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Salalah Free Zone Company Setup- An Overview

Are you aiming to build your business empire in Oman? If yes, Salalah free zone company setup can be an excellent move for you. With over 140+ registered companies, the SFZ is an emerging business hub for logistics, food processing, pharmaceuticals, assembly & light manufacturing, reexporting, and green energy.

Salalah Free Zone company setup is a business registration procedure that allows foreigners to register a company in the Salalah Free Zone with complete ownership powers.

From a FZ Limited Liability Company & Free Zone Establishment to a branch and representatives, you can register a Salalah Free Zone business setup from anywhere.

As a non-Omani resident, you can liaise with the Free Zone authority, open a company bank account, enrol for taxes with the Oman Tax Authority, and obtain a business license with Enterslice. Our associates will also help you file your annual returns, register for VAT, declare the ultimate beneficial ownership, and fulfil compliance obligations.

0% Corporate Tax- Long Term Benefits

No Restrictions on Dividends and Earnings Repatriation

No Minimum Capital Requirement

Best location- Ease of International Business

Personal Income Tax- 0%

Enjoy 0% Customs Duty on Import & Export

Partner With Enterslice for Salalah Free Zone Business Registration

Partner with Enterslice for Salalah Free Zone business registration, establish a strong business presence, and take advantage of Oman’s Vision 2040 benefits for entrepreneurs.

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What are the Benefits of Company Registration in Salalah Free Zone?

The benefits of Salalah Free Zone company setup include corporate tax concessions, duty-free movement of goods, a strategic location for global trade, and no minimum capital requirement. The key advantages of the company registration in Salalah free zone are as follows:

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Zero Taxes

You don’t have to pay corporate taxes for a period of up to 30 years after the Salalah Free Zone business setup. As a business owner, you can enjoy financial incentives and use that money for company expansion and growth.

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0% Customs Duties

Goods like equipment, raw materials, and machinery to and from within the Salalah Free Zone are duty-free from import and export duties, meaning 100% customs exemption after you start operating from the free zone.

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Zero-Rated VAT

Once you register a company in the Salalah Free Zone, you can enjoy the zero-rated VAT treatment on supplies within the Free Zone. A reduced 5% rate does apply if you supply goods to the mainland region.

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No Ownership Control

Foreigners can completely own their Free Zone LLCs and FZEs after registration without any restrictions, meaning there’s no need to appoint a local sponsor or partner.

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100% Repatriation of Gains

As a foreign-owned business shareholder, you can repatriate 100% of your earnings, dividends, and profits to your home country without any deductions.

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Cost-Effective Logistics

With the Free Zone’s proximity to the Salalah Port, you can take advantage of the cost-effective container hub and reduce the logistics and shipping times after the Salalah Free Zone company formation.

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Ease of Operational Approvals

If you’re seeking Salalah Free Zone business formation, you can obtain various approvals like initial registration, business license, visa approvals, and related regulatory approvals through the Public Authority for Special Economic Zones and Free Zones (OPAZ).

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Free Trade Agreements

Oman has various types of Free Trade Agreements with over 20 countries, which allow entities to obtain market access to duty-free goods and services after the Salalah Free Zone company formation.

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Advanced Infrastructure

The Free Zone is specifically designed for manufacturing and industrial business activities with modern infrastructure, strong utility supplies, storage, and warehousing facilities.

What are the Types of Business Structures for Salalah Free Zone Company Formation?

You must have at least two members to establish a limited liability company. The type of business structures for Salalah Free Zone company formation is as follows:

Free Zone LLC

An FZ limited liability company is a structure that can be formed with two shareholders and one director. Highly recommended for global entrepreneurs and big partnerships. All members enjoy liability protection for their personal assets against business debts.

Free Zone Establishment

An FZE is a legal entity structure that can be registered by one shareholder who can be either an individual or a corporate entity. Most foreign entrepreneurs and sole proprietors go for this structure because it separates the liability of the business from that of the single shareholder.

Branch Office of a Foreign Parent Entity

Foreign parent entities can open a branch office as a Salalah Free Zone business setup. However, the setup doesn’t have a separate legal existence of its own. The parent organization controls the branch.

Representative Office

A representative office is a liaison office that is used by foreign founders for marketing, research, promotion, and networking within the Salalah Free Zone local market. You can conduct economic activities and commercial activities with an RO.

Branch Office of a Local Company

Business owners with existing Omani mainland companies can expand their business operations in the Salalah Free Zone by registering a branch office in the FZ region. Like a foreign company’s branch office, the local entity is responsible for all operations.

What Documents Are Required for Company Formation in the Salalah Free Zone?

The list of documents required for company formation in the Salalah Free Zone is as follows:

Application Form

Passport copies of all members

Proposed company names (at least three)

Specimen signature of all shareholders/directors

A lease agreement (flexi-desk or warehouse)

A latest passport-size photograph of key personnel

Business plan

Memorandum of Association

Articles of Association

A resolution appointing the manager

Specimen signature of the authorized signatory

A Board of Resolution for the branch office setup

A certificate of incorporation and good standing

Power of attorney (POA), if any

Register of all directors and shareholders

Audited financial statements of at least two years (for the branch office)

Company profile

 

Looking for easy and quick documentation?

