Monday, November 29, 2010

Post-Incorporation Requirements

For new companies that are incorporated in Oman, it is often unclear what procedural formalities they must follow in order to get fully up and running. This article highlights a sampling of the key steps that new Omani companies must take:

  • A company which has its share capital deposited in a pre-incorporation bank account should first seek to get the account reactivated by the designated manager of the company. The banks typically require evidence of commercial registration and of the authority of the manager, both of which can be established via the commercial registration documents issued by the Ministry of Commerce and Industry.
  • It is mandatory for a new company to register with the Secretariat General of Taxation at the Ministry of Finance generally within three months of the date of incorporation.
  • The company must obtain an approval from the relevant municipality for commercial operation, office signage, etc. The municipality assigns a distinct registration to each company.
  • A new company must also enter into a lease agreement for its principal office, which lease must be registered with the relevant municipality. A related commercial requirement is obtaining a P.O. Box address for the company from the postal authority.
  • In accordance with Oman’s labour laws, the employment contract of an Omani national employed by a company must be registered with the Ministry of Manpower, and within 15 days of the registration the employee must be enrolled with Public Authority for Social Insurance to allow for monthly social insurance contributions from the employer and the employee.
  • If employing one or more expatriates, the company must obtain labour clearance from the Ministry of Manpower and employment visas from the Directorate General of Passport and Residence of the Royal Oman Police.
The above list is not exhaustive, as there might be other government-approval requirements depending on the company's business. Many of these administrative requirements can be performed by the company’s Omani public relations officer, and as lawyers we are able to assist with the more complex matters.