Protection and Climate Affairs, Royal Oman Police, Ministry of Human Resources, and banks are stationed here to handle the relevant procedures for enterprises. If you set up an enterprise outside Muscat, the relevant institutions and permits involved are basically the same, but investors need to go to the relevant institutions separately to go through the formalities.

【One-stop service procedure is as follows】

(1) To select the name of the enterprise, three names should be provided for on-site selection; (2) Purchase and complete the Investors Form (3 rials); (3) Submit an application to OSS, and different types of enterprises should submit different documents; (4) During the application processing period, if environmental protection, civil defense or labor permits are involved, OSS officials may inspect the company's preset location within 10 days; (5) OSS will inform the applicant to pay various fees;

(6) After 2 to 3 days of payment of the relevant fees, OSS issues the necessary licenses, including the following: commercial registration certificate, valid for 5 years; Registration documents showing the type of company, shareholding, capital, business activities, etc.; Notarized authorized signature style; Certificate of registration of the trade union, valid for 1 year; Muscat Municipal Council's Municipal Services and Signboard Temporary Permit, finally to be issued upon application after the Company is officially operational, valid for 1 year; Industrial licenses (if required), in some cases, such as pharmaceuticals, food processing, agriculture, handicrafts, bottled water, etc., are first issued with a preliminary license, which is valid for half a year and can be renewed; Preliminary environmental permit, valid for 1 year; Civil defence licence (shop, transport, trade in dangerous goods), finally required to apply separately to the Civil Defence Department of the Royal Oman Police, valid for 1 year; Labor service permit form, for foreign labor applications. In addition to the above registrations, some business activities require certain special licences, which, in the case of the Muscat region, can be obtained in a one-stop service centre set up by the Ministry of Commerce and Industry of Oman.

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