Free Zone set up options in Oman

Free Zone set up options in Oman

- Natalia Shutilo

The Sultanate of Oman is focusing on the growth of different business sectors and activities, in light of this, the Oman Free Zones are progressing steadily by continuing to strengthen their platform for foreign businesses. Setting up an entity in Oman provides investors with the opportunity to expand their business into other surrounding countries, which holds great potential for both established and new businesses.

Oman Free Zones are suitable for foreign companies looking to use Oman as a regional base for manufacturing and distribution and the country has specifically targeted businesses in the import/export industry. Free Zones always play a pivotal role in bringing international businesses to a region; if you are planning on expanding your business to Oman then there are many advantages of choosing a Free Zone entity:

Advantages of setting up in an Omani Free Zone:

  • Free Zone companies can be 100% foreign owned
  • There are no minimum share capital requirements
  • The are no corporate taxes for ten years, this is due to the tax holiday incentive
  • No import duty on imported and exported goods from the Free Zone
  • Free Zone companies in Oman are permitted to trade within the country without a local agent but will be required to pay 5% import duties.

Disadvantages of setting up in an Omani Free Zone:

  • Rental of commercial space in the specified Free Zone is mandatory regardless of the company size
  • Annual audited financials must be submitted to the Free Zone Authority to be eligible to renew a license
  • 10% or more of the employees must be Omani nationals
  • Free Zones in Oman are new and do not offer facilities like UAE Free Zones as of yet

SOHAR PORT & FREE ZONEDUQM PORT & FREE ZONESALALAH PORT & FREE ZONE Free Zone OverviewLocated close to Port of Sohar and Sohar Industrial Estate, this Free Zone is aimed at attracting investment in the following sectors: metal, steel, food and logistics.DESZ is strategically placed along the Arabian Sea coastline and is known as the import/export hub to the Middle East, North and East Africa and South Asia.Opened in 2005, this Free Zone is still under construction. Once complete, it will span across 19 sq.km, the Free Zone is next to the Salalah port and airport. Incentives- 100% foreign owned

  • No import duties
  • No income tax
  • No corporate tax for up to 25 years
  • No minimum capital requirements
  • 85% foreign workforce allowed
  • Covers all areas for relevant clearances - 100% foreign owned
  • No income tax
  • Long term leases at discounted rates
  • Waivers and reductions on corporate tax and customs duties
  • 100% repatriation of capital and profits - 100% foreign owned
  • No tax on profits and dividends for 30 years
  • No restrictions on the repatriation of capital or profits
  • No customs or excise tax
  • No minimum capital requirements
  • Competitive labour and utility costs Legal Structure - Free Zone Company (FZC)
  • Free Zone Establishment (FZE) - New Sole Proprietorship
  • New Trading Company
  • Branch of a Sole Proprietorship or local trading company located outside SEZD
  • Branch of a Sole Proprietorship or local trading company outside Oman - Free Zone Company (FZC)
  • Free Zone Establishment (FZE) Licenses Types and Costs - General Trading
  • Logistics
  • Manufacturing
  • Light Industry - Industrial Estates
  • Warehousing and Logistics
  • Tourist villages and resorts
  • Commercial, office and residential complexes - Commercial
  • Industrial
  • Service
  • Tourism
  • Real Estate Share Capital RequirementsNot required, although an average amount of OMR 20k is expected to be mentioned in the incorporation documentationNot requiredNot required Office Requirements- Plots of land
  • Warehouses
  • Business Support Services (min 20 sq.m required) - Plots of land
  • Warehouse and Light Industrial Units (LIU)
  • Business Support Services (offices) - Plots of land
  • Warehouse and Light Industrial Units (LIU) Business Support Services (offices)
  • Outlets Estimated Incorporation Timeline2 to 3 weeks2 to 3 weeks2 to 3 weeks Oman Work Visa Eligibility2 visa’s per 20 sq.m officeAs per the activity requirementsAs per the activity requirements

PRO Partner Group specialises in company set up in Oman, for more information on Omani Free Zone and mainland formation options, please email Natalia Shutilo on natalia@propartnergroup.com.

Share this article

Expert Advice

Book a call with one of our company formation specialists.




Meet the Pro Partner Group team,
a vastly skilled and experienced UAE team