How to Apply for Salalah Free Zone Company Formation with Enterslice?

Check out how Enterslice consultants will help you apply for Salalah Free Zone company formation, as explained below:

Select a Business Structure

Our associates will help you finalize a company structure based on your business activity. You can choose from Free Zone LLC, FZE, a branch office, or a representative office.

Submit Application and Obtain Initial Approval

The next step is to file an application to obtain the initial approval for registration, name approval, and lease from the Salalah Free Zone Authority. We'll submit documents like passport copies, corporate documents, proposed business names, and a business plan.

Obtain Lease Agreement

Our associates will assist you in leasing an office, such as a flexi desk, warehouse, industrial land, or a small private office in the Salalah FZ. Our legal associates will draft the lease agreement on your behalf before applying for the Salalah Free Zone company formation.

Submit Legalized Documents & Sign Incorporation Paperwork

Foreigners are needed to submit incorporation documents like the MOA, AOA, power of attorney, board resolutions, and related paperwork after notarization and legalization. Our lawyers will help you complete this task before the final submission to the authority.

Pay the Registration and License Fees

We'll submit the incorporation documents once you’ve signed them to the Salalah Free Zone Authority. You must pay the registration and license fees, as prescribed by the concerned governmental authority.

Issuance of Certificate of Registration and License

The Free Zone authority will issue the commercial registration certificate and Free Zone license for company formation in the Salalah Free Zone.

Enroll for Corporate Tax

Even though there’s a tax exemption for over 25+ years, you must still register for corporate tax with the Oman Tax Authority for compliance after the Salalah Free Zone business setup.

Open a Corporate Bank Account

We'll help you apply for a company bank account opening in top banks that are foreign-founder friendly, like the Bank Dhofar, Bank Muscat, Sohar International, and National Bank of Oman.

 

Confused about the process of Oman Salalah Free Zone business registration?

What is the Timeline for Salalah Free Zone Company Formation?

The timeline for Salalah Free Zone company formation is as follows:

Choose a Company Name: 1 to 2 days

You should search the company name through the MOCIIP portal to ensure your name doesn’t conflict with any mainland companies. Send out three proposed names to the SFZ authority.

Obtain Initial Approval: 2 to 3 days

Submit the application form, passport copies, a list of proposed business activities, company name, and shareholder details to the Salalah Free Zone Authority to obtain the initial approval.

Document Submission and Lease Agreement: 3 to 7 days

Notarize and legalize the shareholder documents and sign a lease agreement with registration/license fees to finalize the company formation in the Salalah Free Zone.

Grant of the Registration: 2 to 5 days

The Salalah Free Zone Authority will review the documents and grant the Commercial Registration, Chamber of Commerce Enrollment, and Trade License certificate.

Tax Registration: 1 to 2 weeks

Apply for a corporate tax ID with the Oman Tax Authority once you’ve completed the Salalah Free Zone license process and registration.

Bank Account Opening: 2 to 4 weeks

Set up a corporate bank account by submitting your business plan, incorporation paperwork, and compliance documents, as requested by the banking authorities, to conclude the Salalah Free Zone company formation process.

What are the Key Criteria for Salalah Free Zone Business Setup?

The key criteria for Salalah Free Zone business setup are as follows:

  • At least one individual member for a Free Zone Establishment.
  • At least two shareholders and one director for FZLLC.
  • A business plan with an organizational structure.
  • A lease agreement for an office or a warehouse facility.
  • NOC from the Ministry of Environment.
  • The shareholder can be a natural person or a legal entity.
  • There's no minimum capital required for the Salalah FZ setup.
  • The owner must hire at least one Omani National after commencing operations.
  • The parent entity must submit incorporation documents for the branch office setup.
 

Get an insight into the requirements of the Salalah Free Zone license process.

Top Businesses for Salalah Free Zone Company Formation

The Salalah FZ is mostly famous for industrial, logistics, and light assembly business activities for the Salalah Free Zone company formation.

Top Industries for Salalah Free Zone Company Setup

  • Renewable Energy
  • Distribution and Logistics
  • Manufacturing
  • Assembly
  • Pharmaceuticals
  • Services

Common Activities for Salalah Free Zone Business Registration

  • Raw Material Processing
  • Light/Heavy Manufacturing
  • Warehousing
  • Supply Chain Management
  • Storage Services
  • Import and Export of Goods
  • Food Processing
  • Cargo Handling
  • Marketing and Consultancy
  • Spare Parts Manufacturing and Supply
  • Tech and Engineering Services

Aware of the Compliance Requirements After Salalah Free Zone Company Formation?

