Incentives for Investing in Oman

1. Tax exemptions for 5 years (sometimes renewable for a further 5 years) for industrial enterprises which contribute to Oman's economy.

2. Foreign investors are able to hold 49% of equity, which may be increased in mitigating circumstances.

3. Concessional financing may be arranged through the Ministry of Commerce and Industry and Oman Development Bank.

4. A clear and efficient legal network which offers advice on company law, copyright law, arbitration and agency law.

5. The lingua franca is English.

6. A diverse economy which encourages privatization of infrastructure and services

7. Price stability, with an inflation rate of not more than 1% since 1992.

8. Stable currency with full convertibility.

9. No personal income tax and no foreign exchanges controls.

10. Tax and import duty exemptions.

11. Interest free long-term loans to partly foreign owned industrial and tourism projects.

The Foreign Business and Investment Law

Foreign business participation in Oman is encouraged, providing the company is established in accordance with the Foreign Business and Investment Law of 1974.

Foreign companies are formed thus:

• As an incorporation of a local company or other commercial entity

• As a branch office

• As a consultancy

• By appointing a commercial agent, ensuring that the company only supplies services and/or goods to be imported into the Sultanate.

Airline and shipping offices, as well as companies with occasional business are not governed by the Foreign Business and Investment Law.

Potential businesses should apply for authorization to the Foreign Capital Investment Committee at the Ministry of Commerce and Industry supplying the company's articles of incorporation and other pertinent information. The Ministry may impose certain conditions on the company's activities or request a bank guarantee. Capital may be imported and exported without restriction.

It is illegal to operate in Oman without the appropriate authorization and heavy penalties are imposed on those not meeting the legal requirements

Article Source: http://www.omanet.om/english/commerce/invest.asp?cat=com

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