Representative offices are governed by the Representative Office Regulatory Law. A representative office of a foreign company is legally distinct form a branch office of a foreign company in that it is only permitted to promote its parent company’s activities – it is in effect a shop window. Therefore, if a parent company deals in the sale and/or production of certain products and opens a representative office in Oman, the office will only be able to promote and market the sale and/or production of such products and facilitate contracts in Oman, as distinct from conducting the sale and production itself.
It should be noted that in addition to the above limitations, representative offices have other restrictions in that they are not allowed to obtain credit facilities or put forward offers.
In order to establish a representative office in Oman the parent company must provide a certified copy of the articles of association, a certified copy of the commercial registration certificate, authorisation for the manager of the representative office to manage the office and a letter of undertaking to bear all liabilities of the office.
For more information on setting up or expanding your business in Oman click on the links to the right. You can also download a guide to company formation in Oman. Alternative please a member of our team who will be happy speak with you to discuss your requirements – call us direct on +971 2 694 8535.