Enterslice's compliance team will help you fulfil the annual obligations within deadlines. The compliance requirements after the Salalah Free Zone company formation are as follows:

  • Submit the Ultimate Beneficial Ownership Report to the SFZA.
  • Renew the business license every year after registration. 
  • Maintain the office lease and renew the agreement accordingly. 
  • Obtain the Tax Identification Number (TIN) from the Oman Tax Authority. 
  • File annual tax returns within 4 months of the year's end. 
  • Prepare and maintain financial statements.
  • Enrol for VAT if the annual turnover exceeds USD 100,000. 
  • Submit monthly/quarterly VAT returns.
  • Prepare employment contracts and obtain labour clearance. 
  • Ensure compliance with the Wage Protection System (WPS).
  • Apply and renew for visas if required.
  • Hire at least one Oman national if you’re a Free Zone LLC. 
  • Inform the SFZA if there’s a change in owners or entity within 5 days of the change. 
  • Non-compliance with FZ rules could lead to hefty penalties. 

Curious to Know about Salalah Free Zone Company Setup?

At Enterslice, we will enlighten and help you with effortless Salalah free zone company setup.

  • 100% Remote Assistance
  • Saved 40,00,00+ Hours of Founders in Oman

Why Trust Enterslice for Salalah Free Zone Company Formation?

Enterslice is a global business incorporation service provider. We’ve successfully helped over 5,000+ foreign entrepreneurs, startups, and SMEs in the Middle East's top jurisdictions like the UAE, Saudi Arabia, Egypt, and Oman. Key reasons to trust Enterslice for Salalah Free Zone company formation are as follows:

  • 99% Omani Client Satisfaction Rate Achieved
  • 15+ Years of Experience in Oman Corporate Law
  • 24/7 Support for Omani Investors Globally
  • 1000+ SMEs Registered in Oman Annually
  • 100% Compliance with Oman Salalah Free Zone Regulations
  • Office Located in Muscat, Oman
  • Virtual Office Support for Global Investors like you

Frequently Asked Questions on Salalah Free Zone Business Setup

You can apply for the company formation in the Salalah Free Zone from anywhere- fully remote, meaning you don’t have to travel to Oman for starting a business in the FZ, as a foreigner.

Yes, the SFZA allows 100% ownership for global entrepreneurs looking to register a business setup in the Salalah Free Zone without needing to appoint a local director or sponsor.

Companies registered in the SFZ don’t have to pay the usual 15% income tax for up to 30 years after the incorporation. Moreover, foreign founders are free to repatriate their earnings after the business is set up fully.

Although not mandatory by law, you should appoint a corporate service provider who would assist you in completing formalities for license approvals, bank account openings, local employee hiring, and visa approvals.

A Free Zone limited liability company is good for two or more partners with flexible management and liability protection. Other options include a free zone establishment, a branch office, and a representative office. Besides, an FZE is more advantageous for a single-member business setup.

No, currently there are no restrictions for foreigners seeking a Salalah Free Zone company setup for most business sectors like manufacturing, logistics, green energy, warehousing, supply chain businesses, and services.

The company formation in the Salalah Free Zone will allow you to: 1) enter the international business trade; 2) save business profits via 100% earnings repatriation; 3) have no tax liabilities- zero-rated VAT, customs duties, and corporate tax; 4) ability to scale up operations in other GCC jurisdictions; and 5) simplified and centralized licensing setup.

The fee structure (in USD) for the business setup is as follows:

  • Registration: 2,000
  • License (trading, industrial, or service): 2,500 – 7,800
  • Chamber of commerce registration: 260-780
  • Flexi desk lease: 3,900-7,800

The above-mentioned structure doesn’t include capital investment by individual shareholders.

No, you don’t require an Omani resident as your company’s local partner or director since the Free Zone allows complete foreign ownership for non-resident founders for Salalah Free Zone company formation.

All legal entities are required to get separate approvals alongside the company incorporations, depending on their business activity. Common licenses include trade, industrial, and services.

No, you can establish an offshore company in the free zone. All owners are required to lease an office, land, warehouse, or flexi desk within the FZ. Besides, the offshore setup is not permitted by the authorities due to the requirement of actual business operations after registration.

Yes, companies are allowed to update or modify their licensed activities by formally applying with a request and obtaining the mandatory approvals from the SFZA and ensuring compliance with the regulations.

Currently, there’s no minimum fund mandate by the SFZA for global and non-Omani residents seeking an LLC or FZE in the SFZ, Oman, easing the financial burdens for SMEs and startups.

Yes, you can lease ready-to-use warehouses, storage facilities, factory settings, and industrial units for foreigners since investors can’t own land in the Salalah Free Zone. However, you can lease the office or workplace for at least 30 years.

Yes, as a foreign founder, you’ll have to employ at least one local resident in accordance with Oman’s legislation and regulations after you register a company in the Salalah Free Zone.

If you cross the required threshold of USD 100,000 in a year, then you will need to enrol for Value Added Tax. Accordingly, you will have to file monthly and quarterly reports with the Oman Tax Authority.

The standard corporate income tax is 15% in Oman, and a 10% is applied on payments to non-residents for management fees, services, and royalties. The rate doesn’t apply to the Salalah Free Zone-registered companies after incorporation.

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